The most relevant brands in China are all ...

When we looked at the highest performers, we observed that they have five ways of continually reinventing themselves.

The top brands have the commitment to stay ahead of customer needs and market trends – and they have the discipline to execute on the insights they develop. These insights form the foundation of the ideas that become game-changing innovations and influence growth.

1. PROJECT STATUS AND SOPHISTICATION

Provide products and experiences that allow consumers to showcase their social and economic status.

As Chinese consumers become increasingly affluent and sophisticated, they actively seek products and experiences to reflect their rising status and help them progress further in life. Chinese consumers want to project a discerning status both by showing “what I own” and “how I live”. Thus, brands that can craft a stage for consumers’ public consumption have become highly relevant in China. This is why for two consecutive years, we have seen global brands like BMW(#8), and Marriott (#9) securing positions in the Top 10 with their exquisite experience and design. Brands like Tmall (#18) and Dianping (#41), known for enabling consumers to improve their lifestyle, through unrivalled shopping and dining experiences, are also ranking high on our list. 

2. CREATE LIKE-MINDED COMMUNITIES

Create communities to bring individuals together, while driving brand growth.

Overwhelmed by information, Chinese consumers expect brands to “get them”, while connecting them to the products, services and people they trust. Taobao (#35) have features that allow real-time connections not just to sellers, but also other buyers. Both the music and gaming platforms of NetEast (#10) are focused on social networking that allows members to engage with niche musical genres and share stories with like-minded fans. In the booming cosmetics sector, Lancome(#37) is one of the brands that stays relevant to Chinese consumers through its online forum. Beauty lovers share tips and beauty secrets, fostering not only an emotional connection to Lancome but also empowering consumers to grow a dedicated and brand loyal community.

3. HARNESS INNOVATION TO LIBERATE LIFESTYLE

Invent and reinvent new products, services and experiences with customers at the core.

Innovation in China is multi-dimensional – our index shows that “pushes the status quo” is significantly more important to Chinese consumers than anyother market. As such, it is now more important than ever for brands not just to innovate but to empower customers to do more. Mobike’s (#14) smart locker system has liberated users from location constraints. Alipay (#1) has long revolutionized the way Chinese consumers pay for everything, from grocery shopping to international travel, and continue to reinvent itself with new, hassle-free face-recognition payment.  It is no surprise that Alipay is the most relevant brand in China for the second year. Haier (#33) has reinvented itself from a home appliance company into an ambitious category of a lifestyle brand. The company invested in smart technology and IoT, enabling Haier to offer a full suite of innovative solutions for every room in the home, using technology to make their customers' lives seamless and convenient.

4. DEMONSTRATE TRUST THROUGH SCALE

Create reassurance through scale and visibility.

From our study, trust is a big driver of relevance in China, and brands are building it by leveraging broad distribution, well thought-out consumer touchpoints, and by bridging seamless online to offline experiences. Xiaomi (#26) is bouncing back with a new O2O model, recognizing the need for a cohesive and relevant brand experience that blends online and physical stores. Oppo (#35), which started less than ten years ago, is bettering industry giants such as Samsung and Apple. Its key to success lies in massive brick-and-mortar distribution channels, which include over 200,000 retail locations and 6,500 experience-stores throughout the country. While expanding the physical distribution network is one way of scaling a brand, growing social connections via consumer community is another. China’s largest supermarket, Vanguard (#31), has developed multiple philanthropic initiatives and sustainability efforts, weaving itself into the fabric of the customers’ daily narrative, becoming “the everyday grocery store”, as well as being ranked in the Top 10 for brands ranked by “meets an important need in my life.”

5. COMBINE GLOBAL CLOUT WITH LOCAL RELEVANCE

Expand global reach while tailoring offers to local needs to strengthen brand reputation.

The successful expansion of local companies onto the international stage has led Chinese consumers to feel an increasing sense of pride. Huawei(#12) has taken bold moves by partnering with international brands such as Leica and establishing R&D centers in U.S., becoming a Chinese technology company for the world. UnionPay (#16), the largest card payment organization in the world, has also strengthened the pride of China as a national brand by aggressively expanding their global reach to be accepted in 162 countries around the world, and in over 80% of retail locations in the United States. For foreign companies, efforts to localize for the Chinese market make consumers feel respected and their needs are acknowledged. Marriott(#9) for example caters to the Chinese outbound travelers with their “Li Yu” program - a unique suite of Chinese-language services. Marriott has recently gone one step further by partnering Alibaba to accept Alipay at all global Marriott group hotels.

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