INTERNATIONAL. Interbrand has released its Best Global Brands 2019 report, which ranks brands by perceived monetary value (see methodology at the foot of this story). Its findings show that for the second consecutive year the luxury and retail industry is the fastest-growing sector among the brands who made the top 100 list (+11% growth).
Notably, its growth rate remains higher than the technology sector (+9%), which contributed six of the top ten in the form of Apple (brand value: US$234.24 billion), Google (US$167.71 billion), Amazon (US$125.26 billion), Microsoft (US$108.85 billion) and Samsung (US$61.1 billion).
The rest of the top ten is rounded out by Coca-Cola, Mercedes-Benz, McDonald’s and Disney.
This year, the luxury sector contributed nine brands to the top 100, with 33rd placed Gucci (US$15.95 billion) emblematic of the sector’s success, showing a +23% increase in brand value. Other notable risers were Louis Vuitton (#17, US$32.22 billion) and Chanel (#22, US$22.13 billion), which saw +14% and +11% increases in value respectively over the last 12 months.
The Interbrand analysis said that the most successful brands in the luxury space are those that have adapted to rapid changes in the global marketplace. This, it noted, includes catering to a younger consumer base whose stylistic tastes have shifted towards streetwear, who are tech-first in their purchasing habits, and who increasingly demand for shareable, memorable moments from any brick-and-mortar retail experiences.
The leading three fastest-growing brands for the top 100 overall were Mastercard (+25%), Salesforce (+24%), and Amazon (+24%).
Interbrand Global Chief Executive Officer Charles Trevail said: “Twenty years on from our first report, customers today are more informed, more connected and more demanding than ever before through a combination of wealth of choice, erosion of loyalty and shifting frames of reference wanting immediacy, abundance and intimacy – all at the same time.
“The age of brand positioning is over. In a world where customer expectations will continue to move faster than businesses, static brand positions and incremental change will just about keep brands in the game – but it will take, brave, we would say ‘iconic’, moves, to make brands leap ahead of customer expectations and ultimately deliver extraordinary business results.”
NOTE: Methodology
There are three key pieces of analysis that form the basis of Interbrand’s valuation methodology:
- The financial performance of the branded products or services
- The role the brand plays in purchase decisions
- The brand’s competitive strength and its ability to create loyalty and, therefore, sustainable demand and profit into the future
Interbrand was the first company to have its brand valuation methodology certified as compliant with the requirements of ISO 10668 (requirements for monetary brand valuation) and played a key role in the development of the standard itself.
