For the first time, over 17 Chinese brands made it on the latest BrandZ Top 100 list—ranking the most valuable global brands—which was published on June 30. Alibaba and Tencent ranked 6 and 7 respectively. The lists included a couple new risers, including the technology companies Huawei, TikTok, Meituan, and the luxury spirit brand Moutai, signaling the increasing strength of Chinese homegrown brands. The race among luxury brands is fierce as ever, led by Louis Vuitton, Chanel, Hermès, and Gucci.
The report gave a holistic view of brand value in the COVID-19 era. Compared to the 2008 financial crisis, BrandZ predicted that it will take two years for luxury brands to fully recover, but many have already proven their resiliency by leveraging the China market.
Doreen Wang, Kantar China CEO and Global Head of BrandZ, suggested that now it’s the time for brands to increase their perceived value, and it’s now also time to digitize business models. 70 percent of brand leaders interviewed believe that brands no longer need to apply “digital lipsticks” anymore, but instead, a revamp of their logistics, supply chain, and entire operations is what’s in order for them to enjoy continued growth and success.
The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.