China’s most eye-catching local companies aren’t owned by the government and don’t have traditional advantages.
According to consultancy Boston Consulting Group, which ranked the top 50 domestic-focused companies from emerging markets, companies like restaurant chain Hai Di Lao and mobile phone maker Xiaomi Inc. are among the top 10 Chinese companies that are finding success on their own and becoming formidable challengers to global companies. They’re competing on innovation rather than lower cost, Boston Consulting Group said in its ranking report.
Other Chinese companies among the top 50 include grocer Yonghui Superstores Co.and property conglomerate Dalian Wanda Group Corp., according to the ranking, which analyzed the performance of private companies in their local markets. The rankings are not comprehensive and there are other examples of compelling companies that haven’t been listed, the report said.
Chinese companies whose success are driven by innovation, not government connections, are unusual here. State-backed giants, like financial powerhouses Bank of China and China Construction Bank, typically have had a stronghold in the domestic market.
But that model is starting to show cracks. Global companies are feeling the pain in China, while innovative and nimble Chinese companies are popping up.
Here is a full list of the top 10 Chinese companies that made this year’s ranking, according to BCG:
- China Minsheng Bank (commercial bank)
- Dalian Wanda Group (property developer)
- Hai Di Lao Hotpot (restaurant chain)
- Home Inns & Hotels Management (hotel chain)
- Jia Duo Bao (herbal tea producer)
- Jiangsu Hengrui Medicine (pharmaceutical company)
- S.F. Express (express delivery courier)
- Tingyi Cayman Islands Holding Company (Food and beverage producer)
- Xiaomi (smartphone and consumer electronics producer)
- Yonghui Superstores (supermarket chain)
Read more at WSJ China Real Time.