China’s top 100 storied brands lose 4.5 per cent of their intangible assets value as economic downturn weakens consumer demand: Hurun Report

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Consumers, spooked by concerns about job prospects amid a bleak economic outlook, are hunting for bargains when they buy consumer goods, the study found

The top brands on the list include liquor distillers Kweichow Moutai and Wuliangye Yibin, drug manufacturer Tong Ren Tang and China Construction Bank

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The top brands on the list include liquor distillers Kweichow Moutai (pictured) and Wuliangye Yibin. Photo: Simon Song

Daniel Renin Shanghai

Published: 12:30pm, 23 Dec 2023

The value of China’s top 100 storied brands stretching from liquor to commercial banks dropped 4.5 per cent in 2023, battered by weak consumer sentiment and a gloomy economic outlook, according to the latest research by the Hurun Report.

The consultancy known for its China Rich List found that the intangible assets of the mainland’s 100 most successful indigenous brands with at least 60 years of history were valued at a combined 9.43 trillion yuan (US$1.32 trillion) in 2023, compared to 9.87 trillion yuan the previous year.

The decline resulted from deflationary pressure on the Chinese economy as sluggish domestic demand continued to plague the consumer market, said Eric Han, a senior manager at Suolei, an advisory firm in Shanghai.

Total spending on fast-moving consumer goods – expendable items such as food and drink, or clothing – in China slipped 0.9 per cent year on year during the third quarter of 2023, according to a joint study released by global consultancy Bain & Company and market research firm Kantar Worldpanel earlier this month.

Consumers, spooked by concerns about job prospects amid a bleak economic outlook, continue to actively hunt bargains when they purchase consumer goods such as personal care products, the study found.

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“The time-honoured brands also fell victim to a slowing economy, but their great history could help them wade through economic turbulence,” said Han.