Brand equity is the added value given to a product or service. It is reflected in the way consumers think, feel, and act about the brand, as well as in the price, market share, and profitability it generates. --Philip Kotler
2023 is the year of the new normal as population mobility is fully restored, and economic construction is back to the main focus. 2023 also marks the new milestone of going global and globalization when they are no longer specific topics within certain circles but have drawn wide attention and exploration from all industries. As a business think-tank that focuses on going global and globalization, EqualOcean follows the policy of promoting high-level opening up, responds to urgent needs for knowledge and methodology of enterprises going global, and insists on connecting the domestic and overseas business to facilitate the globalization of Chinese enterprises and tell the new Chinese stories.
At present, the need for Chinese enterprises to build their global brand influence is in line with the general trend of the times, driven by multiple internal and external factors, which we summarise as the "2323" forces for Chinese brand globalization.
The first "2" refers to the external factors, i.e. the adjustment of the international political and economic landscape. Prof. Di Dongsheng, Vice Dean of the School of International Relations of Renmin University of China, predicts In his book Parallelism and Competition: Chinese Governance in the Age of the Double Cycle, that American-driven globalization will come to an end and be replaced by a bipolar, parallel era dominated by the U.S. and China. The next three decades will be shaped by China, the U.S., and a number of "third poles". Indicators such as manufacturing value-added, total exports of goods and services, the number of economies with the country as their largest trading partner, the size of the middle-income group, the annual sales of automobiles, the size of the domestic consumer market, and the level of new-generation science and technology, all confirm that China's influence and strength are on the rise. Against such a background, an important window period is created for Chinese companies to enhance their position in the global industrial division of labor. It is only a matter of time before Chinese brands enter the global top-tier level.
The "3" points to internal factors, namely, the improvement of Chinese enterprises' own strength. Reform and opening up initiated the process of China's economic integration with the world, and after joining the WTO, China's economic and trade exchanges with other countries and regions have continued to deepen. Until 2005, China initially completed the construction of a modernized system of productive forces and production tools, as well as the education and reserve of modern human resources. This was the first wave of foreign trade for Chinese enterprises with the "others" (the economic and trade partners) as the main focus in this phase.
From 2005 to 2018, along with the booming of the Internet and mobile Internet, Chinese enterprises went global by virtue of model innovation, forming the second wave of going global centered on "us". Since 2018, the third wave of the new globalization, characterized as technology-and-innovation-oriented, autonomous brands and localization, has seen companies truly realize the integration of "me" and "others". In the past 40 years of exploration and practices, the internal strength of Chinese enterprises has been cultivated to a level that is on par with international standards and even leads the world, and the soft and hard powers of product definition, user insight, resource management, and brand culture have become more and more mature.
The second "2" points to the two confidence, which served as the deeper factors for the globalization of Chinese brands. Based on core original patents, an agile and complete supply chain, and the level of digitalization, technological confidence has become a solid foundation for Chinese companies to go global. In the meantime, the improvement of enterprise strength and comprehensive national power has also enabled us to regain cultural confidence and create a new benchmark of "Made in China" with high-quality products and brands.
The second "3" refers to three demands. Against the backdrop of slowing GDP growth, urbanization, and industrial upgrading, Chinese enterprises are looking for markets, resources, and recognition. These three demands are intertwined, directly driving Chinese enterprises to go global, searching for incremental markets, optimizing resource allocation, and injecting a sense of national mission and personal values into their brands.
Against such a special background, EqualOcean will release the 2023 Leading Global Brands 50 Report at the Goglobal and Globalization Forum of 100 in Shanghai this November. The report will identify the top global brands in each industry, analyze their development status, practical experience, and development trend, and sort out the whole process of the brand going global. The report aims to adopt desktop research, customer and consumer research, interviews with candidate brands, etc. A jury comprising EqualOcean's research team and industry experts will evaluate the final list of companies. The report will provide the industry with a macro, meso, and micro perspective of Chinese brand globalization, which is valuable for audiences to grasp the trend of the times and make decisions accordingly.
The selection criteria are as follows:
The brand should be established in 2008 and after (here refers to the year of the brand's establishment, not the year of the company's establishment);
The brand is registered in mainland China, or has a core office in mainland China;
The main form of sales is self-branding (pure OEM companies are not included);
According to the RAPID model, a brand can be nominated as a leading global brand if it ranks among the top in its segment industry in terms of scores and total scores.
The RAPID model is a brand leadership index model to measure globalization leadership designed by EqualOcean. It consists of five indicators: global revenue distribution, global resource allocation, perception of international media and public, industry influence, and team diversity. Each of the five indicators can be further specified. For example, global revenue distribution can be divided into profitability level, overseas revenue share, and regional distribution of revenue sources while team diversity can be specified as employee gender, race, nationality, etc. Quantitative modeling and qualitative assessment are adopted to ensure the ranking is objective and fair.
Although there are many existing brand rankings of companies and brands at home and abroad, based on Equalocean's insights and experience on goglobal, the 2023 Leading Global Brands 50 Report is expected to display our unique understanding of brands and brand globalization and reflect the new characteristics of China's economy in the new era - driven by sustained technological innovation, with leading hardware infrastructure and capabilities, deep connection with consumers, agile market responsiveness, and in line with the sustainable development and low carbon standards.
You are welcome to nominate or recommend a company by clicking on the link below or scanning the QR code below to enquire about the report.