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The sneaker maker is battling Nike and leading the rise of China’s leading brands

The sportswear company founded by an Olympic gold medalist has recorded the biggest growth spurt in China’s 100 most valuable brands this year.

Brand value of sportswear manufacturer Li Ning Co. grew 66 percent to $3.4 billion, the fastest pace on the annual list compiled by Kantar BrandZ. Its growth has been fueled by technical innovation and patriotic style, the report said, the latter fueled by a rising wave of consumer nationalism in China that has toppled global companies such as Nike.

The combined value of China’s top 100 brands fell 20 percent to $1.24 trillion as supply chain disruptions caused by rising inflation and the Covid lockdown challenged the business environment. Other key trends and important steps in the Kantar report include:

  • There are 47 brands increasing their value outside of China, up from 40 in 2021. Among them is consumer technology brand TCL, number 94 in the ranking, which has signed endorsement contracts with FIBA, Copa América and several international sports stars. The foreign operations of the top 100 brands contribute 8.8% to their business.
  • Lifestyle-focused social platform Xiaohongshu ranked 37th on the list with a brand value of $6.6 billion. Social commerce, a sales channel that allows users to buy products through social media and interact with live streamers, is an important tool for Gen Z shoppers in China.
  • Home appliance manufacturer Haier Smart Home Co. climbed two positions to enter the top 10 with a 26 percent increase in brand value driven by global expansion and innovation.
  • Electric car giant BYD Co. ranked 29th with a brand value of $8.7 billion.

Tencent Holdings Ltd. retains the top spot for the second year, Alibaba Group Holding Ltd. took 2nd place, and Kweichow Moutai Co. closes the top three.

Kantar BrandZ uses financial data and brand equity research to quantify the contribution of brands to business financial performance. It looks at brands that were originally established in China; the companies must be owned by a public company, or the financial statements of the firm that owns the brand are audited by a major global accountant and published publicly; and unicorn brands should have their latest valuation publicly available.

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https://www.businessoffashion.com/news/news-analysis/sneaker-maker-taking-on-nike-leads-growth-of-top-chinese-brands/ The sneaker maker is battling Nike and leading the rise of China’s leading brands

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