Chinese Brands at a Crossroads: From Volume to Value
The 2025 Phoenix Star Listed Company Awards, initiated by Phoenix TV and Phoenix News, recently held its first-round review meeting, marking a significant step in recognizing excellence among Chinese enterprises. This year’s awards emphasize not just financial performance but also innovation, globalization, and brand strength. As Chinese companies expand overseas, one challenge remains pervasive: the perception of being ‘budget’ or ‘low-cost’ providers. Chen Yideng (陈忆登), China President of UK-based brand valuation firm Brand Finance, shares critical insights on how Chinese brands can shed the budget label and build lasting international appeal.
Rethinking Evaluation: Hard and Soft Metrics
The 2025 Phoenix Star Awards introduced an upgraded evaluation system, balancing traditional hard metrics with softer, value-driven indicators. The five core dimensions include market capitalization management, reputation management, human-centric management, innovation management, and globalization. This shift acknowledges that sustainable success requires more than scale and profitability—it demands emotional resonance and trust.
Why Soft Metrics Matter
Chen Yideng notes, ‘In the past, we focused heavily on scale and performance. This year, we’ve incorporated innovation, brand power, overseas expansion, and corporate social responsibility. These criteria help exceptional companies stand out and inspire broader positive change in the business ecosystem.’ Companies like BYD, Haier Smart Home, and Transsion Holdings exemplify this transition, demonstrating that Chinese brands can compete on quality and innovation, not just price.
The Challenge: Breaking Free from the ‘Budget’ Stereotype
For decades, ‘Made in China’ has been synonymous with affordability. While this helped penetrate global markets, it also created a ceiling for brand value. Chen Yideng explains, ‘Chinese companies, especially those expanding overseas, often struggle to escape the ‘budget’ label. Consumers see their products as functional and cheap but rarely aspirational or premium.’
Three Strategies to Elevate Brand Perception
Chen proposes a multi-faceted approach for brands aiming to shed the budget label:
– Think globally, act locally: Learn from companies like BYD and Haier, which have built localized service networks and tailored offerings for international markets.
– Leverage technology: Use AI and data analytics to enhance customer experiences and create personalized interactions.
– Seek external validation: Partner with international platforms and professional brand valuation agencies to scientifically build and communicate brand value.
Spotlight on ‘Hidden Champions’
Many Chinese companies dominate niche B2B segments but remain unknown to end consumers. These ‘hidden champions,’ as Chen describes them, possess advanced technological capabilities but lack brand recognition. ‘The biggest hurdle is transitioning from a behind-the-scenes supplier to a consumer-facing brand,’ he says.
Practical Advice for Niche Leaders
Instead of splurging on generic advertising, Chen advises these companies to:
– Identify and communicate their unique technical advantages.
– Use third-party endorsements, such as industry awards or media features, to build credibility quickly.
– Participate in evaluations like the Phoenix Star Awards to gain visibility and validation.
The Role of AI in Brand Building
Artificial intelligence is reshaping how brands interact with consumers. Chen believes AI can optimize supply chains and personalize experiences but warns against over-reliance. ‘AI might streamline operations, but it can also homogenize interactions. Brands must retain human creativity and emotional connection to stand out.’
Balancing Efficiency and Emotion
Chen recommends letting AI handle repetitive tasks while keeping humans in charge of storytelling and brand soul. This balance ensures efficiency without sacrificing uniqueness.
Entrepreneurial Influence: Personal Branding as an Asset
High-profile leaders like Lei Jun and Dong Mingzhu have used their personal brands to amplify their companies’ visibility. Chen acknowledges the power of personal branding but cautions that it’s a double-edged sword. ‘Not every executive is cut out for the spotlight. If personal charm doesn’t translate into lasting brand equity, it can backfire.’
When Personal Branding Works
Effective personal branding should make a company feel more relatable and trustworthy—not just add to the noise. The goal is long-term credibility, not short-term virality.
Looking Ahead: The Path to Premium Perception
Shedding the budget label requires patience, strategy, and consistency. Chinese brands must focus on delivering superior quality, investing in customer relationships, and communicating their value proposition clearly. Awards and external validations, like the Phoenix Star Awards, can accelerate this process by providing third-party credibility.
Chen Yidenc concludes, ‘This is a historic moment for Chinese brands. By embracing quality over quantity and storytelling over discounting, they can redefine global perceptions.’
For companies ready to begin this journey, the first step is introspection: Understand your strengths, identify your audience, and craft a narrative that goes beyond price. Participate in industry evaluations, seek expert guidance, and most importantly, deliver on your promises. The world is waiting to see Chinese brands not as cheap alternatives but as leaders in innovation and quality.