Brand value increases across categories

Part 1 | Highlights Introduction
Introduction
BRANDZ TOP 100 RISES
7 PERCENT WITH GROWTH
ACROSS CATEGORIES
Year of recovery, refinement and relevance
THERE WAS a new tone.
It fit the new normal. Both brands
and consumers adjusted to constant
uncertainty and sober expectations
about economic growth. They fit into
the calculus of consumption the impact
on the natural environment, personal
health, and human wellbeing along the
supply chain.
Shaped by these considerations, brand
value appreciated.
The value of the BrandZ Top 100 Most
Valuable Global Brands rose 7 percent to
$2.6 trillion last year, compared with a
flat performance a year ago. All but two of
the 13 categories analyzed in this report
improved in brand value. Technology and
oil and gas declined modestly.
These results indicate that strong brands
continue to regain value lost during the
recession and now, in some cases, surpass
their pre-recession levels.
The total brand value of the BrandZ Top
100 Strong Brands Portfolio has improved
77 percent since 2006. In addition, the
BrandZ Top 100 Strong Brands Portfolio,
comprised of diverse public companies,
appreciated 58 percent during that
eight-year period, compared with a market
value gain of only 23 percent by the
S&P 500.
Despite a sharp decline in the growth of
its brand value last year, Apple remained
number one in the BrandZ Top 100
ranking, on the strength of the meaningful
difference of its brand. Google moved
to the number two position, marginally
surpassing IBM, which continues to be
the world’s most valuable B2B brand.
These brands demonstrate both the
capacity to grow brand strength quickly
(Apple was founded in 1976, Google
in 1998) and sustain it over time (IBM
celebrated its centennial in 2011).
Three key themes emerge from the
BrandZ Top 100 Most Valuable Global
Brands 2013:
Recovery
The economy continued to improve—
not everywhere, but in the US. All
categories experienced healthy sales.
Refinement
With confidence still fragile, brands
resisted introducing break-through
innovations and instead encouraged
consumer spending with incremental
product and service improvements.
Relevance
Reaching these more reflective
consumers required offering products
and services that not only projected
mass appeal, but also promised
personal relevance for the individual.
Up 7%
BrandZ Portfolio outperforms S&P 500
Over the past seven years, the S&P 500
increased 23 percent in market value. In
contrast, the BrandZ Portfolio of the
strongest brands appreciated 58 percent.
The comparison shows that strong
brands outperformed the stock market
benchmark by a wide margin of 28%.
8 BrandZ Top 100 Most Valuable Global Brands 2013 9
60%
40%
20%
0%
-20%
-40%
-60%
BrandZ Strong Brands Portfolio
S&P 500
Apr 06 Apr 07 Apr 08 Apr 09 Apr 10 Apr 11 Apr 12 Apr 13
Source: Bloomberg
58%
23%