An updated list of the most valuable brands in the world has just been released, and two of the top 10 posts were claimed by Chinese brands for just the first time. Alibaba moved into the top 10 to join Chinese tech giant Tencent as the two brands from China. The two have joined the likes of Apple and Google.
Ranked No. 9 Alibaba has nearly doubled in value to over $113 billion as the company in e-commerce has expanded into fields like cloud computing and mobile payments.
Tencent, based in Shenzhen, broke into the BrandZ annual top 10 ranking last year and has become even stronger that last year and now sits No. 5 behind No. 4 Microsoft, No. 3 Amazon, No.2 Apple and No. 1 Google, but is in front of Facebook with a $179 billion brand value which is more that 65% higher than in 2017.
Tencent focuses on apps, online games, instant messaging services as well as online payments. It has a market capitalization that exceeds $490 billion, which makes it worth more than the most valuable bank in the U.S. JPMorgan Chase.
Sixth to tenth place is Facebook, Visa, McDonald’s, Alibaba and AT&T.
Doreen Wang, the chief at BrandZ, said that the latest ranking is a demonstration of how Alibaba and Tencent have been able to overcome several hurdles that were China-specific to become powerhouses on a global scale.
Wang added that the challenges that Chinese brands face are not small. The limited awareness of brands on the international scale, little trust because of historic issues with quality and reluctance by brands in China to invest in global advertising campaigns that are impactful, has them sitting at a disadvantage with established competitors.
However, the rise across China and savvy consumers have created many opportunities for the smart entrepreneur.
Attitudes have been changing, particularly when it comes to younger consumers who have fallen in love with brands from China.
Alibaba has gained ground in countries such as Brazil, Chile and other countries across Latin America, where its AliExpress, an online marketplace, is becoming very quickly the leading platform for e-commerce.
It also holds a very strong presence in countries such as Israel, South Korea and Spain.
Tencent has increased its brand recognition across South Asia in markets like Singapore and Thailand.