Hurun says Kweichow Moutai Chinas most valuable brand for fifth straight year in 2022 amid rising
Chairman Mao’s favourite tipple led China’s top brands in 2022, as consumer firms outperformed technology giants and social-media platforms during a volatile year, according to the latest Hurun brand rankings released on Monday.
Shanghai-listed Kweichow Moutai was the most valuable Chinese brand for a fifth straight year, according to the 2022 Hurun Brands List. The liquor maker, which is also one of the most valuable stocks in the country, was the only brand on the list with value of more than 1 trillion yuan (US$145.2 billion).
The liquor giant’s brand value – measured through openly available economic data and surveys among consumers – was equivalent to the total values of the next six brands that followed it on the list: Shenzhen-listed liquor maker Wuliangye Yibin, Shanghai Tobacco’s China Tobacco, ByteDance’s Douyin, WeChat and parent firm Tencent Holdings, and JD.com, Hurun said. The rankings have been calculated according to the market value of listed companies based on their stocks’ closing prices on July 29 last year, and their peers’ price-to-earnings ratios for private firms.“Chinese consumers’ trust in private brands has obviously strengthened in the recent few years. [About] 62 per cent of the companies in the ranking were brands by the private sector, compared with 61 per cent a year ago and 39 per cent a decade ago,” Rupert Hoogewerf, Hurun’s chairman, said in a statement.
The rankings showcase the continued strength of consumer brands, especially liquor producers in China, despite various headwinds that ranged from an economic slowdown to strict Covid-19 restrictions and financial market volatility last year.
They also painted a picture of woe. The total brand value of the top 300 brands plunged 14 per cent to 7 trillion yuan, while the entry threshold for the top 100 brands was 13.5 billion yuan, 2 billion yuan lower than last year, Hurun said.
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The slump came as Chinese companies last year struggled with stringent pandemic restrictions and lockdowns, which hammered earnings growth and shut down thousands of businesses. They were also hit by Beijing’s crackdowns on the high-flying technology, education and property sectors, which wiped out billions of dollars in market capitalisation. At the same time, tighter scrutiny and sanctions by the United States took a toll on technology companies such as ByteDance’s Tik Tok, the overseas sister firm of Douyin.
As a result, eight of the top 10 brands plunged in brand value, with Tencent down 47 per cent to 125 billion yuan, WeChat and Douyin down by more than 30 per cent each to 160 billion yuan, and JD.com down 25 per cent to 120 billion yuan.
Kweichow Moutai’s value, however, rose 2 per cent to 1.035 trillion yuan, and along with liquor brand Guojiao 1573 of Luzhou Lao Jiao, was one of only two companies among the top 10 that recorded gains in brand value. Guojiao 1573, which ranked 9th on the list, recorded a 28.5 billion increase in brand value to 105 billion yuan, the biggest jump on the list.
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Some other companies also recorded big jumps. The brand value of emerging social-media platform Little Red Book tripled to 21 billion yuan, making it the firm with the biggest gain in percentage terms.
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