The Global Reputation of Chinese Brands Embraces Accelerated Growth

24-08-23

Under the background of "promoting high-level opening up to the outside world", EqualOcean will release the "TOP50 GoGlobal Brands in China, 2023" report at the "GoGlobal 100 Forum" in Shanghai in November 2023, and elect the leading goglobal brands in various industries. It will also interpret and analyze their development status, practices and development trends, and sort out the industry chain of goglobal businesses.

Under the background of "promoting high-level opening up to the outside world", EqualOcean will release the "TOP50 GoGlobal Brands in China, 2023" report at the "GoGlobal 100 Forum" in Shanghai in November 2023, and elect the leading goglobal brands in various industries. It will also interpret and analyze their development status, practices and development trends, and sort out the industry chain of goglobal businesses.

This article is a phased presentation of the research results of the report, outlining the reputation of Chinese brands from a global authoritative perspective. To learn more about the report and participate in the evaluation of "TOP50 GoGlobal Brands in China, 2023", click the link or scan the QR code at the end of this article.

Chinese enterprises' comprehensive engagement in global competition is an established trend in this era of uncertainty. After decades of exploration, Chinese enterprises have transformed from being relatively unknown on the global stage to now being able to compete on par with international players without lagging behind. According to Tianyancha data, the number of Chinese enterprises entering overseas markets has shown a significant growth trend over the past five years, increasing from 230 in 2018 to 408 in 2022. As more Chinese enterprises expand globally with deeper localization, the international influence of Chinese brands is also steadily rising.

EqualOcean has reviewed various brand-related rankings released by international media outlets or research institutions, observing the evolution and performance of China's brand globalization value from a global authoritative perspective. This provides insights into how overseas markets perceive the evaluation of emerging Chinese brands.

Chinese Globalized Brands Rose Rapidly in Recent Years, with Consumer Electronics Leading the Way

Since 2020, amidst the impact of Black Swan events like COVID-19, deteriorating US-China relations, and the Russia-Ukraine conflict, Chinese Brands have continued to demonstrate remarkable resilience and vitality, achieving sustained growth in a globally unstable political and economic environment.

In the "2023 Kantar BrandZ Top 100 Most Valuable Global Brands" released this year, Tencent became the only Chinese brand to secure a position in the top 10 of the list. A total of 14 Chinese brands made it to the list, maintaining the same number as the previous year. These brands include Tencent, Alibaba, Moutai (茅台), Douyin (抖音), Meituan（美团）, Huawei（华为）, Haier（海尔）, JD.com (京东), ICBC (中国工商银行), SHEIN（希音）, China Mobile (中国移动), Nongfu Spring (农夫山泉), Ping An (平安), and AIA (友邦保险). Nongfu Spring and SHEIN made remarkable progress by entering the list for the first time, while Kuaishou (快手) and Xiaomi（小米） dropped off the rankings. The combined value of Chinese brands on the list accounted for 9% of the total.

According to another joint release by Google and Kantar, the "Top 50 Chinese Globalized Brands of 2023," we can gain insights into the unique strengths of Chinese brands across various sectors. In this list, the consumer electronics category continues to dominate, occupying half of the top ten spots, including Xiaomi, Lenovo（联想）, Huawei, OPPO, and ViVo, accounting for 28% of the overall ranking. Based on the data from the list, over the past four years, the overseas visibility of the Top 50 Chinese Globalized Brands has increased by 60%, and the consideration to purchase from foreign markets has risen by 82%. This indicates a significant achievement in the internationalization of Chinese brands.

The performance of internet brands in the list is commendable, with content and entertainment apps along with mobile games holding 15 positions globally. Among them, Bytedance（字节跳动）takes the top spot, showcasing its widely recognized global influence and remarkable brand value. Additionally, companies like Tencent（腾讯）, Kuaishou, miHoYo（米哈游）, Magic Tavern（麦吉太文）, and Lilith（莉莉斯） have also established strong brand presence.

This year, the newly listed top 10 brands come from 7 different categories. They include Maxus（上汽大通） and Lynk & Co（领克汽车） from the automotive category, Roborock（石头科技） and Insta360（影石） from the smart devices category, Homary and Costway from the home and garden category, Habby（海彼网络） from the mobile gaming category, TECNO（传音）from the consumer electronics category, MangaToon from the content and entertainment app category, and Trip.com from the online lifestyle services category. In addition, brands like realme, Kuaishou, WORX（威克士）, Chery（奇瑞）, Great Wall Motors（长城汽车）, and Magic Tavern have shown significant improvements in their rankings. These brands have achieved growth in brand strength by offering innovative solutions that resonate with consumers' aspirations.

Measuring Global Brand Influence Through Technological Innovation Capability

The technological innovation capability of companies is also a crucial metric for measuring the global brand influence. In Boston Consulting Group's '2023 Global Most Innovative Brands' report, two Chinese brands, Huawei and BYD（比亚迪）, have emerged as standout players, securing positions within the global top ten at 8th and 9th place, respectively. Additionally, six Chinese brands have entered the top 50, including Xiaomi (29th), Sinopec (中国石化，32nd), ByteDance (36th), Alibaba (44th), PetroChina (中国石油，46th), and Lenovo (48th).

BCG points out that companies prioritizing innovation are consistently widening the gap with their competitors. These companies rely on technological innovation to continually introduce new products, explore new markets, and create entirely new sources of revenue. Take BYD as an example; as one of the leading companies in China's new energy vehicle industry, BYD has been committed to R&D and innovation in EV core technology. In 2022, its R&D investment reached 18.654 billion RMB, an increase of 133.44% year-on-year. As they enter 2023, BYD continues to intensify its investment, with R&D expenses in just the first quarter reaching 6.238 billion RMB, a YoY increase of 164.24%. Increasing R&D investment and valuing innovation will be the foundation for Chinese brands to break through in global markets.

According to Brand Finance's "Global Tech Brands 2023" report, which focuses on the technology sector (technology, electronics, software, and semiconductors), Chinese brands TikTok , WeChat（微信）, and Huawei have entered the top ten. Despite facing challenges such as political resistance, global semiconductor shortages, and declining smartphone demand, Huawei's brand value dropped by 38% to $44.3 billion. There are a total of 22 technology brands from mainland China on the list, including newcomers like CATL (Contemporary Amperex Technology) and Hikvision.

Rising Consumer Brands Join the Ranks of Globalization Brand Contenders

In the past few years, the consumer industry has experienced significant ups and downs. As it sets sail once again, certain brands have demonstrated a strong willingness to engage in internationalization. After enduring the increasingly complex domestic consumer landscape and the diversification of consumer demands, new consumer brands venturing overseas have shown remarkable resilience and competitiveness. Throughout the process of brand globalization, factors such as brand scale, operational growth capability, the potential for new consumer trends, and brand influence are key determinants.

Since its inception, CHI Forest（元气森林）, the pioneer of defining "Sparkling Water," has aspired to become a global brand. Since embarking on its global journey in 2019, CHI Forest has expanded to over 40 countries and regions worldwide, including the United States, the United Kingdom, France, Singapore, and Malaysia. This success is closely tied to the brand's emphasis on health attributes. In 2022, CHI Forest received the "Health Star" certification from Australia and New Zealand, achieving a 4-star rating and securing a leading position within the beverage category. This certification holds significant importance for CHI Forest's market expansion.

In December 2021, CHI Forest entered the top ten list of Amazon's best-selling sparkling water and the top three list of new sparkling water products, becoming the first and only Chinese brand on this list. Additionally, they maintained a top ten position in Amazon's sparkling water category for two consecutive Black Friday seasons. In mid-July 2022, CHI Forest entered Grandlucky, a chain supermarket in Indonesia. In August of the same year, they collaborated with Malaysian conglomerate Berjaya Group, covering 80% of CVS sales channels in Malaysia, spanning over 2,000 7-Eleven stores and more than 350 MyNews stores. In the same month, CHI Forest's products were fully launched and sold across all 1,000 stores of Australia's mainstream supermarket chain, Woolworths, making them the only Chinese beverage brand with a comprehensive presence in the Woolworths system. Simultaneously, CHI Forest partnered with Indomaret, Indonesia's largest convenience store chain with over 20,000 stores, representing nearly 40% of Indonesia's modern channel share.

China's domestic supply chain advantage offers robust support for new consumer brands to enter international markets. Against this backdrop, beauty brand FLORTTE（花洛莉亚） successfully entered the competitive Southeast Asian market. Established in 2018, FLORTTE primarily targets the millennial generation, offering high-quality cosmetics products priced under 100 RMB. Starting from TikTok, FLORTTE diversified its beauty product content marketing and promotional strategies to cater to different skin tones and makeup habits in Southeast Asia, thereby expanding its local market.

Beauty device brand AMIRO, on the other hand, is a new consumer brand that began domestically and early on focused on global business. The beauty device sector it operates in reached a global market size of over $30 billion in 2021, with facial beauty devices accounting for 65%. With an annual growth rate of 16.2%, the market is projected to reach $87 billion by 2028. Impacted by the pandemic, many offline beauty salons were forced to close or alter their operations within the past three years. This shift led to a transfer of some consumer demand to the home beauty device market, which AMIRO capitalized on. Their spokesperson noted that with robust domestic supply chain support, their products are well-suited for the Southeast Asian market. Additionally, China's status as the largest beauty consumer market in Asia enables AMIRO to construct a comprehensive product system, accumulate market experience, and offer valuable insights for Southeast Asia and other Asian markets.

A pivotal transformation for new consumer brands entering foreign markets is transitioning from relying on distribution channels to establishing independent, cohesive brand identities for direct communication with overseas consumers. In today's landscape, the role of social media platforms like TikTok, Instagram, and YouTube in brand-building is becoming increasingly apparent. Outbound brands can continuously gather feedback from users regarding brand perception and specific niches through social media engagement. Influencer endorsements, livestreaming, and similar methods also offer cost-effective options for brand launch and enhancing brand loyalty.

Using Florasis（花西子） as an example. After global beauty influencer Jeffreestar acclaimed it as "the most beautiful makeup in the world," Florasis experienced a tremendous surge in traffic on its overseas official website. Currently, Florasis has garnered over 2 million followers on platforms like TikTok, Instagram, and Facebook, solidifying its position as a top-tier contender among emerging consumer brands in the global market.