TikTok is China’s most valuable brand, report

Amidst the clash between TikTok and US regulators, TikTok/Douyin continues to grow in brand value, recording a 28% increase to $84.2 billion.

According to a new report by Brand Finance, the global brand valuation consultancy, TikTok/Douyin comes in as China’s most valuable brand among the top 500 brands ranked.

TikTok overtook ICBC, now in second place, with its brand value increasing by 3% to USD71.8 billion while WeChat emerges as the strongest brand among Chinese brands ranked in the list, clinching the title of the world’s strongest brand among the most valuable brands ranked in Brand Finance’s Global 500 2024 report, with an impressive Brand Strength Index (BSI) score of 94.3 of 100 owed to perfect scores in brand research metrics including familiarity, consideration and recommendation.

Within the restaurants sector in China which is anticipated to reach a market value of USD939 billion by 2029 after having achieved approximately USD625 billion last year, Haidilao emerges as the strongest restaurant brand among the brands ranked, boasting an outstanding brand strength rating of AAA+, closely followed by Luckin Coffee as the second strongest.

Haidilao, however, experienced a 22% decrease in brand value, dropping to USD3.1 billion, attributed to macroeconomic factors such as the rising cost of living and a decline in dining out trends. Conversely, Luckin Coffee saw remarkable growth in brand value, surging by 96% to USD1.5 billion, marking the highest growth among restaurant brands.

Making a significant entrance into the rankings, BYD sees its brand value increase by 20% to USD12.1 billion. It continues to hold the distinction of being the sole Chinese automotive brand featured in Brand Finance’s Global 500 2024 rankings.

Additionally, in late 2023, it surpassed Tesla as the world's leading seller of electric vehicles for that period, while Tesla's brand value decreased by 12% to USD58.3 billion. A key part of BYD’s expansion is the fierce domestic competition in China’s market which has led to massive improvements in technology and change in reputation for the quality of its products.

Brand Finance also utilises its Global Brand Equity Monitor (GBEM) research to compile a Sustainability Perceptions Index. The study determines the role of sustainability in driving brand consideration across sectors and offers insight into which brands global consumers believe to be most committed to sustainability.

For individual brands, the Index displays the proportion of brand value attributable to sustainability perceptions. This Sustainability Perceptions Value is the financial value contingent on a brand’s reputation for acting sustainably.

From here, Brand Finance’s perceptual research is analysed alongside CSRHub’s environmental, social and governance (ESG) performance data to determine a brand’s ‘gap value’. This is the value at risk or to be gained, based on the difference between sustainability perceptions and actual performance.

The 2024 Sustainability Perceptions Index finds that among Chinese brands, Tiktok/Douyin has the highest Sustainability Perceptions Value of USD9.2 billion. In assessing the gap between sustainability perceptions and performance, TSMC has the highest positive gap value of USD115 million among Chinese brands in the rankings.

A positive gap value means that brand sustainability performance is stronger than perceived: brands can add value through enhanced communication about their sustainability efforts, so that perceptions are raised to fully account for the brand’s actual sustainability performance.

TSMC’s gap value suggests that it could generate an additional $115 million in potential value through enhanced communication of its impact and accomplishments in sustainability.

www.tiktok.com

www.brandfinance.com

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