Alibaba has been crowned China’s most valuable company for the first time after increasing its brand value by 59 per cent to $141 billion last year.
According to the latest data from BrandZ, the Chinese retail giant has seized the top spot from its tech rival Tencent, rising from second place last year and marking an end to Tencent’s four-year period at the top.
This is thanks to both runaway growth at Alibaba and a lacklustre year of growth at Tencent, which saw its brand value grow just four per cent last year to $138 billion, largely due to the Chinese government’s crackdown on the gaming industry.
BrandZ’s annual Top 100 Most Valuable Chinese Brand ranking, published by Kantar and WPP, reported the most significant growth in the value of China’s top five brands since 2011, rising 30 per cent to $889.7 billion.
Both Alibaba and Tencent still maintain a significant lead on their nearest rivals ICBC, China Mobile and Moutai, which were worth $40 billion, $39 billion and $36 billion respectively.
WPP and Kantar said that Alibaba’s rise “reflects the growth of a brand which has contributed to transformational changes in the Chinese market.
“Instead of relying on traditional ad placements, it focuses on leveraging the power of its platforms to create value for society — and incorporating this dedication to generate social value in its business model.
“Whether going abroad or expanding domestically, the potential for brand growth is huge for China’s most valuable brands. But realising it requires the knowledge and expertise needed to surmount new challenges. This report highlights the importance for Chinese brands to build difference in the domestic and global marketplace”
The report took into account market analytics from Bloomberg and insights from over 3.7 million consumers worldwide.