Mumbai: Bingeing on Netflix boxsets, sharing stories on Facebook and downloading content from Apple’s iTunes and Alibaba’s Ali Picture have contributed to a record year of brand value growth in the 2018BrandZTM Top 100 Most Valuable Global Brands ranking released today by WPP andKantar Millward Brown.
- The total brand value of the BrandZTM Top 100 grew by a record 21%, adding almost $750billion to the ranking, now valued at $4.4 trillion.
- China accounts for the three fastest-rising brands as the country’s brands grow at double the pace of US brands.
Bingeing on Netflix boxsets, sharing stories on Facebook and downloading content from Apple’s iTunes and Alibaba’s Ali Picture have contributed to a record year of brand value growth in the 2018 BrandZTM Top 100 Most Valuable Global Brands ranking released today by WPP and Kantar Millward Brown.
The increasing use of data-driven, intelligence-led technologies – such as artificial intelligence (AI) and augmented reality (AR) – alongside creative marketing approaches has allowed many brands to build a more in-depth understanding of their customers and deliver convenience, personalised content and exceptional brand experiences.
Eight out of the Top 10 are technology or tech-related brands. This category continues to dominate the rankings with Google and Apple retaining the number 1 and 2 spots, growing +23% to $302.1billion and +28% to $300.6billion respectively. Amazon moved onto no.3 position ahead of Microsoft, growing +49% to $207.6billion, while Tencent rose to no.5 ahead of Facebook (no.6) growing +65% in brand value to $179billion, up three places from last year’s ranking.
David Roth, WPP, says, “We’ve seen the biggest ever rise in brand value this year, driven by growth across all categories. Both new and established players have seen the payoff in being bold and adopting a long-term outlook towards brand-building.”
“WPP’s own focus is on providing innovative approaches for our clients that combine data and technology with world-class creativity. Those companies that invest in intelligence-led marketing and back their brands with the power of creativity and ideas will be the winners in today’s world of innovation, disruption and change,” added David Roth.
The BrandZTM Top 10 Most Valuable Global Brands 2018
Despite economic and political uncertainty in many regions of the world, this year’s ranking shows its largest-ever annual increase in value – almost $750 billion (+21%). This gave the BrandZTM Global Top 100 an overall total brand value of $4.4 trillion; up 204% over 12 years since it was first published in 2006. This is also the first year that all categories in the BrandZTM Top 100 reported growth.
This was the first year when non-US brands grew faster than US brands. Fourteen Chinese brands appeared in the Top 100 ranking compared to just one (China Mobile) in 2006. The total value of China’s Top 10 grew year-on-year by +47%, more than double that of the US brands (+23%). Other parts of the world, such as India and Indonesia, are also showing strong regional growth. The BrandZTM Top 100 included seven Asian brands (excluding China), which grew +14% giving them a total brand value of $146billion. Regional bank BCA (no.99) became the first Indonesian brand to enter the ranking, and newcomer Maruti Suzuki entered the Top 10 Car category for the first time.
Trailblazing Chinese brands dominate the Fastest Risers this year, with JD.com (no.59) leading the march following a staggering +94% rise in brand value bolstered by its entry into new categories such as finance. Alibaba (no.9) was second, entering the Top 10 for the first time this year with +92% growth, as it expanded its global reach and the success of Singles Day. The third fastest riser was Moutai (no.34) growing by +89%.
Key trends highlighted in this year’s BrandZTM Global Top 100 study include:
- Intelligence-led marketing, such as AI and AR, allows brands to ‘revive and thrive’ and maintain relevance to consumers.
- JD.com and HP reappeared on this year’s list, having both been in the BrandZTM Top 100 in 2016. US telecoms giant Spectrum (no. 27) led the Newcomers to the rankings, with Uber (no.81) and Instagram (no.91). Last year’s fastest riser Adidas jumped into the ranking at 100. It was also the first time an Indonesian brand entered the BrandZTM Top 100 with regional bank BCA at no.99.
- Partnerships proved pivotal as brands sought ways to maximise efficiency. Leading brands continued to raise the bar on expectations for customer experience at every touch point—both online and offline—from trial to pick-up or delivery by seeking strategic, long-term partnerships.
- Retail demonstrated strong growth as the fastest rising category growing +35% in value over the last 12 months.
- Tech-related brands continue to dominate. In the ‘battle of the brands’, accounting for over half (+56%) of the BrandZTM Top 100’sbrand value.
Doreen Wang, Kantar Millward Brown’s Global Head of BrandZTM, comments, “Brands that are winning in the intelligence-led marketing era include businesses such as Amazon and Tencent who put the consumer at the heart of everything they do. These brands use technology to understand the needs of their consumers and apply these learnings to create an ecosystem of services that fulfil multiple needs, enabling a seamless consumer experience between platforms.”
Courtesy: BusinessWire India