TikTok, the Chinese social media giant, is the world’s fastest growing brand, up 215% over 2021, according to BrandFinance, a firm that rates the Global 500 strongest and most valuable brands.
Even more interesting, 11 of the top 25 most valuable brands, the report finds, are Chinese companies; only nine are based in the U.S. The U.S. still comprises 48.64% of the total value of the leading 500 brands, because of American biotech companies. China’s piece of the global pie is only 19.31%, but rising. Germany and Japan both comprise less than 6% of global 500 brand value, despite iconic names like Mercedes and Toyota.
While the worlds most valuable brands still are U.S., Apple, Amazon, Google, Microsoft and Walmart, in that order, with Facebook/Meta in 7th place place and Verizon in 10th. Google climbed from 39th to 3rd place, a impressive accomplishment.
In terms of sectors, tech still leads, retail declined and pharma gained. SnapChat gained an enviable 184%, not far behind TikTok, up 215%. Semiconductor maker AMD was up 122%.
Global brands that gained and lost the most value in 2021
Chinese companies, relatively unknown in the U.S., grew or maintained their value. They include ICBC, China Construction Bank, Agricultural Bank of China, Ping An, Tabao.com, on online platform, and Tmall.com, business-to-consumer online retail, spun off from Taobao.
Huawei was ranked 9th, behind ICBC, Industrial and Commercial Bank of China.
The power of Chinese brands, significant for well over a decade, is now making itself more apparent, as the incredible growth of TikTok can attest. However, a number of China-based brands lost value, including Alibaba, down 42% over 2021.
Value and Relative Strength
Apart from calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Certified by ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from around 100,000 respondents in over 35 countries and across nearly 30 sectors.
According to these criteria, WeChat remains the world’s strongest brand, retaining the title for the second consecutive year, with a Brand Strength Index (BSI) score of 93.3 out of 100 and a corresponding AAA+ rating. In terms of USD value, WeChat comes in at 13th in 2022, down from 10th.
WeChat plays an integral part in day-to-day life in China, with its all-encompassing set of services allowing customers to message, video call, order food, and shop. It also played an integral part in the country’s fight against COVID-19, with more than 700 million people using its services to book vaccinations and tests. The app’s entrenchment in people’s lives helps it achieve strong scores in reputation and consideration among Chinese consumers, according to Brand Finance’s research.
The table view of 2022 ranking with USD values can be found here.
The full, well-illustrated Global 500 report can be found here.
Image source: BrandFinance.com