PANDEMIC
Why ‘Staying Home’ Means Fast Growth for Certain Brands Unsurprisingly, some online retail, take-out and alcohol brands have flourished during the pandemic £3.3bn) creative communications campaign in support of Age UK and KitKat’s (no.34; $1.8bn; £1.5bn) product innovation and expansion into gifting and seasonal confectionery helped both brands increase their brand value by +8% and attract younger, affluent shoppers.
Online retail and take-away brands Ocado, Deliveroo and Just Eat are the UK’s fastest growing brands according to the 2020 BrandZ Top 75 Most Valuable UK Brands report, launched by WPP and Kantar. Already gathering pace pre-COVID-19, Ocado’s online capabilities and perceptions of strong differentiation from other grocery retailers made it take the coveted title of this year’s fastest growing UK brand, increasing +63% in brand value to $3.3bn (£2.7bn) and reaching no.18 in the Top 75 ranking. Home delivery services threw the UK’s restaurant and takeaway industry a lifeline as it was locked out by COVID-19. Intense competition between Just Eat (no.20) and Deliveroo (no.29) increased due to takeover deals and accelerated consumer demand for home-delivered restaurant and takeaway food over the last year. This allowed Deliveroo to grow by +40% in brand value to $1.9bn (£1.6bn), and Just Eat +19% to $2.8bn (£2.2bn), making them the second and third fastest growing brands respectively.
13% decrease in value in the last 12 months which has fallen behind both the Global Top 100 Most Valuable Brands ranking published in June, and projections for the global economy by a large margin. Yet, despite very challenging macro-economic circumstances, the BrandZ UK Top 75 brands have still eclipsed the performance of the FTSE 100. Despite the impact of COVID-19, the BrandZ Top 75 UK portfolio showed strong recovery, outperforming the FTSE 100 by almost +5%. The top five most valuable UK brands remained unchanged. Vodafone (-13%, $23.1bn; £18.9bn), which recently announced its intention to float its mobile towers business in a deal that could be worth £18bn, maintained its no.1 spot for the third year running. HSBC (-19%; $18.7bn; £15.3bn) and Shell (-22% $16.1bn; £13.1bn) make up the top three respectively. Dyson (no.15; $3.5bn; £2.9bn) is by far the fastest rising brand since the UK ranking’s inception in 2017, fuelled by differentiation, innovation and product excellence.
Urgent call to action for UK brands While some individual UK brands have performed well, growth in the BrandZ Top 75 UK brands as a collective has fallen by more than 15%, or $32 billion (£26bn) since 2017. There is further cause for concern due to a
Pampering during the pandemic Some brands have met the pandemic trends in self-reliance and resourcefulness that have seen consumers amusing themselves and seeking more indulgent moments, particularly during lockdown. Cadbury’s (no.13; $4.1bn;
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The rise of gin Entering the BrandZ UK Top 75 for the first time, at no.70, gin brand Gordon’s ($651m; £531m) commitment to innovation has revitalised the brand’s equity in the UK. Fuelled by flavoured gins and liquors, the category has exploded in recent years, more than doubling its shopper base from 14% in 2015 to 34% in 2020, while helping establish gin as the nation’s favourite tipple. Seeking escapism and excitement, UK consumers also helped to drive growth in the games console entertainment brand Grand Theft Auto (no.53; $1.1bn; £0.9bn) as it crashed into the Top 75 for the first time as this year’s highest newcomer. Other key trends highlighted in this year’s BrandZ UK Top 75 study include: • BooHoo enters Top 75 ranking at no.73 as the share of fashion spend continued to grow after lockdown • Fintech newcomer Revolut (no.75; $582m; £474m) is moving away from traditional banking • Categories in decline - Gambling (-34%) impacted by cancelled sporting events, Cars and Logistics (-32% each) and Travel Services (-27%) • Entertainment category rises by +8%, but BBC and ITV lose brand value as consumers subscribed in massive numbers to online streaming brands • The Top 75 UK brands perform well on each component of ‘Responsibility’ and ‘Inspiring expectations’ but, in a wider global context, credentials must improve in all areas TOTAL BRAND LICENSING
