China mulls brand assessment for SOEs

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China's state assets manager and supervisor is mulling factoring brand value into its assessment of state-owned enterprises' (SOEs) performance.

"Currently, the State-owned Assets Supervision and Administration Commission (SASAC) is doing research into adding brand value into the assessment of SOEs," said SASAC vice chairman Huang Shuhe at a brand-building forum for SOEs in Beijing on Tuesday.

As evidence of the need for Chinese enterprises to build stronger brands, Huang pointed to a list of the world's top 500 companies that consultants Interbrand compiled earlier this year. Though 45 Chinese SOEs directly under SASAC supervision made the list, none was a globally leading brand.

"The lack of world-renowned brands is the most serious weakness facing China's SOEs," Huang said.

He warned that 20 percent of the world's major brands have monopolized 80 percent of markets worldwide, noting, "A company without a brand is destined to become a factory providing hard labor."

The vice chairman urged SOE managers to attach greater importance to and prioritize brand building by updating their old mindsets.

Huang revealed that a government document released at the end of last year had proposed introducing special rewards for SOEs' top managers for their achievements in brand building.

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