Sinopharm (brand value up 11% to US$3.5 billion) continues to be the most valuable Chinese pharmaceuticals brand. The brand plays an important role in the Chinese public health landscape by developing and deploying one of the world’s most used COVID-19 vaccines. Sinopharm is forming strategic alliances with local pharma brands to tackle the spread of the virus by strengthening its supply chain and distribution network and thus increasing access to healthcare across China. The brand invested in research and development to create the Sinopharm vaccine, which was the first non-Western vaccine to be granted approval by the World Health Organisation (WHO) in 2021 and has been administered widely across China and internationally.
The aggregate value of top Chinese pharmaceutical brands grows by 18% year-on-year as brands expand in international markets. Chinese pharma brands are playing an instrumental role during the pandemic to develop and administer vaccines across the nation and deploy humanitarian aid to other nations. The brands have stayed current in the post-COVID-19 economy by adapting to current market conditions by expanding their reach into new markets and new customer segments.
Chinese pharmaceutical brands, such as Guangzhou Pharmaceuticals, achieved strong brand value growth despite uncertain business conditions amidst the COVID-19 pandemic. Brands in the ranking have invested in research to introduce new offerings for customers. As the importance of the healthcare industry increases, investments made at the height of the pandemic are paying off.
Scott Chen, Managing Director, Brand Finance China
SPH (brand value up 7% to US$1.5 billion) is the third most valuable Chinese pharmaceutical brand in the ranking this year. The brand focuses on pharma distribution and retail in the Chinese market as well as overseas. Apart from manufacturing, the brand also focusses on value added services such as logistics and support services to increase the reach of the product offerings. The brand invested its resources in research and development for new medical innovations during the pandemic.
New entrant in the ranking Jointown Pharmaceutical (brand value of US$0.5 billion) was able to expand its operations internationally amid COVID-19 conditions and provide healthcare equipment and COVID protective gear to markets outside China to help contain the spread of the virus. The brand formed a strategic partnership with the logistics brand Kuehne+Nagel to help with efficient distribution of vaccines and protective gear. After a surge in demand for medicines and healthcare equipment, the brand is also increasing its manufacturing capabilities by constructing new storage and warehousing facilities.
Guangzhou Pharmaceuticals achieved brand value growth of 147% since 2020. Over the course of 2021, the brand value grew by 42% to US$2.1 billion. As the largest pharmaceutical company in China, Guangzhou Pharmaceutical owns 12 China time-honoured brands and 10 century-old brands. It not only has Chenliji pharmaceutical factory, which has been certified by the Guinness World Records as the oldest operating pharmaceutical factory for its 422 years operation, and Wanglaoji, the brand known as the ancestor of herbal tea, but also various well-known century-old brands such as Jingxiutang, Pangaoshou, Caizhilin, and ten well-known Chinese trademarks such as GPC, Baiyunshan and Qixing.
For a long time, Guangzhou Pharmaceutical has been deeply engaged in brand building, innovatively implementing the dual-brand strategy in the Chinese domestic market and combining the national well-known brand Baiyunshan with its time-honoured brands to create brands, such as Baiyunshan Chenliji, and Baiyunshan Jingxiutang etc., which in turn have promoted the rapid opening of the national market for branded products.
In the international market, Guangzhou Pharmaceutical has put forward the concept of modernisation and internationalisation of traditional Chinese medicine at the beginning of this century. In recent years, Guangzhou Pharmaceutical has strengthened its cooperation with Fortune 500 companies through the World Economic Forum, Boao Forum and other international conferences. It has actively expanded its international circle of friends, established several joint ventures, and has become strategic partners with many multinational companies such as PepsiCo, Takeda, and Merck. In addition, Guangzhou Pharmaceutical relies on GPC Macau International Headquarters to further open the international market. In December 2021, GPC's Macau Qingzhou factory was completed and put into operation, becoming the first factory that meets the GMP standard in Macau's history. Looking forward, more Guangzhou Pharmaceutical Chinese medicines that are “Made in Macau” will go abroad.
Tong Ren Tang (brand value up 40% to US$289 million) in the 9th position which jumped up 3 positions in the Brand Finance Chinese Pharma 15 ranking. The brand achieved an impressive 108% brand value growth since 2020.
The pharma brand has opened its stores in a number of international markets such as the United Kingdom, Germany, Japan among others. The brand has been actively engaging younger Gen Z consumers with its new upscale coffee shop in Beijing with a wide number of food and beverage offerings across Western and Chinese medicine.