Industry News | July 30, 2013

KFC Among U.S. Brands that Dominate Chinese Market

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Millward Brown has announced the 20 most powerful brands in China, a list dominated by U.S. brands and led by KFC. Thirteen brands on the list were American with two each from Germany and France and one from Italy. Samsung was the only Asian brand to make the list, and 11 of the 20 brands are also among the BrandZ Top100 Most Valuable Global Brands.

 

"International brands represent many things to Chinese consumers," says Oscar Yuan, VP at Millward Brown Optimor. "One is trust. In the last three years the brand trust for Chinese brands has eroded as scandals and quality issues have impacted some Chinese products. Secondly, international brands are a symbol of prestige and good taste, appealing to the rapidly growing middle class in China. Lastly, international brands often do bring unique points of view to specific categories, the way that Apple has brought design and beauty to electronics. For the Chinese consumer, the desire for quality and experience results in an environment ripe for international brands to make inroads with the 1.3 billion Chinese consumers."

 

The brands, ranked by Millward Brown's Brand Power Index, all scored significantly higher than other brands on being:

  • Meaningful-- meeting relevant needs in a product category and being more loved than competitors

  • Different in a positive way

  • Salient--top-of-mind ahead of others as the best answer for the needs of that category.

 

These brands capture five times the average volume share, command a 13 percent price premium, and grow four times the average value share. Millward Brown conducted this research between 2011 and 2013 with more than 60,000 consumers in 10 Chinese cities.

 

"Success in China requires a deep understanding of the dynamics of Chinese consumers and markets in multiple regions," says Peter Walshe, Global BrandZ director at Millward Brown. "Cultural distinctiveness is still strong, while consumers in the lower-tier cities are loyal to local brands."

Millward Brown's Top 20 International Power Brands in China 2013                                                                                         
Rank
Brand
Brand Power Index (average =100)
Nationality
1
Kentucky Fried Chicken (KFC)*
564
US
2
Pampers*
482
US
3
Colgate*
424
US
4
Olay
371
US
5
Crest
355
US
6
Apple*
336
US
7
McDonald's*
324
US
8
Omo
286
UK/NL
9
Coca-Cola*
281
US
10
Carrefour
260
France
11
Pantene
241
US
12
Gillette*
236
US
13
Johnson's Baby
232
US
14
Adidas
228
Germany
15
L'Oréal
226
France
16
Samsung*
225
South Korea
17
Nike*
224
US
18
Head & Shoulders
224
US
19
Volkswagen (VW)*
200
Germany
20
Armani
185
Italy