A Interbrand launched your ranking Best Global Brands 2023. And the latest version of the study reveals that many of the 100 best brands in the world are in a state of stagnation. The growth rate in the global value of table brands, for example, has slowed sharply, registering an increase of just 5.7% this year, compared to a 16% increase in 2022. The total value in the sum of table brands in 2023 reached the US$3.3 trillion mark (US$3.1 trillion in 2022).
Interbrand attributes the slowdown to factors such as a lack of growth mindset, weaker brand leadership and poor forecasting. This scenario signals a long-term trend where brands operating exclusively in one sector, adopting an incremental approach, have experienced slower growth in brand value.
“After a few years of strong brand growth, we have entered a period of stagnation, with this year’s chart showing moderate growth in overall brand value. Companies that have witnessed a rise, including Airbnb (#46), Lego (#59), and Nike (#9), have transcended established norms in their categories and play a more significant role in society and consumer lives. As we continue to navigate economic and environmental headwinds, there is a need for business improvement cases and better brand management to drive future investment and sustain growth, within and beyond traditional sectors. Those who can successfully leverage their brand into new consumer audiences will reap the benefits of strong growth,” says Gonzalo Brujo, global CEO of Interbrand.
More than two decades of analysis shows that companies that serve a wider range of customer needs, often across multiple industries, continue to dominate the top of the table, representing almost 50% of total value. Based on the data, these companies operating across multiple industries are more stable, achieve higher revenue growth, are more profitable, and benefit from higher growth.
For these companies, brand rather than product focus plays a greater role in decision-making (+12% compared to average), meaning they are able to meet more customer needs, within and across categories.
For Beto Guimares de Almeida, CEO of Interbrand in Brazil, the continuous analysis of more than 20 years of Best Global Brands brings great lessons about what brands must do to become allies of their consumers over time.
The strategies that brought superior growth this year came from brands that knew how to connect mentally and physically with their consumers (Presence), creating a positive connection that goes far beyond functionality and becoming indispensable (Affinity), comments Almeida.
Also according to Almeida, the highlight is the automotive sector, which grew the most (in average brand value variation of +9%), which demonstrates that physical mobility is as important as digital mobility.
Biggest rise
O Airbnb the brand that grew the most this year, with its value increasing by 21.8%. It also rose eight positions in the table (from #54 to #46), despite having only entered the ranking last year. The significant increase in the company’s brand value is in part due to strong investment in the brand and solid financial outlook – revenue increased 40% in 2022 compared to 2021 and is expected to grow a further 13% in 2023 compared to 2022.
Autos and luxury witness the biggest growth
The value of automotive brands increased by 9% in 2023, with the BMW (#10) entering the top 10 for the first time. Porsche (#47), Hyundai (#32) e Ferrari (#70) all achieved a double-digit growth rate and were responsible for behind the top five fastest growing brands.
A Tesla maintained its position in the table this year (#12), but its growth rate was the slowest among automotive brands, with brand value increasing by 4.0% compared to BMW and Mercedeswhich grew 10.4% and 9.5%, respectively.
“Top automotive brand elevators have increased scores in affinity, trust, presence and participation, key drivers of brand equity, thereby increasing their connection with customers,” says Ricca.
The most luxury
Once again a prominent sector, with brand value increasing 6.5% this year. This is due to the resilience of luxury brands and their ability to transcend categories to create luxurious experiences such as restaurants, hotels and retail pop-ups. Hermes (#23) e Dior (#76) are two of the biggest rises for luxury brands, with brand value growth of 10.2% and 8.4%, respectively, this year.
To see the complete ranking of the 100 best brands and the industry trends report and complete methodology, visit the official Best Global Brands website.
Follow Adnews on Instagram,LinkedIneThreads. #WhereTransformationHappens
