A sportswear company founded by an Olympic gold medalist saw the biggest surge in growth in a ranking of the 100 most valuable brands in China this year.

Athletic apparel maker Li Ning Co. had its brand value jump 66 percent to $3.4 billion, the quickest pace in the annual list compiled by Kantar BrandZ. Its rise was fueled by technical innovations and patriotic styling, the report said, with the latter feeding into a growing wave of consumer nationalism in China that’s unseated global companies like Nike.

The total value of China’s top 100 brands fell 20 percent to $1.24 trillion, as supply chain disruptions to rising inflation and Covid lockdowns challenged the business environment. Other key trends and major moves in the Kantar report include:

• There are 47 brands building their value outside of China, up from 40 in 2021. They include consumer technology brand TCL, number 94 in the ranking, which has signed endorsement contracts with FIBA, Copa América, and several international sports stars. The Top 100 brands’ overseas operations contribute 8.8% to their business.
• Lifestyle-focused social platform Xiaohongshu was the highest-ranking new entrant to the list, coming in at number 37 with a brand value of $6.6 billion. Social-commerce, a sales channel that allows users to buy products through social media and interact with live streamers, is an important tool for China’s Gen Z shoppers.
• Home-appliance maker Haier Smart Home Co. rose two places to break into the top 10, with 26 percent growth in brand value due to global expansion and innovation.
• Electric-vehicle giant BYD Co. was ranked number 29, with a brand value of $8.7 billion.

Tencent Holdings Ltd. retained the top spot for a second year, Alibaba Group Holding Ltd. came in at number 2, and liquor company Kweichow Moutai Co. rounded out the top three.

Kantar BrandZ uses financial data and brand equity research to quantify the contribution of brands to business’ financial performance. It looks at brands that were originally created in mainland China; companies must be owned by a publicly traded enterprise, or financial records of the firm that owns the brand are audited by a major global accountant and published publicly; and unicorn brands must have their most recent valuation publicly available.

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