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E-mail China Daily, September 13, 2024
Media and entertainment brands, such as Douyin and Xiaohongshu, continue to absorb e-commerce business users from the more traditional, retail-first online e-commerce platforms, said a senior executive of Kantar consulting firm's China arm.
The strong presence of the media and entertainment sector, which is increasingly intertwined with China's digital economy, indicated that China is shifting more toward a consumer-driven economy, said Sirius Wang, managing director of product and operations at Kantar Greater China.
He made the comments as the firm on Tuesday published the 2024 Kantar BrandZ Top 100 Most Valuable Chinese Brands Ranking, which combined financial data analytics with extensive brand equity research based on interviewing consumers.
With 13 brands in the media and entertainment sector securing a seat on the list, the category became once again the largest by total brand value on the annual list.
Chinese brands' content-driven e-commerce strategies lead globally, and are deeply integrated into almost every aspect of consumers' daily life, which drive the growth of value of brands in the media and entertainment sector, said Wang.
"For example, by creating trendy topics, Xiaohongshu, which is listed 31st in the rankings with a brand value of $7.3 billion, has proven to improve consumers' favor and trust for brands and build broader commercial influence," he said.
This year's top 100 Chinese brands are from 21 categories. Those from media and entertainment, financial services, alcohol and retail categories combined account for nearly two-thirds of the total value of the top 100 brands. Tencent, Moutai, and Alibaba take the top three spots in the rankings with their brand values of $129 billion, $87.3 billion, and $68.5 billion, respectively.
A noticeable trend across categories is that Chinese consumers are increasingly willing to spend on personalized experiences and holistic well-being, especially with the expansion of the middle-income group and urbanization.
Consumers are seeking experiences that improve both physical and mental health, such as mental wellness programs, healthier food options and fitness activities, said Wang.
"Brands that offer personalized nutrition, including DNA-based diets or microbiome-targeted supplements, and AI-driven fitness solutions, such as smart gyms and wearable devices, are well-positioned to thrive," Wang added.
Companies like Meituan and JD Health are expanding personalized wellness and health offerings through AI and data analytics, enabling consumers to track and enhance their health journeys, he said.
"Also, individuals exhibit rising interest in plant-based, organic, and natural food products. Major beverage brands, such as Genki Forest and Nongfu Spring, have launched zero-sugar products," explained Wang.
The total value of the 2024 Kantar BrandZ Top 100 Most Valuable Chinese Brands Ranking falls by 4 percent this year, a welcome leveling-off since the previous two years saw double-digit percentage declines.
The data also show that many top brands have begun to retool for a new era of stable growth. Last year, four brands grew their brand value by 20 percent or more, compared to 11 this year. They include this year's top riser, Huawei, plus other global powerhouses, like Douyin, Haier and Pinduoduo.
As the number of retail brands among the top 100 shrinks, the firm noticed that a rising number of Chinese consumers are looking for practical purchases that balance quality and affordability.
According to Bain & Co, the affordable luxury segment in China grew by 8 percent in 2023, driven by brands that offer perceived luxury at lower price points. Brands like Michael Kors and Coach see increased popularity as consumers downgrade from premium luxury brands while still seeking status symbols.
