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Private firms prove more agile in getting brands recognized (2)

By Liu Jie and Wang Zhuoqiong (China Daily)

10:14, December 05, 2012

Motivated by profit, she added, the entrepreneurs involved have become more sensitive to market trends than State-owned enterprises.

"Strong brands can deliver stronger performances in a slower economy, and brand importance is increasing specifically," she said, adding that China's private companies are detecting trends better, and responding quicker, than their SOE counterparts.

The brand study also found that the stronger brands had significantly outperformed the stock market in China.

Measured against the MSCI China Index over the past 14 months, the BrandZ China Top 50 has grown by 5.8 percent compared with a decline of 5.6 percent in the MSCI China Index, proving that companies with strong brands are able to deliver better value to shareholders, said the report.

David Roth, CEO of The Store, WPP's retail practice, added that maintaining a strong brand has been especially to companies that are looking to be successful in international markets.

While some Chinese SOEs topped the list of the most internationally recognized brands - the first three were China Mobile Ltd, Industrial and Commercial Bank of China Ltd, and China Construction Bank Corp - several private companies were commended for making great strides.

The report noted that 58 percent of Lenovo's revenue came from overseas, for instance, and Midea, Youngor and Gree, registered 28 percent, 23 percent and 19 percent, respectively.

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