2007 Best Chinese Brands 20072006 Brand Industry Brand valu % Change (in RMB China Mobile Telecommunications +11% China Construction Bank Financial Services 2 Bank of china Financlal Services China Life Insurance +100% Financial Services 46,000 China Telecom Telecommunications 30,000 Insurance China Merchants Bank Financial Services 9 8 Moutai Alcohol +24% China Unicom Telecommunications 10 9,700 +59% Bank of communication Financial Services 9300 +26% Internet +22% CITIC Bank Financial Services 5,300 Insurance 5,300 Interbrand(2007), Best Chinese Brands- A Ranking by Brand Value: 2007 Interbrand (2007), All Brands Are Not Created Equal: Best Global Brands 2007 11
11 Interbrand (2007), Best Chinese Brands- A Ranking by Brand Value: 2007. Interbrand (2007), All Brands Are Not Created Equal: Best Global Brands 2007. Interbrand (2007), Best Chinese Brands- A Ranking by Brand Value: 2007. Interbrand (2007), All Brands Are Not Created Equal: Best Global Brands 2007
Brand valuation Brand Equity at the Financial Market level
12 Brand Valuation Brand Equity at the Financial Market Level
Brand value Measurable Financial value Legal systems recognize brand value Most countries now recognize intellectual property is REAL property w/rights of ownership Trademarks, Patents, Designs, Copyright Consumer∨aue BBDO (2001), Brant Equity Excellence(1), p 20-70 O Copy rights reserved, Zou Deqiang
13 13 © Copy rights reserved, Zou Deqiang • Measurable Financial Value • Legal Systems recognize brand value ¾ Most countries now recognize intellectual property is REAL property w/rights of ownership • Trademarks, Patents, Designs, Copyright • Consumer Value Brand Value BBDO (2001), Brant Equity Excellence (I), p.20-70. BBDO (2001), Brant Equity Excellence (I), p.20-70
Brand value Breakdown SUS Billions 120 100 口 INTANGIBLE& Goodwill 口 Net TaNGiBle Assets 20 P&G Unilever Amazon Cola O Copy rights reserved, Zou Deqiang
14 14 © Copy rights reserved, Zou Deqiang Brand Value Breakdown 0 20 40 60 80 100 120 CocaCola J&J P&G Unilever Amazon INTANGIBLE & Goodwill Net TANGIBLE Assets $US Billions
Fair valuation of brands Price paid Goodwill in the literal sense Patents Sources of the gap Intangible and Brands Goodwill tangible (large meaning Database Equipment (economic value Buildings(economic value Net assets (Book value) O Copy rights reserved, Zou Deqiang
15 15 © Copy rights reserved, Zou Deqiang Fair Valuation of Brands