China 2016: PERFORMANCE ANALYSIS | BRAND CONTRIBUTION
Strong Brand Contribution helps improve future earnings
Brand Contribution is the unique BrandZ™ metric for assessing the most important, yet elusive, aspect of a brand: how it plays out in the mind of the consumer. Brand Contribution measures the impact of brand alone, without financials or other activation factors.
A high Brand Contribution index – on a scale of one to five, five being the highest – suggests that a brand is resilient and plays a big role in driving earnings. Brand Contribution is calculated from ongoing, in-depth, worldwide quantitative WPP BrandZ™ consumer research that distinguishes the BrandZ™ brand valuation methodology from all competitors.
Of the BrandZ™ Top 20 Brand Contribution leaders, all but six are market-driven rather than stateowned brands. For that reason, most of the Brand Contribution leaders, 13 of them to be exact, rank 50 and below in the BrandZ™ China Top 100, because the lower half of the ranking is mostly populated with fast growing, market-driven brands, typically strong in Brand Contribution.
Except for three brands, the same brands that comprise the 2016 BrandZ™ Top 20 Brand Contribution leaders also ranked in the Top 20 last year. This consistency reflects a defining characteristic of Brand Contribution; it accrues over time into a durable force that can stabilize brand value against normal market fluctuations.
The Top 20 Brand Contribution leaders represent 11 categories. Technology, and food and dairy are represented with four brands each; alcohol with three brands; and appliances with two brands. Only one brand appears in each of these categories: apparel, catering, education, furniture, jewelry retailer, hotels, and personal care. This category diversity indicates that building a strong brand is important and possible across broad sectors of the economy.