|Source: Hurun Report|
The Shanghai-based Hurun Research Institute announced Monday that private companies now outnumber State-owned enterprises on its list of the 200 most valuable Chinese brands.
The Hurun brand list, compiled annually by the group since 2007, this year includes 98 brands created by private companies such as Baidu Inc and Wahaha Group as well as 94 brands launched by State-owned enterprises such as China National Petroleum Corporation.
"The top brands usually communicate efficiently with customers on new media platforms using innovative campaigns," Rupert Hoogewerf, founder of Hurun Report, said Monday. "Effective branding is key for any companies, private or State-owned, to sustain their growth and achieve success in the long run."
Hoogewerf said no listed companies sponsored the report.
State-owned China Mobile won the first spot on the top-200 list by creating a brand that is worth 251 billion yuan ($40.9 billion), according to the Hurun Report. The telecom giant has topped the list six out of seven years since 2007.
With a brand value of 106 billion yuan, Baidu has earned the title of most valuable private brand three years in a row. The Internet search engine provider ranks fifth on the list, following State-owned firms China Mobile, Industrial and Commercial Bank of China, China Construction Bank and Bank of China.
Ranking second and third among the private companies are Internet service giant Tencent Holdings with a brand value of 88 billion yuan and Ping An Insurance Company of China with a brand value of 69 billion yuan.
Private companies were reported to hold the top three fastest-growing brands.
Privately owned online clothing seller Vancl has seen the most dramatic upsurge in its brand value, which has grown by 318 percent from last year to reach 4.6 billion yuan. Vancl is followed by private property developer Greentown, whose brand value jumped by 218 percent, and online shopping site tmall.com, up 171 percent.
Wang Danqing, an industry analyst with management consulting firm ACME Consultancy, told the Global Times Monday that private companies are more motivated to create strong brand names because they operate under market pressures that State-owned enterprises do not face.
Cindy Wu, CEO of Shanghai-based marketing and branding company ChinaRewards, said that brand loyalty helps firms retain customers and make profits. "If the customer loyalty of a firm increases by 5 percent, the company's profit jumps by 85 percent," she commented Monday about the Hurun brand list.
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