Get ready for disruption from Tesla, Uber and ‘subscription ownership’ as total brand value of BrandZ Top 10 Most Valuable Global Car Brands falls 3%
Toyota remains the most valuable global car brand in the 2016 BrandZTM Top 100 Most Valuable Global Brands ranking, released today by WPP and Millward Brown. The company saw a 2% rise in value to $29.5 billion, having worked hard over the last year to combine technology leadership with a business strategy that appeals to its broad target market.
BMW ($26.8bn), Mercedes-Benz ($22.7bn), Honda ($13.2bn) and Ford ($13.1bn) have also retained their 2015 positions to round out the Top 5. The total brand value of the Top 10 car brands has fallen by 3% to $139.9 billion, reflecting new competition, the huge potential for disruption, and a decline in trust thanks to the ongoing emissions crisis.
One sign of the coming disruption is the arrival of premium electric car brand Tesla in the top 10, with a brand value of $4.4 billion, just a month after entering the mainstream car market with its more affordable $35,000 Tesla 3.
Other powerful changes in this sector include the switch from ownership to an access to mobility model. The rise of Uber (and its Chinese rival Didikiaidi) and new finance deals, which encourage consumers to assess their brand choice based on the monthly cost, are repositioning the car business from an ownership model to an ‘access to mobility’ equation.
Car manufacturers such as Ford and Audi also have new car sharing models with more flexible access to models as consumers move through different life stages or transport needs.
“The car business is facing perhaps the most challenging period since the arrival of the internal combustion engine, with the emissions crisis just one of many issues that it will have to navigate,” commented Peter Walshe, Global BrandZ Director at Millward Brown. “Those car groups with strong brands will be best placed to pivot both their business model and their engineering as the move to electric only and potentially driverless cars changes consumer perceptions of what it means to drive. The arrival of Tesla in the top 10 for the first time shows how much change is on the horizon. A strong brand will give established groups more time to make the fundamental changes they may need to make.”
Other strong performers in the sector include Porsche, which entered the top 10 for the first time and is now valued at $4.4 billion, while the best riser was Mercedes-Benz, which recorded a 4% rise to $22.7 billion in what has been tough year for the sector as a whole.
Summary of the main global stories
· Google is the world’s most valuable brand. Continual innovation, increased revenue from advertising, and growth in its cloud business helped to boost its brand value 32% to $229.2 billion. Apple has moved into second place after its value dropped 8% to $228.5 billion.
· Disruption is a catalyst for value growth. The categories that increased in value were all either shaken up by challenger brands founded on a unique and meaningful proposition, such as Under Armour and Victoria’s Secret in the apparel category (+14%), or innovated to a high degree in response to a new trend, such as the brands in the fast food category (+11%) which successfully responded to global demand for healthier products.
· Innovation is the main growth driver – but it must be seen and felt by consumers. The brands that are the strongest innovators have increased their value the most over the 11 years of BrandZ Top 100 rankings. However, to have an impact on brand value, innovation must be clearly communicated and delivered through the brand experience: the brands that are perceived as innovative by consumers – which include Disney (no.19) and Pampers (no.37) – grew nine times faster than those seen as less innovative.
· Apparel is the fastest growing category, rising 14% to $114bn. There is an emphasis on high performance, with brands including Nike (+26%) and Under Armour (a new entry) launching specialist premium lines, incorporating technology such as heart monitors into their clothing, and integrating sportswear with free apps to provide a total consumer experience.
· Strong emotional connections are boosting local brands. With a clear understanding of their consumers’ needs, local brands are gaining market share at home and, with improved functionality and marketing, are also winning share in new regions. China’s Huawei (no.50, +22%), for example, has rapidly globalised and taken market share from both Apple and Samsung.
NOTES TO EDITORS:
The full global and car ranking is available from www.millwardbrown.com/brandz
About the BrandZ™ Top 100 Most Valuable Global Brands Ranking
Carried out by WPP's marketing and brand consultancy Millward Brown, the BrandZ™ Top 100 Most Valuable Global Brands ranking is now in its eleventh year. It is the only study to combine measures of brand equity based on interviews with over three million consumers globally about thousands 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 and shareholder value. 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 a leading global research agency specializing in advertising effectiveness, strategic communication, media and brand equity research. Millward Brown helps clients grow great brands through comprehensive research-based qualitative and quantitative solutions. Specialist global practices include a leading Digital practice (focused on digital effectiveness), Firefly Millward Brown (a global qualitative network), a Neuroscience Practice (using neuroscience to optimize the value of traditional research techniques), and Millward Brown Vermeer (a strategy consultancy helping companies maximize financial returns on brand and marketing investments). Millward Brown operates in more than 55 countries and is part of Kantar, WPP’s data investment management division. Learn more at www.millwardbrown.com.
About WPP
WPP is the world’s largest communications services group with billings of US$73 billion and revenues of US$19 billion. Through its operating companies, the Group provides a comprehensive range of advertising and marketing services including advertising & media investment management; data investment management; public relations & public affairs; branding & identity; healthcare communications; direct, digital, promotion & relationship marketing and specialist communications. The company employs 194,000 people (including associates and investments) in over 3,000 offices across 112 countries. For more information, visit www.wpp.com. WPP was named Holding Company of the Year at the 2015 Cannes Lions International Festival of Creativity for the fifth year running. WPP was also named, for the fifth consecutive year, the World's Most Effective Holding Company in the 2016 Effie Effectiveness Index, which recognizes the effectiveness of marketing communications. In 2016 WPP was recognised by Warc 100 as the World’s Top Holding Company (second year running).