Brand value increases across categories

Part 2 | The Top 100
BRAND VALUE APPRECIATES
DESPITE ECONOMIC STRESS
BRAND VALUE appreciated by an
average of 44 percent among the
BrandZ 2013 Top 20 Risers, compared
with an average increase of 35 percent
the previous year. The sharper increase
suggests that strong brands gained
momentum despite the fluctuating
global recovery.
The Top 20 Risers individually far
exceeded the substantial 7 percent brand
value growth of the BrandZ Top 100
Most Valuable Global Brands overall.
The diversity of categories represented in
the Top 20 Risers—apparel, banks, beer,
luxury, personal care, retail, technology,
entertainment and credit cards—affirms
that strong brands can emerge in all
sectors of the economy.
Multiple factors accounted for
this performance, including Brand
Contribution, the portion of brand value
attributed to the brand alone and not
to financial or other factors. Among the
other influences were:
Differentiation
The introduction of desirable products,
supported with clever marketing, was
a key driver of brand value growth.
Recovery
In other instances, brand value growth
reflected value regained since the
recession because of investments in the
brand made during the global slowdown.
Geography
Generally, brands with a global
presence were more likely to enjoy
brand value appreciation, despite
slower growth rates in BRIC countries.
30 BrandZ Top 100 Most Valuable Global Brands 2013
Differentiation
In technology, one of two categories that
declined slightly in brand value, Tencent
and Samsung improved brand value 52
percent and 51 percent, respectively.
In both cases, the brands demonstrated
an ability to anticipate and meet
consumer desires with clearly
differentiated products.
Tencent expanded the user base for
some of its products. Samsung gained
consumer approval, and challenged
Apple’s dominance, with the features and
marketing of its Galaxy smartphones.
The smartphone success strengthened the
Korean brand across its wide range of
home electronics and digital devices.
Recovery
The Home Depot is the only brand in the
BrandZ 2013 Top 20 Risers that also
appeared in last year’s Top Riser ranking.
The US home improvement retailer’s 43
percent brand value growth follows a 31
percent increase a year ago.
During the recession, the home
improvement business suffered more than
most categories. As business slowed, The
Home Depot acted. It improved customer
service and addressed other problems that
had depressed its sales, decreased its share
price and tarnished its brand. Driven by
the US housing recovery, consumer and
contractors started spending again. And
The Home Depot was ready for them.
Of the banks that improved in the
BrandZ 2013 ranking, Citi and
Barclays experienced the greatest lift,
37 percent and 34 percent, respectively.
These gains reflect the recovery of brand
value lost because of the financial crisis.
Citi’s brand value declined 38 percent a
year ago and has not yet reached its prerecession
level.
These brand value improvements
followed the initiatives by both Citi and
Barclays to introduce products and
services aimed at growing business
in a more regulated, low interest rate
environment. Barclays underwent a
change of management, with the new
CEO pledging to refocus the bank on
customer service.
Geography
Even as the rate of economic expansion
slowed in the BRIC countries, luxury sales
grew. Wealthy Asian clients, for example,
continued to support the brands both
with purchases made at home and while
traveling abroad, which helped bolster
results in Europe. Prada led the list of
Top Risers with a 63 percent increase in
brand value. Both an increase in sales
and an increase in its Brand Contribution
score contributed to Gucci’s 48 percent
rise in brand value.
Brand Contribution also remained an
important factor in beer. Brahma and
Skol, two local Brazilian brands owned
by global brewer AB InBev, enjoyed wide
popularity at home. Based on worldwide
distribution and popularity, Stella
Artois, another AB InBev brand, also
grew in brand value. Heineken benefited
from its global premium reputation.
Overall, strength in Asia, Latin
America and Africa offset the weakened
European economies.
The impressive brand value growth of
60 percent for Zara and 52 percent for
Calvin Klein also reflected worldwide
brand acceptance and growth, especially
in China and other fast growing
markets. The increasing brand value of
Commonwealth Bank of Australia in
part can be attributed to nation’s
economic strength relative to other
developed markets.
Top Risers
Category Brand
Brand value
2013 $M
Brand value
2012 $M
Brand value %
change
2013 vs 2012
1 Luxury Prada 9,454 5,788 63%
2 Beer Brahma 3,803 2,359 61%
3 Apparel Zara 20,167 12,616 60%
4 Apparel Calvin Klein 1,801 1,183 52%
5 Technology Tencent 27,273 17,992 52%
6 Technology Samsung 21,404 14,164 51%
7 Luxury Gucci 12,735 8,602 48%
8 Credit Card Visa 56,060 38,284 46%
9 Retail The Home Depot 18,488 12,968 43%
10 Entertainment Disney 23,913 17,056 40%
11 Retail eBay 17,749 12,663 40%
12 Beer Stella Artois 6,319 4,529 40%
13 Beer Skol 6,520 4,698 39%
14 Apparel Next 4,121 2,973 39%
15 Global Banks Citi 13,386 9,760 37%
16 Personal Care Nivea 6,322 4,642 36%
17 Beer Heineken 8,238 6,058 36%
18 Regional Banks Commonwealth
Bank of Australia
17,745 13,083 36%
19 Retail Amazon 45,727 34,077 34%
20 Global Banks Barclays 7,989 5,961 34%
Valuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.
Top 20 Risers
The diversity
of categories
represented in
the Top Risers
affirms that
strong brands
can emerge in
all sectors of
the economy
31