Interbrand releases 2018 Best Global Brands Report

Monday, 8 October 2018 00:00 -     - {{hitsCtrl.values.hits}}

  • Apple tops BGB for sixth year and first $ 200b brand
  • 56% YOY growth catapults Amazon to #3
  • Together, Apple, Google and Amazon are 3 most valuable brands
  • New entrants Spotify and Subaru
  • Re-entrants Chanel, Hennessy and Nintendo
  • Luxury and Retail are the two dominant sectors

Interbrand, the world’s largest and most influential brand consultancy, on Friday announced the Best Global Brands for 2018. Apple, Google and Amazon are the three most valuable brands, with luxury and retail as the two dominant sectors. 

Interbrand’s 19th annual report, ‘Activating Brave’, analyses how the Best Global Brands are achieving bold transformation that drives lasting economic value through brand strength. Key trends include customer-centricity, positive utility, the rise of luxury, and the success of subscription models. 

This year, the list features two new entrants and three re-entrants. Spotify joins at #92 ($5,176m), and Subaru at #100 ($4,214m) for the first time. Chanel re-enters at #23 ($20,005m, last on in 2009). Hennessy also returns at #98 ($4,722, last on in 2009) and Nintendo at #99 ($4,696m, last on in 2014).

“A decade after the global financial crisis, the brands that are growing fastest are those that intuitively understand their customers and make brave iconic moves that delight and deliver in new ways,” said Charles Trevail, Global Chief Executive Officer of Interbrand. 

For six consecutive years, Apple and Google hold the top positions. Apple’s brand value grew by 16% to $214,480m, and Google’s brand value by 10% to $155,506m. Amazon achieved 56% growth and is the third brand to achieve a 100 billion dollar brand valuation ($100,764m), as well as the top performer among 28 brands with double-digit percent growth. Following Microsoft at #4 ($92,715m), are Coca-Cola ($66,341m), Samsung ($59,890m), Toyota ($53,404m), Mercedes-Benz ($48,601m), Facebook ($45,168m). McDonald’s ($43,417m) returns to round out the Top 10.

The five Top Growing Brands include Amazon (56% growth) 2017 new entrant Netflix (45%), Gucci (30%), 2017 new entrant Salesforce.com (23%), and Louis Vuitton (23%). After five years as the Top Growing Brand, Facebook declines 6%. 

More than half of the Best Global Brands came from five sectors: Automotive (16), Technology (13), Financial Services (12), Luxury (9), and Fast-Moving Consumer Goods (9). Luxury is the new Top Growing Sector in percentage terms (42%), replacing Retail, which continues impressive growth at second (36%). Electronics is third (20%), Sporting Goods is fourth (13%), followed by Financial Services (10%). 

The combined total value of the Top 100 crosses the two trillion dollar threshold with $2,015,312m, an increase of 7.7% from 2017. For the complete Top 100 ranking and the report with comprehensive analysis of growth, sector, and industry trends, visit www.bestglobalbrands.com.

Highlights:

The total list value for 2018 is $ 2,015,312 m with a growth total of 7.7%

Total value crosses $ 2 trillion mark

  • 2015: $ 1,714,632 m
  • 2016: $ 1,796,384 m
  • 2017: $ 1,871,730 m
  • 2018: $ 2,015,312 m

 

  • Growth of total list in 2017: 4.2%
  • Growth of total list in 2018: 7.7%

Top 10 Brands Summary:

  • Hallmark brands: Apple, Google, Amazon, Microsoft, Coca-Cola, Samsung, Toyota, Mercedes-Benz, Facebook, McDonald’s
  • 5 of the Top 10 brands are Technology brands (Apple, Google, Microsoft, Samsung, Facebook) 2 Automotive brands (Toyota, Mercedes), 1 Retail brand (Amazon), 1 Beverages brand (Coca-Cola) and 1 Restaurants brand (McDonald’s)
  • The Top 10 Brands hold 44% of the Best Global Brands value.
  • For six consecutive years, Apple and Google claimed the top positions.
  • Apple’s brand value grew by 16% to $ 214,480 m.
  • Apple is the first brand in the history of Best Global Brands to break the 200 billion barrier.
  • Google’s brand value rose 10% to $ 155,506 m.
  • Amazon jumped to #3, is THE Top Growing brand in this year’s table and the third brand to achieve a 100 billion dollar brand valuation ($ 100,764 m). Greatest growth of a single brand since Facebook in 2014. The spectacular growth of Amazon is proof of its success in redefining the laws of commerce. Looking at the other two brands in the sector – Ikea and e-bay – the analysis clearly shows that Amazon leads in terms of user and consumer experience, innovation and responsiveness.
  • After five years as the Top Growing Brand, Facebook (#9) declines – 6%. 
  • McDonald’s (#10) returns to round out the Top 10.
  • IBM falls out of the Top 10.

Top 10 Growing Brands Summary:

  • 28 brands in total achieved double-digit percent growth
  • The world’s ten Top Growing brands include 

1. Amazon #3 56% growth

2. Netflix #66 45%

3. Gucci #39 30%

4. Salesforce.com #75 23%

5. Louis Vuitton #18 23%

6. Paypal #73 22%

7. Mastercard #70 19%

8. Adobe #51 19%

9. Ferrari #80 18%

10. Caterpillar #82 18%

New Entrants and Re-entrants Summary:

  • There are two new entrants this year: Spotify and Subaru enter the Best Global Brands report for the first time. There are three re-entrants in 2018: Chanel, Hennessy and Nintendo join again.
  • Chanel (#23), $ 20,005 m
  • Spotify (#92), $ 5,176 m
  • Hennessy (#98), $ 4,722 m
  • Nintendo (#99), $ 4,696 m
  • Subaru (#100), $ 4,214 m

Decliners

  • GE (-26%) 
  • H&M (-18%) 
  • Harley-Davidson (-9%) 
  • Hewlett Packard Enterprise (-9%)
  • IBM (-8%)
  • Gillette (-7%)
  • Lego (-7%)
  • Facebook (-6%)
  • IKEA (-5%)
  • Coca-Cola (-5%)

2017 brands that didn’t make it in 2018 

  • Smirnoff (2017: #97)
  • Moët & Chandon (2017: #99)
  • Lenovo (2017: #100)
  • Tesla (2017: #98)
  • Thomson Reuters (2017: #66) 

Top growing sectors in percentage terms

  • Luxury and Retail are the two dominant sectors.
  • Luxury is the new top growing sector in percentage terms (42%), replacing Retail, which continues impressive growth at second (36%). Followed by Electronics (20%), Sporting Goods (13%) and Financial Services (10%).
  • Luxury (42%)
  • Retail (36%)
  • Electronics (20%)
  • Sporting Goods (13%)
  • Financial Services (10%)

More than half of the Best Global Brands (59 brands) come from only 5 sectors 

  • Automotive (16 brands) 
  • Biggest winner: Ferrari 18%
  • Biggest Loser: Harley-Davidson -9%
  • Technology (13 brands) 
  • Biggest winner: Adobe 19%
  • Biggest Loser: Hewlett Packard Enterprise -9%
  • Financial Services (12 brands) 
  • Biggest winner: PayPal 22%
  • Biggest Loser: AXA 0%
  • Luxury (9 brands) 
  • Biggest winner: Gucci 30%
  • Biggest Loser: Burberry -3%
  • FMCG (9 brands) 
  • Biggest winner: L’Oréal 4%
  • Biggest Loser: Gillette -7%

Report and methodology

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. 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  

For the complete Top 100 ranking and the report with a comprehensive analysis of growth, sector and industry trends, visit www.bestglobalbrands.com.

With a network of 18 offices in 14 countries, Interbrand is a global brand consultancy, and publisher of the highly influential annual Best Global Brands and Breakthrough Brands reports, and Webby Award-winning brandchannel. Interbrand is part of The Brand Consulting Group of Omnicom Group Inc. At Interbrand, they believe that growth is achieved when an organisation has a clear strategy and delivers exceptional customer experiences. They do both, through a combination of strategy, creativity, and technology that helps drive growth for their clients’ brands and businesses.  

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