2007 Most Valuable Chinese Brands Announced TCL's Brand Value Remains in Top 5 at RMB 40.136bn

2007 Most Valuable Chinese Brands Announced TCL's Brand Value Remains in Top 5 at RMB 40.136bn

December 04th,2007

December 4th, 2007, the 13th annual Most Valuable Chinese Brand Study was published in Beijing. In comparison with the previous year, there was a significant increase in the value of the brands of many major firms, with Lenovo's brand value increasing by 5.1 billion. TCL Corporation broke through the 40 billion barrier for the first time with a brand value of 40.

136 billion, representing an increase of 4 billion, putting the corporation in the top five by brand value once again, while confirming the company's status as the "number one domestic TV mechanism manufacturer" brand. Analysts believe that as a turning point in globalization arrives, businesses such as Lenovo and TCL Corporation will lead the way in overseas development of the high-end of the industrial chain, ushering in a new era of rapid growth.

The Most Valuable Chinese Brand Study began in 1995 and is issued jointly by RREEF's Global Ranking Consulting Group and Beijing Brand Appraisal Company. The study aims to borrow from experience in the world's most valuable brand rankings to research the content and laws of brand value, and to guide and promote the creation of international brands by Chinese businesses; all the subjects of the study are leading Chinese independent brands.

Based on sales revenues, profits, potential indices and other key indicators, the 2007 Most Valuable Chinese Brand Study highlighted a total of 43 "Most Valuable Chinese Brands ",including Lenovo, Haier and TCL Corporation. The average brand value of the companies selected was 14.599 billion, an increase of 14% on the previous year's figure.

Expert analysts working on the Most Valuable Chinese Brand Study noted that great changes have occurred over the 13 years in which the study has been conducted. From product competition to brand competition, from brand expansion to overseas development, brands have been faced with an unending series of new challenges.

The rapid growth in the value of brands such as Lenovo, Haier and TCL can only be attributed to the increase in the core value creation capabilities of businesses brought about by globalization. Although each firm was faced with unprecedented challenges in their individual globalization processes over the last few years, their mainstream businesses have all gradually got on track to healthy development, and begun to strive towards high-end industrial chain power, outstanding creative capabilities, and increased product added value.

This has led "Made in China" to achieve a high degree of recognition and a good reputation overseas, with some brands even becoming highly sought after in local areas, marking a significant increase in the influence of independent Chinese brands.

Taking Lenovo as an example, the company has successfully concluded a phase of acquisitions and integration, continuing to enter a new phase of profitable growth. The firm has strongly leveraged its status as a global sponsor of the 2008 Olympics to further increase its recognition and market share overseas.

As a leading globalized Chinese business, the global value of TCL Corporation also began to cut loose in 2007. Aiming to develop its LCD modules into the high end of the industrial chain, TCL achieved significant progress in the development of core technologies. The company's natural light technology, for which it independently holds intellectual property rights, was a significant, world-class breakthrough in solving the problems of flat screen TV energy consumption, and the Intelligent Grouping and Resource Sharing (IGRS) standard it gave birth to has been adopted by the International Electrotechnical Commission (IEC) as an international standard.

TCL Corporation is leading development of core IGRS box software technologies, positioning itself at the forefront of global digital family trends. Stemming from the efforts of the firm's flagship teams in its French industrial design and strategy units, TCL Corporation LCD TVs and computer products were awarded international prizes including Germany's " Red Dot" industrial design award and the IF Design Award China.

Based on the firm's indisputable strengths in terms of industrial design, TCL announced its new "The Creative Life" brand strategy in June this year, signalling the company's determination to become a highly respected and innovative leading global business over the next decade. The company continues to retain its status as one of the "Big four" global TV manufacturers, achieving a domestic market share of 18.

8%, four percent ahead of its nearest competitor.

The Most Valuable Chinese Brand Appraisal Committee analysis report commented that today's businesses such as Lenovo and TCL demonstrate that leading Chinese brands differ from the common characteristics of traditional Chinese manufacturing; they have already claimed a leading place in the domestic and overseas markets based on high-quality products and services, their products are found throughout the world, and they are continually moving towards true "Global manufacturing" As they lead the industry toward the high end of the industrial chain, achieving continual breakthroughs in terms of setting global industrial standards and creating core technologies, they bring with them rapid growth in the degree of influence of independent Chinese brands.

Statistics show that TCL's brand value was just 690 million in 1995; as TCL Corporation strives to expand its international operations in 2007, this home grown Chinese brand has grown in value to 40.136 billion, growing by a factor of 58 in just 13 years.

Industry insiders believe that companies will become the "Business cards"of countries in the tide of global economic integration. Just as IBM to some extent represents the USA, or Samsung represents South Korea, a country's image is supported to a large degree by the products and brands that it exports. The brands that were recently honoured to be listed as the Most Valuable Chinese Brands are not only a positive example to Chinese manufacturing of how to increase international competitiveness, but will also have far-reaching effects in terms of raising China's international status.