Global Brands Lose Advantages in China: Report
For the first time, local Chinese brands are equal to international brands in a measurement index-meaning they are now in many ways perceived as equally competitive, new research found.
According to advertising giant WPP and its market research unit Millward Brown, bot hmultinationals and local Chinese brands score100 on the metric of Brand Power--the BrandZmeasurement of brand equity.
But Chinese brands have the advantage of upward momentum, while international brands are weakening, it said. In 2010, multinationals scored 115, while Chinese brands scored only 89.
A decade ago, international brands were synonymous with quality in the minds of certain Chinese consumers. They offered status and bling, while local brands could only as pire to being" good enough".
Uncertainty consumers in China once felt toward domestic products is gone. Local brands are challenging and beating global competition and consumers increasingly believe they are comparable, according to Millward Brown.
The total value of BrandZ 2016 top 100 most valuable Chinese brands rose 13 percent in 2015, despite the economic slow down, as consumers remain confident in their spending and optimistic about living a better life, it said. Millward Brown said that Chinese brands are doing a better job than their global rivals, improviding quality and value and leveraging the right channels to make its products available to Chinese consumers.