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Brand value up 16% for leading real estate firms in 2020

chinadaily.com.cn | Updated: 2021-09-17 17:24
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Potential homebuyers look at property models in Qingdao, Shandong province, on Aug 17, 2021. [Photo by Wang Jilin/for China Daily]

The brand value of China's leading real estate enterprises increased by 16.1 percent year-on-year to 47.7 billion yuan ($7.4 billion) in 2020, with their leading position further consolidated in the market, a report showed.

According to the report, compiled by China Enterprise Evaluation Association, Real Estate Research Institute of Tsinghua University and China Index Academy, the average market share of the country's top 10 leading real estate enterprises in 10 key cities reached 27 percent last year, up 3 percentage points over 2019.

According to the report, there is a law of increasing marginal utility between brand value and sales performance, which improves brand equity. Statistics shows that for brand enterprises with a sales scale below 100 billion yuan, the growth of unit brand value drives a 200 million yuan increase in sales. For those with sales between 100-300 billion yuan, every 100 million yuan increase in average brand value will drive sales growth of 350 million yuan.

For those with sales of more than 300 billion yuan, every 100 million yuan increase in average brand value will drive a 450 million yuan increase in sales. Therefore, the larger the sales scale of brand enterprises, the greater the marginal effect of the brand value.

The role of brand trust gradually appears, which promotes the gathering of resources and enhances the strength of enterprises. The research group conducted a questionnaire survey on brand enterprises from three aspects.

The results showed that the awareness, reputation and loyalty of brand enterprises in China averaged 52.54 percent, 70.24 percent and 58.37 percent respectively. In other words, these three aspects of brands continue to improve steadily, among which brand loyalty and reputation increased significantly.

Product competitiveness will enhance brand competitiveness and steadily increase the market share of brand enterprises.

Wang Hao contributed to this story

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