Chinese brands Tencent Holding (OTCMKTS:TCEHY) and Alibaba Group Holding Ltd (NYSE:BABA) have become the most valuable brands and found a place in the top ten valuable brands worldwide.
The brand value of Alibaba has increased to $113 billion. It is on account of expansion into cloud computing and mobile payments. It is ranked number 9 in the top ten valuable brands in the world.
Tencent Holding has gained strength in 2017 to find a place in top 10 most valuable brands. It now ranks 5th in terms of top ten most valuable brands worldwide. Its brand value has increased by 65% to $179 billion when compared to the last year.
The product line of Tencent Holdings includes instant messaging services, apps, online games and online payments. Its market capitalization is estimated at $490 billion. It is now more than JPMorgan Chase & Co. (NYSE:JPM), the most valuable bank in the US.
The head of BrandZ, Doreen Wang said the Chinese companies Tencent and Alibaba have crossed several hurdles in the nation to find a place in the most valuable brands in the world.
The Chinese brands are facing a lot of issues like lack of trust over quality and reduced awareness about Chinese companies in the international space. Chinese brands are also reluctant to pump in more funds for the ad campaigns worldwide. As a result, many Chinese companies are staying behind in terms of value.
The increase in young customers and the rise of China have improved opportunities for the Smart entrepreneurs. The attitude of the young customers is changing and showing an affinity towards the Chinese brands. However, the penetration of Tencent and Alibaba is still at a nascent stage in the US, but they are well accepted in other regions of the world.
Alibaba is establishing its footprint in countries like Chile, Brazil and other Latin countries. AliExpress, the online marketplace of Alibaba, is also gaining prominence in e-commerce. The brand also has a strong presence in South Korea, Spain, and Israel.
Tencent is gaining ground in countries like Singapore and Thailand.
The most valuable top 10 brands in the world from 1 to 10 ranks are Alphabet Inc (NASDAQ:GOOGL), Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), TENCENT HOLDING(OTCMKTS:TCEHY), Facebook, Inc. (NASDAQ:FB), Visa Inc (NYSE:V), McDonald’s Corporation (NYSE:MCD), Alibaba Group Holding Ltd (NYSE:BABA), and AT&T Inc. (NYSE:T).