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    KFC Among U.S. Brands that Dominate Chinese Market

  • Industry News July 30, 2013

    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