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Business

Brand value eludes Chinese companies

Only two Chinese companies in top 100 global rankings

GUANGZHOU -- China may have become the world's second-largest economy, but in terms of brand value, Chinese companies still have a long way to go.

U.S. consultancy Interbrand released its 2016 Best Global Brands report in October. The rankings are based on factors such as impact on consumer purchasing behavior as well as the companies' financial standing.

Big U.S. brands topped the list again this year; Apple and Google ranked first and second, while Coca-Cola came in third. Toyota Motor ranked fifth, becoming the first Asian company to join the top five.

Only two Chinese companies made the top 100; smartphone manufacturer Huawei Technologies ranked 72nd, while PC maker Lenovo Group came in 99th.

Most of the country's biggest names, such as e-commerce giant Alibaba Group Holding, smartphone maker Xiaomi or internet giants Tencent Holdings and Baidu, were absent from the list.

On the flip side, of the companies on Fortune magazine's list of the world's top 500 by revenue in 2015, 100 were Chinese.

The gap between the two rankings shows just how much Chinese companies rely on their gigantic domestic market.

But even the big guns are facing an uphill battle in their home turf. Consumers are beginning to shun the once high-flying Xiaomi, whose products are largely viewed as replicas of better-known brands. 

An advertising scandal has dealt a blow to Baidu's earnings and Alibaba is facing criticism for handling many counterfeit products.

If domestic consumers start turning their backs on Chinese companies, the future could be bleak, meaning there is a lot of work to do in the wake of economic slowdown.

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