Since the establishment of the "China Brand Value Evaluation Standard" and "China Brand Value Ranking" research platform in 2017, Brand Value （China）Network (www.bvrcn.com) has so far successfully held brand value forums and released the rankings of brand value for six times. The Brand value rankings include “China Brand Value Top 100”, “China Brand Value Industry Ranking”, and “The World Brand Value Top 900”. These rankings have aroused enthusiastic feedback, continuous attention and discussion from the academic, branding, media circles as well as many different corporates. In particular, the global promotion and release of “The First World Brand Value Top 900”ranking has triggered rushing reports by both domestic and foreign media and won the attention and recognition of the listed brands as well.

In view of this, the article compares the brand value of well-known brands on the ranking list at home and abroad. It also compares the differences in the evaluation criteria of different lists, and analyzes their respective focuses.

"Chinese Brand Value Valuation Standards" which was developed by "China Brand Value Evaluation Standards Research Platform" (organized by (www.bvrcn.com) Brand Value (China) Network, focuses on evaluating brand value from two directions, one is the brand strength index while the other is financial data The method is also on the basis of evaluation methods of some famous global rankings.

The index of Brand Strength generally include brand leadership, product and service quality, brand innovation capabilities, legal rights, brand building ablility, social responsibility, financial indicator analysis, high-level governance, stock market performance, negative public opinion and other indicators that affect brand evaluation. The financial data is based on the company's financial statements in order to measure the company's brand income. The combination of the two directions can comprehensively and detailedly evaluate the brand value of the company.

Brand value evaluation is a way of judging the value of intangible assets of enterprises. The market value method, the income method or the combination of these two methods are are mainly used during the evaluation process, while the cost method is seldomly used.

Present Value Method of Earnings

In the formula ：

P —— brand evaluation value

Ft —— brand epected income in the furture years

Fo —— brand epected income in perpetual year

n ——  economic life

t —— sequence year

R —— discount rate

Β —— brand share rate

Capital Market Method

The capital market method is to separate the value of brand equity from the company's market value by analyzing capital market data. It is based on the efficient-market hypothesis. It is assumed that the market value reflected by the company's stock price, including the market value of both the company's tangible assets and intangible assets. The market value of intangible assets comes from brand value, advantages of production costs  and industry competition structure. Therefore, for a single-brand company, the value of brand equity can be calculated by measuring the average asset price level of the industry.

Brand value = market value * brand share rate β

Notice:  brand share rate β of he income method does not equal to brand share rate β of the market value method

Brand Value (China) Network (www.bvrcn.com) has studied brand value for many years, and successfully released brand value rankings and aroused continuous discussions for six years. We have been establishing contacts with companies, always paying attention to brand building, tracking brand information as well as market trends. All of these companies on the ranking lists were able to establish leadership positions in their respective industries, and stimulate their stock prices positively.

Brand valuation always pays attention to the business results of the company and keep pace with the time. At the same time, consumers are paying more and more attention to brands, too. First, they are more inclined to buy branded products and services under the same conditions. Second, they are more willing to buy the stocks of brand companies. The stock market drives consumers to have a deeper understanding of different brands. Brand valuation also drives the companies on the list to get more market recognition and financial support, which in turn further stimulates the value-added of corporate brands.

"Interbrand Top 100 Global Best Brands"

The Interbrand brand valuation model assumes that the value created by the brand is stable for a period of time in the future. The value of the brand is determined by calculating the brand income and the strength coefficient of the brand. The calculation method is: V=IxG, where V is the brand value, I is the average annual profit that the brand brings to the company, and G is the brand strength coefficient.

Fortune Global 500

The selection criteria of Fortune Global 500 mainly include five items: first, sales revenue. In addition to taking profit, assets, shareholders' equity, and the number of employees as reference indicators, Fortune's most common and important standard is the company's sales revenue. Second, the company's statistical data is highly transparent. Third, independent and sound corporate governance. The fourth is to sort by USD. The fifth is to declare relevant information within the specified time.

Forbes Global 2000

Forbes analyzes corporate revenue, profits, total assets and market value so as to select the world's largest, most influential, and most valuable listed companies. Its list uses a comprehensive score. On this basis, Forbes assigns the same weight to the four indicators, and then calculates the total number of points for each company, and then obtains the company's comprehensive ranking.

It can be seen that the evaluation criteria of different rankings are slightly different, but the results have made the brand value more widely recognized and pursued.

Brand is the common pursuit of producers and consumers. It is also the direction of supply-side and demand-side upgrading, and an important manifestation of the comprehensive competitiveness for enterprises, and even for a country.

As brands have become more and more important to the market, companies have spared no effort in brand building. Media and research institutions have released various types of brand lists. The State Council designated May 10 as "China Brand Day."

Looking at the changes in the previous rankings released by Brand Value (China) Network (www.bvrcn.com), it is found that more and more new economy companies are on the list. Among them, the companies from Internet industry are the most prominent while the companies of the financial industry have always been on the list with large households. Although the overall rankings of the companies from financial industry cannot be compared with the past, the numbers are still considerable. The real estate industry is gradually turning from glory to decline, and the number of these companies on the list is gradually decreasing. The companies of the catering, tourism and aviation industries are affected by the epidemic. While the companies frm education and training industries are affected by macro policies. There are also few companies from the healthcare industry is now under explosive growth.

The changes in the number of industries on the rankings are mainly driven by factors that affect corporate brand value. One of them is the industry environment, the other is macro policies and regulations, the third one is brand building, the fourth one is the performance of the stock market, and the fifth one is financial data. Among the companies on the rankings, companies whose brand value has risen rapidly have a favorable industry environment, broad market growth prospects, leading industry positions, and high market positions. Industrial policies encourage the development of enterprises, and policies and regulations are friendly to promote the sound development of business. Companies can gain greater market coverage and market share, increase market influence, and greatly increase brand building opportunities. The expansion of business scale has brought dazzling capital market performances and excellent financial results. Various factors mutually promote the enhancement of brand value. On the contrary, industries with fewer listed companies and companies with significantly reduced brand value have more or less lost their prestige in the above-mentioned driving factors.

The Covid epidemic has an impact on all walks of life. Compared with the past pew years, the changes in aviation, catering, and tourism have become more obvious. The brand value and numbers of listed companies have been greatly reduced. During the epidemic, offline consumption has been sluggish while the online economy has developed rapidly. The number of listings in the healthcare industry has increased, and the brand value of leading brands has increased significantly. First, real estate is affected by the epidemic, consumers' offline activities have decreased, and real estate sales have declined. Second, the macro environment is unfavorable. The long-term population growth decline reduces market growth. Short-term financial policies and regulatory policies are not conducive to business operations. From a global perspective, real estate is a highly regional industry, unable to expand the market scale, brand extension ability is weak, and the ability to open up new markets is limited. It is estimated that the development of the real estate industry will tend to shrink steadily in the future, and the industry concentration will increase. In the short term, the Internet and financial industries will continue to dominate the rankings. Years of brand building have made the brand continuity and stability relatively strong, and the brand's position has a certain influence in the hearts of consumers.

Brand is an important intangible asset of an enterprise. Brand building and enhancing brand value are the only way for an enterprise to grow bigger. Brand and business are mutually successful.

So, how to improve the company's brand value? With the two directions of the "Chinese Brand Valuation Standard", we first need to start with all dimensions of brand strength indicators, and regard improving brand strength as a systematic, continuous and scientific work, carry out brand building from the inside out so as to accumulate brands. The important point that distinguishes a brand from ordinary products is that it can bring additional benefits to the enterprise, attract consumers to establish a connection with the brand, recognize the brand, and choose the brand. The process of brand building is accompanied by business growth and brand value enhancement.

作者：momo