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October 02, 2013 at 02:45 PM
Interbrand, a brand consultancy firm, released its list of the top 100 global brands on Monday. Among the firm’s extensive methodology, three aspects to determine a brand’s value stood out: financial performance; its role in influencing consumer choice; and ability to command a premium price or secure earnings for the company.
Interbrand found technology firms were the most valuable overall sector, with a combined value of over $443 billion.
Interestingly, though they didn’t make it into the top 20, eight of the 11 financial services brands on the list saw in increase in brand value. American Express, Goldman Sachs and Visa all saw double-digit increases in brand value over 2012.
To be included in the list, brands must acquire at least 30% of revenue from outside their home country and must have a presence on at least three continents. Interbrand also looked for firms with publicly available financial information and expected long-term growth.
20. Honda (HMC)
CEO: Takanobu Ito
Brand Value: $18.5 billion
Percent Change from 2012: 7%
Sector: Automotive
Although Honda also offers aviation and robotics, the firm is known primarily as a car company. Its efforts in hybrid cars served it well, and it was one of four brands that sold over 5 million vehicles at the beginning of 2013. “Honda has a long history of innovation, and its reputation for more robust fuel-efficiency technology helps support the premium while connecting with consumers that have stronger environmental awareness.”
In the future, Interbrand said, it won’t be able to rely solely on consumer loyalty, though, and will have to closer relationships with its customers.
19. Amazon (AMZN)
CEO: Jeff Bezos
Brand Value: $23.6 billion
Percent Change from 2012: 27%
Sector: Retail
Through its focus on customer experience and initiatives like the Amazon Appstore, which provides product recommendations on Kindle and Android devices, Amazon has built intimate relationships with its customers, Interbrand said. However, the firm needs to rein in some of its more elaborate expansion plans to preserve its reputation. “Looking ahead, CEO Jeff Bezos (who raised eyebrows with his personal surprise purchase of the Washington Post) and his leadership team must be mindful of local needs to deliver a consistent Amazon brand experience to a global audience.”
18. Oracle (ORCL)
CEO: Larry Ellison
Brand Value: $24.1 billion
Percent Change from 2012: 9%
Sector: Technology
Oracle is a leading provider of hardware and software systems for businesses, but it’s struggling with an image of irrelevance, Interbrand said. “As brands with loyal users, such as Google, continue to play a leading role in the technology sector, Oracle must ramp up its brand messaging efforts and initiatives, establishing stronger emotional connections with consumers.”
17. Louis Vuitton (LVMUY)
CEO: Bernard Arnault
Brand Value: $24.9 billion
Percent Change from 2012: 6%
Sector: Luxury
The success of Louis Vuitton Moet Hennessy comes from maintaining a feeling of exclusivity, according to Interbrand. “To prevent the risk of overexposure, the brand is concentrating on limiting its own visibility.”
16. Gillette (PG)
CEO: A.G. Lafley
Brand Value: $25.1 billion
Percent Change from 2012: 1%
Sector: Consumer Packaged Goods
Gillette’s parent company, Proctor & Gamble, owns 70% of the market for razors and blades, according to Interbrand. Social media and sports partnerships drive much of that success—one campaign that automatically tagged runners who entered their bib number in photos of the Malta Marathon generated 870,000 views of the company’s Facebook page.
15. HP (HPQ)
CEO: Meg Whitman
Brand Value: $25.8 billion
Percent Change from 2012: -1%
Sector: Technology
HP has made significant changes in identity over the past few years, something that could make the company appear unstable, according to Interbrand. It announced in June that it’s partnering with Google to offer small- to medium-sized businesses comprehensive IT solutions, and is expected to launch a new smartphone soon, possible before the end of the year.
“HP has failed here in the past with the acquisition and subsequent shutdown of Palm, so industry pundits see the resurrection of a mobile division as a critical moment in HP’s turnaround story.”
14. Disney (DIS)
CEO: Bob Iger
Brand Value: $28.1 billion
Percent Change from 2012: 3%
Sector: Media
The Disney empire doesn’t end at movies and television. Interbrand noted the firm’s vertical and horizontal integration allows it to expand franchises to merchandise, theme parks, resorts, DVDs and video games. The firm tends to rely too heavily on box-office hits, however.
“As long as Disney can continue to evolve how its core brand delivers against the ideas that have made it relevant for generations, the company will continue to be one of the world’s most valuable entertainment and media powerhouses for the foreseeable future,” according to Interbrand.
13. Cisco (CSCO)
CEO: John Chambers
Brand Value: $29.1 billion
Percent Change from 2012: 7%
Sector: Technology
Cisco is redefining its audience to focus on the business-to-business world, according to Interbrand. “The company is successfully setting itself up to be a go-to for IT leaders looking to make the most out of the new era of interconnected devices, data, and systems.”
12. BMW (BAMXF)
CEO: Norbert Reithofer
Brand Value: $31.8 billion
Percent Change from 2012: 10%
Sector: Automotive
BMW was the top selling luxury auto brand in the United States in 2012 and saw a 40% increase in sales in China, according to Interbrand. Its focus on sustainability and mobility are leading the firm’s success. Indeed, electric vehicles are expected to be big sellers in the United States and China, and the company is taking pains to position its i3 and i8 models at the “premium end of the market,” according to Interbrand.
