Dear MEL Topic Readers,
Two of the world's biggest brands are now Chinese
Brand equity is a value premium that a company creates from its products, services, and activities. It is intangible asset of the company. For example, when a company tries to expand its product line, say a new car or game, consumers assume that the quality and value of the new product is in line with other products of the brand. The company can leverage the brand recognition and save money, time and effort to market the new product.
Until recently, Chinese brands haven’t been so popular or recognized in other marketplaces. But now, smartphone brands like Xiaomi and Oppo, drone manufacturer DJI, and online game, e-commerce and payment giants like Alibaba, and Tencent are popular in many countries. And when their brand value is measured, Tencent and Alibaba are within top 10 in the BrandZ ranking along with Google, Apple, Amazon, and Facebook. Indeed, all of these brands are also the world top 10 most valued companies in term of market capitalization.
Enjoy reading and think which comes fast, brand value or corporate value.