Emerging markets account for 19 of the top 100 brands according to WPP company Millward Brown in its 2011 study of the Most Valuable Global Brands
Registering a staggering 84 percent increase in value over the past year, Apple has emerged as the most valuable brand in the world, ending the four-year reign of Google at the top of the table in the sixth annual BrandZ Top 100 Most Valuable Global Brands study.
The Apple brand, as calculated by Millward Brown Optimor, a WPP company, has increased in value by 859 percent since 2006 and now stands at $153.3 billion. Other key findings in the study are that during the economic recovery of the last year, the combined value of all the brands in the top 100 has risen by 17 percent and is now worth $2.4 trillion. In terms of geography, according to the 2011 BrandZ study, 19 of the Top 100 brands now originate in “BRICs” markets, versus only two in 2006.
“Nine of the top ten brands have a strong brand history or presence in Australia,” said Martin Attwood, Senior Account Manager of Millward Brown Australia. “This has elevated the importance of building brands among the world’s most successful companies. CEOs and CFOs should be asking their marketing teams how they can leverage brand to both protect and grow the business. Strong brands, while not immune to the vicissitudes of the market, are more protected, prepared, resourceful and resilient.”
The BrandZ Top 100 Most Valuable Global Brands study, commissioned by WPP and conducted by Millward Brown Optimor, identifies and ranks the world’s most valuable 100 brands by their dollar value, an analysis based on financial data combined with consumer measures of brand equity.
The Most Valuable Global Brands 2011
Value in $ million
Brand Value change from 2010
*The Brand Value of Coca-Cola includes Lites, Diets and Zero
“Our brand valuations are a powerful measure of an organization’s ability to create real and lasting value for shareholders.” said Eileen Campbell, CEO of brand research company Millward Brown. “By nurturing its brand and constantly innovating, Apple is able to command a high price premium and weather economic turbulence, providing a global business success story that other brands can learn from.”
“Business leaders can embrace brand management as a critical competency for building long-term financial value,” she added. “Compared with an overall improvement of 13 percent in the world’s equity markets during 2010, the best brands grew their value 30 percent faster.
Other key findings highlighted in this year’s research report include:
- One in five brands is from the BRICs: This year, 19 brands come from emerging markets compared to two in 2006 and 13 in 2010. The growing presence of brands from BRICs in this global ranking highlights the expanding purchasing power of people in these countries. While many of these brands are buoyed by the size of their local customer base, many more now have international ambition including Petrobras in Brazil (No. 61 in the ranking with a brand value of $13.4 billion); ICICI Bank in India (No. 53 and worth $14.9 billion) and China’s largest search engine Baidu. Now listed on the NASDAQ index, Baidu has a brand value of $22.5 billion and moves up 46 places in the ranking to number 29. Despite these successes, consumers in the BRIC regions continue to favor Western brands. Louis Vuitton, for example, (for which Brazil is its second-largest market) benefited from the new energy and confidence in the BRICs region. Its 23 percent growth in brand value to $24.3 billion has helped this luxury retailer achieve 26th place in the ranking, a three-spot increase from 2010.
- Heritage brands stay relevant in a technology age: Coca-Cola (No. 6), GE (No. 10), IBM (No. 3) and McDonald’s (No. 4), stand out in this study of global brand strength as brands that have survived for more than 50 years. Leadership, strategy and tactics aside, what all of these companies have in common is their use of brand to remain relevant to consumers and drive global business success.
- Technology and telecom brands dominate the ranking: Technology brands, which make up one-third of the Top 100 brands, continue to demonstrate their relevance in our daily lives. While Apple leads the ranking, it is followed in second place by Google, with a brand value of $111.5 billion, and IBM in third place with a brand value of $100.9 billion. Facebook makes its debut in the Top 100 ranking this year at No. 35 with the highest increase in brand value, 246 percent, making the brand worth $19.1 billion. Online retailer Amazon also edged past Walmart to become the No. 1 retail brand and 14th overall, with a 37 percent rise in brand value to $37.6 billion.
- Fast food, luxury and technology brands led brand value appreciation: Each of the 13 market sectors covered in this study grew in value over the last year. Fast food led the sector growth (22 percent) followed by luxury (19 percent) and technology (18 percent). The oil and gas sector experienced the slowest rate of growth (1 percent).
- Tech and convergence create brand interdependencies: Brands are ever more dependent on their use of technology to win consumers’ hearts and minds. The brand values of Burberry, Chanel, Louis Vuitton and Coca-Cola all benefited from their use of technology for example by harnessing social media and apps. At the same time, the dependencies demonstrated in the physical world between applications, devices and operating platforms are creating similar branded interdependencies. Brands that are aware of the risks can leverage these associations to drive value and growth.
- Toyota reclaims position as most valuable car brand demonstrating the power of strong brands to recover from the most fundamental challenges to product efficacy and reputation. Toyota’s brand, which is rated by consumers as “great value,” rose 11 percent to $24.1 billion.
The BrandZ Top 100 Most Valuable Global Brands study is the only valuation in the world that takes into account what people think about the brands they buy alongside rigorous analysis of financial data, market valuations, analyst reports and risk profiles. The research report, which is available online, includes a ranking and analysis of the Top 10 most valuable brands for key regions of the world and 13 market sectors. Download the complete BrandZ ranking, including regional and category breakdowns. The rankings and a great deal more are also available as a free application for the iPhone, iPad, Nokia, BlackBerry and Androidfrom www.brandz.com/mobile
NOTES TO EDITORS:
About the BrandZ Top 100 Most Valuable Global Brands Ranking
Developed for WPP’s operating companies by Millward Brown Optimor, the BrandZ Top 100 Most Valuable Global Brands ranking is now in its sixth year. It is the only study to combine
measures of brand equity based on interviews with over 2 million consumers globally aboutthousands of global “consumer facing” and business-to-business brands with a rigorous analysis of the financial and business performance of each company (using data from Bloomberg and Kantar Worldpanel) to separate the value that brand plays in driving business revenue and market capitalization. Consumer perception of a brand is a key input in determining brand value because brands are a combination of business performance, product delivery, clarity of positioning, and leadership.
The ranking takes into account regional variations since, even for truly global brands, measures of brand contribution might differ substantially across countries.
About Millward Brown
Millward Brown is one of the world's leading research agencies and is expert in effective advertising, marketing communications, media and brand equity research. Through the use of an integrated suite of validated research solutions — both qualitative and quantitative — Millward Brown helps clients build strong brands and services. Millward Brown has more than 78 offices in 54 countries. Additional practices include Millward Brown's Global Media Practice (media effectiveness unit), The Neuroscience Practice (using neuroscience to enhance traditional research techniques), Millward Brown Optimor (focused on helping clients maximize the returns on their brand and marketing investments), Dynamic Logic (the world leader in digital marketing effectiveness) and Firefly Millward Brown (a global qualitative research business). Millward Brown is part of Kantar, WPP's insight, information and consultancy group.
WPP is the world’s largest communications services group. Through its operating companies, the Group provides a comprehensive range of advertising and marketing services including advertising; media investment management; consumer insight; public relations and public affairs; branding and identity; healthcare communications; direct, digital, promotion and relationship marketing and specialist communications. The company employs over 141,000 people (including associates) in 2,400 offices in 107 countries.
Kantar is one of the world's largest insight, information and consultancy networks. By uniting the diverse talents of its 13 specialist companies, the group aims to become the pre-eminent provider of compelling and inspirational insights for the global business community. Its 26,500 employees work across 95 countries and across the whole spectrum of research and consultancy disciplines, enabling the group to offer clients business insights at each and every point of the consumer cycle. The group’s services are employed by over half of the Fortune Top 500 companies.