Chinese companies, especially those in the technology and e-commerce sectors, are outpacing European and American companies in brand value, a new survey shows.

The value of Chinese brands has surged by 1,004 percent in the past 10 years, compared with US companies increasing by 137 percent and European brands by 31 percent, according to the 10th annual BrandZ Top 100 Most Valuable Global Brands Ranking report released in May.

"In 2006, when we started BrandZ Global Top100 rankings, there was only one Chinese brand in the rankings - China Mobile," said Deepender Rana, CEO of the New York-based global market-research firm Millward Brown.

"Compared to the Chinese brands, those traditional European markets are slowing down their development pace while the China market is rising rapidly," he said. "Brand value has risen substantially despite a disruptive decade."

According to the report, Europe's brand powerhouses have stagnated as Chinese brands have grown and US brands have made a comeback. The number of Chinese brands in the ranking continues to grow with 14 in the Top 100, which represents a shift from West to East, and most of the brands that have been pushed out of the Top 100 by China are European.

Among the 14 Chinese brands in the Top 100, five are market-driven, including Tencent, Alibaba, Baidu, Huawei and Ping An, which represent 50 percent of the total value of the brands in the list, up from one-third in 2014, according to the report.

Last year, 11 Chinese brands were in the list compared to 14 this year. The three new entrants are Alibaba, ranking 13th with a brand value of $66 billion, Huawei, ranking 70th with $15 billion, which is new to the ranking, and China Telecom, 99th, with brand value of $11 billion.

The total value of Chinese brands has reached $432 billion, an increase of 52 percent over the value in 2014, said the report.

Technology is the fastest growing category worldwide, up 24 percent in the last year, and the brand value increase of Chinese companies is largely driven by the new entrants Tencent and Huawei, it said.

"We observed that most of these strong-market driven brands are technology brands. They are innovative, provide a great consumer experience and lead the trends," he said.

Despite that, over the past 10 years brands of State-owned enterprises (SOE) dominated the rankings, said Rana.

"To compete with the market-driven brands, SOE brands must reinvent themselves to keep on top of fast changing consumer needs. They need to define their point of meaningful difference and invest in brand communications, especially using digital channels. Most importantly, in this Internet+ era, SOE brands must quickly adapt to and leverage technology," he said.

The tech brands in the Top 100 are worth more than $1 trillion, nearly one-third of the value of all brands in the ranking, according to the report. China now has three technology brands in the top 100, with Tencent and Baidu increasing their brand value even faster than global average, and Huawei is a new entrant to the rankings as well.

Tencent, with a brand value of $77 billion, continues to rank ahead of Facebook, whose brand value is $71 billion, the report showed.

'China is moving fast from a manufacturing powerhouse to the next stage of economic evolution, with value creation happening through strong branding," said Rana.

"In the next decade, there will be more Chinese brands in the ranking since China and Chinese brands are rising, driven by private enterprise as well as support from the government which is encouraging the SOEs to invest in brand building and global expansion," he said.

"While the source of brand value of Chinese brands is still largely coming from the huge domestic market in China, in the future we will see more and more genuinely 'global' brands which are leaders in multiple markets."

zhengxin@chinadaily.com.cn