Interbrand, the world's largest branding consultancy, has today announced Apple and Google as the leading brands in the world in their Annual Best Global Brands report.
Apple and Google made history with this year's report, each having earned value that exceeds US $100 billion. It's the first time in the history of Best Global Brands that two brands have each earned a brand value that exceeds USD $100 billion.
"Apple and Google's meteoric rise to more than USD $100 billion is truly a testament to the power of brand building," said Jez Frampton, Interbrand's Global Chief Executive Officer. "These leading brands have reached new pinnacles--in terms of both their growth and in the history of Best Global Brands--by creating experiences that are seamless, contextually relevant, and increasingly based around an overarching ecosystem of integrated products and services, both physical and digital."
To be officially launched in Australia tomorrow at an event hosted by
Interbrand Australia CEO Damian Borchock, this year's report had some
key findings and trends that herald what Interbrand have termed 'The Age
of You'.
Commenting on this year's key findings, Borchock noted: "How is it that Apple is the world's most valuable
global brand -- yet Steve Jobs hated talk of branding? Not just Apple,
but other giants such as Amazon, Google, and Facebook, have a very
different view on how businesses and brands succeed in today's
disruptive, dynamic environment. The way they operate provides a
signpost to the future, not just for up coming tech players but for any
business with ambition."
Another history breaker occurred this
year with a Chinese brand appearing on the Top 100 for the first time
since the inception of the report.
Huawei (#94), the Chinese
telecommunications and network equipment provider, also makes Best
Global Brands history as the first Chinese company to appear on
Interbrand's ranking. With 65 percent of its revenue coming from outside
of China and with its earnings continuing to climb both domestically
and across Europe, the Middle East, and Africa, Huawei is quickly
becoming one of the largest telecommunications equipment makers in the
world. The company is currently the third largest smartphone
manufacturer in the world--just behind Samsung and Apple. The Chinese
brand is one of five new entrants to enter the Best Global Brands
ranking this year, the others being DHL (#81), Land Rover (#91), FedEx
(#92), and Hugo Boss (#97).
Additional findings, key to the emerging era on global business that Interbrand has termed 'The Age of You' include:
Against the backdrop of global economic recovery, financial services brands experience growth in brand value.
The technology sector leads as the most valuable category overall.
Legacy and one-time leading brands struggle to evolve at the pace of
change.
Leading automotive brands continue to rethink the
future of mobility. A combined focus on energy-efficient products and
integrated technology is helping leading auto brands drive brand loyalty
and value.
More highlights include:
Facebook was the
top rising brand this year, growing in value by 86%. Other notable
risers included Audi, Amazon, Nissan, Volkswagen and Starbucks.
While the tech sector was a high growth sector, Nokia and Nintendo were
the fastest declining brands for the second year running, dropping in
value by 44% and 33% respectively.
For the second year in a row Apple was the number one brand. It grew brand value by 21% to USD $118.8b.
Google continued to strengthen its position at number two, growing 15% to USD $107.4b.
This year, the total value of all 100 Best Global Brands is USD $1.6
trillion -- a 6.65% record increase over the total value of the 100 Best
Global Brands in 2013.
In addition to identifying the top 100
most valuable brands, this year's Best Global Brands report also
examines three pivotal ages in brand history that have reshaped business
for the better: the Age of Identity, the Age of Value, and the Age of
Experience. Interbrand contends that a new, emerging era is upon the
global business world: the Age of You.
"As consumers and devices
become more connected and integrated, the data being generated is
creating value for consumers, for brands, and for the world at large,"
said Frampton. "As a result, brands from all categories and sectors will
get smarter--with products and devices working in concert with one
another, across supply chains, and in tandem with our own individual
data sets. Brands that seek to lead in the forthcoming Age of You will
have to create truly personalized and curated experiences, or what we
call 'Mecosystems,' around each and every one of us. Such brands will
have to rehumanize the data, uncover genuine insights, and deliver
against individual wants, needs, and desires."
KEY REPORT HIGHLIGHTS
2014 TOP RISERS: Facebook (#29, +86%), Audi (#45, +27%), Amazon (#15, +25%), Volkswagen (#31, +23%), and Nissan (#56, +23%)
Facebook
(#29, +86%): The world's largest social network, Facebook continues to
exceed expectations. Reported on its Q2 earnings call, income from its
operations was a staggering USD $1.4 billion. One year prior it was USD
$562 million. Facebook's ad business on mobile phones has been
particularly strong.For the first time in its history, the company
reported that revenue from advertising on mobile phones exceeded half
(53 percent) of all its advertising for the quarter. Facebook's
acquisitions of messaging service WhatsApp for USD $19 billion and
Oculus VR for USD $2 billion signal a new strategy unfolding. The
company is building a vast product portfolio, brimming with competing
services and apps.
Audi (#45, +27%): Audi is the top-rising
automotive brand in this year's Best Global Brands report. It was a
record-breaking year for the brand, having sold the greatest amount of
cars in its history, and having achieved an operating profit of more
than USD $6 billion. The company also awed audiences at the 2014
International Consumer Electronics Show (CES) in Las Vegas, Nevada with
its A7 self-driving car. Audi also plans to introduce 17 new or revamped
models this year and will move forward with the production of an
electric version of the R8 sports car in a push to gain momentum on
rival BMW (#11). The company also plans to invest more than USD $30
billion through 2018 in new products, technology, and production sites.
Earlier this year, it also announced a partnership with Google, which
will allow Audi drivers and passengers to use an Android-powered
entertainment and information system that will run on the car's
hardware.
Amazon (#15, +25%): It was another banner year for
Amazon, "Earth's most customer-centric company." Amazon's commitment to
responsiveness has become part of the brand's mythos. It continues to
grow its core business through services such as Amazon Prime, which, at
one point, garnered more than a million subscribers in a single week.
Expansions on previously popular product lines--the new Kindle Paperwhite
and Fire Phone--brought more customers into the Amazon ecosystem, while a
content licensing agreement with HBO helped it to make a bigger push
into the entertainment sector.
Volkswagen (#31, +23%):
Volkswagen, Europe's leading automaker and one of this year's top-rising
Best Global Brands, is striving to become the world's leading automaker
by 2018. Its latest model, the XL Sport, recently debuted at the Paris
Motor Show and served as yet another symbol of the innovative power,
passion, and technical competence of the Volkswagen brand. Beyond its
manufacturing and design capabilities, Volkswagen's "Think Blue" concept
continues to prove that ecological sustainability remains a top
corporate objective.
Nissan (#56, +23%): Nissan continues to
drive up the Best Global Brands ranking with improved financial and
brand performance. Nissan's leadership consistently pushes brand
building as a major priority across the organization, clearly
identifying the link between a strong brand and market share. Nissan's
recent car launches--Qashqai, Murano, and Rogue--have demonstrated how its
"Innovation and Excitement for EVERYONE" brand positioning is shaping
its product lineup.
2014 NEW ENTRANTS: DHL (#81), Land Rover (#91), FedEx (#92), Huawei (#94), and Hugo Boss (#97)
DHL
(#81): The burgeoning e-commerce market has opened a sea of opportunity
for delivery and logistics companies. As international online shopping
continues to grow--and is poised to grow 200 percent in the next five
years--brands like DHL and FedEx have made strides in bolstering their
e-commerce capabilities. The most valuable brand of the new entrants to
this year's Best Global Brands ranking, DHL announced recently announced
a five-year strategy plan aimed at tapping emerging markets to grow its
global market share. As part of its plan, its MAIL division will be
renamed Post - eCommerce - Parcel to better reflect its character under
the new strategy.
FedEx (#92): FedEx is also realigning its
business to make the most of the booming e-commerce sector. Earlier this
year, the company launched a new service designed to make it easier for
customers to control when and where packages are delivered. The service
is called FedEx Delivery Manager and is available through multiple
digital platforms, including a free mobile app. Customers can request
alerts via email, SMS text, or phone. FedEx has also developed a host of
Web-based services to help brick-and-mortar retailers boost their
online sales. Retailers can easily integrate FedEx's Web Services
platform into their own Web systems--allowing them to track shipment
information. With FedEx's Web Integration Wizard, its customers can
track the shipments directly via the retailer's home site.
Land
Rover (#91): British carmaker Land Rover continues to refine its product
lineup with fresh styling, high-tech platforms, and downsized engines.
Since being acquired by Indian automobile company Tata Motors in 2008,
Land Rover has witnessed double-digit growth each consecutive year. This
past year, Land Rover's unit sales rose 15 percent year-over-year to
nearly 350,000.
Huawei (#94): As mentioned previously, Huawei is
both a new entrant and the first Chinese brand to ever appear on the
Best Global Brands ranking. In 2013, the Chinese telecommunications and
network equipment provider reported a net profit increase of 34.4
percent to CNY ￥21 billion (USD $3.38 billion) up from CNY ￥15.6 billion
in 2012. As companies, as well as entire industries, continue to shift
from legacy storage and equipment to more agile products (cloud
services, 3G routing, security solutions, etc.), Huawei is poised to
dominate key areas of the IT market--from mobile phones to carrier-grade
networks.
"Huawei's rapid growth and long-term investments in its
brand helped it earn a place among the world's most valuable brands,"
said Frampton. Despite its low brand awareness in the U.S., Huawei has
gradually expanded its reach around the world. It continues to
demonstrate its technological prowess in both its consumer products as
well as in its enterprise solutions--and it remains well positioned to
meet the needs of customers in both emerging and developed markets."
Hugo
Boss (#97): Hugo Boss, the German fashion house, was one of the
strongest-performing apparel brands globally in the past year. The
company saw revenue grow 10 percent in Europe, where it makes more than
half its sales, while the Americas grew 7 percent, and Asia grew just 2
percent, largely due to China's slowing economy. On the whole, Hugo Boss
is moving away from selling through partners and starting to run its
own stores, allowing it to have greater control over price points and
the way the clothes are presented. This year, Hugo Boss celebrated its
20th anniversary with an exhibit at the Saatchi Gallery in London, a
microsite, and a multichannel campaign. The microsite offered a look
into the Saatchi Gallery exhibit by illustrating 20 iconic Hugo Boss
items and 20 internationally acclaimed artists. Clicking on a product
brought consumers directly to the e-commerce site where they could
either purchase the product or find it in a store.
KEY SECTOR HIGHLIGHTS
Leading Automotive brands continue to rethink the future of mobility. A
combined focus on energy-efficient products and integrated technology is
helping leading auto brands drive brand loyalty and value.
This
year, the collective brand value of the automotive brands appearing on
the Best Global Brands ranking increased 14.6 percent. All 14 automotive
brands collectively make up a combined brand value of USD $211.9
billion. With three out of the five Top Risers hailing from the
automotive sector, the past year proved to be a record-breaking one.
This year's top 14 automotive brands include: Toyota (#8, +20%),
Mercedes-Benz (#10, +8%), BMW (#11, +7%), Honda (#20, +17%), Volkswagen
(#31, +23%), Ford (#39, +18%), Hyundai (#40, +16%), Audi (#45, +27%),
Nissan (#56, +23%), Porsche (#60, +11%), Kia (#74, +15%), Chevrolet
(#82, +10%), Harley-Davidson (#87, +13%), and Land Rover (#91, NEW).
Toyota, which has been the most valuable automotive brand on the Best
Global Brands ranking since 2004, continues to be a leader in green
technology development. Since the launch of its first-generation Prius
17 years ago, Toyota has sold a total 3.2 million units of the vehicle
globally. Toyota has also expanded its hybrid range to a total of 25
vehicles, including the Prius Plug-in Hybrid. Toyota plans to spend USD
$7 billion on environmental technology in the fiscal year ending March
2014, an increase of 11 percent compared to the previous fiscal year.
With the era of the connected car rapidly approaching, the sector's Top
Risers--Audi, Volkswagen, and Nissan--are working to redefine the essence
of the driving experience and build stronger emotional ties with their
customers.
The Technology sector leads as the most valuable
category overall. Legacy and one-time leading brands struggle to evolve
at the pace of change.
Out of this year's top 100 brands, 13 hail
from the tech sector. The category as a whole grew 11.3 percent
year-over-year, and collectively is worth USD $493.2 billion in brand
value. While Facebook (#29, +86%), Apple (#1, +21%), and Google (#2,
+15%) represent this year's fastest growing brands, a number of one-time
leading brands experienced the steepest decline in brand value. Finnish
communications and information technology provider Nokia (#98, -44%)
experienced the largest decline in value among the top 100 brands,
dropping from its #57 position in 2013 to #98 this year. Once a dominant
player in the cell phone industry, it has seen its market share decline
steadily since 2010, struggling to compete against rivals Apple and
Samsung. Microsoft (#5, +3%) acquired the Finnish brand's consumer
products in April this year, and despite changes in leadership and
operational structure, it remains unclear how Microsoft will use the
brand and how it will evolve in the future. Japanese consumer
electronics company Nintendo (#100, -33%), had another difficult year.
The brand fell 33 places this year to take the #100 position, with a
brand value of USD $4.1 billion. The company has acknowledged its woes
in the hardware space, and CEO Satoru Iwata also publicly stated that
the company must evaluate other opportunities, including those in the
mobile market. Earlier this year, he announced that the company has
plans to start a new health-related business by March 2016.
Against the backdrop of global economic recovery, Financial Services brands experience growth in brand value.
The
value of financial services brands has experienced steady growth in
recent years. All 11 financial services brands appearing on this year's
Best Global Brands ranking increased in brand value: American Express
(#23, +11%), HSBC (#33, +8%), J.P. Morgan (#35, +9%), Goldman Sachs
(#47, +3%), Citi (#48, +10%), AXA (#53, +14%), Allianz (#55, +15%),
Morgan Stanley (#63, +11%), Visa (#69, +10%), Santander (#75, +16%), and
MasterCard (#88, +13%). On the whole, companies within the financial
services industry are continuing to build brand value by engaging with
their customers and providing more seamless, convenient, and fully
integrated experiences. Many financial services organizations have
increased investments in mobile marketing, social media, online video,
and more--and such efforts, as evidenced by this year's Best Global
Brands ranking, are paying off.
Leading Luxury Brands continue to
embrace digital platforms. A new era of exclusivity is paving the way
for personalization and curated brand experiences.
While luxury
brands have been slower to embrace online channels, the rise of digital
sales, online browsing, and brand consideration is forcing them to
reimagine their respective customer experiences. As reported by Luxury
Interactive and ShopIgniter, 65 percent of luxury marketers expect
digital marketing to be the most important form of marketing for their
brand.
Detailed brand profiles, thought leadership articles,
interactive charts, and interviews with brand leaders from around the
world are available at bestglobalbrands.com.
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