BRAND VALUE
The Top 100 Most Valuable Brands Mark Chamberlain, Managing Director of Brand, Kantar UK, spoke to Total Licensing about the Global Top 100 Most Valuable Brands, which shows that, despite the global uncertainty, top brands have grown and have an opportunity to provide confidence and reassurance as consumers actively seek out trusted brands during these times of crises.
Q. What do you think has led to brand value increase, over the last few months of lockdown? BrandZ’s Top 100 Most Valuable Global Brands ranking uses valuations data, incorporating stock price performance, available for the 12 months up to 7 April 2020 to reflect the initial impact of COVID-19. The world’s most valuable brands have seen their total brand value increase by 5.9% despite the economic, social and personal impacts of COVID-19. The total brand value of the Top 100 global brands was US$5 trillion, equivalent to the annual GDP of Japan. Brands that proved most resilient to the commercial impact of COVID-19 were those closely aligned with how people live their lives. COVID-19 accentuated the relevance of brands that could fulfil basic needs. These included technology brands like Microsoft, Facebook, Google, and Apple, that enabled people to stay connected; retailers like Amazon, Costco, and Walmart that delivered food and other necessities; and even athleisure apparel brands like Lululemon that dressed people for at-home comfort. Q. And how do you think the top brand corporations have ‘survived’ and flourished during this time? Against a backdrop of uncertainty, those companies that have consistently made smart investments in longer-term marketing and in building strong brands have managed to stave off the worst of the crisis to date. Our BrandZ data allows business leaders to understand how much ‘brand’ drives their business revenues and growth. It also provides valuable infor-
TOTAL BRAND LICENSING
mation on what brands must do to help them remain relevant and adapt to changing consumer needs. COVID-19 has indiscriminately impacted everyone, including UK brands. However, consistent investment in marketing can and will help carry you through a crisis Innovation has proven to be a key driver for growth in this year’s Top 100, and a way to prevent decline. Creativity is also an important trait for the world’s most valuable brands. Companies like Amazon, Apple and Google – the tech giants that keep on innovating – successfully combine both to continue being relevant to consumers’ lives and making it easier for them to choose a brand. The continued growth in value of the BrandZ Top 100 shows that strong brands are in a much better place than they were in the global economic crisis of 2008-9. We see a significant improvement in brand equity now compared to 10 years ago because businesses understand the importance of investing in
brand-building and are stronger and more resilient as a result. Q. Is there a strong element, during uncertain times, of trusted brands thriving? Trust both delivers reassurance and simplifies brand choice. There is a growing public demand for more responsible corporate behaviour, which in turn amplifies the need for brands in all categories to act as a positive force in the world. Brands have a unique op-
portunity to earn valuable trust and help make a difference, providing this is seen to be genuinely altruistic. Being sincere, empathetic and ensuring your brand remains consistent with its core values will ensure your corporate reputation is not compromised. Brands perceived by consumers to be among the world’s most trusted and responsible shared three crucial factors that proved particularly important for building consumer trust and confidence, even when a brand might be new to a market. These are honesty and openness; respect and inclusion; and identifying with and caring for customers. Brands that develop these associations more strongly tend to outperform their competitors in defending and growing their brand value. For example, the most trusted brand in this year’s BrandZ Global Top 100 study is the US
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