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21% increase adds record

$748 billion in new value


Brand building powers rise in every category
Photograph by Paul Reiffer
TOP 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
100

28
Welcome to the... Top 10 Most Valuable Global Brands Top 10 Risers

29
100

$ = Brand Value US $MIL. % = Brand Value Change 2018 vs. 2017 Top 10 B2B Brands $ = Brand Value US$ Mil. % = Brand Value Change 2018 vs. 2017
Mil.
$ = Brand Value US$

30
# = Top 100 Rank
Technology $
302,063 +23% Technology Retail
20,933
$ +94%
99

$200,987 #
4
Technology $
300,595 +28% Retail $
113,401 +92%

31
98

Retail $
207,594 +49% Technology
Logistics
Alcohol $
32,113 +89%

200,987 $96,269 #
11 16 35,440

32
$ # $
+40% $60,412 +85%
Technology Payments

Technology
97

Technology $
178,990 +65%
$55,366
Entertainment $
20,819 +73%
#
17

33
Technology $
162,106 +25% Luxury $
22,442 +66%
96

$
4.4 Trillion
Total Value of The Payments $
145,611 +31% Regional Bank
s Technology $
178,990 +65%

34
Top 100 Most
95

Conglomerate

$54,952
#
18
Valuable Global Brands Fast Food $
126,044 +29% $39,041 #
28 Technology Cars $
9,415 +60%

35
94

Retail $
113,401 +92% $33,723 #
32 Luxury $
3,612 +54%

36
93

BrandZ™ Portfolio outperforms the S&P 500 Index Telecom Providers $


106,698 -7% Technology $
17,831 +53%
and the MSCI World Index 172.1%
92

Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg)


Technology
The BrandZ™ Strong Brands Portfolio is a subset of the
102.0%
BrandZ™ Top 100 Most Valuable Global Brands. Technology
Newcomer Brands

37
$28,316 #
38
91

BrandZ™ Strong Brands Portfolio


S&P 500
# = Top 100 Rank $ = Brand Value US $Mil. $25,802 #
45 Technology
MSCI
50.3% $24,922 #
48
90

Download

38
#
27 #
90
SF Express
89

April April
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Telecom Providers
$
39,372 Logistics
$
14,537 Year-on-Year Category Changes the Mobile app
www.brandz.com/mobile

39
88

% = Brand Value Change 2018 vs. 2017

59 91
$ = Total Category Value US $Bil.
# # Instagram

Retail
$
20,933 Technology
$
14,496
87

40
Insurance
+34%
#
81 #
99 $
108.7Bil.
86

$
16,045 $
12,674

41
Transport Regional Banks
Global Banks
+24 %
85

#
89 #
100 131.8Bil.
$

42
Top 10 in Brand Contribution Technology
$
14,797 Apparel
$
12,456
Personal
84

Retail Care
Luxury
+35 %
+8 %

43
Apparel
$
578.0Bil. +28 %
124.7
$ Bil.
+5 % Beer Oil &
83

Technology 133.1Bil.
$
+3 % Gas
$
111.3Bil.
+28 +1 %

44
Baby Care Beer Luxury Beer Luxury %
Regional
$
82.6Bil.
1,592.3Bil.
$
Banks
97.6Bil.
$
Fast
82

+16 % Food

45
Brand Contribution $
263.2Bil. +13 %
Soft
measures the influence Cars
242.2Bil.
$ Drinks
81

of brand alone and is


measured on a scale
Soft Drinks Personal Care Beer Retail Beer
+7 %
+4 % Telecom Providers
of 1 to 5, with 5 the $
149.6Bil. %
+2

46
highest. All of these 160.7
$ Bil.
80

brands scored 5.
455.6Bil.
$

47
www.brandz.com
79

48
78

77 76 75 74 73 72 71 70 69 68 67 66 65 64 63 62 61 60 59 58 57 56 55 54 53 52 51 50 49
BrandZ™ Top 100 Most Valuable Global Brands 2018

CONTENTS
5
The Categories
8 WELCOME
126 BRANDZ™ ANALYSIS
David Roth, CEO,

3
Category Changes
The Store WPP, EMEA & Asia
Chairman, BAV Group
130 THE CONSUMER CATEGORIES

4
Apparel
Cars

1
Luxury

6
Personal Care
Retail

Disruption THOUGHT LEADERSHIP


174 Value, Values, And Vogue
and Change Regions and

2
by Anusha Couttigane, Senior Fashion
Analyst, Kantar Consulting, Retail &

Introduction Countries Shopper Practice


Resources
178 THE FOOD AND DRINK CATEGORIES
58 BUSINESS-TO-BUSINESS Beer
Fast Food
64 DISRUPTION 96 REGIONS AND COUNTRIES Soft Drinks 256 BRANDZ™ BRAND
14 OVERVIEW Overview VALUATION
The BrandZ™ THOUGHT LEADERSHIP
70 Disruption
North America THOUGHT LEADERSHIP METHODOLOGY
18 BRANDZ™ STOCK Asia 198 E-commerce Innovation
PORTFOLIOS Global Top 100 by Uri Baruchin,
Strategy Partner, Superunion

UK
Continental Europe by Eric Heller, CEO,
Marketplace Ignition
260 BRANDZ™ GENOME
MAPPING
20 KEY RESULTS Latin America
74 Blockchain 202 THE FINANCIAL CATEGORIES 264 REPORTS AND APPS
24 CROSS CATEGORY TRENDS by Bediz Eker THOUGHT LEADERSHIP Global Banks POWERED BY BRANDZ™
34 THE TOP 100 RANKING Group Strategy Director, Y&R 110 Consumer Revolution Regional Banks
30 TAKEAWAYS by Nihar Das, Global Account Insurance 270 WPP COMPANY
38 BRANDZ™ ANALYSIS 78 THE FUTURE OF BRANDS Director and Archana Ram, CONTRIBUTORS
Top Risers Product Lead (Team P&G), THOUGHT LEADERSHIP
Newcomers THOUGHT LEADERSHIP MediaCom 218 Women & Finance 284 WPP COMPANY BRAND
Brand Contribution 86 Paradox of Digital by Rosi McMurray, Planning Director, BUILDING EXPERTS
Brand Imprint by J. Walker Smith 114 BEST COUNTRIES UK Financial Services & Technology,
Chief Knowledge Officer, Overview Kantar TNS 288 BRANDZ™ GLOBAL
Brand & Marketing, Methodology TOP 100 TEAM
Kantar Consulting 222 THE COMMODITY CATEGORIES
Oil & Gas 290 BRANDZ™ BRAND
90 Experience VALUATION CONTACT
by Doreen Wang THOUGHT LEADERSHIP DETAILS
Global Head of BrandZ™ 228 Premium Redefined
Kantar Millward Brown by Dayoán Daumont, Consulting 291 BRANDZ™ ONLINE
Partner, Innovation & Digital AND MOBILE
Transformation, OgilvyRED

232 THE TECHNOLOGY CATEGORIES


Technology
Telecom Providers

THOUGHT LEADERSHIP
250 Voice
by Whitney Fishman Zember,
Managing Partner, Innovation and
Consumer Technology, Wavemaker

6 7
BrandZ™ Top 100 Most Valuable Global Brands 2018

Welcome

David Roth
CEO, The Store WPP, EMEA & Asia and Chairman, BAV Group
David.Roth@wpp.com
Twitter: davidrothlondon
Blog: www.davidroth.com

Record increase in value


touches every category
Brands more necessary
in complex market
The WPP BrandZ™ Top 100 Most Although this year’s stronger global And the gap is getting even wider. Greater challenge for brands ago. Brands need to be present online, This is why, in a year of record-
Valuable Global Brands 2018 set a economy influenced the value Brands that are different and We created this report to help especially on mobile, and offline in breaking value growth, it is important
record this year, increasing 21 percent, increase, it was only one factor. innovative—themselves disruptive— brands understand how to grow and traditional stores and any other pop- to acknowledge that it’s not just
the highest year-on-year percentage A rising tide floats all ships, but a grow value faster than even the sustain value in today’s disruptive up or experiential venue. Because the the economy. It’s brand and brand-
increase in a decade and the greatest growing economy does not float all strongest brands. Over the past marketplace. Our analysis finds that consumer could be in any of these building that makes the difference. As
addition of value ever—$748 billion. brands, at least not equally. Strong 12 years, our BrandZ™ Strong and brands grow value by anticipating places, or in more than one of these the marketplace becomes ever more
The surge rippled across every brands do better—usually much better. Innovative Brands Portfolio increased and fulfilling the needs and wants places—simultaneously. complex, brands will only become
category without exception. The best evidence is the stock market. 226.7 percent in value, more than of consumers in relevant ways that more important. And that’s why I urge
twice the rate of the S&P 500. are innovative, create an emotional Or, the consumer could be at home, you to read through this report closely.
This stellar achievement followed Over the past 12 years, when the connection, and distinguish the brand cooking dinner while talking to Alexa or
12 years of steady growth, despite S&P 500 increased 102 percent, the Here’s the key insight: Brands that from its competition. Google Home, creating shopping lists
buffeting by the global economic crisis BrandZ™ Strong Brand Portfolio depend on the economic tide alone of items that will likely be fulfilled by
and by ongoing—ever increasing— (brands in the Global Top 100 with may be caught in the turbulence. That’s easier said than done, especially algorithm or paid search—unless brands
disruption from e-commerce, radically the strongest brand equity) increased Growth—even survival—depends on in these times when shopping hardly speak to the consumer in a louder
changed shopping habits, and new 172.1 percent. That growth gap is being innovative and different—and resembles how people purchased voice, with a Meaningfully Different
technologies, including artificial worth a lot of shareholder money. communicating those advantages in products and services even 10 years proposition urging, “Choose me.”
intelligence and fintech. innovative and different ways.

8 9
BrandZ™ Top 100 Most Valuable Global Brands 2018

Welcome
FRANCE
Total Value of French Brands in the BrandZ™ Global Top 100

$115.0 Bil.

Invaluable brand-building CATEGORY INSIGHTS Top 100 Most Valuable US Brands;


intelligence In Part 5 Categories we look closely BrandZ™ Top 50 Most Valuable
at developments in 14 product Indian Brands; BrandZ™ Top 50 Most
This comprehensive and invaluable categories, adding insights and brand Valuable Latin American Brands;
report is only an indicator of the many building takeaways from WPP brands BrandZ™ Top 50 Most Valuable
ways we at WPP can help you build experts. UK Brands; BrandZ™ Top 50 Most
and sustain high-value brands. As you Valuable French Brands; BrandZ™ Top
look through it, here are some of the In addition, we’ve included Thought 50 Most Valuable German Brands;
highlights that deserve your attention: Leadership articles written by WPP BrandZ™ Top 50 Most Valuable
company brand experts from 38 Indonesian Brands, BrandZ™ Top 30
CRITICAL TRENDS of our WPP operating companies Most Valuable Spanish Brands; and
In Part 1 Introduction, in Cross across the world. These articles offer BrandZ™ Top 20 Most Valuable Saudi
Category Trends, we identify the analysis and points of view on many Arabian Brands.
key influences affecting multiple of the topics examined elsewhere
categories, stretching them into new in the report, including disruption, We have the data, knowledge,
areas, even collapsing the category brand experience, and the changing experience, insight, determination,
walls, and we analyze the implications consumer. and single-minded purpose to help
for brands. you create and build valuable brands.
How we can help To learn more about how to harness
BRAND STRENGTHS our passion to work for your brand,
In Part 2 The BrandZ™ Global Top The BrandZ™ Global Top 100 report please contact any of the WPP
100 we examine the brands that rose demonstrates a key WPP strength— companies that contributed expertise
fastest in value year-on-year and the and a benefit for our clients—when to this report. Turn to the resource
brands that entered the Global Top we say we cover the world of section at the end of this report for
100 for the first time, and we identify brands, that’s exactly what we mean. summaries of each company and the
the strengths these brands share in We operate over 3,000 offices in contact details of key executives. Or
common. 112 countries. WPP’s proprietary feel free to contact me directly.
BrandZ™ brand building platform
DISRUPTION includes information from 3.6 million Sincerely,
In Part 3 Disruption and Change we consumers about their attitudes
explore in depth the forces disrupting about (and relationships with) 122,000
brand-building today and connect that brands in 418 categories across 51
knowledge with our assessment of the country markets. All that produces
future of brands. more than 5.1 billion data points. David Roth
WPP
GLOBAL GROWTH We have assembled an extensive David.Roth@wpp.com
In Part 4 Regions and Countries we library of BrandZ™ reports and I Twitter: davidrothlondon
combine the WPP branding expertise invite to you access them with our Blog: www.davidroth.com
of BrandZ™ and BAV to explore how compliments at BrandZ.com. Here
the perceived brand qualities of a are just some of the reports you will
country can influence the international find there: the BrandZ™ Top 100 Most
growth of its brands. Valuable Chinese Brands; BrandZ™

10 11
1
Introduction
Overview

BrandZ™ Stock Portfolios

Key Results

Cross Category Trends

Takeaways
1 Introduction BrandZ™ Top 100 Most Valuable Global Brands 2018

Overview

The BrandZ™ Top 21% increase drives record


100 Most Valuable $748 billion in added value
Global Brands rose Brand building powers rise in all categories

21% in value to The record growth touched


both consumer and business
Retail was the bellwether category.
Having been battered and thoroughly
transformed by e-commerce, retail led
Tencent, China’s giant internet

$4.4 trillion, adding


brands and followed years of portal and most valuable brand,
category value growth for the second entered the BrandZ™ Global
value fluctuations as brands consecutive year, with a rise of 35 Top 5. And SF Express, a Chinese
contended with economic and percent. Two Chinese e-commerce logistics brand joined the Top
technological disruptions. It giants drove the retail surge. JD.com

$748 billion, the


100, with the addition of the
confirmed the positive effect of increased 94 percent in value, and logistics category to the report
building brands over the long- Alibaba, 92 percent. this year.
term and the importance of
These two Chinese brands also led the Chinese brands increased 49

largest one-year
delivering consistent customer Top 20 Risers, the list of brands that percent in value year-on-year
experience. Strong brands increased most in value year-to-year, and 1,445 percent over the past
caught the tailwind of a sound followed by another Chinese brand, 12 years. Fourteen Chinese
economy. Moutai. A premium baijiu, China’s brands rank in the 2018 BrandZ™

value increase in the traditional white alcoholic drink, Moutai


increased 89 percent in value.

Although North America, principally


Global Top 100, compared with
one Chinese brand 12 years ago.

An Indonesian brand entered the

12 years of publishing the US, continued to dominate the


Global 100 in number of brands (57)
and percent of value (71 percent),
other developments also reflected the
BrandZ™ Global Top 100 for the
first time, the regional bank BCA.
And in another breakthrough,
an Indian brand, Maruti Suzuki,

the global report. growing presence of Chinese brands in


the BrandZ™ Global Top 100, and the
ranking’s increasing diversity:
entered the BrandZ™ Cars Top
10. In addition, the Chilean
department store Falabella
returned to the Retail Top 20,
and a Mexican brand, Modelo,
entered the Beer Top 10.

14 15
1 Introduction BrandZ™ Top 100 Most Valuable Global Brands 2018

Overview

In another demonstration of the Technology brands comprise over one- added apps to enhance the customer Brand building and the same time enjoying the indulgence of a powerful and safe. At the same time,
connection between strong brands third of BrandZ™ Global Top 100 value. experience. Artificial intelligence (AI), consumer mood hamburger or carbonated soft drink. anticipating more carbon restrictions,
and superior return to shareholders, With the addition of e-commerce in the form of personal assistants, car makers prepared for a future of
the BrandZ™ Strong Brands Portfolio giants and telecom providers, like Amazon’s Alexa, added more Facing ongoing disruption, categories McDonald’s and Burger King mobility alternatives. On the strength
increased 172.1 percent between April technology-related brands account for convenience to consumers’ lives but continued to adjust and sometimes rebounded, having improved their of its strong brand equity, Volkswagen
2006 and April 2018, outperforming 56 percent of the Global Top 100 value. also challenged brands in new ways. substantially transform. To improve restaurants and menus and matched rebounded back into the BrandZ™
both the S&P 500, which grew customer experience with the the consumer desire for healthier, Cars Top 10, having dropped from the
102.0 percent, and the MSCI World Each of the BrandZ™ Global Top 5— Voice emerged as an opportunity and right balance of online and offline better tasting food. Coke and Pepsi ranking after its emissions scandal.
Index, which grew 50.3 percent. And Google, Apple, Amazon, Microsoft, threat. Brands needed to develop their coordination, retail moved to a new leveraged consumer love for their
indicating the importance of brand and Tencent—are technology or own voice as a critical brand asset. level. master brands to gain time and enlarge Consumer-facing, downstream
innovation during disruptive times, the technology-related brands and all but They also needed to find ways to avoid their drinks portfolios with healthier businesses gained more attention
BrandZ™ Strong and Innovative Brands one, China’s Tencent, are from the US, the threat of disintermediation by voice. Amazon acquired Whole Foods, the US options. in the oil and gas category. And
Portfolio increased 226.7 percent in as is brand No. 6 Facebook. Disintermediation happens when AI grocery chain of physical stores, and exploration, especially in the US,
value, more than twice the rate of the personal assistants narrow choice, Chinese e-commerce leaders, Alibaba In apparel and luxury, brands took place closer to home, making
S&P 500. These brands expanded their responding to consumer product and JD.com, also linked with physical introduced products with bolder consumers potential influencers on
ecosystems—networks of interrelated requests with offerings of house brands store operators. Alibaba CEO Jack Ma designs and colors that fulfilled the relevant legislation and licenses to
Technology and disruption products and services that meet or brands selected by algorithms or termed this data-powered integration consumer desire for escape and operate.
diverse consumer needs and capture a search results. of products and logistics from sourcing personal expression. With its vibrant
Although the retail category led the growing portion of customer spending. to last-mile delivery, the New Retail. patterns and colors, Gucci led the Shell, which operates the most retail
ranking in percentage value growth, The power of ecosystem brands In financial services, bank and BrandZ™ Luxury Top 10 in value service stations worldwide, surpassed
the technology category led in actual crossed categories, adding both new insurance brands attempted to counter Brands responded to the consumer growth, increasing 66 percent, making ExxonMobil as No. 1 in the oil and gas
value contribution. Technology added capabilities and disruptions. the disintermediation threat of start-up mood. Seeking convenience and it one of the Top 20 Risers. category. As more brands focused on
$348 billion in value to the BrandZ™ fintechs and blockchain technology, comfort, consumers became more the future of gas and sustainable fuels,
Global Top 100, while the retail Top 20 With augmented reality software able to provide transactional services accepting of their own inconsistent Car brands made SUVs of all sizes long-term brand building became
increase by $149 billion. increasingly embedded smartphones, at lower cost, and appeal especially behavior, articulating a desire to live to satisfy the consumer preference more important.
many brands, especially retailers, to a younger generation of potential healthier lives, for example, but at the for convenient vehicles that felt
customers.

RECORD VALUE RISE PUSHES BRANDZ™ GLOBAL TOP 100 TO $4.4 TRILLION
With an increase of 21 percent, the BrandZ™ Global Top 100 Brands added a record $748
billion in value, to reach $4.4 trillion in total value, an increase of $2.9 trillion since 2006.
+21%
+3% +8 %

+12 % +14%

+0% +7 %

+1% +4% +17%


+21%
+11%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
$1.4 Tril. $1.6 Tril. $1.9 Tril. $2.0 Tril. $2.0 Tril. $2.4 Tril. $2.4 Tril. $2.6 Tril. $2.9 Tril. $3.3 Tril. $3.4 Tril. $3.6 Tril. $4.4 Tril.

Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg)

16 17
1 Introduction BrandZ™ Top 100 Most Valuable Global Brands 2018

BrandZ™ Stock Portfolios

Dynamic brands accelerate BRANDZ™ PORTFOLIOS vs. THE S&P and MSCI WORLD INDEX
The value of the BrandZ™ Strong Brands Portfolio increased 172.1 percent between

superior shareholder returns


April 2006 and April 2018, outperforming both the S&P 500 and the MSCI World Index.
The Strong and Innovative Brands Portfolio increased 226.7 percent.

BrandZ™ Strong and Innovative Brands Top 20


BrandZ™ Strong Brands Portfolio

BrandZ™ Portfolios outperform S&P 500


MSCI 226.7%
the S&P 500 Index and the MSCI
BrandZ™ portfolios significantly The performance also shows how
outperformed the stock market Innovative and Different brands build 172.1%
during the past 12 years. Between value despite market disruptions. (For
April 2006 and April 2018, the value of more about the impact of Innovation
the BrandZ™ Strong Brands Portfolio on brand value, please see Disruption,
increased 172.1 percent, and the on page 68).
BrandZ™ Strong & Innovative Brands
Top 20 Portfolio increased 226.7. The In concrete terms, $100 invested in 102.0%
S&P 500 and MSCI World Index grew 2006 would be worth $150 today
only 102.0 percent and 50.3 percent, based on the MSCI World Index growth
respectively. rate, and $202 based on the S&P 500
growth rate. That $100 invested in
The exceptional performance of the the BrandZ™ Strong Brand Portfolio
50.3%
BrandZ™ Portfolios relative to two would have almost tripled in value to
well-regarded indexes affirms that $272. Invested in the BrandZ™ Strong
valuable, Meaningfully Different brands and Innovative Brands Portfolio, $100
deliver superior returns over time. would be worth $327 today.

The key takeaways for brand owners and brand marketers


are: companies that invest in building valuable brands grow
their topline faster; and organic top-line growth is the
April 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 April
greatest determinant of total shareholder return. 2006 2018
Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg)
The BrandZ™ Strong Brands Portfolio is a subset of the BrandZ™ Top 100 Most Valuable Global Brands.
The BrandZ™ Strong & Innovative Brands Top 20 is a subset of the BrandZ™ Strong Brands Portfolio–
brands that score high in being Dynamic and Different.

18 19
1 Introduction BrandZ™ Top 100 Most Valuable Global Brands 2018

Key Results

Summary of changes
during a record year

Value rise +35% TECHNOLOGY DOMINATES IN PROPORTION OF VALUE…

sets record Over the past 12 years, technology-related brands increased in proportion of
value of the Global Top 100, from 37 percent in 2006 to 56 percent in 2018.

In its greatest one-year


Retail rises most Asia leads regions Indonesian The commodities and consumer and retail proportions decreased.

Proportion of Value
increase in value, the Retail increased 35 percent in value, Primarily driven by Chinese brand enters 2006
BrandZ™ Top 100 Most making it the fastest-rising category brands, Asia led the regions in
for the second consecutive year, as rate of growth, rising 42 percent, An Indonesian brand entered the BrandZ™ 12-Year Value Change
Valuable Global Brands
e-commerce brands spiked in value double the rate of the 2018 Global Top 100 for the first time, the Jakarta- 7%
16% Commodities
added $748 billion, rising and the category adjusted to disruption. BrandZ™ Global 100 overall. based bank brand BCA, established in 1957.
21 percent to $4.4 trillion. 8 %

+95%
China’s
influence rises
Newcomers add
regional diversity 37 % 32% Food & Drink

Every JD.com leads Chinese brands in the BrandZ™ Along with BCA, the other Newcomers to the +240%
category
Global Top 100 increased 49 BrandZ™ Global Top 100 include two Chinese
Financial
brand value growth percent. The value of Chinese
brands increased 1,445 percent
brands, JD.com in retail, and the logistics
brand SF Express; and one German brand,
+219%
2018

increases JD.com, the Chinese e-commerce


giant was the fastest rising brand,
since the first Chinese brand
entered the ranking 12 years
ago. Now, 14 Chinese brands
Adidas, in the apparel category. Four US brands
also entered the Global Top 100: Spectrum, a
telecom provider; Uber, in transportation; and
8%
17%
15% Consumer
increasing 94 percent, followed by rank in the Global Top 100. two technology brands, HP and Instagram.
Every category increased Alibaba, China’s e-commerce leader,
in value, with some with an increase of 92 percent. 5%
+38%
56
B2B strengthens
rebounding sharply,
including insurance, which
rose 34 percent after
North America
(US) dominates The business-to-business Top 20 rose 26
% Technology
percent, more than the Top 100 overall, a
declining 1 percent a year Tencent enters Brands from North America, substantial gain over the 11 percent increase
+353%
ago, and global banks, primarily the US, rose 23 percent a year ago and a 5 percent decline a year
which rose 24 percent Top 5 in value. North America continued earlier. Half the brands in the B2B Top 20 are
to dominate the ranking in in technology. The strong growth indicates
after a one percent decline Commodities
Tencent, China’s leading internet portal number of brands (57) and progress in the shift from traditional to cloud- Food & Drink
in the previous year. and its most valuable brand, rose to proportion of value (71 percent). based businesses. Financial
Source: BrandZ™ / Kantar Millward Brown Consumer
No. 5 in the BrandZ™ Global Top 100. All but two of the brands are US. Technology

20 21
1 Introduction BrandZ™ Top 100 Most Valuable Global Brands 2018

Key Results
US
Total Value of US Brands in the BrandZ™ Global Top 100

$3.1 Tril.

…THE TOP 10 ILLUSTRATE TECHNOLOGY’S RISE…


The rise of technology is most apparent in the 12-year change of the Top 10 ranking. All
but two brands are technology-related in 2018, compared with only four brands in 2006.

… AND THE RISE RESULTED


FROM STRONG BRAND
2006 2018
EQUITY
The eight new brands in the BrandZ™
1
Global Top 10 have higher Power,
Premium, and Potential than the
2 brands they replaced. These BrandZ™
metrics are aspects of brand equity:
Power measures current demand;
3 Premium pertains to a brand’s ability
to charge more than its competitors;
4 and Potential indicates future demand.
Average Brand = 100

5
2006 2018
8 in Top 10 8 in Top 10
6 (Dropped) (New)

7
199 252
8

9
106 108

10
106 107

Source: Kantar Millward Brown / BrandZ™ (including data from Bloomberg)


Source: Kantar Millward Brown / BrandZ™

22 23
1 Introduction BrandZ™ Top 100 Most Valuable Global Brands 2018

Cross Category Trends

Sharing personal data

DISRUPTION,
sparks more concern
Ambivalent consumers invited personal assistants
into their homes, while they also became more Emerging tech portends

DISINTERMEDIATION, category transformation


skeptical about trusting brands to protect their data.
Consumers seemed willing to accept the quid pro
quo exchange of personal data Financial services categories, both banks and
for convenience and the useful, insurance, enjoyed healthy increases in value this year

AND DIFFERENTIATION Privacy


and Trust
seemingly indispensable, products
and services of social media,
e-commerce, and search brands.
The Facebook privacy breach
because the brands did many things right and also
benefited from a strong global economy and growth in
Asia. Fintechs competed for payment processing and
transactional functions usually performed by traditional
captured their attention, however, banks. They carved
because of the size of the breach, away transactional
with the data of over 90 million people affected,
and also because it seemed as if the fundamental
business and diverted
young people, potential
Fintech and
Brands encounter
transaction—personal data for free products and
services—was flawed or at least needed more explicit
customers of the large
financial brands. In
Blockchain
new challengers rules. Search and social media brands faced criticism for certain markets, like the
not sufficiently managing data and algorithms, which UK, online aggregators
New brands, or non-brands, often from Asia, AI moves from idea resulted in ads run adjacent to questionable content. offered insurance products, mostly with price-driven
challenged established brands. Depending on to everyday reality messages. And portending great potential change
the category—usually apparel, was blockchain technology—systems of elaborate
luxury, or personal care—these Brands increasingly used artificial intelligence (AI) to networks of transactions that promised to ensure trust
brands offered good quality, with total transparency rather than mediation.
Amazon Effect on-trend style or ingredients,
improve products, service, and differentiation. IBM
expanded its use of
and competitive prices. They Watson in healthcare
often appeared on Amazon and and other industries.
benefited from the “Amazon Effect,” low cost- Car and technology Artificial
of-entry, wide reach, and instant credibility brands relied on AI Brand experience
because of peer reviews and the strength of in their development Intelligence builds difference
the Amazon brand. At the same time, Amazon of autonomous
leveraged its credibility, introducing its own- cars. Using AI, Leading brands, such as Apple and Amazon
brand apparel and extending its reach deeper Amazon refined its Dash program for automatic continued to raise the bar on expectations for Disintermediation threatened brands, but also
into grocery and other categories. replenishment. When launched two years ago, Dash customer experience at every customer touch made them potentially more important. The
enabled customers to reorder certain commodity point—both online and offline—from trial to disintermediation by Amazon replenishment
items with the touch of a button. More recently, pick-up or delivery. And brands used more tools, requires brands to find new—or old—ways
certain manufacturers produced products, such such as augmented to build awareness so that consumers, not
as ink cartridges, that anticipate the need for reality(AR), to improve algorithms, make important choices. When
Convenience grows replenishment and order automatically. Automatic the experience. AR consumers are online choosing among

but choice narrows


replenishment also shifted to a new level with voice. software contained Customer many similar brands, as sometimes happens
on smart phones in insurance, the most well-known or

Home assistants powered by AI became household


made it easier for Experience and AR differentiated brands have an advantage. The
brands to develop rise of online brands, such as personal care
names: Siri (Apple), Alexa (Amazon), Bigsby (Samsung), products, often from Asia, presents a threat,
relevant AR apps and
Cortana (Microsoft), and Google Assistant. In the most but also an opportunity for major brands to
for consumers to use them. People could shop
benevolent interpretation of this phenomenon, better understand consumer needs, based
at a Home Depot, Lowe’s, or Ikea and view
these disembodied voices made life easier, on the products they are selecting and the
how a particular item of furniture would look
creating shopping lists, providing weather
Voice reports, and answering miscellaneous questions.
in an actual room in their house. Customer
experience become an even more important
conversations they are having. With these
insights, brands can appeal to consumers
In the more dystopic view, these assistants are with a promise quality and trustworthiness. It
driver of differentiation. The challenge for brands
the gateway drug to a deeper, dictatorial role can be useful to partner with upstart brands,
was not just to use tools like AR, but to find new,
in people’s lives. Voice compounded the challenge for rather than acquire them, and learn from their
creative, and different ways to use them.
brands to be in the consideration set, so that choice is not entrepreneurial cultures.
based on an algorithm or paid search. And brands became
more aware of the need to develop voice as a brand asset.

24 25
1 Introduction BrandZ™ Top 100 Most Valuable Global Brands 2018

Cross Category Trends

COMFORT,
CONVENIENCE, CATEGORY
AND COMPROMISE TRANSFORMATION
From telecom providers
Ideal meets real to content brands
across categories Standing still was not an option for telecom
providers. A business model depending
People reconciled the ideal individual they Brands capture on voice and data transmission became
aspired to be (eating healthy foods and being Consumer mood increasingly unsustainable, as Over-
environmentally conscious) and the-Top (OTT) providers sent voice
the person they lived everyday Boldness and color characterized apparel and and data over the internet, driving
Authenticity (mostly eating healthy and
usually being environmentally
luxury products, as consumers indulged a need
for escape and fun
Telecom down prices, commoditizing the
business, and eroding profits. The
conscious). They accepted
authenticity—over perfection—
because the news Providers telecom providers continued efforts
was incessantly to become branded providers of
in themselves and their brands. The fast depressing. They Comfort and content. Following on its acquisition
food category rebounded. McDonald’s and shared this ethos
Burger King rose in value, in part because on social media, Convenience of DirecTV, AT&T attempted to
acquire Time Warner, which would make it
of their menu and operational changes, but with photos of the owner of content leaders such as HBO,
also because of the changed mentality of the comfort food and CNN, and Warner Brothers. Verizon pursued
customers. Healthy eating wasn’t just about comfortable streetwear. Delivery with Uber Eats, leadership in Smart Cities. For these brands the
higher intake of vegetables and salad. It was Grubhub, Amazon Delivery, and other brands solution to being squeezed in a slow-growth
possible to enjoy a burger—probably made enabled a further indulgence—convenience. category was to tear down the category walls.
from fresh, even locally-sourced beef. Anticipating the demise of the combustion
engine, carmakers continued to develop mobility
options that included subscription programs,
and they invested in electric and autonomous
vehicles. But consumers chose the comfort and Tearing down the walls of the category expands the
convenience of cars, especially big cars, making competitive set and exposes brands to new threats
SUVs the best-selling vehicles worldwide. and opportunities. Moving into content brings
telecom providers into head-to-head competition
with brands like Disney or Netflix, No. 19 and No. 61,
respectively in the BrandZ™ Global Top 100. AT&T
is No. 10 in the BrandZ™ Global Top 100. Verizon is
No. 12. As they develop IoT businesses, these brands
Burgers and big cars were back, but in a back-to- increasingly will face the BrandZ™ Global Top 4
the-future way, no longer as symbols of conspicuous brands: Google, Apple, Amazon, and Microsoft, and
consumption. Rather, consumers and brands No. 11 IBM. Plus, being in a highly regulated industry,
accepted the gap between individual need and desire, the fate of the telecom provider brands is not entirely
and what was best for personal or societal wellbeing. in their hands. The US government is challenging
Brands understood this tension and, judging by social AT&T’s plans to acquire Time Warner.
media posts of fast food photos, some consumers
accepted it with self-conscious irony.

26 27
1 Introduction BrandZ™ Top 100 Most Valuable Global Brands 2018

Cross Category Trends

CATEGORY TRANSFORMATION

From retail to “New Retail”


From oil and gas cos. brand ecosystems…
to energy brands The term New Retail, devised by Alibaba CEO
The oil and gas category struggled against Jack Ma, describes how the interaction of
time. The world’s consumption of carbon fuel buyer and seller has evolved into a complex
is expected to peak in around integration of data-enriched online and offline
2035 and then decline. That is a networks linked with sophisticated
logistics that together form an
short period time for industrial
companies that regularly place
Oil & Gas From cola drinks
ecosystem in which the retailer can
big financial bets on asset- Retail anticipate the customer’s needs
intensive, long-term, deep-water to soft drinks brands and fulfill them quickly, accurately,
drilling projects. The major integrated companies and consistently with pick-up or
shifted their focus to gas, to serve the world’s Coke and PepsiCo share the same challenge. delivery options. The largest mass
immediate energy needs with a cleaner energy Their established fans love the soda but retailers best illustrated this integration. The
option, and they investigated alternative energies. drink it less. New fans are hard to acquire e-commerce giants Alibaba, JD.com, and
Ultimately, these brands will continue to shift from because health concerns dissuade young Amazon acquired chains of physical stores.
oil and gas companies to energy brands. people from sampling the drinks. Both Coca- Walmart, with over 11,000 stores worldwide,
Cola and PepsiCo are pursing variations on acquired an e-commerce retailer and
From carmakers a similar strategy: promote and leverage dropped the word stores from its name.
the master brand as an
to mobility brands umbrella protecting new
brand shoots. Coca-
The end of carbon and the
combustion engine ultimately will
Cola promises a drink for Soft Drinks
everyone, and PespiCo
define the future for carmakers.
offers drinks and snack
During this transition period, brand is likely to That was about the only certainty,
food. Neither is reinventing a category, With the seamless integration of online
become more important for two reasons: (1) as car brands strove to meet
but they are stretching it, particularly with and offline, retailers have greater insight
Downstream, consumer-facing retail business immediate consumer needs
healthier alternatives like waters and teas. into the shopping behavior anywhere
will become a more necessary revenue source; while preparing for a future
and, (2) Exploration, at least in the US, will take Cars that was not binary—cars or
Similar to the car brands, the soft drink
brands face the challenge of understanding
along the circuitous path to purchase. This
phenomenon challenges product brands
place closer to consumers who will have a mobility—but rather some
and satisfying the contradictory sentiments of that usually have less detailed shopper data.
louder voice in approving licenses to operate. still-unknown combination.
human beings. We profess to want healthier Opportunities to engage with customers
Adding to the complexity, was
ingredients, but often drink beverages with should appear as retail evolves and stores
the disconnect between the cars
sugar or artificial ingredients, similar to the become smaller, more experiential, and
consumers desired, SUVs, and
way we want a healthier environment, but sometimes pop-ups. Brands need to
lower-emission cars needed to
often drive carbon-burning SUVs. find these opportunities for face-to-face
protect the planet.
consumer engagement.

The soft drinks market is moving to healthier


consumption, primarily for two reasons:
Most car brands deliver a combination the preferences and concerns of younger
of benefits: utility (Getting from Point A people; and the rapidly changing regulatory
to Point B) and experience (enjoying the environment promulgated by their parents’
driving journey from Point A to Point B). generation. As cola consumption continues
Prospective mobility solutions will need to decline, the brands have one major
to deliver combinations of both benefits. strength—their powerful brand equity. The
consumer’s predisposition to select the
brand provides time to evolve the business.

28 29
1 Introduction BrandZ™ Top 100 Most Valuable Global Brands 2018

Takeaways

Broaden communication
Brand building spans every consumer touch point
from initial awareness to engagement, transaction,

3
and ongoing conversation. Advertising remains a
critical part of this consumer-brand relationship.

5 action points for


But today, communication needs to match the
needs of a more complex relationship. Brands—
especially those with vast ecosystems—are
engaging in social media with live streaming

building and sustaining


and other brand expressions that connect the
consumer to the brand anywhere—before, after,
and along the winding path to purchase.

valuable brands

1
Develop the
Look East for inspiration brand ecosystem
Build Meaningful
Traditional test markets may not best A brand ecosystem is the industrial Difference
capture the needs and expectations of conglomerate updated for the
today’s consumer. The place to stress test digital age. It is a network in which In a world where consumers will
products is Shanghai and other Chinese a brand connects with multiple have many purchase decisions
Invest in long-term cities where consumer expectations aspects of peoples’ lives. Each made for them by algorithms, it is
brand growth are high because brand ecosystems interaction adds data that informs important to give consumers reasons

4
are so much more developed. Chinese subsequent interactions. In the to proactively consider and choose a
This year’s record rise in the value of industrial age, the effect would be brand. The brand needs to stand out,
consumers expect to shop, pay bills, order
the BrandZ™ Top 100 Most Valuable called synergistic. In the digital age, but it needs to be salient for a reason.
taxis, view entertainment, and engage in
Global Brands validated this key every action adds data and insight It needs to have a purpose that meets
myriad other activities, seamlessly and with
point. Brands that deliver consistent to the brand’s understanding of consumer needs in relevant ways
minimal friction, using their smartphones.
Meaningfully Different products its individual customer. Ultimately, that go beyond a functional benefit
Brand builders looking to the West to
and experiences, and effectively individuals rather than demographic to form an emotional connection.
understand the future of consumer
communicate about them, grow faster

2
behavior and customer experience are segments, populate the ecosystem. And it needs to be distinctive.
in value, provide greater return to Scale is great. But the possibility These qualities do not guarantee
looking in the wrong direction.
shareholders, and are better able to of interacting with customers at

5
that consumer will ultimately select
navigate the inevitable marketplace multiple points and serving multiple the brand—a lot of competitive
disruptions. The list of disruptors is needs does not require vast scale. promotional activity happens on
long and often technology-related. the way to the sale. But Meaningful
It includes the disintermediation of Difference makes it much more likely
brands by voice assistants as well as that a brand will be considered.
challenges from the proliferation of
new brands on the internet.

30 31
The BrandZ™
Global Top 100

2
THE TOP 100 RANKING

BRANDZ™ ANALYSIS
Top Risers
Newcomers
Brand Contribution
Brand Imprint
2 The Global Top 100 BrandZ™ Top 100 Most Valuable Global Brands 2018

BrandZ™ Top 100 Most Valuable Global Brands 2018


Brand Value Brand Value
Brand Value Brand % Change Rank Country Brand Value Brand % Change Rank Country
Brand Category 2018 $Mil. Contribution 2018 vs. 2017 Change of Origin Brand Category 2018 $Mil. Contribution 2018 vs. 2017 Change of Origin

1 Technology 302,063 4 +23% 0 26 Luxury 41,138 5 +41% 3

2 Technology 300,595 4 +28% 0 27 Telecom Providers 39,372 2 NEW

3 Retail 207,594 4 +49% 1 28 Conglomerate 39,041 2 -22% -9

4 Technology 200,987 4 +40% -1 29 Apparel 38,479 4 +13% -3

5 Technology 178,990 5 +65% 3 30 Payments 35,440 5 +85% 22

6 Technology 162,106 4 +25% -1 31 Retail 34,002 2 +22% 0

7 Payments 145,611 5 +31% 0 32 Technology 33,723 3 +24% 0

8 Fast Food 126,044 4 +29% 2 33 Technology 32,191 4 +34% 4

9 Retail 113,401 3 +92% 5 34 Alcohol 32,113 4 +89% 30

10 Telecom Providers 106,698 3 -7% -4 35 Payments 30,046 4 +24% 1

11 Technology 96,269 4 -6% -2 36 Cars 29,987 4 +5% -6

12 Telecom Providers 84,897 3 -5% -1 37 Telecom Providers 28,860 3 -9% -10

13 Tobacco 81,914 3 -6% -1 38 Technology 28,316 2 +29% 6

14 Soft Drinks 79,964 5 +2% -1 39 Luxury 28,063 5 +20% 2

15 Payments 70,872 4 +42% 5 40 Beer 27,031 4 0% -7

16 Logistics 60,412 5 +4% 0 41 Technology 26,861 5 +14% -2

17 Technology 55,366 3 +23% 4 42 Apparel 26,860 3 +7% -8

18 Regional Banks 54,952 3 -6% -3 43 Insurance 26,141 3 +51% 18

19 Entertainment 53,833 5 +3% -1 44 Personal Care 26,107 4 +9% -6

20 Retail 47,229 3 +17% 4 45 Technology 25,802 2 +21% 1

21 Telecom Providers 46,349 4 -18% -4 46 Cars 25,684 5 +9% -6

22 Regional Banks 45,853 2 +45% 6 47 Cars 25,624 4 +4% -12

23 Fast Food 44,503 4 +1% -1 48 Technology 24,922 3 +22% 1

24 Telecom Providers 43,056 3 +3% -1 49 Regional Banks 23,747 2 +27% 5

25 Telecom Providers 41,499 3 +8% 0 50 Global Banks 23,633 3 +15% -2

Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg) The Brand Value of Coca-Cola includes Lights, Diets and Zero
Brand contribution measures the influence of brand alone on financial value, on a scale of 1 to 5, 5 highest The Brand Value of Budweiser includes Bud Light

34 35
2 The Global Top 100 BrandZ™ Top 100 Most Valuable Global Brands 2018

BrandZ™ Top 100 Most Valuable Global Brands 2018


Brand Value Brand Value
Brand Value Brand % Change Rank Country Brand Value Brand % Change Rank Country
Brand Category 2018 $Mil. Contribution 2018 vs. 2017 Change of Origin Brand Category 2018 $Mil. Contribution 2018 vs. 2017 Change of Origin

51 Technology 22,958 4 +37% 14 76 Retail 17,481 3 -8% -23

52 Regional Banks 22,924 4 +8% -5 77 Regional Banks 17,439 2 +42% 10

53 Telecom Providers 22,824 3 +4% -10 78 Technology 17,026 3 +39% 12

54 Luxury 22,442 5 +66% 26 79 Insurance 16,429 3 +18% -1

55 Telecom Providers 22,377 3 +11% -5 80 Regional Banks 16,278 3 +7% -9

56 Logistics 22,218 5 +14% -5 81 Transport 16,045 3 NEW

57 Technology 21,331 2 +28% 9 82 Conglomerate 15,965 2 +14% -5

58 Global Banks 21,258 2 +21% 1 83 Technology 15,657 5 +15% -4

59 Retail 20,933 3 +94% NEW 84 Regional Banks 15,607 2 +30% 10

60 Regional Banks 20,874 4 +22% 3 85 Personal Care 15,358 5 -6% -18

61 Entertainment 20,819 3 +73% 31 86 Insurance 15,131 3 +29% 11

62 Logistics 20,568 4 +30% 8 87 Fast Food 15,131 4 +12% -6

63 Oil & Gas 20,264 1 +10% -6 88 Retail 14,829 3 +20% -2

64 Baby Care 20,183 5 -10% -22 89 Technology 14,797 3 NEW

65 Telecom Providers 19,647 3 +14% -3 90 SF Express Logistics 14,537 4 NEW

66 Regional Banks 19,628 3 +6% -10 91 Instagram Technology 14,496 5 NEW

67 Regional Banks 19,324 3 +35% 6 92 Regional Banks 14,465 3 +3% -17

68 Regional Banks 19,286 3 +11% -8 93 Retail 13,785 3 +12% -4

69 Regional Banks 19,141 2 +28% 3 94 Telecom Providers 13,604 3 -15% -25

70 Fast Food 18,766 4 -14% -25 95 Retail 13,111 3 -2% -13

71 Personal Care 18,516 5 +4% -13 96 Cars 12,742 3 -2% -13

72 Retail 18,265 3 +12% -4 97 Cars 12,695 4 +4% -6

73 Global Banks 18,251 3 +29% 1 98 Soft Drinks 12,685 4 0% -14

74 Oil & Gas 18,222 1 -3% -19 99 Regional Banks 12,674 4 NEW

75 Technology 17,831 3 +53% 23 100 Apparel 12,456 4 +50% NEW

Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg) The Brand Value of Pepsi includes Diets
Brand contribution measures the influence of brand alone on financial value, on a scale of 1 to 5, 5 highest

36 37
2 The Global Top 100 BrandZ™ Top 100 Most Valuable Global Brands 2018

BrandZ™ Analysis

TOP 20 RISERS

Chinese brands lead


sharp growth in value
All brands demonstrate strategic use of tech
One word—China—sums up the stellar in developing these ecosystems. Alibaba has been growing its diverse It invested in artificial Intelligence to Company Ltd. to the world’s highest- with a design point of view, an example
performance of the Top 20 Risers, the Most significantly, both brands made business, which include cloud enhance its ability to analyze the vast valued liquor company, ahead of of expressing the trend toward
brands that appreciated most in value acquisitions to expand in the physical computing as well as retail, at around amount of data it harvests from all Diageo, the UK-based maker of brands playfulness, even at the high end.
year-on-year. Chinese retailers JD.com world and complement their presence 50 percent annually. It is a unique its products, especially WeChat, the such as Johnny Walker. Shiseido, the Japanese personal care
and Alibaba led the ranking with online, where both brands originated. phenomenon, whose impact is best ubiquitous social media platform that brand, focused on developing its digital
increases of 94 percent and 92 percent, JD.com has a partnership with Walmart demonstrated by the results of Singles reached 1 billion monthly active users. ICBC, Industrial and Commercial Bank strength and prestige image in China.
respectively, followed by Moutai, the and the Chinese supermarket chain Day, a Chinese fall holiday that Alibaba Used for texting, entertainment, and of China, reported strong profits,
Chinese baijiu, a traditional white Yonghui. Alibaba acquired a recently- expanded into a one-day shopping other functions, WeChat is center of driven primarily by higher net interest With its vibrant patterns and colors,
alcohol, which rose 89 percent. Around launched grocery chain named Hema event that, in 2017, generated $25.3 Tencent’s digital ecosystem. Tencent’s income resulting from improved Gucci continued to capture the
a third of the Top Risers were Chinese, Xiansheng. Alibaba also purchased a billion, a 39 percent rise over the prior ad business increased almost 50 margins and strong economic growth. moment and influence both the
and all the brands demonstrated major stake in Sun Art Retail Group, a year. The annual active consumers on percent. To increase its influence The bank financed infrastructure luxury and apparel categories with a
similar brand-building characteristics— hypermarket company that operates Alibaba’s retail marketplaces, including outside of China, Tencent purchased construction, poverty reduction, and sensibility that fused exclusivity with
anticipating consumer needs and Auchan and RT-mark stores in China. Tmall, reached 515 million at the end significant financial stakes in Western small businesses. Strong product streetwear. Louis Vuitton attempted
strategically adopting technology to And Alibaba has an association with of 2017. brands, including Snap and Tesla. sales and improved investment to marry timelessness and trendiness.
meet them. Every Top Riser brand Suning the home electronics and results boosted the profits of China’s It partnered with artist Jeff Koons,
increased at least 40 percent in value. A general merchandise chain. Chinese brands dominate In a similar way, the steep value publicly-listed insurance companies. who created a limited collection of
year ago, the threshold was 20 percent. increase of Moutai, the baijiu brand, A recent investment in HSBC made paintings—reproductions of some of
Along with enhancing the customer Tencent entered retail with a pop- demonstrates the brand’s ability to Ping An the global bank’s second- the great masters—that were printed
JD.com and Alibaba reinvented the experience, these partnerships yield up, self-service store in Shanghai, understand and meet the needs of largest shareholder. CPIC announced on Louis Vuitton handbags. The brand
retail category, transforming it into a data to increase understanding of the where no employees are present, Chinese consumers. After several that it would alter its investment continued its association with the
phenomenon Alibaba CEO Jack Ma consumer’s shopping behavior. In and all transactions take place using difficult years because of government strategy to serve the national agenda street brand Supreme. Adidas exactly
calls New Retail. The term describes addition, JD.com enhanced its trove of mobile devices. Although this pop- limits on official entertaining and by channeling funds to utilities and captured the streetwear trend in its
elaborate ecosystems that rapidly consumer data through partnerships up experiment is not at the heart of gifting, sales of baijiu surged, and infrastructure projects. apparel and also connected with a
provide wide ranges of goods and with several leading Chinese online Tencent’s strategy, it illustrates the Moutai was well positioned because consumer desire for higher purpose,
services by combining extensive use brands, including Tencent, the online brand’s innovative culture and ability of the brand’s premium stature and Luxury and apparel selling around a million pairs of
of customer data with e-commerce portal and China’s most valuable to keep pace with—and even lead—the efforts to broaden its reach. Revenue shoes made from plastic reclaimed
and physical shopping sites, mobile brand. JD.com and Tencent bought a rapid changes in Chinese consumer of Kweichow Moutai Company Ltd. Strength in China helped drive brand from the ocean. Adidas continued to
payment options, and seamless supply major stake in a Chinese website called life. Tencent added more content, increased almost 60 percent during value across several categories, excel at mass personalization. Tesla
channel and delivery logistics. Vipshop.com, primarily to challenge including video and gaming, to its the first three quarters of 2017, and its including luxury and personal care. combined environmentally responsible
JD.com and Alibaba invested heavily Alibaba. platform. share price reached a record high. That Especially active in China, Dior technology with performance and
increase elevated Kweichow Moutai promoted its fine jewelry collection luxury.

38 39
2 The Global Top 100 BrandZ™ Top 100 Most Valuable Global Brands 2018

BrandZ™ Analysis

TOP 20 RISERS

TOP 20 RISERS
Entertainment, packaging of certain products. PayPal extended its partnership
Brand Brand Brand Value Country
technology, and retail Amazon expanded its range of with Mastercard to global, making Value 2018 Value 2017 % Change of
private-label products into furniture. It it easier for Mastercard to be the Rank Brand Category $ Million $ Million 2018 vs. 2017 Origin

Being on-trend extended into other entered healthcare in partnership with default payment option with PayPal. 1 Retail 20,933 10,768 +94%
categories like entertainment, where Berkshire Hathaway and JP Morgan Mastercard completed its acquisition
the ability of Netflix to offer desirable Chase, and continued to expand of Vocalink, a fintech company that 2 Retail 113,401 59,127 +92%
entertainment, like its series The membership in Prime its subscription will enable Mastercard to expand into
Crown, drove an increase in the loyalty program. Almost two-thirds of areas of payment other than payment- 3 Alcohol 32,113 16,983 +89%
number of subscribers, even as US households are Prime members, to-merchant, including peer-to-peer.
subscription prices increased. Netflix according to some estimates. 4 Payments 35,440 19,156 +85%
stock price appreciated almost 60 Amazon’s web services, AWS, Bank of America, achieved a profit
percent. dominated the B2B cloud business. level that matched the bank’s 5 Entertainment 20,819 12,057 +73%
performance prior to the global
Amazon, which won several awards Adobe, which recognized the shift financial crisis, in 2008, after which 6 Luxury 22,442 13,548 +66%
for its original content, continued to to cloud computing early, continued financial penalties for regulatory
enter more businesses—most recently to benefit from its prescience, with problems diminished profit. The banks 7 Technology 178,990 108,292 +65%
it investigated banking—and influence 84 percent of revenue coming from stock rose 60 percent, reaching its
subscriptions to its cloud services, even highest level since the financial crisis.
8 Cars 9,415 5,876 +60%
how people shop and live their lives.
In acquiring Whole Foods, Amazon as some of its competitors struggled
with the shift from their traditional
9 Luxury 3,612 2,352 +54%
shook up the grocery industry and With operations in 70 countries, Allianz
gained a physical store presence business models to the cloud. offered a wide portfolio of insurance 10 Technology 17,831 11,649 +53%
to complement its e-commerce products, including property and
business. It opened is first Amazon Financial services casualty, life, and health, as well as 11 Insurance 26,141 17,260 +51%
Go store, in Seattle, a grocery outlet corporate services. Along with buying
that changes the shopping experience PayPal added more services in an a stake in the fintech insurance brand 12 Apparel 12,456 8,296 +50%
with all transactions recorded on the effort to provide traditional banking Lemonade, the company also acquired
customers smartphone, eliminating the products and services The volume of businesses in North Africa, Nigeria, 13 Retail 207,594 139,286 +49%
checkout, one of retail’s pain points. its Venmo peer-to-peer payment app and Saudi Arabia, and divested some
doubled, with $35 billion in payments underperforming assets. These moves, 14 Insurance 9,424 6,356 +48%
With Alexa, Amazon maintained made. PayPal has extended or added and strong business results, helped lift
leadership in personal assistants, and it partnerships with credit card networks market capitalization and brand value. 15 Regional Banks 45,853 31,570 +45%
advanced its Dash button technology and other tech firms. The stock more
for replenishing commodity products than doubled during the past year.
16 Insurance 6,134 4,247 +44%
by embedding a “Dash” chip in the
17 Personal Care 3,827 2,691 +42%
18 Regional Banks 17,439 12,286 +42%
19 Payments 70,872 49,928 +42%
20 Luxury 41,138 29,242 +41%
Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg)

40 41
2 The Global Top 100 BrandZ™ Top 100 Most Valuable Global Brands 2018

BrandZ™ Analysis

TOP 20 RISERS
JD.COM OUTSCORES OTHER BRANDS ON BRANDZ™ METRICS…
The Global Top 100 scored 120 in being Meaningfully Different. The Top 20 Risers scored 127,
and the Top 10 Risers scored 135. The No. 1 Top Riser, JD.com, scored 168. The same progression
follows for the other metrics, with JD.com scoring highest.

JD.com Outscores Top Brands

Meaningful Difference,
Top 10 Top 20 All Top 100
Top Riser Risers Risers Brands
Average Brand = 100

MEANINGFULLY DIFFERENT 168 135 127 120

Disruption, Experience SHAKING THINGS UP


BRAND EXPERIENCE
Source: BrandZ™ / Kantar Millward Brown
135
136
122
117
116
114
111
111

drive brand value rise … AND STRONG BRANDZ™ SCORES CORRELATE WITH GROWING MARKET SHARE
In just three years, JD.com increased 42 points in Brand Power, which correlates with market share today, and it
increased 38 points in Potential, which signals strong future growth.
JD.com 3-Year Change
Brands that increase rapidly On an index where 100 is average, These initiatives have had measurable
in value are Meaningfully the BrandZ™ Top 100 scored 120 in impact. Over the past three years, 2015 2018 Change Top 100
BRAND
Meaningfully Different, the Top 20 JD.com has increased its scores in VALUE $7,649 Mil. $20,933 Mil. +174% +34%
Different, disruptive,
Risers scored 127, and JD.com scored BrandZ™ drivers of Brand Power,
and create a great Brand 168. The same progression follows for or equity, including: Meaningful
Experience. These the other metrics, Shaking Things up (meeting needs in relevant ways),
characteristics distinguish and Brand Experience, with JD.com Different (being distinctive from the 132 174 +42 -3
the Top 20 Risers, brands that scoring highest—by a wide margin. competition), and Salient (coming to
increased most in value year- mind quickly).
JD.com owns most of its logistics,
on-year, and they especially
which gives it better control of the Consequently, JD.com increased 42
107 107 0 0
propelled the success of the quality and authenticity of its product points in Brand Power score, which
No. 1 Top Riser, JD.com. offering, making it Meaningfully correlates with current market share;
Different from its competitors. It is and it increased 38 points in Potential, 106 144 +38 +2
moving into bricks and mortar retail which signals strong future growth.
through partnerships with Walmart
and the supermarket chain Yonghui The key brand-building takeaways
and expanding rapidly and effectively from JD.com are:
into new markets in rural China— 114 175 +61 +1
Shaking Things Up. (1) strengthening the key BrandZ™
metrics drives brand value
JD.com’s pioneering use of drones and positively impacts brand
for delivery is particularly important performance in the marketplace; 132 160 +28 +2
to reaching lower tier markets,
where JD.com has also established a (2) exceptional brands can accomplish
financing program. And in a unique these results quickly.
expression of Brand Experience,
93 151 +58 +3
JD.com and can deliver luxury
products with white-gloved couriers. Source: BrandZ™ / Kantar Millward Brown

42 43
2 The Global Top 100 BrandZ™ Top 100 Most Valuable Global Brands 2018

BrandZ™ Analysis
NEWCOMERS
# - Top 100 Rank
NEWCOMERS

Brand Value $39,372 Mil.


#
27 Telecom Providers

Eight brands from seven #


Brand Value $20,933 Mil.
59 Retail

categories enter Top 100 Brand Value $16,045 Mil.


#
81 Transport
High brand value is matched by strong brand equity

Eight brands, from seven categories, The rapid rise of e-commerce in Meaningful Difference scores also NEWCOMERS ARE STRONG IN BRAND EQUITY…
entered the BrandZ™ Global Top 100. China rationalized the logistics were significant. Being Meaningfully The key factor all eight newcomers share in common is strong brand equity, in all Brand Value $14,797 Mil.
Half of the brands were from the US, business, and SF Express emerged Different (meeting consumer needs its aspects: Power, a brand’s share of current demand; Premium, a brand’s ability #
89 Technology
two were from China, and Germany as the leader in size, with ambitious in relevant and distinctive ways) to charge more than the competition; and Potential, prediction of future demand.
and Indonesia each had one brand global plans. Instagram became a builds strong brand equity (Power, SF Express
Brand Equity 2018
represented. Each of the brands was preferred social media platform for Premium, and Potential). Meaningful
technology-related or proficient in the sharing photos and messages. The Different scores are increasing. In
use of technology to differentiate the Indonesian Bank BCA served a wide 2006, the BrandZ™ Global Top 100
Average Brand = 100
brand. Brands rose in value because customer base with innovations like scored 110 in being Meaningful Brand Value $14,537 Mil.
of their individual circumstances its mobile app, called eBranch, and Different. That score has increased NEW 238 113 127
#
90 Logistics
and initiatives. They shared in social media communications. Adidas to 120. Newcomers scored 120. REMAIN 172 105 110
common high scores in BrandZ™ perfectly caught the streetwear Dropout brands scored only 107. An Instagram
measurements of brand equity. Here is trend that influenced the apparel and average score is 100. DROPPED 141 102 98
a summary of each Newcomer in the luxury categories, and it succeeded in Source: BrandZ™ / Kantar Millward Brown
order the brand ranks in the BrandZ™ generating excitement for the brand, There is a positive correlation
Global Top 100. even in the US, which had been a between high brand value and brand Brand Value $14,496 Mil.
challenging market. equity. Achieving both high value …AND NEWCOMERS ARE MEANINGFULLY DIFFERENT
Spectrum, a telecom provider, entered and strong equity requires brands Newcomers also scored high in being Meaningfully Different, which builds strong
#
91 Technology
the Top 100 at rank 27. It offered no- Strong brand equity to be Meaningfully Different, which brand equity by meeting consumer needs in relevant and distinctive ways. Being
contract packages of voice and data, a becomes even more important in a Meaningful Different has become more important for competing successfully,
competitive stance in the US. JD.com, A key factor shared by all eight world where brands need to impress and the threshold Meaningful Different score of Global Top 100 brands has
a leading Chinese retailer, and the consumers enough to circumvent steadily increased.
newcomers is strong brand equity
fastest-rising brand in the BrandZ™ in all its BrandZ™ components: automatic algorithmic choices. The Meaningful Difference Brand Value $12,674 Mil.
Global 100, developed a large Power, a brand’s share of current Newcomer brands achieved strong #
99 Regional Banks
and online and offline ecosystem, demand; Premium, a brand’s ability Meaningful Difference. Brands that
differentiated from its many to charge more than the competition; dropped from the BrandZ™ Global 107 120 120
competitors. Uber created car sharing, and Potential, a prediction of future Top 100 achieved strong Meaningful
DROPPED REMAIN NEW
disrupting the cars category and demand. In Power, for example Difference, too, but not strong
influencing society’s idea of mobility. brands that dropped from the Top 100 enough for today’s marketplace. 107
Despite sluggishness of the market ranking scored 141, and brands that 2006 Threshold Brand Value $12,456 Mil.
for laptops, a key company product, remained scored 172. The Newcomers
120
#
100 Apparel
HP emerged successfully from the scored 238. An average score is 100.
Hewlett Packard split into two entities. 2018 Threshold
Source: BrandZ™ / Kantar Millward Brown Source: BrandZ™ / Kantar Millward Brown
(including data from Bloomberg)

44 45
2 The Global Top 100 BrandZ™ Top 100 Most Valuable Global Brands 2018

BrandZ™ Analysis

BRAND CONTRIBUTION

High Brand Contribution TOP 15 IN BRAND CONTRIBUTION

drives volume, premium


Brand Brand Brand Brand Value Country
Contribution Value 2018 Value 2017 % Change of
Rank Brand Category Index $ Million $ Million 2018 vs. 2017 Origin

1 Baby Care 5 20,183 22,312 -10%

And it adds stability in disruptive markets 2 Soft Drinks 5 68,042 66,489 +2%

3 Beer 5 8,263 8,146 +1%

Brand Contribution is the BrandZ™ including China, Pampers faces fierce 4 Personal Care 5 5,436 4,215 +29%
metric that assesses the extent to online competition from challengers
which brand alone, independent of commoditizing the diaper category. 5 Luxury 5 22,442 13,548 +66%
financial or market factors, drives Consumer health concerns continue
purchasing volume and enables a to impact Coca-Cola and the soft
6 Beer 5 4,478 4,385 +2%
brand to command a price premium. drinks category. With strong Brand
Brands that score well in Brand Contribution, both brands gain time
7 Beer 5 11,884 10,878 +9%
Contribution are viewed positively by to implement the long-term strategies
8 Retail 5 5,373 NEW NEW
consumers. needed to confront these challenges.
9 Luxury 5 28,063 23,416 +20%
High Brand Contribution can take time Similar to last year, the beer and luxury
to build, but it is a sustaining force. categories are well represented in the 10 Beer 5 8,292 8,119 +2%
Of this year’s Brand Contribution Top Brand Contribution ranking, with six
15, all but four appeared in the Brand brands and three brands, respectively. 11 Luxury 5 4,483 4,285 +5%
Contribution ranking a year ago. The Brands in both categories rely heavily
newcomers are Falabella, a Chile- on the consumers’ perception of 12 Beer 5 10,928 9,949 +10%
based Latin American department value. And brands in both categories
store chain that entered the Retail invest in brand building and 13 Beer 5 4,144 4,080 +2%
Top 20; Guinness, the global beer, communication. In addition to beer
returning to the Brand Contribution and luxury, six other categories are 14 Payments 5 35,440 19,156 +85%
Top Risers after a brief absence; represented with one brand apiece:
PayPal, the payments brand; and the baby care, soft drinks, personal care, 15 Logistics 5 22,218 19,441 +14%
logistics brand FedEx. payments, logistics, and retail. Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg)
Brand contribution measures the influence of brand alone on financial value, on a scale of 1 to 5, 5 highest

The No. 1 and No. 2 Brand Brand Contribution is expressed on a


Contribution leaders—Pampers and scale of one to five, five being highest.
Coca-Cola—illustrate the impact (For complete details, please see the
of strong Brand Contribution. Both BrandZ™ Valuation Methodology in
brands are experiencing ongoing the Resources section.)
category pressure. In some markets,

46 47
2 The Global Top 100 BrandZ™ Top 100 Most Valuable Global Brands 2018

BrandZ™ Analysis

BRAND IMPRINT
Martin Guerrieria
Global BrandZ™ Research Director
Kantar Millward Brown
Martin.Guerrieria@kantarmillwardbrown.com

New metric helps brands


build equity and value
Brand Imprint Index measures collective
impact of brand assets on consumers
We should count ourselves Brands must work ever harder to provide consumers with simple are most evocative of their brand and reflective thought via “System 2,” collect equity data in parallel, in line
fortunate to live in an age of plenty against the competition to truly mental shortcuts to cue the brand how this compares to competitors. where the additional time needed for with BrandZ™’s long-established
where we are presented with such stand apart and be noticed, while and activate associated memories that We call the collective strength of consideration may ultimately lead to and proven framework. Brand assets
a plethora of choice in all aspects ideally conveying why they are the relate to brand experience. these assets the brand’s Brand Imprint, a different decision. Incoherent and were tested in the relevant home
of our daily lives. Our opportunities right choice at a given moment. with the best acting as a seamless incongruous Brand Imprints may serve market of each brand versus relevant
to pick, choose and “personalize” The language of instant recognition These “brand assets” that help brands echo chamber of instant branding to confuse consumers or simply miss competitors.
these choices are seemingly and meaning is vital for brands of all come readily to mind include, but are and message reinforcement, exerting out on this increasingly important
proceeding forever skyward—there’s categories and ages to understand, not limited to: slogans, colors, logos, influence at key moments of decision opportunity. A key outcome is a one-number
truly never been a better time to embrace, and mobilize to their fonts, physical cues (packaging, shape making. summary of the overall strength of
be a consumer! That said, however advantage. of product), characters, celebrity Our extensive study comprised a total each brand’s Brand Imprint, the Brand
plentiful “consumerland” may be, associations, and other imagery. Building equity and value of 10,565 consumer interviews across Imprint Index (BII), in which an Imprint
these are challenging times for So how can brands gain an edge and 28 categories and eight markets, of average strength scores 100. And
brand building for the same reasons. maximize their “mental availability”— Kantar Millward Brown and BrandZ™ The best Brand Imprints rely on cueing covering 228 brands and 1,390 here’s the critical takeaway: The
their ability to come readily to mind have developed a methodology and the brand via our inbuilt “System 1” of de-branded assets. The approach stronger a brand’s BII, the stronger its
at the point at which a purchase framework for quantifying the strength instant and intuitive recognition, which deployed a unique neuroscience- Power score (the strength of a brand’s
decision is being made? One way is of these assets, to understand which involves fast, habitual decision making, based methodology to gather data equity in the mind of the consumer)
rather than invoking slower and more on asset performance, but also to and the more likely it is to grow in value.

48 49
2 The Global Top 100 BrandZ™ Top 100 Most Valuable Global Brands 2018

BrandZ™ Analysis

BRAND IMPRINT

BRAND ASSET EFFECTIVENESS


VARIES BY TYPE, CATEGORY
So how is a brand’s equity boosted by which a brand comes to mind and
strong brand assets? BrandZ™’s equity will not improve consumer motivation The strength of a typical brand’s campaigns. The same color is also associated with particular brands.
framework includes three elements: enough to deliver value growth. assets showed wide variation by deployed widely and successfully by This suggests that a commitment
Meaningful (meeting consumer category. Generally speaking, subsidiaries of the brand: T-Systems to consistency is a critical element
needs in ways that are relevant to Consumers will often only partially categories associated with short- in Germany and T-Mobile in the US in building a strong asset, with
cultivate emotional attachment), engage with a TV or digital narrative, term decision making were and other markets. more transient relationships with
Difference (being distinctive from the meaning there is a clear need to brand more likely to contain brands celebrities, sponsorships, and
competition) and Salience (coming to before disengagement occurs. Easily with stronger assets than those Logos campaign-specific slogans likely to
mind easily at the time of purchase). recognizable brand assets, which involving longer-term decisions. be much harder to own as intuitive
require little or no effort to register Brands investing consistently and The most instantly recognizable branding devices, at least without
Strong brand assets exert a clear with consumers, offer an incredibly in a variety of assets are more logos tend to deploy two main persistent repetition and investment.
influence on Salience, amplifying a powerful and effective way to do this. likely to feel the benefits. Notably, approaches to design: The use of These results also suggest that an
brand’s Meaningful Difference and soft drinks and fast food were by one or two letters from the brand appropriate fit with the brand is
increasing the likelihood to grow However, this Salience boost is not far the top performers, with cars, name in a specific font and color important, along with ensuring that
value. Brands with a High BII have on limited to advertising impact alone; luxury cars, banks, durables, and scheme e.g. the Google “G” or the the chosen celebrity is not involved
average a 52 percent higher Salience rather those brands able to build a technology providers towards the use of stylized imagery directly in similar activity with other brands.
score. varied suite of assets through their other end of the spectrum. linked to the brand name e.g. the
advertising, packaging, and brand Apple logo—the most recognized Kantar Millward Brown’s global
Investing in assets experience will be best placed to There was also a clear pattern with asset among brands in the 2018 advertising database shows that
activate them at various touchpoints regards to the efficacy of the types BrandZ™ Global Top 50. while there have been successful
One mechanism for achieving high as part of a virtuous circle of increased of asset tested. Typically, shapes celebrity-led ad campaigns, the use
Salience is boosting the strength of salience. and patterns, logos, and packaging Slogans of celebrities far from guarantees a
the brand’s advertising. Brands with cues were much more evocative successful campaign. On average,
a High BII more than double their Overall, it seems clear that investing of a brand than slogans, celebrity Though slogans were not using a celebrity makes little
advertising strength versus those with the time and budgets needed to endorsements, or sponsorships. comparatively strong in instantly difference to the branding and
a low score. establish intuitive brand assets can evoking a brand, the most effectiveness of an ad, though
prove to be a very worthwhile exercise Patterns and colors successful summarize the key consistent use can boost overall
Kantar Millward Brown data proves as a way to maximize a brand’s meaningful difference of the brand campaign effectiveness.
that the single best predictor of an impact on decision making. In the The building blocks of brand assets, using simple words and phrases in
ad’s in-market sales effect is branding. increasingly important language of patterns, shapes and colors can combination with a unique font and In contrast, brand founders proved
A highly-engaging creative with poor instant recognition and meaning, how combine to act as a powerful cue color scheme e.g. Walmart’s, “Save to be very strong cues in several
branding will not boost the ease with eloquent is your Brand Imprint? to consumers and offer a great way money. live better.” Or Taobao’s cases—Richard Branson scored 137
to fully connect all assets into a (Alibaba), “I love bargain hunting!” for Virgin Media in the UK; Colonel
coherent and instantly recognizable Sanders, 131 for KFC in the US; and
Brand Imprint. Color alone is Celebrities Steve Jobs, 122 for Apple, also in the
seemingly very hard to “own.” US. Clearly, these associations are
Germany’s Deutsche Telekom is Celebrities generally performed due to unique and long associations
a rare but strong example of the poorly. Although they can clearly with a single brand, but this does
consistent use of a distinctive shade serve other purposes (generating suggest that some brands may
(pink) as a common connection PR and buzz, for example), it seems benefit from more tactical use of
between the brand’s assets and that few celebrities are instantly such ambassadors.

50 51
2 The Global Top 100 BrandZ™ Top 100 Most Valuable Global Brands 2018

BrandZ™ Analysis

BRAND IMPRINT

The 3 Cs STRONGER BRAND IMPRINT EQUATES


WITH HIGHER VALUE…
There is a positive correlation between a brand’s Brand Imprint Index
IMPRINT SCORES VARY BY CATEGORY…
Generally, categories associated with short-term decision making were more likely
to contain brands with stronger assets than those involving longer-term decisions.

of a Strong score and its value, indicating that improving a brand’s BII is likely to
contribute to increasing its value.
Category/Brand Imprint

Brand Imprint/Brand Value

Brand Imprint Average Brand Imprint Score = 100

Brand Imprint Fast Food Soft Drinks Leisure Online Sharing/ Consumer Tobacco Sports Goods
101 Attractions News & Search Electronics
Value 144 132 118 111 107 107 106
$1,267 Bil.
Clarity
Brand Imprint
114 Middle Third
Clarity requires simple, clean, Electrical Telecom Grocery Stores Beauty Banking Info & Search Beer
Value
uncomplicated, connected use Retailers Providers
$1,987 Bil.
of color, design, and phrasing. Brand Imprint 104 100 97 96 96 96 95
Strong Brand Imprints often
employ a distinctive color
89
Value
palette to connect, amplify,
and build a unique and $881 Bil.
instantly recognizable identity.
Top Third Bottom Third Couriers Filling Payment Digital TV Cars Technology Durables Luxury Cars
(99 brands with Brand Imprint and Brand Valuation data)
Stations Networks Providers
Source: BrandZ™ / Kantar Millward Brown 92 91 91 87 86 73 71 71
Consistency …AND STRONGER BRAND IMPRINT EQUATES
Source: BrandZ™ / Kantar Millward Brown

WITH FASTER VALUE GROWTH …AND IMPACT VARIES BY ASSET TYPE


Consistently deploy brand assets Brands with high Brand Imprint Index scores grow value faster. Based Typically, shapes and patterns, logos and packaging cues were much more
over time, across channels and on the performance of a group of BrandZ™ Global Top 100 brands over evocative of a brand than slogans, celebrity endorsements, or sponsorships.
products—drawing on heritage twelve years, brands with high BII scores increased 213 percent in value,
where relevant. Think exposure, while low-scoring brands increased 99 percent. Asset Genre Average Asset Score Asset Genre Average Asset Score
exposure, exposure at all touch Brand Imprint /Value Growth
points and opportunities to Shapes and patterns 124 Interface 98
Top Half Bottom Half
embed assets and reinforce
recognition.
Logos 123 Colors 92
Brand Imprint
93 Founders 111 Stores 92

Communication Brand Imprint


111
12-Year Brand
Value Change
Fonts 110 Advertising elements 88
+99 %
Packaging 109 Celebrities 87
12-Year Brand
Reinforce relevant brand Value Change
Characters 102 Slogans 85
purpose, principles and +213%
messaging. Think of your assets Product cues 100 Sponsorship 77
as potential mini opportunities Source: BrandZ™ / Kantar Millward Brown
to invoke reminders of key
messages to maximize influence
at points of decision making. The same 58 brands with Brand Imprint and Brand Valuation data in both 2006 and 2018
Source: BrandZ™ / Kantar Millward Brown

52 53
2 The Global Top 100 BrandZ™ Top 100 Most Valuable Global Brands 2018

BrandZ™ Analysis
CHINA
BRAND IMPRINT
Total Value of Chinese Brands in the BrandZ™ Global Top 100

BRANDZ™ TOP 10 BRAND IMPRINTS


These BrandZ™ Global Top 50 brands score highest in the BrandZ™ Brand Imprint Index (BII), which combines all
$605.0 Bil.
brand assets into one summary score. The range of sectors—technology, services, FMCG, and retail—demonstrates that
establishing strong assets is possible and advantageous in any category. A Brand Imprint of average strength scores 100.

Brand Country
Rank Brand Category Imprint Score of Origin

1 Samsung Consumer Electronics 140


2 Disney Leisure Attractions 128
3 Google Information, News & Search 122
4 Facebook Online Sharing & Networking 121
5 Budweiser Beer 120
6 Ping An Insurance 119
7 Marlboro Tobacco 119
8 American Express Payment Networks 117
9 Amazon Electrical Retailers 111
10 Walmart Electrical Retailers 111
Source: BrandZ™ / Kantar Millward Brown

BRANDZ™ TOP 10 ASSETS


These BrandZ™ Global Top 50 brands had the highest scoring individual assets. The assets reflects that patterns, logos
and shapes, combined with distinctive colors tend to be most immediately linked to brands. The famous Apple logo
leads the way with its unique and stylized direct cue to the brand name. An asset of average strength scores 100.

Brand Country
Asset of
Rank Brand Asset Brand Category Score Origin

1 Apple Consumer Electronics 164


2 Maotai Alcohol 161
3 Samsung Consumer Electronics 159
Information,
4 Google
News & Search
158
5 Mercedes-Benz Cars 156
6 Nike Sports Goods 156
7 Xfinity Telecom Providers 155
Industrial & Commercial
8
Bank of China
Banking 155
9 Deutsche Telekom Telecom Providers 154
10 AT&T Telecom Providers 153
Source: BrandZ™ / Kantar Millward Brown

54 55
Disruption
and Change
BUSINESS-TO-BUSINESS

DISRUPTION

THOUGHT LEADERSHIP
Disruption
by Uri Baruchin
Strategy Partner
Superunion

Blockchain
by Bediz Eker
Group Strategy Director
Y&R

THE FUTURE OF BRANDS

THOUGHT LEADERSHIP
Paradox of Digital
by J. Walker Smith
Chief Knowledge Officer, Brand & Marketing
Kantar Consulting

Experience
by Doreen Wang
Global Head of BrandZ™
Kantar Millward Brown
3
3 Disruption and Change BrandZ™ Top 100 Most Valuable Global Brands 2018

BUSINESS-TO-BUSINESS

TOP 20 B2B
B2B value growth INSIGHT Rank Brand Category
Brand
Value 2018
$ Million
Brand
Value 2017
$ Million
Brand Value
% Change
2018 vs. 2017
Country
of
Origin

outpaces Top 100


Emotion
1 Technology 200,987 143,222 +40%
B2B buying 2 Technology 96,269 102,088 -6%
is emotional
3 Logistics 60,412 58,275 +4%
and rational
Brand transformations gain traction
It is important for the B2B
4 Technology 55,366 45,194 +23%
brands to understand that
the reason they are getting
5 Regional Banks 54,952 58,424 -6%
The BrandZ™ Business-to- Many of the B2B technology brands
bought isn’t often what they
Business Top 20 rose 26 have substantially transformed their 6 Conglomerate 39,041 50,208 -22%
sell, because that’s fairly
business models to cloud-based
percent in value, outpacing interchangeable with the other
operations. The increasing number brands, it’s who they are and 7 Technology 33,723 27,243 +24%
the growth of the BrandZ™ of partnerships between B2B and how they operate that will set
Global Top 100 overall, and business-to-consumer technology them apart. That’s because 8 Technology 28,316 21,919 +29%
more than doubling the 11 brands has increased expertise and B2B buying is emotional as well
percent B2B growth rate of customer access on both sides of the as rational. It can be divided 9 Technology 25,802 21,359 +21%
a year ago. Value increases increasingly porous B2B-B2C divide. into four steps. You identify
the need, short-list suppliers, 10 Technology 24,922 20,388 +22%
varied by category, with compare quotes, and make a
A decade after the financial crisis,
many technology and global global banks have emerged, finally, decision. Identifying need is 11 Global Banks 23,633 20,536 +15%
and regional bank brands pretty rational, in contrast to
from the overhang of fines and
rebounding and hitting their
B2C. But a lot of emotional 12 Logistics 22,218 19,441 +14%
regulatory changes. A strong global
values come in when you create
stride after years of adjustment economy and profitable businesses a short list and decide on the 13 Technology 21,331 16,725 +28%
to economic and industry serving high-wealth individuals ranking. You consider your
helped drive strong financial results, experience with the brands and 14 Global Banks 21,258 17,580 +21%
disruptions.
as brands also built awareness among how the brands communicate in
a new generation of customers more their marketing and advertising. 15 Logistics 20,568 15,844 +30%
The B2B ranking includes the highest-
inclined to turn to fintechs for financial And when you get to the final
value brands in the BrandZ™ Global
service needs. decision, it’s very emotional— 16 Oil & Gas 20,264 18,346 +10%
Top 100 that generate over half of you are putting your reputation
their revenues from business clients. on the line with your decision.
The rise of the logistics brands was 17 Global Banks 18,251 14,129 +29%
Half of the B2B Top 20 are technology
one more example of the “Amazon
brands, four are banks, and three
Effect,” which crossed many 18 Oil & Gas 18,222 18,727 -3%
brands added to the BrandZ™ global Robert Swartz
categories, usually as a challenging Strategy Director
ranking this year are in the logistics 19 Technology 17,831 11,649 +53%
and disruptive force. In contrast, the MediaCom
category. In addition, two B2B Top 20 Robert.Swartz@mediacom.com
logistics category benefited from the
brands are in the oil and gas category 20 Technology 17,026 12,234 +39%
increase in package delivery driven
and one is a conglomerate.
by e-commerce. Amazon’s test of its Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg)

own delivery system portends future


logistics category disruption, however.

58 59
3 Disruption and Change BrandZ™ Top 100 Most Valuable Global Brands 2018

BUSINESS-TO-BUSINESS

INSIGHT
Branding

B2B marketing
is bland, but it INSIGHT
is improving Buying Decisions

After three years of cost cutting by


oil and gas brands, profits flowed at
B2B marketing increasingly Generational
looks to B2C for inspiration
a lower price-per-barrel of oil and and that is the best thing that change shapes
profits increased for some brands can happen to it. So much buying decisions
when oil prices rebounded from B2B marketing, even from
historic lows. The shift from oil to gas, leaders in their sectors, is so increase, rising 53 percent, with cloud generation workers move into There are some classic
and the challenge of hydraulic fracking dull and generic. Why? This is subscription services producing the executive positions and bring different differences between B2B and
in the US, created new disruptions and the gravitational pull of B2B’s vast majority of revenue. Salesforce values. To appeal to younger workers, B2C. First is the complexity
marketing—business people rose 39 percent, as it continued to the requests for proposal (RFPs) of heritage B2B where,
costs, and a need to strengthen the
talking to business people. expand its cloud-based services and increasingly ask not only about increasingly, brands are selling
image of these B2B brands among
The paradigmatic difference partnered with Google. product and functional capabilities, solutions rather than products.
INSIGHT consumers. between B2C and B2B
but also about purpose-related criteria And those solutions can’t always
B2C marketing is the relationship
Change has been especially like sustainability and inclusion. be compared like-for-like.
Transformation and growth of brand and audience. In B2C So, we are seeing the path to
challenging for the large scale,
Brands cycle marketing, the customers are
heritage B2B brands, such as IBM in Responding to pressure from
purchase become much more
Adjusting to change has been a mystery to be solved. In B2B buyer driven. We are seeing
between B2B, challenging for B2B brands, which marketing, the customer needs technology and ExxonMobil in oil and customers, consumers, and more people involved in the
B2C models operate in a more complex world than are in a request for proposal gas, both of which have progressed government regulators, B2B brands decision, which adds to the
B2C brands, often selling solutions (RFP). Often, at top of the sector through category disruption. GE, a have focused beyond the immediate complexity both from buying
The B2B brands have a harder are those who learned to “tick 126-year-old brand, and the only concerns of providing products and selling perspectives. Here’s
rather than products. In oil and gas,
time reaping the benefits of the boxes” best. Their entire conglomerate ranked in the BrandZ™ and solutions. They have adopted a where it’s possible to say that
smaller and more agile companies
dashboard type digital solutions evolution is a training program Global Top 20, was in the midst of a values-based approach to run their B2B is moving toward B2C;
provided cheaper exploration and in being similar. No wonder B2B
because they don’t have one major restructuring. businesses with policies governing because you’re selling to human
particular user in mind. The production services. Technology leader-sets are often both rigid
sustainability, supply chain ethics, and beings, and those human beings
user is a company with multiple leaders with businesses based on and nearly indistinguishable. are different from 10-to-20
extensive, long-term customer Over the past 12 years, B2C other issues.
individuals using the product. I call this trope, “the leader’s years ago in that millennials
relationships, encountered smaller lament.” What gets you to technology brands increased 568
Consequently, the brands move are moving into positions of
in a cycle where they move disruptive brands able to provide the top, stops differentiating percent in value, compared with a The B2B businesses have been
stronger influence. They bring
toward more digital solutions narrow, cloud-based, lower-cost you at the top. You may try to healthy but much lower 163 percent skilled at the rational part of the values to the decision making
and dashboard-type behavior, solutions. differentiate, but your entire increase for B2B technology brands. sale—presenting what they do— process that are different from
and then shift back to B2B organization has evolved to tick However, the growth rate gap is but sometimes less effective at how B2B has been sold in the
model, which is based on long- boxes, so stakeholders dilute narrowing. And over the past year, differentiating—explaining how they past. And as human beings
Microsoft illustrated the ability to
term relationships and trust. it to death. The gravitational B2C technology brands increased operate. The B2C brands are better making big decisions in full view
successfully navigate these changes,
pull is too hard. This powerful 22 percent in value, and B2B brands at emotional communication, which of colleagues, they need to get
having opened the company to pattern is the most common almost matched them, with a 19 can be an advantage for brands like it right, so the trust and emotion
Valeria Balaro collaboration with other brands and challenge faced by marketing
percent increase. Apple and Google as they move invested in a partnership are
UK Marketing Director developed a cloud storage business, leaders in B2B organizations. often as important as rational
Kantar now second in size only to Amazon’s. deeper into the B2B space. Amazon’s
Identifying the pattern is a start. selection.
Valeria.Balaro@kantar.com
Microsoft was among the fastest-rising Never give up. Decision-making AWS is already the No. 1 business
B2B brands, with value increasing cloud service, followed by Microsoft
40 percent. Adobe led in B2B value The decision-making process and Google. But building brand and Julian Green
Uri Baruchin has changed as more millennial reputation are vital for B2B companies. Head of Corporate Practice
Strategy Partner Kantar Millward Brown
Superunion Julian.Green@kantarmillwardbrown.com
Uri.Baruchin@superunion.com

60 61
3 Disruption and Change BrandZ™ Top 100 Most Valuable Global Brands 2018

BUSINESS-TO-BUSINESS

BRAND BUILDING
ACTION POINTS

Ask the right


1 questions
Customize
Consider how to transform the brand as a
service. The provocative question to ask is: if the
4 the message
brand divested all of its products today, what
would be left? What is the brand’s purpose? Be more adventurous with the
How can the brand build on the answers? brand’s communication style,
which can be done in a targeted
way, and will have the positive

2 Keep changing
effect of resonating more
effectively with the younger
managers who are increasingly
What gets a brand to the top sometimes deciding what B2B brand to
stops differentiating the brand when it arrives. purchase—or not.
Leading brands need to set themselves apart
from their peers and from new competitors.
Change is hard and risky. But change is
Communicate to
5 young people
necessary, and too often happens too late.

3 Collaborate Connecting with younger decision


makers, and recruiting younger
Finding partners, especially across the people to work in the organization,
increasingly porous B2B-B2C divide, can requires genuinely aligning with the
leverage current capabilities, develop values that they espouse, such as
new ones, and expose the brand to new sustainability and inclusion.
customers—all while growing revenue.

62 63
3 Disruption and Change BrandZ™ Top 100 Most Valuable Global Brands 2018

DISRUPTION

INSIGHT
Media

Disruptors spin new


INSIGHT
Disruptors
Ultimately, every brand fits into
Reaching young
Longevity will a triad—every brand is either the requires multiple

ideas, tech into storms require scale media formats


disruptor, disruptive, or disrupted. But
these designations can change during
and media mix the lifecycle of a brand, and every The polarization of approaches
Disruptive brands have one brand has the power to make that brings new challenges for
thing in common: they feed change happen. brand marketing and marketing
They alter society while building scalable businesses their strategy based on the
Disruptor Brands
effectiveness. Where ad
receptivity is low among
current and sometimes foreseen
or predicted needs of the younger audiences, brand
consumer and/or customers marketers are using opposing
Animating this triad are the disruptive
Disruptor brands are like disruptions, this definition applies to while creating demand for their approaches simultaneously:
ideas enabled by technologies such both short- and long-form
two successive waves: The Amazon INSIGHT products and services. They are
forces of nature; awesome and as artificial intelligence (AI) and content; a combination of
and Google impact on e-commerce Scale able to shape our paradigms
devastating, they transform and in some cases, change
blockchain. With AI, machines gather broadcast and hyper-targeted
and search at the end of the twentieth
the landscape. Trying to and manipulate data and produce ads; live customized experiences
century; and the mobile revolution Once an enabler, culture and transform the way
useful insights, sometimes faster and AI-driven communications.
understand the exact nature starting with the introduction of the we or society do things. In
of these whirlwinds is more Apple iPhone a decade ago.
scale can inhibit recent years, we’ve seen the and better than the human brain. This brings a massive challenge:
Blockchain streamlines transactions stretched media budgets need
difficult, especially as they brand success incredible growth and success
with transparent networks that to cover traditional and new
of these types of companies,
tear through the middle of Amazon is the perfect storm that channels, the production of
Our clients are worried about such as Uber, Amazon, Airbnb, eliminate the need for mediation. Both
creates a tidal wave of change. Over customized creative for each
categories or create multiple their fundamental business Netflix, and Alibaba. These technologies have applications—and
platform, when an individual
the 10 years between 2007 and 2017, disruptive players challenge
fires at the edges. Having models—that’s where potentially disruptive consequences—
when the Global Top 100 increased a current industry business can experience a single brand
disruption is powerful. Scale across categories.
tracked a lot of category healthy 128 percent, the brand value and even society models by in both a “mass” and “bespoke”
had been such an important way, from one minute to the
storms, WPP brand experts of Amazon soared 2,235 percent. But, filter for consumer product leveraging a combination of
AI will enable more automation
human ingenuity, innovation, next. Somehow this all needs
offer these insights. as in nature, there are few perfect brands, but today, scale can and potentially eliminate jobs, to be brought together, and
storms—brands that create entirely prevent brands from taking and technology. However, not all
disruptive brands are successful which produces disruption and to be recognizably from the
The transformative power of disruptor new categories and force business advantage of interesting new same brand. This makes good
and long-lasting. Those that will requires new skills. AI as it is used
brands starts with their ability to models to change across many other opportunities. The information business sense; we know from
survive are the ones that will in personal assistants, like Alexa,
identify unmet needs and create categories. economy is shifting value away our AdReaction Research
from economies of scale to know how to scale at speed, and potentially disintermediates brands
something new—a solution—to meet reach their audiences across from shopping consideration. Banks, that campaigns that are both
There are however, many brands that economies of networks. As integrated and customized are
the needs. Disruptor brands make an integrated mix of media by definition, are the mediators in
a result, category walls are 57 percent more effective in
the solution profitable and scalable in have a disruptive effect on one or more channels while being nimble and
falling down because the very financial transactions. Blockchains,
ways that alter consumer behavior and categories. Small, unknown start-ups constantly adapting to market building brands. I’d argue that we
way that consumers build their in the form of crypto currencies, are moving from “or” to “and.” It’s
expectations, and the market share of launch on Amazon, or other internet consideration sets is changing. conditions. threaten to disintermediate banks and not a fight. It’s diplomacy, led by
existing brands, forcing the brands to platforms, and ripple through categories True disruptors are shaking up restructure banking. intelligence and understanding.
change the way they do business. with price and product propositions the very parameters with which
that challenge long-established brands. we’re defining and thinking Sabrina Bailey-Navalón
Marketing Director
Disruptor brands disregard category Although not disruptors on the scale about industries and categories. Xaxis Jane Ostler
boundaries. They usually act to of Amazon, these small brands are Sabrina.Bailey@xaxis.com Global Head of Media, Insights Division
disruptive. They are the craft beers, Kantar
improve the life of the consumer
fintechs, or small, online apparel or Wayne Pan Jane.Ostler@kantar.com
or at least remove pain points. In Senior Consultant
the context of recent technological personal care start-ups. Kantar Consulting
Wayne.Pan@kantarconsulting.com

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DISRUPTION
INSIGHT
Brands

Brands help
absorb shock
of disruption
For decades, two structural
barriers protected FMCG
leaders: limited distribution
because there’s only so much INSIGHT
shelf space; and limited Technology
Disruption also is about recognizing airwaves because there are only
INSIGHT
Unicorns
unmet needs and reframing the so many media players. With Consumer needs,
marketplace, as exemplified by the rise of e-commerce, anyone
WeWork, which provides office space can get a product distributed systems of fast-moving technology not technology,
Unicorns shift for the gig economy. Ultimately, the to a consumer much cheaper, The apparel and personal care brands. Recognizing the importance causes disruption
categories are especially susceptible
from product most impactful disruptors introduce a easier, and faster than ever
before. Because of YouTube and
of customer relationships, the Chinese
new business model that shakes up an to this phenomenon. Small brands, or banks rapidly integrated AI and I don’t think machine learning
focus to brand entire category or categories. Other other media channels, anyone non-brands, often from Asia, reach enhanced the customer experience. is quite there yet. A person
can get the word out about a wide audiences on the internet, with Facial identification in banking is needs to string together a
Among disruptive brands, we examples of this kind of disruption,
new brand. These technological promises of high quality fashion at query of words. I would call
are seeing a quest to move when a new business model ubiquitous now, for example.
changes dramatically reduced lower prices. The online apparel that interpretation. A human
beyond the romanticized tech challenges an existing category, the marginal cost of distribution
brand Everlane promises radical layer of expertise will always
company. The life cycle of these include Uber (mobility) and Airbnb and awareness building. Banks in the West face similar
transparency and an ethical supply be there. Let’s assume that IBM
disruptors can be short. They (travel). Consequently, even if you are challenges but have moved more
Watson creates a way to troll the
want a longer life cycle and the market leader you need chain. It shows customers the cost of slowly for several reasons. First, the internet for key words, tones,
would prefer to be a “phoenix” Perhaps the most identifiable to worry about new brands production, which makes much of the consumer take-up of mobile payment and lexicons, and produces
than a “unicorn.” A company characteristic of a disruptor brand entering the market faster and competition appear too expensive. systems has been relatively less robust a creative brief. We still need
that can survive challenges is that it keeps disrupting. Amazon, more frequently. Categories so far, in part because of the wider someone to program that
and keep rising from the are fragmenting because of The beauty brand Glossier says use of credit cards relative to China. machine learning algorithm
Alibaba, Apple, Google, and Facebook
flames. The leaders of these these reduced barriers to entry it has inverted the beauty market and do quality control and
are all relatively young technology Second, the regulatory restrictions
companies think like engineers and brands need to build more business model with product ideas work with the people acting
brands still guided by a founder or a on personal data are greater in the
and have previously prioritized flexibility into their businesses. on the reports to implement
founding spirit. They attempt to keep driven by consumers, not marketers. West. Third, investments rather than
product over everything else. Reliance on existing operations and inform tactics. We’re still
customers in growing ecosystems of It has moved beauty tutorials from retail transactions usually drive the
But now they are starting to and business models can far away from being threatened
consider brand. They need to ever-changing exceptional products department stores to Instagram. bulk of profit. As some of these factors
actually be a constraint. In by machine learning. It’s
understand that technology and services that give customers little Taking advantage of e-commerce change, and blockchain evolves, the
contrast, it’s important to rely dangerous to say that these
will move on, a newer product desire to leave. on brands, the most non-linear, communication, a brand called Western banks should face more technologies by themselves are
will grab consumer attention, flexible part of the business. The Brandless promises to deliver lower disruption—from themselves or from causing disruption. It’s actually
and today’s disruptor will Disruptive brands brands are a shock absorber to cost quality food and household other entities. the consumer needs that we’re
become tomorrow’s disrupted. the change happening in the products by eliminating marketing filling with this technology
At that point, a brand that has category. They create loyalty costs and excessive mark-ups. Responding effectively also requires driving the change.
The disruptor brands also enable
connected with consumers will and time to react.
the disruptive brands to exist. They the right attitude. Large brands are
be harder to disrupt.
provide the online platforms and Disrupted brands often thought of as big ships, heavy in
the water and difficult to turn because Kyle Boots
devices, which are the habitats Adam Caplan Director of Brand and Social Analytics
Stefan Wilkerson in which disruptive brands thrive. Partner
Disruption may be inevitable. But the of business needs and responsibilities Y&R and BAV Group
Regional Chief Client Officer Established brands across consumer Kantar Consulting outcome is not. Until recently, the to stakeholders. But big brands do Kyle.Boots@yr.com
Kantar Adam.Caplan@kantarconsulting.com banking industry in China was replete innovate and can disrupt markets. Big
Stefan.Wilkerson@kantar.com
product categories are being nibbled
by these disruptive brands, which with sluggish state-owned companies. brands are able to play in spaces not
easily access e-commerce and social They were easy targets for Alipay, available to small, disruptive brands
media platforms. WeChat pay, or JD pay, the payment because the cost of entry is too high.

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DISRUPTION

BRAND BUILDING
ACTION POINTS
PERCEIVED DISRUPTION ADDS …DISRUPTION PLUS DIFFERENCE ACCELERATES GROWTH…
BRAND VALUE… Disruption drives brand value growth. And Difference, being seen as a trend-setter and
Over a three-year period, 2015 to 2017, distinctive from the competition, also drives brand value growth. Brands perceived to be
brands perceived to be high in disruption, both Disruptive and Different grow faster. Over a three-year period, 2015 to 2017, brands
in the ability to shake up a category, perceived to be high in both Disruption and Difference increased 28 percent in brand value.
increased 30 percent in brand value, while Different and Disruptive
brands perceived to be low in disruption
actually declined slightly in brand value.
3-Year Value Change
High
Shaking Things Up
3-Year Value Change
+11%
+28%
1 Anticipate disruption 5 Be a leader
+30 %
Disruption

Watch the horizon and change before


Leader brands innovate and take a
the storm hits, despite the many
category forward. Too often, larger
reasons for staying the course, including
brands become staid and risk-averse. But
+5% financial pressures, responsibilities to
continually innovating, leader brands keep
stakeholders, and sometimes just inertia.
-1% -5% +5% moving the market forward and become
more difficult to disrupt. Brands that have
Low Medium High
Low Difference High 2 Create disruption maintained leadership over time are both
disruptive and shielded from disruptions.
Source: BrandZ™ / Kantar Millward Brown Source: BrandZ™ / Kantar Millward Brown
Big brands can disrupt when they leverage
their size advantages, which include the
…AND DYNAMIC BRANDS ACCELERATE THE GROWTH OF SHAREHOLDER VALUE
Shareholder value soars for the most dynamic brands—brands that are Different in the most innovative or disruptive ways. In 12 years, between
ability to play in spaces there the cost of entry
is high, and to invest in in-house startups that
6 Build soft power
2006 and 2018, the BrandZ™ Strong & Innovative Brands Portfolio increased 226.7 percent, outperforming the S&P 500, which grew 102.0 Scale may be an old paradigm. The
can create innovative products and services.
percent, and the MSCI World Index, which grew 50.3 percent. With its disruptive edge, the BrandZ™ Strong & Innovative Brands Portfolio even
way nations are shifting from empire
outperformed the BrandZ™ Strong Brands Portfolio, which is comprised of Global Top 100 brands with the highest brand equity.
and power to soft power and influence,
BrandZ™ Strong and Innovative Brands Top 20
BrandZ™ Strong Brands Portfolio 3 Find the fringe brand building is becoming less about
scale and efficiency and more about
S&P 500
MSCI Even in maturing categories, great companies being close to the customer and not
226.7%
that are brand-focused and customer-centric pushing products, but instead answering
can find growth opportunities in growing needs with locally-tailored innovations.
172.1% spaces at the category fringe.

102.0% 4 Swim with the fast fish 7 Strengthen the brand


When innovation is needed, it is tempting for a big Companies need flexibility more than
50.3% brand to hook a small fish, the invasive species ever before, as technological and social
that have invaded the pond. But it is better to changes disrupt categories. Brands act
swim alongside the fish and learn its movements. as shock absorbers, cushioning some
The digested fish loses its distinctiveness and of the impact with loyalty and love that
becomes just a part of the larger organism. give companies time to respond.
April 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 April
2006 2018
Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg)
The BrandZ™ Strong Brands Portfolio is a subset of the BrandZ™ Top 100 Most Valuable Global Brands.
The BrandZ™ Strong & Innovative Brands Top 20 is a subset of the BrandZ™ Strong Brands Portfolio–brands that score high in being Dynamic and Different.

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Thought Leadership

DISRUPTION
Uri Baruchin
Strategy Partner
Superunion
Uri.Baruchin@superunion.com

Disruption myths favor


the startup hero story
But reality is more complicated,
and big brands can be disruptors
When it comes to market disruption (or at least was the first to exploit), a slick interface with smart data
the stories we tell now go further than growing quickly, redefining the analytics, ruthless recruitment of
the original definitions of disruptive category, and making the “big guys” drivers and, let’s face it, other forms
innovation, coined by Harvard reassess their business model—to of ruthlessness that attracted negative
Professor Clayton M. Christensen in mention some components of the coverage. Thus, they grew up the
1995, or disruptive technology, coined ideal story. fastest.
by economist Milan Zeleny, in 2009.
The real stories are rarely as “perfect.” The popularized disruption trope
Today, the corporate conversation For example, often disruptors aren’t glosses over the details of a more
about disruption is influenced by the first to discover the breakthrough. complex reality. In fact, disruption
its portrayal in the media, even Around the time Uber rose to comes in a variety of shapes and
in the trade media, and a specific prominence there were other GPS- sizes. By appreciating a wider variety
Superunion is a next-generation “disruption trope” seems to dominate. based ride apps, and many also of tropes, we can learn to understand
brand agency built on a spirit Ideally, this is the story of a small approached mini-cab stations in disruption better and the different
of creative optimism. We use but innovative brand coming “out of order to build a driver base more roles brands can play. Here are three
upstream creativity to build nowhere,” harnessing a technological quickly. What made Uber into a examples of tropes in this more
brands that unite people and breakthrough the brand came up with disruptive player is that it combined complex reality:
organizations. 

www.superunion.com

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Thought Leadership

DISRUPTION

Single Disruptor
Yes, there’s the single disruptor, “We might become oblivious to the
the first to get it right and redefine TAKEAWAYS
a category. Google did it with its disruption led by big brands. Because
PageRank algorithm, which measured
it doesn’t fit the dominant disruption

Big brands
the importance of websites based on
the number and importance of other
websites with which it was linked.
trope, it gets demoted to “innovation,”
PageRank was a new paradigm that even when it’s clearly disruptive

can be
immediately made other engines of
that time seem obsolete. innovation, or ignored because it’s
Disrupted Space deemed less exciting than the disruption

disruptors
Then, there’s the disrupted space. stories the market recognizes and loves.”
Often driven by technology, a new
way of doing business becomes
possible, but if the technology
barriers are lower, there could be a
whole group of disruptors competing
for primacy. In the UK, you have Just
Eat, Deliveroo, Grubhub, and Uber
Eats—all competing for essentially
services. A whole swarm of little
players in legal services are offering
contract and wills based on simple
resounding yes. Big brands have two
major modes of disruption, and both
are related to being, well, big.
Smart big brands are active on both
fronts at the same time. Furthermore,
if they want disruption to land in the
1
the same market, disrupting many templates and algorithms, in business market, they consider the marketing Learn to identify the many
models driven by search engine 1. The first mode is investing in and branding aspects of their new
aspects of the traditional restaurant forms disruption can take.
optimization and pay-per-click. They innovation and research into developments.
food delivery model. There’s still a

2
are slowly making a large chunk of disruptive technologies on a
chance of someone breaking away
traditional business disappear. scale that small players cannot Disruptions born out of the first
from the pack, the way Uber did
afford. For example, most drug mode—investing heavily in disruptive
with ride services. A disruptor to the
The more we adopt the disruption breakthroughs will keep coming technologies—often require careful
disruptors. However, experience Go big and small. Invest in the big
trope dominant in the media, the from big pharma because the proposition development to go
tells us that unless some surprise
scale of investment required
disruption of major projects beyond
more likely we are to miss the many to market and be embraced by
innovation is introduced, domination the reach of small brands, and invest in
other forms it takes. Perhaps, more creates a huge barrier for entry. audiences.
of that space would be more down to small, “lab”-like innovation platforms.
importantly, we might become Drugs require not just technology
the right brand proposition and the The second mode—creating pockets
oblivious to the disruption led by and knowledge; their development

3
right customer experience. of disruption—requires a different type
big brands. Because it doesn’t fit the takes a long time and that’s
dominant disruption trope, it gets expensive. of marketing support to help the small
Piranha Scenario ideas gather momentum through the
demoted to “innovation,” even when
A subset of that trope is the it’s clearly disruptive innovation, or 2. The second mode is creating organization and gain commitment Remember that success often comes not in being the
piranha scenario. This happens ignored because it’s deemed less pockets of disruption within the from senior stake holders. first to discover a disruptive technology or market
when technology or supply chain exciting than the disruption stories the bigger organization. Encouraging opportunity, but in being the first to get the proposition
side-projects has been part of the While the myth of the small disruptor
innovations are available to many and market recognizes and loves. and experience right. Customers won’t necessarily
corporate culture of companies may get more airtime, and the media
the entry price is low. What we often immediately “get” disruption-driven innovations.
An interesting question is what can like GE and 3M for years. A more likes the shooting stars, there are still
get then is many little players biting
big brands do to create disruption? contemporary form of that mode great rewards for the more established
off bits of the big brands’ business.
As they’re watching the barbarians is the “labs” model and other big players in cultivating disruption
This pattern is prominent, for at the gate, can they be a part of the “innovation platforms” as made and taking it to market successfully.
example in the world of professional disruption game? The answer is a famous by Google.

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Thought Leadership

BLOCKCHAIN
Bediz Eker

Consumers will
Group Strategy Director
Y&R
Bediz.Eker@tr.yr.com

own their data, making


brand switching easier
Unchained by blockchain, consumers
will choose the brands they can trust
Blockchain is the new buzz word in companies set to disrupt various new technology is one of the major
various industries including marketing categories with this new technology barriers to scalability and it will take
communications. Some of its radical and repeat their previous success with years to resolve, but even at this
evangelists think that blockchain “the next big thing.” early stage blockchain has started to
will solve most of our modern change relationships between brands
world problems while there are also On the other hand, giants like and consumers.
skeptics who see it as a Ponzi scheme Walmart and Amazon are also
Y&R is a global advertising because of its associations with exploring different ways to implement
agency that provides the highly volatile and unregulated blockchain technology to improve
analytical knowledge cryptocurrency markets. However, their supply chain management and
and integrated marketing familiar faces from the internet to increase return of their marketing
solutions to businesses.  revolution have already started up investment. Governance of this

www.yr.com

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Thought Leadership
INDIA
BLOCKCHAIN
Total Value of Indian Brands in the BrandZ™ Global Top 100

$20.9 Mil.
Blockchain was invented in order to another brand that delivers higher stakeholders when the majority
to keep a decentralized and benefits in return. Even today, erosion of brands start to reward loyalty
immutable ledger for cryptocurrency of brand trust and exigence of data with branded cryptocurrencies. As
transactions. Unlike central privacy among consumers don’t decentralized ledgers are maintained
database management systems, help brands recruit loyal customers. by independent book keepers that
storing encrypted data by multiple Y&R’s proprietary Brand Study BAV, expect cryptocurrencies in return,
bookkeepers on blockchain reduces Brand Asset Valuator results show brands will be able to provide this
the need for intermediaries, making that in the last 15 years, Brand Trust incentive in their own ecosystems as
data transfer more transparent, has fallen from 44 percent in 2001 to well.
efficient, and simple. According a low of 18 percent in 2017. And the
to Juniper Research’s Blockchain Cambridge Analytica scandal surfaced It’s hard to predict whether brands
Enterprise Survey, two-thirds of large the greatest data leak in Facebook’s will be able to land on a common
corporations (defined as having at history bringing data privacy issues top blockchain that will enable consumers
least 20,000 employees) are expected of mind. to use their “loyalty coins” across
to integrate blockchain by the end of categories or whether we will have
this year. exchange rates

Everything from
“Brands will not have the option of taking between different
branded loyalty
dental care to loyalty for granted because consumers will tokens, but in both
cases, consumers
real estate can
be potentially have ownership of their personal data, and will become
affected and stakeholders of the
there are already with it the power to take their data to another brands they choose
existing companies
that disrupt the brand that delivers higher benefits in return.” to stay loyal to. In
both cases brands
conventions of won’t be able to
these categories by using blockchain. Technically, blockchain will help afford to disappoint their consumers
As the approximately $600 million marketers tackle both issues by not only by their product or service
blockchain products and services building a totally transparent performance but also by the way they
market is expected to grow to $7.74 relationship with their consumers produce and deliver them.
billion by 2024, according to Grand if brands commit to it. And brands
View Research, brands that have will be forced to commit, because Just like every innovation in marketing
a larger footprint in blockchain consumers will have ownership communications, blockchain will first
will eventually grow their values over their own data, meaning they raise expectations and complicate
accordingly. While hardware and will move to a competitor if their the relationships between brands and
software solutions that establish expectations aren’t being met. We consumers but at the end of the day
blockchain infrastructure will become will then meet the real “empowered we will find ourselves going back to
a growing market for business-to- consumers” who will not only expect the basics. Whether it’s an ancient
business, brands that deliver integrity, brands to keep their promises but also Egyptian livestock brand back in 2700
value and convenience through expect to be treated as stakeholders. BCE, or a frozen meatball brand that
their blockchains will enjoy longer uses blockchain in its supply chain
relationships with their consumers. Consumers are already asking for in 2018, in both cases brands are
traceability of products for different expected to keep their promises to
Consumers as stakeholders need states. But with its totally their consumers. However, today’s
transparent and immutable ledger, consumers will be more unchained by
However, brands will not have the blockchain will enable consumers to blockchain once they gain ownership
option of taking loyalty for granted easily get sight of the supply chain of their personal data and have the
because consumers will have and spot any suspicious activity luxury to share it with whomever they
ownership of their personal data, and which contradicts their personal choose among an array of brands that
with it the power to take their data values. Consumers will also become fiercely compete with each other.

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THE FUTURE OF BRANDS


Insights

Purpose

Brand importance will rise Market ambiguity


requires brands
Amazon

A focus on service

as technology limits choice that are clear


Brands will never disappear
completely. They play as
differentiates brands
from like-products
Voice

Brands must
big a social role as they do a
We’re seeing a paradigm shift, shift to world
especially in FMCG, because of
But the risk of disintermediation is urgent commercial one, sending cues
to others about the identity,
the “Amazon Effect.” Amazon of “voice first”
is building massive factories
beliefs, and personality of an Seven years ago, we saw the first
in China to make white label
individual or company. That said, cute videos of children swiping
versions of commodity
Posed in its most provocative without having to leave the ecosystem in an era marked by increasing at TV screens or print magazines,
products. What does that
of Alibaba, Tencent, or another internet disintermediation, marketers will expecting them to react (and
form, the central question need to reconsider how they
development mean for major
giant. packaged goods companies, often being disappointed when
about the future of brands connect with customers. One they didn’t). Those children
INSIGHT when suddenly Amazon Basics
is, does it exist? What role The internet’s low barrier to entry will
way to outsmart algorithms
carries their entire product line? were the first “touch natives.”
Voice would be for brands to own
do brands play in a world enable more such brands—and non- In this world, where a product The children who are growing
spaces collectively, banding up with Alexa now are growing
of disintermediation and brands—across categories, to enter may not be front and center
Values, utility together with others in different
in the consumer’s mind, the up with a general comfort
automatic replenishment global markets using e-commerce categories that share similar and expectation that they can
make difference where even the newest no- and social media. In personal care, values. But the most foolproof
brand’s purpose may become
interact with inanimate objects
much more important when the
in digital world brand upstart, launched on
for example, major brands are being way to survive disruption is the
product is invisible, especially and expect a response. They are
disrupted by Asian brands, or non- most traditional: build a brand the first “voice natives.” When
an e-commerce platform, can with voice interfaces where you
Culture is increasingly driven brands, with good stories, natural that means something. If you they try to interact with your
don’t even see the product on a
by technology. The way we gain rapid legitimacy? The ingredients, and low-cost online access. concentrate on how you can
search results page. When your brand or ask Alexa about your
communicate, shop, and relax short answer: Brands need help your target audiences fulfill brand, will you be listening?
brand is not visible, because the
is increasingly digital in nature their purpose, you will define Will you have a reply ready? Do
to assert their importance or Although choice has never been
your own. Staying customer
interface doesn’t allow it to be,
and changing all the time. We greater, consumers are not always the what differentiates your product you know how your brand will
believe the brands that will gain risk becoming an endangered focused allows for flexibility and behave in a conversational voice
“choosers.” Increasingly, a personal from every other product?
the most in the coming years species. resilience in rapidly evolving
Creating brand awareness and context? Instead of thinking
assistant, like Alexa, may make the markets.
will play a direct role in those affinity in these circumstances “digital first,” brands need to start
technology shifts. They won’t purchasing decision based on an
More brands and non-brands requires focusing less on thinking “voice first.”
be finding stories so much as algorithm, paid search results, or
proliferate in the marketplace. product attributes and more on
finding points of connection. promotion of its own private-label range. Andi Davids
Challenger brands are likely to come Senior Strategist
the brand as a service.
The truth they have to tell will These phenomena make getting into the Tara Marsh
from China and other fast-growing Superunion
need to be matched by the consideration set more challenging. Andi.Davids@superunion.com
Global Head of Content
markets, delivering not only appealing Wunderman
values they live by and the utility Dayoán Daumont
they offer to their customers. products and prices, but improved Tara.Marsh@wunderman.com
To be included in a consideration set Consulting Partner,
brand experience enabled by AI and Innovation & Digital Transformation
that is simultaneously enlarged with new
other technologies. OgilvyRED
competitors and limited by algorithms, Dayoan.Daumont@ogilvy.com
Simon Law
Chief Strategy Officer
brands need to communicate a clear
Many of these brands have met
Possible purpose and explain why they are
Simon.Law@possible.com
the high expectations of Chinese
Meaningfully Different, and perhaps
consumers who purchase groceries
even merit a premium. Difference needs
and takeaway meals, hail cabs, pay
not only to be about product, but every
bills, and manage much more of
aspect of the brand experience.
their daily routine on mobile devices,

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THE FUTURE OF BRANDS


INSIGHT
Brand Love
INSIGHT
Investment Voice

Disintermediation in brand love Difference and Purpose


secures future In a voice world,
INSIGHT
Purpose The Amazon Dash Replenishment Disruption is best countered with brands need
In a few years, when I say,
service illustrates the growing threat
“Alexa, I need some toothpaste,”
differentiation. Purpose can serve as an audio signature
Lack of legacy of disintermediation. When introduced
one of two things will happen:
an important differentiator. Ultimately,
several years ago, the service purpose is kind of emotional When you think about brand
is small-brand required consumers to press a “Dash”
(1) Alexa will order the default,
INSIGHT connection, part of the brand differentiation in a world
either set by me or Amazon
advantage reorder button. The program now (and likely to be an Amazon Purpose 2.0 promise beyond functionality that can of voice, where it is about
supports automatic replenishment of strengthen the bond with consumers building brand love long term,
own brand); or (2) Alexa will
historically brands have had
The corollary to an ongoing
decline in trust in traditional
“smart” products made with a chip, recommend a particular brand B2B companies and influence them to actively request
color, typefaces, and other
a built-in “Dash” button, that tracks based on a paid voice-search a brand rather than passively be served
brands is an openness to trying consumption and signals the need to term. In either case, ensuring
counter risk one by an algorithm.
graphic language to identify
the brand. Accepting that voice
new things. Where legacy and
reorder. the brand is front-of-mind when with purpose will not happen overnight,
history used to be a benefit this transaction takes place is of Purpose needs to be genuine and we may have voice and
for big brands, today it can be tremendous importance. Today, There is a new purpose on
baggage—baggage that new At the same time, voice personal and relevant to the brand. And screen, somehow, you’ve got to
assistants, like Amazon’s Alexa, more and more brands focus on the block: Purpose 2.0. A communicating purpose, particularly
brands don’t carry. Consumers differentiate your voice through
the sharper end of the purchase purpose delivering real impact
who try new brands not only threaten to disrupt brands by being the higher purpose, requires care. Brand the medium of audio. Unless
funnel. Over-investment in and shared value, not just
get to avoid companies they gateway into the home in the Internet purpose expressed poorly can do you distinguish the brand by
performance will mean that shareholder value. It is being
might have a problem with, of Things and disintermediating brands more harm than good, leaving a brand voice in that audio environment,
big brand work will suffer and, effectively embraced by
they get in on the ground that are not part of the particular looking tone deaf and out-of-touch. almost by definition, choice
fundamentally, damage the companies that have inherent
floor of a new, more authentic ecosystem, whether it is Amazon, will become reduced. What
bottom line in the long term. risk in their business model
feeling story built by visionary are the audio signifiers that will
Google, Apple, or another technology In short: home assistant or not, and whose impact is liable to For brands with momentum, purpose
disrupters that are often directly enable us, within the confines
brand. building brand love has never be reported in a one-sided can drive some price premium,
conversing with consumers of an audio environment, to
been more important. way, and by businesses who according to BAV research, which also
about what they care about. differentiate?
The proliferation of voice is likely to want to win the fight for the found that higher purpose, a brand’s
Faced with a world in which best talent. These brands are
the barriers they built are limit, or at least mediate, the brand connection with social responsibility,
choice available to the consumer. This James Whatley traditionally in the B2B sector is more important to consumers
crumbling, companies that Planning Partner
Chris Hunton
and they are embracing Purpose Emirates Global Team Leader
are trying to buy and integrate development makes it more important Ogilvy in Europe compared with the US.
2.0 at C-suite level. We are WPP
small brands are missing the to build high brand awareness, James.Whatley@ogilvy.com Purpose is important across consumer
seeing Purpose 2.0 at its most Chris.Hunton@wpp.com
point and destroying value. For especially beyond functionality. impactful used to drive both the categories, especially to reach young
big companies to find growth Brands will need to be innovative, not business and communications people.
again, they’ve got to address just in the products they develop, but strategy. Its success is judged
their own baggage, start having also in their customer service and in a more nuanced way than Purpose is also important for the
authentic conversations with communications. purely short-term financial future of B2B brands, particularly in
their consumers, and prove to performance; its measures categories like as oil and gas, where The importance of having a real
people that there are things they become reputation, trust,
Voice also will be an aspect of brand the business model includes inherit purpose that adds benefit to the
care about more than just their legacy, and talent along with
company’s performance. identity. The pitch and tone of a brand In addition, disruption will come risk, and media attention amplifies consumers’ life and living up to that
will communicate a brand’s audio long-term value and a larger problems and mistakes. In these purpose with a consistent brand
in the form of private label, an old
contribution to society.
identity to complement its visual phenomenon re-energized by the instances, being clear about the experience, has not changed—
Wayne Pan identity. Voice is part of a brand’s power of internet giants, like Amazon, brand’s larger purpose can help guide although the experience may now
Senior Consultant constellation of touch points, which which can market its house brands of positive public opinion. In the case include streaming video, augmented
Kantar Consulting Simon Shaw
Wayne.Pan@kantarconsulting.com
need to connect and perform at the FMCG products and other offerings to Chief Creative Officer of oil and gas, for example, purpose reality, and voice. And, ironically,
same level. its Prime members and beyond. Hill+Knowlton Strategies (providing the energy that enables surviving in a disruptive future, and
Simon.Shaw@hkstrategies.com
people to live in the modern world) communicating purpose, also will
can help moderate criticism and buy require reviving, and updating proven
time for the long, but inevitable, shift strategies of an earlier, pre-digital
away from carbon fuels. world.

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3 Disruption and Change BrandZ™ Top 100 Most Valuable Global Brands 2018

THE FUTURE OF BRANDS


Insights

Purpose

INSIGHT Purpose is more


Purpose
INSIGHT peripheral in US Scale

Purpose works
Amazon than in Europe
Brand giants must
when consumers Amazon Effect In examining how consumer learn from small,
Experience
believe it’s real is not cause
sentiment may have shifted in
nimble upstarts
the past year with Brexit, the
We’ve always needed to for panic… yet Brand experience, election of Donald Trump, and
other political developments, The David and Goliath story
differentiate among equivalent innovation critical we discovered that for US is becoming more common.
products. We’ve always needed We should be alert to, but
to establish an emotional healthily skeptical about, for future success consumers purpose and social Smaller companies are coming
some of the hyperbole around responsibility are peripheral at behemoth organizations by
connection beyond function.
disruption and what this means Branding is moving to to authenticity in growing or positioning themselves as the
Fifty years ago, it was about
for FMCG brands. The idea experience, with reviews, maintaining overall brand equity. company that is not the leader,
buying a red, blue, or green
that technology, and voice recommendations, and live In contrast, we found that not stodgy, not old, and not
blender. Now, it’s harder and the
in particular, will result in a streams playing an important globally, purpose, in the sense of mired in tradition. Instead, these
stakes are higher. But people
complete move to white label role. Voice is becoming a social responsibility, can be an companies are new, nimble,
still make decisions emotionally
FMCG packaging should be brand. Every brand needs its important differentiator. I think and flexible. They have better
and justify them rationally.
challenged. I would argue own voice. Brands need to it’s because in the US, brand ideas and can be trusted. These
Purpose is a higher-order
that the role of the brand will try an artificial intelligence assertions about purpose can companies seem authentic,
expression that can enable an
become even more critical, in strategy, like facial identification. sometimes feel like an add- have a point of view, and are
emotional connection. If it’s
helping to break through the Augmented reality is being used on and it’s crucial that these willing to raise their voice and
real everyone knows it. If it’s
algorithms and automation. It’s in customer services as well initiatives ring true as authentic. behave like a person. If the larger
fake everyone knows it. When I
never wise to discount Amazon, as manufacturing. Perceived For brands, with momentum organization just rests on its
advise clients, I tell them to be
but its current share of groceries innovation will be critical in the authentic purpose can help drive laurels, then it may not have a
sure that their promise is real
is tiny; less than 1 percent of future. And innovation is not just price premium. future. Larger organizations need
and useful and all the things it
sales in the UK. Yes, change is about product development, but to acquire innovative companies
needs to be. In the end, when
coming, but it may not be quite also about customer service and or become innovative
a brand doesn’t live up to its
as disruptive as people think. communications. Ryan Johnson themselves.
promise, it’s dead in the water,
There is a tension between the Vice President & Account Director
whether the shortcoming has to BAV Group
do with purpose or functional rapidly evolving digital world Ryan.Johnson@bavgroup.com
and the inherently physical Doreen Wang Kristin Hooper
delivery. SVP, Branding and Insights
Global Head of BrandZ™
nature of grocery products. Burson Cohn & Wolfe
Kantar Millward Brown
Doreen.Wang@kantarmillwardbrown.com Kristin.Hooper@cohnwolfe.com
Belle Frank
Chief Strategy Officer, Health Practice Fraser McKevitt
Y&R Head of Retail and Consumer Insights
Belle.Frank@yr.com Kantar Worldpanel
Fraser.McKevitt@kantarworldpanel.com

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THE FUTURE OF BRANDS

BRAND BUILDING
ACTION POINTS

Improve customer
1 experience 4 Be heard
Find your voice. Consumer interaction
And keep improving it. Best-in-category is no longer with brands is shifting to voice. That
good enough. Consumers compare experiences requires having an audio identity that
across categories. In that respect, all brands is recognizable and relatable. Voice is
compete with Apple and other acknowledged brand fast becoming another brand asset,
experience leaders. And it is important to look like a slogan or logo.
beyond Apple for examples. To understand to future
of customer experience, study China, where the
integration of shopping, social, and payment has
Communicate
raised consumer expectations to new levels.
5 a purpose
2 Be faster A purpose helps differentiate a
brand, which will be increasingly
Speed is imperative because the competition is difficult and necessary in a future
changing. Well-established Western brands will marked by disintermediation.
increasingly compete with brands from fast-growing Purpose needs to be rooted in the
markets like China. Chinese brands strive to enter brand and more than a marketing
markets quickly, if not perfectly, to build share while brief. Communication needs to be
working on iterations. More Chinese brands are done sensitively or the brand risks
setting up offices outside of China to be closer to the looking disingenuous.
markets served and increase decision-making speed.

3 Be the change Strengthen


6 the brand
Heritage cuts both ways. It can add depth and
purpose to brands and, at the same time, it can add In a world where brand choice is
heavy ballast. It is tempting to solve this dilemma increasingly determined by algorithms
with an acquisition. But acquired innovation often or paid search, brand becomes even
becomes churned into the existing brand heritage. more important. Without a strong
Brands need to rejuvenate themselves with internal brand, the path to purchase will be
changes and by affiliating with innovative partners. the path of least resistance.

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3 Disruption and Change BrandZ™ Top 100 Most Valuable Global Brands 2018

Thought Leadership

PARADOX OF DIGITAL
J. Walker Smith

Digital’s power
Chief Knowledge Officer, Brand & Marketing
Kantar Consulting
JWalker.Smith@kantarconsulting.com

makes analog more


critical for branding
Circumventing Alexa and friends
requires going back to the future
Brand marketers face a growing shift Low-interest, low-involvement technology now enables social
in what their brands must do to stay categories are especially vulnerable to conversations to take place in
relevant—algorithms. Algorithmically- this. Habit drives much of this volume, real-time, which influences how
enabled consumers are the new force so handing it off to an algorithm or an consumers make decisions in the
in a technology-driven marketplace. automated system is an easy thing for moment. Conversion at point-of-
Algorithms empower people in more consumers to do. These categories sale becomes more about the social
commanding ways, vastly improving will have to work even harder to make conversation and less about in-store
the value of what they get from the what is often a commodity product marketing. That has already had a
marketplace, whether it’s a better salient to consumers. disintermediating effect in fashion,
Kantar Added Value, Kantar Futures, Kantar Vermeer, and Kantar price, better selection, or speedier for example, even though social
Retail have joined forces to create Kantar Consulting a specialist delivery. But the disintermediation of conversation and peer influences have
growth consultancy with brand and marketing, retail, sales, and algorithms is accelerating in a always been important.
shopper expertise all under one roof. variety of other ways. For example,

www.kantarconsulting.com

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3 Disruption and Change BrandZ™ Top 100 Most Valuable Global Brands 2018

Thought Leadership

PARADOX OF DIGITAL

The fix for this is a paradox. In order to ask for them by name. Brands do Curiously, analog strategies to
to get outside of the algorithms that not want to be at the mercy of an influence algorithms mean that old-
are making or influencing decisions, algorithm somehow matching it with time publicity events become more
brands must get consumers to consumers. You don’t want to just important. This doesn’t mean the
override them. The only way to say, “Alexa, I need laundry detergent,” newspaper inserts or direct mail of
motivate consumers to do so is because Alexa is going to use an yore, but it does mean getting in front
outside of the digital interface, which
is driven by a logic that seeks more
algorithm to figure out what brand
to match. You want to say, “Alexa, I
of people and figuring out the new
gathering spaces where brands can
“In order to get outside of the algorithms that are
digital efficiency not more consumer want Tide.” This means getting out execute promotional events.
intervention. Brands will stay in control
only if they can be the masters of
of the digital ecosystem. Or to put it
another way, it means going analog. Impulse categories will be affected making or influencing decisions, brands must
digital, and that means going outside In the music industry, musicians have more than most. But as algorithms
of digital. This is the paradox of turned to live shows, using more old- take over decisions and delivery,
people will repurpose or do fewer
get consumers to override them. The only way to
digital. The more that digital takes fashioned promotions to get in front
over the marketplace, the more of consumers. These analog activities shopping trips. For the broader retail
analog becomes important in the have become more important than ecosystem, that means people are motivate consumers to do so is outside of the digital
marketplace. ever in the digital era. not in the store, so they are not in the
aisles seeing or learning about things
The best illustration of this is the Analog strategies for digital to buy. In fact, it’s not just the store. interface, which is driven by a logic that seeks more
music industry. Streaming platforms People won’t be stopping somewhere
utilize recommendation engines and Another way to characterize this is to
other kinds of algorithms to push say that brands must figure out how to
for a snack on the way home either.
digital efficiency not more consumer intervention.
new music to people. So if you are “hack” the algorithm. This is not totally Impulse products will need to find the
new places where impulse purchases
a musical artist—the brand—the
question is how do you influence
new. Maybe hacking is too strong a
term, but this is what brands do when can be made. It might relate to the Brands will stay in control only if they can be the
the algorithm? You can’t change the they try to influence Google search ways in which people are spending
algorithm without creating some sort results. The analog version of that is
will be more and more important for
the extra time they have because
algorithms have saved them from trips
masters of digital, and that means going outside
of outside impact that shifts how the
streaming algorithms take your songs all categories. to the store.
into account. In effect, this means
The imperative of hacking the Whatever the form of browsing
of digital. This is the paradox of digital. The more
getting consumers to ask for your
algorithm is growing because brands, and buying, brands need to start
songs, and that won’t happen unless
consumers are influenced outside of
increasingly, are encountering brainstorming ways to influence that digital takes over the marketplace, the more
algorithmically-enabled consumers. consumers in a marketplace
the digital streaming environment.
Brands no longer sell to consumers. dominated by algorithms. In particular,
This is the voice problem, too. Brands sell now to algorithmically this means thinking as much about analog becomes important in the marketplace.”
If a brand can’t figure out how enabled consumers. No longer analog as digital.
to influence the algorithm, then just a person, but a person with
algorithms will determine what smart device in hand who uses this
happens in the category and how device to make smarter, faster, more
choices are made on behalf of personalized decisions. This is not the
consumers. Brands want consumers consumer decision journey of old.

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3 Disruption and Change BrandZ™ Top 100 Most Valuable Global Brands 2018

Thought Leadership

EXPERIENCE

New marketing
Doreen Wang
Global Head of BrandZ™
Kantar Millward Brown
Doreen.Wang@kantarmillwardbrown.com

reality depends on
consistent brand
experience Consumer reviews influence
more purchase decisions
Marketing is about to shift That dramatic evolution is being get parcels to customers’ doorsteps
fundamentally. Brand awareness, driven by a number of structural and complements its neighborhood
many marketers’ primary goal, is shifts in the way consumers shop and services business.
rapidly being replaced by the need marketers work. Simply put, there’s
to deliver a consumer experience of greater emphasis on extending online There’s also more emphasis on
their product or service. In the future, to offline. Even Amazon, the original reducing the friction on the path to
that means the power of consumer e-commerce giant, is moving into purchase. Alibaba, for example, now
reviews will become as impactful as offline with its $13.7 billion purchase runs 4S stores where you can rent or
advertising campaigns. of Whole Foods. Alibaba’s recent buy a car using a smartphone, without
Kantar Millward Brown specializes in advertising, marketing
acquisition of Ele.me, the biggest interacting with another human. Make
communications, media and brand equity research. With offices
chunk of Chinese online food delivery, your selection and the car will be
in 56 countries, Kantar Millward Brown focuses on building
enhances Alibaba’s last-mile ability to delivered to the store’s parking area.
brand strategies.

www.millwardbrown.com

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3 Disruption and Change BrandZ™ Top 100 Most Valuable Global Brands 2018

Thought Leadership

EXPERIENCE

App-powered, real-world shopping, All products are presented with equal communications—in all its forms—
as tested by Amazon’s pre-Whole prominence and what differs between can strengthen the brand experience
Foods retail experiments, will become them is only the consumer reviews. and the peer consumer experience.
increasingly common. Then there’s Whereas the likes of Lancôme might Offline stores have already become
the whole ecosystem experience that be able to exploit their established part of that journey for online
sees key players, such as Amazon, power in other media channels and brands such as Amazon, and retail is
Apple, Alibaba, and Tencent, taking in department store environments, changing for offline brands too.
a bigger role in the places and ways on ecosystem platforms, the
consumers interact with brands. As differentiator is the consumer reviews. Nordstrom, for example, is turning
they expand across different areas its mini-department store outlets
(like delivery, hardware, media, We may not trust niche brands before into entertainment centers that allow
video, and music), and encourage we try them, but we trust Amazon or consumers to step into a brand’s
“The growing power of the experience consumers to make the last mile of Alibaba and their users to tell it like
it is. Four thousand or more reviews
world and get manicures and advice
from stylists before having goods
purchase, their role will only increase.
can’t be wrong, and they might even delivered to their homes. The risk
economy changes the role that marketing Facebook is also seeking to go down encourage us to sample something is that this strategy could turn the
this path, offering integrated calls new (and allow brands with vastly retailer into another Toys R Us—a
to action from its mobile pages that different resources to compete). playground where no one buys
needs to play. The relationship between enable consumers to schedule, order, anything. In 2017, Toys R Us had to file
or buy without leaving the company’s Marketing’s experience for bankruptcy in the US and Canada.
page. The goal is to make everything evolution
consumer and brand changes when it as simple as possible for consumers. Ultimately, alongside this shift to retail
By being everywhere their consumers The growing power of the experience experiences, brands also need to
economy changes the role that form digital partnerships, not just with
becomes all about the experience rather are, brand marketers can make
their relationships as seamless as marketing needs to play. The Amazon but everywhere. A brand
possible, online and offline. Getting relationship between consumer and that is strongly positioned on multiple
than just building awareness and pushing it right means ensuring there are brand changes when it becomes all
about the experience rather than
digital platforms is best placed to
survive and thrive. Toys R Us famously
no differences in how consumers
experience their brand in the offline just building awareness and pushing refused to collaborate with Amazon
people down the purchase funnel.” or digital world. people down the purchase funnel.
That’s why brands and businesses are
but others, such as Nike, have not
been so blind. In 2017, the brand
Collectively, these changes create a rightly putting so much emphasis on started selling products on the
new reality where purchase decisions their Trustpilot or TripAdvisor scores, world’s largest e-commerce platform.
are increasingly made on the basis and why an increasing amount of
of consumer reviews. If I want to buy creative now features consumer The experience revolution is coming
a new face cream on Amazon, for reviews or tweets. and it’s coming fast. The consumer
example, I am presented with a list of journey of the future is already being
heritage brands as well as new niche The starting point of this journey is established and it’s up to marketers
players with far less history to fall understanding how the interaction and their brands to adapt. Let’s make
back on. between the product and brand it an experience to remember.

92 93
Regions and
Countries
REGIONS AND COUNTRIES

Overview
North America
Asia
Continental Europe
UK
Latin America

THOUGHT LEADERSHIP
Consumer Revolution
4
by Nihar Das, Global Account Director
and Archana Ram, Product Lead (Team P&G)
MediaCom

BEST COUNTRIES
Overview
Methodology
4 Regions and Countries BrandZ™ Top 100 Most Valuable Global Brands 2018

Overview

VALUE CONCENTRATES IN US AND CHINA…


North America (US except for two brands) and Asia (primarily China) together comprise 88 of the total value of the
BrandZ™ Top 100 Most Valuable Global Brands—up from 74 percent 12 years ago. Brand value in other regions of the
world grew more slowly and the proportion of value those regions contribute to the BrandZ™ Global Top 100 declined.
Proportion of Value

Led by Asia, the Top 10 12-Year Value Change

2006 2018

of all regions rise in value


3% 12-Year Change
14%
+1,445%
12-Year Change 3%
8%
+21 %

Economy helps growth, Brand Power and Innovation sustain it


63 % 12-Year Change
+239%

Every region rose in value The rapid rise of China and the Increasing diversity 21 % 12-Year Change
+37% 9%
71%
in the regional rankings, continued strength of the US (all but
two of the North American brands In counterpoint to the value
which include the Top 10
are US) drove this concentration. concentration in Asia and North 12-Year Change
most valuable brands in Asia, The value of Chinese brands in the
North America, Continental
America, brand value in other regions +26% 2%
BrandZ™ Global Top 100 increased of the world grew more slowly and North America 5%
Europe, the UK, and the 1,445 percent over the past 12 years, the proportion of value those regions China
1%
Asia (Excluding China)
Top 6 from Latin America. and the number of Chinese brands in contribute to the BrandZ™ Global Top Continental Europe
Asia and North America led the Top 100 ranking increased from 100 declined. Asia (excluding China), UK
Rest of World
one in 2006 to 14 today. Although Continental Europe, and the UK Source: BrandZ™ / Kantar Millward Brown
regional growth, driven by
a net of only three North American increased in value only 21 percent, 37
the value increase of Chinese brands were added to the Top percent, and 26 percent, respectively
and US brands. The positive 100 over the past 12 years, North over the past 12 years.
performance in all regions American brands total $3.1 trillion in Brand Power and Innovation countries in Innovation, a BrandZ™ increased 40 percent year-on-year
benefited from a strong value, a rise of 239 percent. The Asia (excluding China) portion of metric. A score of 100 is average. The in brand value. JD. com, the Chinese
global economy. But the Top 100 value declined from 8 percent Regardless of region, brands ranked US brands score 120 and Chinese e-commerce giant, which increased
These gains came substantially from to 3 percent; the Continental Europe in the BrandZ™ Global Top 100 brands score 114. An analysis of the 94 percent year-on-year in value,
long-term growth depended
technology and related categories. For proportion declined from 21 percent Most Valuable Global Brands score BrandZ™ Global Top 100, following surpassed the China Innovation
on brand-related factors. example, the leading Chinese brand, the same 94 brands in 2006 and 2018, average with a score of 127.
to 9 percent, and the UK proportion high in Brand Power, a BrandZ™
Tencent, increased 1,083 percent over declined from 5 percent to only 2 measurement of brand equity, the found that over 12 years, brands that
The regional rankings reflect the the past seven years, since Tencent scored high in Innovation increased Similarly, the German apparel brand
percent. Brands in these regions consumer’s predisposition to choose
overall regional value changes within entered the BrandZ™ Global Top 100. 273 percent in value, while low Adidas, which rose 50 percent in
come from lower-growth categories a particular brand. High Brand Power
the BrandZ™ Top 100 Most Valuable Alibaba, increased 92 percent in the Innovation brands increased only 36 value year-on-year, scored 114 in
compared with the US and China. correlates with strong volume share.
Global Brands, where Chinese and past year alone. Google and Apple, the percent. Innovation, compared with the
Brand Power is measured with an
US brands increased 49 percent and leading US brands, increased 707 and average Innovation of 109 for German
The Top 100 also became more index where 100 is average. Chinese
23 percent, respectively. Asia and 1,782 percent in value, respectively, Strong brands typically outperform brands. And Louis Vuitton, the French
diverse in countries, if not regions. brands score the highest, 218. North
North America together comprise the average country or regional luxury brand, which rose 41 percent in
over the past 12 years. This year, an Indonesian brand entered American brands score 176.
88 percent of the total value of the Innovation score. For example, brand value year-on-year, scored 108
the Top 100 for the first time. And
BrandZ™ Global Top 100—up from Microsoft surpassed the US Innovation in Innovation, somewhat higher than
brands from other regions comprise Brands from the US and China also
74 percent 12 years ago. average with a score of 133. Microsoft the average 104 of French brands.
one percent of the Top 100 ranking. score higher than brands from other

96 97
4 Regions and Countries BrandZ™ Top 100 Most Valuable Global Brands 2018

Overview

UK
Total Value of UK Brands in the BrandZ™ Global Top 100

$86.4 Bil.
…BUT BRANDS IN ALL REGIONS SCORE HIGH IN BRAND POWER
North America (US except for two brands) and China dominate in the number and value of brands represented in
the BrandZ™ Global Top 100. They also score high in Brand Power, a measurement of brand equity. Brand Power
scores are high across regions, reflecting the strength of brands ranked in the BrandZ™ Global Top 100.
Brand Equity
No. of Total Brand Average Brand 12-Year
Average Brand = 100 Brands Value Brand Value Power Value Change

NORTH AMERICA 57 $3,097 Bil. $54.3 Bil. 176 +239%


CHINA 14 $605 Bil. $43.3 Bil. 218 +1,445%
ASIA (Excluding China) 7 $146 Bil. $20.8 Bil. 164 +21%
CONTINENTAL EUROPE 16 $416 Bil. $26.0 Bil. 158 +37%
UK 4 $86 Bil. $21.6 Bil. 116 +26%
REST OF WORLD 2 $34 Bil. $16.9 Bil. 190 -
ALL TOP 100 100 $4,384 Bil. $43.8 Bil. 176 +204%
Source: BrandZ™ / Kantar Millward Brown

INNOVATION DRIVES BRAND VALUE GROWTH… … AND INNOVATIVE BRANDS OUTPERFORM


An analysis of the BrandZ™ Top 100, following the same 94 brands LOCAL AVERAGE
in 2006 and 2018, found that over 12 years, brands that score high Leading brands typically outperform the average country or
in Innovation, a BrandZ™ metric, increased 273 percent in value, regional Innovation score. For example, with a score of 133,
while low Innovation brands increase only 36 percent. Microsoft surpassed the US Innovation average of 120, and JD.com
Innovation and Value scored 127 in Innovation, compared with an average Innovation
score of 114 for all BrandZ™ Global Top 100 brands from China.
Innovation and Region
Average Brand = 100

Average No. 1 in Brand 1-Year


Innovation Category Innovation Value
Score Top 10 Score Growth

+273 % US

China
120

114
133

127
+40%

+94%

Germany 109 114 +50%


+86%
+36% France 104 108 +41%

LOW MEDIUM HIGH UK 102 112 +11%*


Innovation Innovation Innovation
12-Year % Value Growth, Same BrandZ™ Global Top 100 Brands 2006 to 2018 *6 months
Source: BrandZ™ / Kantar Millward Brown Source: BrandZ™ / Kantar Millward Brown

98 99
4 Regions and Countries BrandZ™ Top 100 Most Valuable Global Brands 2018

North America BrandZ™ Top 100


Most Valuable Global
Brands 2018

Category Brand Value


Year-on-Year Change

+23%
North America Top 10
Total Brand Value

$1.7 trillion

Innovative tech brands NORTH AMERICA TOP 10

drive region’s value rise


Country Brand Brand Brand Value
of Global Top Value 2018 Value 2017 % Change
Rank Brand Category Origin 100 Rank $ Million $ Million 2018 vs. 2017

1 Technology 1 302,063 245,581 +23%

With a 23 percent increase, North physical stores retailer Whole Foods, storage business. IBM invested in its
America was second, after China, and opened its first Amazon Go store, Watson-branded artificial intelligence
2 Technology 2 300,595 234,671 +28%
in regional brand value growth. a grocery outlet that tracks purchases initiatives, particularly in health care
All of the North American Top 10 through shopper smartphones, and finance, which grew slower than 3 Retail 3 207,594 139,286 +49%
brands are US, and eight of 10 are eliminating the need for shelf pricing analyst expectations. Visa profits
technology-related and illustrate and checkout. rose on increased consumer use of 4 Technology 4 200,987 143,222 +40%
how brand value growth can follow its credit card worldwide, and the
from being disruptive, innovative, These brands were well positioned addition of new partners, including
and different. in a year when expectations for a Uber.
5 Technology 6 162,106 129,800 +25%
business-friendly climate under the
Each of the business-to-consumer new US Administration helped fuel the As consumers reconciled the 6 Payments 7 145,611 110,999 +31%
brands introduced new products or economy and stock market. But they concerns about health with their
services to strengthen its ecosystem also faced increasing public scrutiny desire for burgers and other fast food, 7 Fast Food 8 126,044 97,723 +29%
and the customer experience. over the use of private customer McDonald’s experienced strong sales,
Apple introduced its iPhone X, for data. Brand strength helped these having improved its food ingredients
example. Google advanced its companies sustain strong customer and restaurant décor over the past 8 Telecom Providers 10 106,698 115,112 -7%
artificial intelligence initiatives like loyalty as they addressed these several years, in an effort to revive
Google Home, with its personal serious and long-term concerns. the brand. Both AT&T and Verizon, 9 Technology 11 96,269 102,088 -6%
assistant, “Google Assistant.” America’s largest telecom providers,
Among the business-to-business lost value because of strong price
10 Telecom Providers 12 84,897 89,279 -5%
Facebook planned to revise its technology brands, Microsoft competition, but both brands focused
business model to encourage increased in value 40 percent, on long-term plans to drive growth in Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg)

people to use Facebook more because of its transformation to an a slow-growth category.


for relationship building. open platform, enabling it to work
Amazon advanced is automatic in collaboration with other brands,
replenishment system, acquired and the development of its cloud

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4 Regions and Countries BrandZ™ Top 100 Most Valuable Global Brands 2018

BrandZ™ Top 100


Most Valuable Global
Asia Brands 2018

Category Brand Value


Year-on-Year Change

ASIA TOP 10
+42 %
Country
Global
Top 100
Brand
Value 2018
Brand
Value 2017
Brand Value
% Change
Rank Brand Category of Origin Rank $ Million $ Million 2018 vs. 2017

Asia Top 10 1 Technology 5 178,990 108,292 +65%


Total Brand Value

2 Retail 9 113,401 59,127 +92%


$556.8 billion
3 Telecom Providers 21 46,349 56,535 -18%

China and tech brands 4

5
Regional Banks

Technology
22

33
45,853

32,191
31,570

24,007
+45%

+34%

propel region’s growth 6 Alcohol 34 32,113 16,983 +89%

7 Cars 36 29,987 28,660 +5%


With a rise of 42 percent, Asia led deeper understanding of how people Not all the highest value Chinese
the regions in value growth on the move along the path to purchase. brands are in technology. They also 8 Technology 41 26,861 23,559 +14%
strength of China and technology. On Single’s Day, a fall holiday include Moutai, a prestige baijiu, the
Eight of the Asia Top 10 brands are Alibaba developed into a shopping traditional Chinese white alcohol,
from China, and five of the Chinese day, Alibaba sold $25 billion of which increased 89 percent in value, 9 Insurance 43 26,141 17,260 +51%
brands are technology-related. A merchandise. having broadened its reach after
South Korean and a Japanese brand government restrictions on official 10 Technology 48 24,922 20,388 +22%
also appear in the ranking. Baidu developed artificial intelligence gifting—part of the anti-corruption
Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg)
enhancements for its core search campaign—hurt sales.
China’s most valuable brands— business. Baidu also entered strategic
Tencent and Alibaba—help explain the collaborations with smartphone Two of China’s financial services
strong rise of brand value in Asia. Each makers, including Huawei. Huawei, brands—Ping An, the insurance
of these internet giants has developed primarily a telecommunications brand and the bank ICBC—benefited
its own ecosystem to serve consumer network provider, expanded its from spending by China’s growing
needs and influence how they shop 5G business outside of China, but middle class and the funding needs of
and conduct other transactions. The met significant resistance in the government initiatives. Government
brands increased in value year-on- US because of security concerns initiatives to invest in 4G and lower the
year 65 percent and 92 percent. that Huawei is close to the Chinese cost of data consumption impacted
government, which Huawei denies. the profits of China Mobile, the world’s
Tencent added new features to largest telecommunications company
WeChat, its popular social media site Huawei also expanded its smartphone with almost 900 million subscribers.
with a billion Monthly Active Users. business and is now the third-largest
The brand extended its influence smartphone brand, in sales, after Japan’s Toyota again led the BrandZ™
outside of China with its games and Apple and Samsung. Samsung, a South Cars Top 10 ranking. Its reputation for
its purchase of a larger stake in Snap, Korean brand, introduced its Galaxy quality and reliability generated a high
owner of the messaging service S9, with augmented reality features, level of loyalty. And the brand’s Prius
Snapchat. and a price to rival Apple’s iPhoneX. continued to dominate the hybrid
Samsung recorded strong profits market.
Online retailer Alibaba added physical based on the strength of its electronic
locations to create a seamless components business because of
shopping experience and gain a heavy demand for memory chips.

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4 Regions and Countries BrandZ™ Top 100 Most Valuable Global Brands 2018

Continental Europe
BrandZ™ Top 100
Most Valuable Global
Brands 2018

Category Brand Value


Year-on-Year Change

+15%
Continental Europe Top 10
Total Brand Value

$315.6 billion

Strength in luxury sectors


explains European growth CONTINENTAL EUROPE TOP 10
The Continental Europe Top 10 rose rose 20 percent. Factors influencing Three of the Continental Europe Top Global Brand Brand Brand Value
Country Top 100 Value 2018 Value 2017 % Change
15 percent in brand value. The brand the rise in luxury brand value included 10 brands are technology-related. Rank Brand Category of Origin Rank $ Million $ Million 2018 vs. 2017
value of Continental Europe Top 10 a strong global economy and the The two telecom providers, Spain’s
closely correlates with the fortunes rebound of China. Movistar and Deutsche Telekom of 1 Technology 17 55,366 45,194 +23%
of the luxury category. A year ago, Germany, Europe’s largest telecom
the luxury category rose 4 percent, But these influences provided lift provider, rose moderately in brand Deutsche
2
Telekom
Telecom Providers 25 41,499 38,493 +8%
and the Top 10 rose 4 percent. This because the brands had already value, in character with a slow-growth
year the correlation was not that spread their wings—improving the category. SAP, the German business-
close—the luxury category increased customer experience both instore and to-business software company, 3 Louis Vuitton Luxury 26 41,138 29,242 +41%
28 percent—but the story was more online, and more effectively reaching accelerated its move into cloud with
positive. out to new younger customers, while an acquisition and partnership with 4 Luxury 39 28,063 23,416 +20%
also serving their traditional clientele. Microsoft. Personal Care brand L’Oreal
Half of the Continental Europe Top Most significantly, the brands caught Paris performed well in Asia, despite
10 are luxury-related. Three are in the the spirit of the times, most notably in intense competition, and continued its
5 Apparel 42 26,860 25,135 +7%

luxury category. Two are French— the bold designs and colors offered by effective use of social media.
Louis Vuitton and Hermès—and one, Gucci. 6 Personal Care 44 26,107 23,899 +9%
Gucci, is Italian. The two car brands,
both German, are luxury—Mercedes The luxury cars did not achieve 7 Cars 46 25,684 23,513 +9%
and BMW. the same level of growth, but they
increased more in value than they did
The luxury category brands rose most a year ago, despite a slowdown in the
8 Cars 47 25,624 24,559 +4%
in brand value. Gucci, which increased rate of car sales worldwide, even in
66 percent in value, and Louis Vuitton, China. In their own ways the luxury 9 Telecom Providers 53 22,824 22,002 +4%
up 41 percent, ranked in the BrandZ™ car brands also responded to the
Top 20 Risers, brands that increased times, adding luxury appointments to 10 Luxury 54 22,442 13,548 +66%
most in value year-to-year. Hermès SUVs, the most popular vehicle among
consumers. Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg)

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4 Regions and Countries BrandZ™ Top 100 Most Valuable Global Brands 2018

United Kingdom
BrandZ™ Top 100
Most Valuable Global
Brands 2018

Category Brand Value


Year-on-Year Change

+7%
UK Top 10
Total Brand Value

$140.2 billion UK TOP 10


Brand Brand Brand Value
Global Top Value 2018 Value 2017 % Change
Rank Brand Category 100 Rank $ Million $ Million 2018 vs. 2017

Slow-growth categories
1 Telecom Providers 37 28,860 31,602 -9%

2 Global Banks 50 23,633 20,536 +15%

influence low value rise 3

4
Oil & Gas

Telecom Providers
63

94
20,264

13,604
18,346

16,026
+10%

-15%

Brexit did not help. But the main Two of the brands, Vodafone and BT, crisis. Both HSBC and Barclays took
reason for the 7 percent value growth declined in value. A third brand, Sky is initiatives to strengthen the banks for 5 Telecom providers - 11,988 NEW
of the UK Top 10—in a year when the new to the ranking this year. an era of open banking, expected to
BrandZ™ Global Top 100 grew 21 expand with new EU regulations. 6 Oil & Gas - 11,846 11,131 +6%
percent—is deeper and more systemic. The oil and gas category has been
The UK is home to many great, even under tremendous pressure during Although they each rose in value,
iconic brands, but they are usually in the past three years when oil prices brands in related consumer-facing
7 Retail - 9,079 8,041 +13%
categories that are growing slowly and declined to all-time lows, forcing the categories—Tesco in retail, Lipton
experiencing disruption. oil and gas brands to streamline their in soft drinks, and Dove in personal 8 Soft Drinks - 8,668 7,905 +10%
operations and plan differently for care—faced similar pressure from
With three brands, Telecom providers future growth. changing consumer tastes and values 9 Global Banks - 6,280 5,999 +5%
is the most represented category. The and disruption by discounters, both
oil and gas and global banks are each Shell shifted its focus from oil offline and in physical stores.
represented by two brands. One brand to gas and the expansion of its
10 Personal Care - 6,020 5,792 +4%
from each of these categories is also downstream consumer business, Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg)
ranked in the UK Top 10: retail, soft which includes around 45,000 service Brands not ranked in the Global Top 100 appear in the category rankings.

drinks, and personal care. stations worldwide. Shell surpassed


ExxonMobil as No. 1 in the BrandZ™
The telecom providers encountered oil and gas category. BP also rose in
commoditization by Over-the-Top value, as it regained strength eight
(OTT) companies that provide voice years after the Deepwater Horizon
for free. At the same time, telecom disaster.
providers invested in network
infrastructure and attempted to Similarly, global banks enjoyed strong
reposition brands as content providers. results, a decade after the financial

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4 Regions and Countries BrandZ™ Top 100 Most Valuable Global Brands 2018

Latin America

Brands cultivate local LATIN AMERICA TOP 6

popularity and expand Rank Brand Category


Country
of Origin
Brand
Value 2018
$ Million
Brand
Value 2017
$ Million
Brand Value
% Change
2018 vs. 2017

1 Beer 8,292 8,119 +2%


The Latin America Top 6 all appear in the value of the Top 50 increased
the category rankings of the BrandZ™ 18 percent in value, following a 22
2 Beer 8,263 8,146 +1%
Global Top 100 report, not in the percent decline a year ago.
Top 100 ranking. Five of the brands
are beers, including Corona from Brands from Mexico and Brazil each 3 Retail 5,373 NEW
Mexico, Skol and Brahma from Brazil, generate about one-third of the total
and Aguila from Colombia, along Latin America Top 50 brand value, 4 Beer 4,478 4,385 +2%
with a Newcomer this year, Mexico’s with Brazil trailing slightly. At the
Modelo. The other Top 6 brand, also a same time, Corona, a Mexican beer,
5 Beer 3,924 3,843 +2%
Newcomer, is Falabella, a retail brand surpassed Brazil’s Skol as No. 1 in the
based in Chile, with department stores Latin America Top 50.
throughout Latin America. 6 Beer 3,621 NEW
Latin American brands are popular
Source: Kantar Millward Brown/ BrandZ (including data from Bloomberg) and Kantar Consulting
These brands fall somewhat below the across the region, where consumers The Latin American Top 6 appear in the category rankings, but not in the Global Top 100.
brand value threshold of the BrandZ™ view them understanding local needs.
Global Top 100 ranking. Although However, Corona has long been
the brands are sizeable and appear in popular in the US. And Modelo has
the category rankings, economic and grown in popularity in the US because
geopolitical factors have impacted the of a growing preference for Mexican
value growth of the Latin American beer, and Modelo’s astute marketing,
brands. which resonated both with the Latino
immigrant population and others who
Brand value growth has improved, strive to achieve the American Dream.
however. As analyzed in the recently-
published BrandZ™ Top 50 Most
Valuable Latin American Brands 2018,

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4 Regions and Countries BrandZ™ Top 100 Most Valuable Global Brands 2018

Thought Leadership

CONSUMER REVOLUTION
Nihar Das Archana Ram
Global Account Director Category Leader, Team P&G APAC
MediaCom MediaCom
Nihar.Das@mediacom.com Archana.Ram@mediacom.com

Study China’s
consumers
to glimpse the future
Brands and marketers must
prepare for major changes
The Industrial Revolution has been lived but also how they thought and size. The urbanization of China has
long heralded as a significant interacted with each other and laid the followed a path similar to the industrial
inflection point in human history. It foundation for many of the modern revolution—growth in trade and
transformed every aspect of society, traits visible even today. We’re on the commerce driven by factories, which
from food production and clothing cusp on another major change that, laid the foundation for cities. Just as
to housing and infrastructure, and without much exaggeration, could be the UK was the epicenter of the ripples
MediaCom is “The Content catalyzed urbanization. By 1840s, the called a Consumer Revolution. created in the Industrial era, China is
+ Connections Agency”, urban population in UK exceeded poised to create waves that will have
working to leverage its clients’ the rural. This led to an explosive In 2014, the urban-rural balance of far-reaching global impact in the new
communications across paid, impact on society’s needs and wants. the most populous country in the Information era.
owned and earned channels. The ability to have things faster and world tilted—China’s urban areas
better changed not just how people overtook its rural areas in population
www.mediacom.com

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4 Regions and Countries BrandZ™ Top 100 Most Valuable Global Brands 2018

Thought Leadership

CONSUMER REVOLUTION

China’s journey to urbanization China: The new canary in the from commerce. This fundamentally
and prosperity has led to consumer coal mine alters their behavior. From “super
accomplishments that dwarf any apps”’ such as WeChat to the
country in the world. Sales during But China is moving faster. The sprawling e-commerce empire of
China’s Singles Day is nearly three Chinese consumer now leads the Alibaba, China is at the forefront of
times as much Black Friday and Cyber world in being the most demanding. innovation in commerce at scale—the
Monday combined. Its high-speed China has displaced Japan and the opposite of the impression of China
rail network is longer than the rest Nordics as the “torture test” market as a “copy” economy. The first-mover
of the world put together. However, for all products, from baby diapers to advantage of Chinese technology
viewing these developments merely
as interesting anecdotes means we
mobile phones. Chinese consumers
have become more demanding and
brands in many key sectors (Huawei
in Telecom or Didi Chuxing in
“The Chinese consumer now leads the
risk missing the bigger picture. Similar discerning, prompting marketers transportation), and their focus on
to the influence of the UK during the to test products in China first— making solutions cheaper and faster world in being the most demanding. China
Industrial Revolution, China will lead because if you win with the Chinese have made their products ubiquitous.
the changes both in technology and consumer, you are likely to win
in consumer behavior in the Digital everywhere else. This phenomenon With an insatiable appetite for growth has displaced Japan and the Nordics as the
era. in turn is fueling societal changes— and constant innovation, China is
more discerning consumers, more set to expand its influence in the
The first wave of this phenomenon stringent performance expectations, high-growth markets. This could ‘Torture Test’ market for all products, from
is already being experienced by more focus on wants over needs. be the beginning of new wave of
“Digital Colonization.” The irony
developing nations around the world,
where wealth is reaching people
It shouldn’t be surprising that many
global brands are moving their design that the Industrial Revolution, and baby diapers to mobile phones. If you win
faster than infrastructure. In such centers to China, as Made in China related outsourcing of low-cost
markets, technology—specifically
e-commerce and mobile access—
becomes Designed in China. manufacturing by the West to China,
led to this shift in power is not lost on
with the Chinese consumer, you are likely
is fast filling the infrastructure vs. This consumer sophistication, relative us. But brands and advertisers today
consumer demand gap. China is to the West, relates, in part, to the
contrast in business models between
have to prepare themselves for the to win everywhere else.”
becoming an example, and the cultural and societal fallout of these
leading provider of accessible Western and Chinese internet giants. changes and get ready to deliver, or
technology to solve these gaps. Most internet giants that originated risk getting left behind. Sadly, this
Other countries, like India, are rapidly in the West, such as Google and reality is not yet broadly reflected in
riding this same wave. Facebook, have advertising as the the advertising and communication
backbone of their revenue. For the industry’s outlook towards China.
Chinese internet giants, advertising Often China is left alone for being
contributes a minority share of the different, as opposed to embracing it
revenue, with a major chunk coming as the harbinger of the future!

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4 Regions and Countries BrandZ™ Top 100 Most Valuable Global Brands 2018

Overview

Qualities of countries shape


perception of their brands
Best Countries report reveals qualities for growth

BEST COUNTRIES All brands have a country of origin. All countries have
their own brand qualities. These qualities can influence
the perception of a country’s brands, and even impact
their international growth. By comparing countries
in the 2018 BrandZ™ Global Top 100 report with
findings in the Best Countries 2018 report of Y&R’s
BAV Group, these relationships between brands and
countries emerge: Countries with the most brands in
the BrandZ™ Global Top 100 report are more powerful
and entrepreneurial; fast-growing countries with fewer
brands in the BrandZ™ Global Top 100 report are
more distinctive and dynamic—and these countries
may shape the future of global brand value growth.

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4 Regions and Countries BrandZ™ Top 100 Most Valuable Global Brands 2018

Overview

BEST COUNTRIES

The Global Top 100 brands come COUNTRIES/MARKETS IN THE BRANDZ™ GLOBAL TOP 100 COUNTRIES/MARKETS IN THE BRANDZ™ GLOBAL TOP 100 AND CATEGORIES
from 15 countries. The most The Global Top 100 brands come from 15 countries. The most represented countries are Some brands appear only in the category rankings because their value falls below the value threshold of the Top 100.
represented countries are the US, with the US, with 55 brands, China with 14, Germany 8, France 4, and the UK 4. With these brands added, the Global 100 report includes 191 brands from 24 countries/markets.
55 brands, China with 14, Germany 8,
France 4, and the UK 4. Some brands
appear only in the category rankings
because their value falls below the Australia Canada China France Germany Hong Kong India Indonesia Australia Austria Belgium Brazil Canada Chile China Colombia
value threshold of the Top 100. With
these brands added, the Global Top 2 brands 2 brands 14 brands 4 brands 8 brands 1 brand 1 brand 1 brand 3 brands 1 brand 1 brand 2 brands 4 brands 1 brand 17 brands 1 brand
100 report includes 191 brands from
24 countries. The number of brands
from each country then increases,
Italy Japan South Korea Spain Sweden UK US France Germany Hong Kong India Indonesia Italy Japan Mexico
sometimes substantially. For example,
the number of US brands rises from 1 brand 3 brands 1 brand 2 brands 1 brand 4 brands 55 brands 13 brands 14 brands 1 brand 2 brands 1 brand 2 brands 7 brands 2 brands
55 to 89, and the number of German
Source: BrandZ™ / Kantar Millward Brown
brands rises from 8 to 14.

Meanwhile, both the BrandZ™ Global Netherlands Russia South Korea Spain Sweden Switzerland UK US
Top 100 and category rankings are
Power and entrepreneurship looking measurement of momentum.
The study ranks countries on each 2 brands 3 brands 1 brand 5 brands 2 brands 4 brands 13 brands 89 brands
becoming more diverse. The number
Two qualities seem to most distinguish attribute and subcategory and also
of Chinese brands rapidly increased Source: BrandZ™ / Kantar Millward Brown
the countries whose brands appear combines the data to produce a Best
from 1 in 2006 to 14 today. India and
in the 2018 BrandZ™ Top 100 Countries Overall ranking. (Please see
Indonesia are now represented by
Most Valuable Global Brands—the the Best Countries Methodology at the
one brand apiece in the Global Top ranks in two of the eight Best strong military, strong international influence. Germany’s No. 1 rank in
countries are powerful, and they are end of this section).
100. The first Indonesian brand, BCA, Countries subrankings: Power and alliances, and being politically and Entrepreneurship is driven by its
entrepreneurial. These results emerge Entrepreneurship. Ranking in the economically influential, for example. skilled labor force and well-developed
a bank, appeared in the 2018, and an
from analyzing the results of the Best There is a correlation between how
Indian brand, Maruti Suzuki, appeared Power Top 10 are: the US at No. 1, Among the attributes comprising infrastructure. For the US, No. 3 in
Countries 2018 study by Y&R’s BAV positively people worldwide view a
in the BrandZ™ Car Top 10 for the first China No. 3, Germany No. 4, the UK Entrepreneurship are: being Entrepreneurship, the key attribute
Group, completed in collaboration country, and the extent to which the
time. No. 5, and France No. 6. India ranks entrepreneurial, providing easy access is being connected to the rest of the
with US News & World Report and country produces high-value brands.
No. 15 and Indonesia ranks 47. These to capital, having a well-developed world.
Wharton business school. Four of the five countries with the
These developments—the dominance countries rank in the Entrepreneurship infrastructure, and transparent
most brands in the BrandZ™ Global
of the US, the sustained strength of Top 10: Germany is No. 1, the US No. business practices. Citizenship and other
The study is based on interviews Top 100 also rank in the BAV Best
the UK and Continental European 3, and the UK No. 4. In the next tier,
with 21,400 elites, business decision Countries Overall Top 10. Germany subrankings
countries, the rapid rise of China, France ranks No. 14 and China ranks The extent to which each attribute
makers, and citizens from 36 markets is No. 3 in the Best Countries Overall,
and the emergence of Indonesia and No. 16. India and Indonesia follow at contributes to the subranking score
rating 80 countries across 65 brand the UK is No. 4, the US is No. 8, and Along with Power and
India indicate that strong, valuable No. 28 and No. 43, respectively. varies by country. China’s No. 3 in
attributes. The attributes are then France is No. 9. China and India rank Entrepreneurship, the countries with
brands can come from just about any Power is based on a combination of
grouped into these eight, thematic No. 20 and No. 25, respectively, in the most brands in the BrandZ™
geography or culture. Understanding The Power and Entrepreneurship ranks having a strong military and political
subrankings: Adventure, Citizenship, Best Countries Overall. Fast-growing Global Top 100 also excel in other
what country characteristics most are a composite score calculated from influence. For the UK, its No. 5
Cultural Influence, Entrepreneurship, Indonesia ranks 41. Best Countries subrankings, including:
correlate with high-value brands, scores on component attributes. The rank in Power comes from strong
Heritage, Open for Business, Citizenship, Cultural Influence, and
and how those characteristics vary Power attributes include: having a international alliances and economic
Power, and Quality of Life. A ninth Other than Indonesia, these countries Heritage.
by country, can yield insight into the
subranking, Movers, is a forward- share in common especially high
future of building valuable brands.

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4 Regions and Countries BrandZ™ Top 100 Most Valuable Global Brands 2018

Overview

BEST COUNTRIES

Citizenship THE BEST COUNTRIES OVERALL TOP 20 …AND COUNTRIES WITH CITIZENSHIP RELATES TO
Attributes comprising the Citizenship There is a strong correlation between the countries with the most brands in the 2018 THE MOST BRANDS IN THE LONG-TERM LEADERSHIP…
subranking include: respect for Brand™ Global Top 100 and the 14 categories examined in the 2018 Global Top 100 GLOBAL TOP 100 ARE Four of the countries that have the most
property rights, gender equality, caring report, and the BAV Best Countries 2018 Overall Top 20, a composite of country ranks on ENTREPRENEURIAL brands in the Brand™ Global Top 100
about human rights, and religious nine subrankings. consistently over time rank in the BAV Best
Countries with the most brands in the
freedom. Of the countries that have Countries Citizenship Top 20, although
Brands in BrandZ™ Brands in BrandZ™ Brand™ Global Top 100 comprise three of the
had brands consistently ranked in the Rank Country Global Top 100 Global Top 100 Categories only Germany ranks in the Top 10.
BAV Best Countries Entrepreneurship Top 10.
Global Top 100 over time—The US, BAV Best Countries
UK, Germany, and France—Germany 1 Switzerland - 4 Brands BAV Best Countries
Entrepreneurship Top 10 Citizenship Top 20
ranks the highest, No. 10, and all the
countries rank in the Citizenship Top 2 Canada 2 Brands 4 Brands COUNTRIES WITH THE MOST Rank Country
Rank Country
20, much higher than countries whose BRANDS IN THE GLOBAL TOP 1 Norway
3 Germany 8 Brands 14 Brands
brands have entered the BrandZ™ Top 100 ARE POWERFUL… 1 Germany
100 more recently. Countries with the most brands in 2 Switzerland
4 United Kingdom 4 Brands 13 Brands
the Brand™ Global Top 100 comprise 2 Japan
Cultural Influence five of the BAV Best Countries Power 3 Denmark
5 Japan 3 Brands 7 Brands
Attributes comprising the Cultural Top 10. India is No. 15. 3 United States
Influence subranking include: being 4 Canada
6 Sweden 1 Brand 2 Brands BAV Best Countries
seen as prestigious, being culturally 4 United Kingdom
Power Top 10 5 Sweden
significant in entertainment, and 7 Australia 2 Brands 3 Brands Rank Country
5 Switzerland
being modern, fashionable, or trendy. 6 Finland
France, the US, and UK rank in the Top 1 United States
8 United States 55 Brands 89 Brands
6 Sweden
5 in Cultural Influence, which may 7 Netherlands
2 Russia
reflect their influence on the world 9 France 4 Brands 13 Brands
7 Canada 8 Australia
in the second half of the twentieth
3 China
century, post-World War II. The rise of 10 Netherlands - 2 Brands
8 Singapore 9 New Zealand
their global brands benefited from that
4 Germany
influence. 11 Denmark - -
9 Netherlands 10 Germany
5 United Kingdom
Heritage 12 Norway - -
10 Norway 11 United Kingdom
Attributes comprising the Heritage 6 France
13 New Zealand - - Source: BAV Best Countries 2018, and
12 Austria
subranking include: having a rich BrandZ™ / Kantar Millward Brown
France ranks No. 14 and China ranks No. 16.
history, many cultural attractions, 7 Japan
14 Finland - - 13 Luxembourg
and great food. Heritage is a strong
factor for France at No. 4, India No. 6, 8 Israel
15 Italy 1 Brand 2 Brands 14 France
China No. 10, and the UK No. 11. But
heritage can cut both ways. Heritage 9 Saudi Arabia 15 Ireland
16 Singapore - -
can shine a halo of artistry around
France’s fashion and luxury brands. 10 United Arab Emirates 16 United States
17 Austria - 1 Brand
Heritage can also lead to stereotypes Source: BAV Best Countries 2018, and

that inhibit brand growth. India is 18 Luxembourg - -


BrandZ™ / Kantar Millward Brown 17 Spain
India ranks No. 15, Indonesia ranks No. 43.
known overseas for its ayurvedic
18 Portugal
products and China for its traditional 19 Spain 2 Brands 5 Brands
Chinese medicines. Both categories 19 Japan
are heritage-related; neither reflects 20 China 14 Brands 17 Brands
the broader, dynamic economies and Source: BAV Best Countries 2018, and BrandZ™ / Kantar Millward Brown 20 Italy
India ranks No. 25, Indonesia ranks No. 41
aspirations of these countries. Source: BAV Best Countries 2018, and
BrandZ™ / Kantar Millward Brown

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4 Regions and Countries BrandZ™ Top 100 Most Valuable Global Brands 2018

Overview

BEST COUNTRIES
… AND HERITAGE ADDS
DISTINCTION…
Countries in the BAV Best Countries
Heritage Top 10 include France,
which has consistently had many
brands included in the Brand™
Global Top 100, along with India
and China, with brands added to the
Shaping the future The rising stature of China, India, and
Indonesia should help propel their
Brand™ Top 100 more recently.
A country’s influence on building brands.
BAV Best Countries
valuable brands in the future may
Heritage Top 10 Brand China has already improved
not come from excelling in one
… BUT MOVERS POINTS TO particular subranking, but rather the awareness of Chinese brands
Rank Country
THE FUTURE from its strength in a combination internationally. Consumers globally
1 Italy The higher ranked countries on the BAV Best of subrankings. Specifically, BAV are becoming more aware of
Countries Movers Top 10, China and India, Best Countries analysis combines Chinese brands across categories,
2 Spain have added brands to the Brand™ ranking Entrepreneurship, Quality of Life, and as documented by BrandZ™ analysis
relatively recently. Indonesia ranks No. 23 Citizenship into a measurement of soft of overseas Chinese brand building
3 Greece in Movers. In contrast, The US ranks No. 29, power, the ability to exert influence conducted in collaboration with
Germany No. 35, France No. 47, and the UK with cultural and human capital rather Google. Between 2013 and 2017,
4 France ranks No. 51. The findings indicate that the than military might. the gap between online searches for
countries with most brands in the Brand™ Chinese brands and brands from other
5 Mexico Global Top 100 are viewed as less distinctive nations narrowed by 29 percent.
A country’s perceived soft power
and dynamic that countries with fewer
correlates with its brand equity,
6 India brands in the Global Top 100, suggesting
… CULTURAL INFLUENCE that the Brand™ ranking will become more according to BAV. Soft power How quickly Chinese brands—or
IS SIGNIFICANT… geographically diverse. attributes drive 57 percent of a brands from India or Indonesia—reach
7 Turkey
nation’s brand equity, while more greater international presence and
Three of the countries that have and the BAV Best Countries
most brands in the Brand™ Global Top 100 8 Thailand conventional measurements of increase in value relates to another
Movers Top 10
consistently over time rank in the BAV Best power drive only 8 percent. The US, subranking—Movers—which measures
Countries Cultural Influence Top 5. 9 Portugal Rank Country UK, France, and Germany rank in a country as different, distinctive,
the Top 20 in each of the soft power dynamic, and unique. It applies the
BAV Best Countries
10 China 1 United Arab Emirates subrankings. China ranks in the Top 20 BAV BrandAsset Valuator Model
Cultural Influence Top 5
Source: BAV Best Countries 2018, and in Entrepreneurship and it is No. 21 in of Brand Building methodology to
Rank Country BrandZ™ / Kantar Millward Brown 2 India Quality of Life. countries, as a predictor of future GDP
The UK ranks No. 11
and purchasing power.
1 Italy 3 Singapore
China is lower in Citizenship and India
2 France and Indonesia are lower in all three And here is where the tables turn. Of
4 China
soft power subrankings. However, the developed nations, the US ranks
3 United States these three countries, particularly highest in Movers, No. 29, followed by
5 Japan
China under President Xi Jinping and Germany No. 35, France No. 47, and
4 Spain the UK No. 51. In contrast, India ranks
6 Thailand India under Prime Minister Narendra
Modi, are actively implementing No. 2, China No. 4, and Indonesia
5 United Kingdom
7 Egypt initiatives to build global soft power No. 23. The Movers subranking, and
Source: BAV Best Countries 2018, and
BrandZ™ / Kantar Millward Brown influence. other BAV Best Countries findings,
8 Russia may be the best indicators of what
A country’s brand and the brands a the BrandZ™ Top 100 Most Valuable
9 Brazil country produces form a virtuous Global Brands will look like in the
circle. The positive perception of future.
10 Israel a country helps brands grow in
Source: BAV Best Countries 2018, and new markets, and positive brand
BrandZ™ / Kantar Millward Brown
Indonesia ranks No. 23, the US ranks No. 29, Germany experience in new markets improves
ranks No. 35, France ranks No. 47, and the UK ranks No. 51 the perception of its country of origin.

120 121
4 Regions and Countries BrandZ™ Top 100 Most Valuable Global Brands 2018

Methodology 

BEST COUNTRIES

How to measure a country


EACH WEIGHTED ELEMENT CONTRIBUTES
TO AN OVERALL BEST COUNTRIES SCORE

The Best Countries ranking incorporates the Heritage

views of more than 21,000 individuals surveyed The country is culturally accessible,
has a rich history, has great food, and
CITIZENSHIP ENTREPRENEURSHIP QUALITY OF LIFE CULTURAL INFLUENCE
in 36 countries in these regions: the Americas, many cultural attractions.
19% 19% 19% 14%
Asia, Europe, and the Middle East and Africa.
These people include a high STATE OF A NATION
proportion of “informed elites” EIGHT ELEMENTS COMPRISE A COUNTRY’S BRAND
–college-educated people who Open for business
keep up with current affairs–along Manufacturing is inexpensive, there’s OPEN FOR BUSINESS POWER ADVENTURE HERITAGE
with business decision makers and a lack of corruption, the country has
members of the general public. Adventure a favorable tax environment, and 13 %
8 %
4% 4%
A country is seen as friendly, transparent government practices.
Respondents are asked about the fun, has a pleasant climate,
80 countries that feature in the and is scenic or sexy. rights and equality, and has a focus on
2018 ranking; between them, these entrepreneurship, is seen as having
countries account for about 95 the most powerful nation brand. This
percent of global Gross Domestic Citizenship reflects how the world has changed; no
Product and represent more than 80 It cares about human rights, the environment, longer is it just tanks and banks that give
percent of the world’s population. gender equality, is progressive, has religious a country influence around the world.
Power Hard power is making way for softer
freedom, respects property rights, is trustworthy,
People surveyed for Best Countries It is a leader, is economically and power that comes about as a result of
and political power is well distributed.
are asked how closely they politically influential, has strong entrepreneurship and cultural exports.
associate 65 attributes with a range international alliances and a strong
of countries. These attributes are Cultural influence military. The weight of each element in the Movers
then grouped into eight categories It is culturally significant in terms of final index was determined by the In addition to the eight categories
that are used to calculate the Best entertainment, its people are fashionable and strength of its correlation to per capita above, a momentum metric called
Countries ranking. happy, it has an influential culture, is modern, GDP (at purchasing power parity). As “Movers” represents 10 percent of
prestigious and trendy. seen in the above breakdown, a nation the index, measuring how different,
focused on providing great quality of distinctive, dynamic, and unique a
life for its people, which cares about country is seen to be.

Entrepreneurship Quality of life


It is connected to the rest of the world, has an educated There’s a good job market, For further information about Best Countries and the capabilities of the BAV Group,
population, is entrepreneurial, innovative, and provides affordable living costs, it’s please contact Ryan Johnson, VP BAV Group, at Ryan.Johnson@bavgroup.com
easy access to capital. There is a skilled labor force, economically and politically stable,
technological expertise, transparent business practices, family-friendly, safe, has good To see the full Best Countries methodology, visit:
well-developed infrastructure, and a well-developed legal income equality and well-developed https://www.usnews.com/news/best-countries/articles/methodology
framework. public education and health systems.

122 123
The
Categories
BRANDZ™ ANALYSIS

Category Changes

THE CONSUMER CATEGORIES


Apparel
Cars
Luxury
Personal Care
Retail

THOUGHT LEADERSHIP
Value, Values, And Vogue
5
by Anusha Couttigane, Senior Fashion Analyst
Kantar Consulting, Retail & Shopper Practice

THE FOOD AND DRINK CATEGORIES


Beer
Fast Food
Soft Drinks

THOUGHT LEADERSHIP
E-commerce Innovation
by Eric Heller, CEO, Marketplace Ignition

THE FINANCIAL CATEGORIES


THOUGHT LEADERSHIP
Women & Finance
by Rosi McMurray, Planning Director,
UK Financial Services & Technology, Kantar TNS

THE COMMODITY CATEGORIES


Oil & Gas

THOUGHT LEADERSHIP
Premium Redefined
by Dayoán Daumont, Consulting Partner,
Innovation & Digital Transformation, OgilvyRED

THE TECHNOLOGY CATEGORIES


Technology
Telecom Providers

THOUGHT LEADERSHIP
Global Banks Voice
Regional Banks by Whitney Fishman Zember, Managing Partner,
Insurance Innovation and Consumer Technology, Wavemaker
5 The Categories BrandZ™ Top 100 Most Valuable Global Brands 2018

BrandZ™ Analysis

CATEGORY CHANGES

Value of every category


rises, some substantially
Brand-building initiatives counter disruptions
Each of the 14 categories examined in Retail was a bellwether, the clearest Two of the e-commerce leaders, Technology which rose 28 percent Trends and disruption Fast food also benefited from the
the BrandZ™ Global Top 100 grew in example of a category disrupted Amazon and Alibaba, drove much in value, disrupted all categories, interest in indulgence as consumers
value. The retail category again led the by technology. The category was of retail category value growth. And including technology. The business-to- Propelled by astute branding and the reconciled their preference for healthy
growth, increasing 35 percent, more the first to be severely battered by they represented the poles of retail consumer brands continued to achieve rebound of China’s economy, luxury eating with their desire for taste and
than doubling the 14 percent rise of a technological change, with the and technology development—the US massive scale but also encountered also rose 28 percent in value. Bright comfort food. Burgers were back.
year ago. Several categories rebounded advent of e-commerce in the early and China. Because vast ecosystems more consumer skepticism because colors and fun streetwear styles The fast food category increased 13
significantly. Insurance increased 34 1990s, and the smart phone a decade enabled Chinese consumers to of that scale and the compromise of appeared both in luxury and apparel, as percent, compared with 7 percent
percent, after declining 1 percent a ago. The survivors transformed, conduct extensive aspects of their personal data, which posed a threat consumers sought comfort and escape a year ago, having upgraded its
year ago. Similarly, global banks rose 24 the most successful becoming vast lives on mobile platforms, the China both to consumers and to the business from unremitting negative news restaurants, improved menus, and
percent from a 1 percent decline in the ecosystems, linking online and offline became a vision of future consumer models of many of the tech brands that reports about wars, natural disasters, figured how to provide meals that were
previous year. Brand-building Initiatives with sophisticated data collection and behavior across many categories. depend on vast troves of personal data and threatening political changes. The healthier and authentic to the brands.
to contend with ongoing disruptions analysis to ensure consistent customer And Chinese consumer spending to improve their products. The border interest in indulgence also touched The soft drinks and beer categories
helped propel value growth as the experience from the start of the influenced the growth of many between business-to-consumer and personal care. These three categories, were harder hit by consumer concern
economy improved. circuitous path to purchase to pick-up categories, including retail, insurance, business-to-business became more especially apparel and personal care, with health, and the changing drinking
or delivery. luxury, technology, regional banks, fast porous. And the B-to-B brands moved also experienced the disruptive effects preferences of young people. Those
food, personal care, cars, apparel, and further along in their efforts to adapt of small brands, or non-brands, with categories rose 4 percent and 3
beer. their businesses to the cloud. convincing stories, competitive prices, percent, respectively.
and easy availability on the internet.

126 127
5 The Categories BrandZ™ Top 100 Most Valuable Global Brands 2018

BrandZ™ Analysis

CATEGORY CHANGES

The financial services categories— Category Value Changes


global banks, regional banks, and
insurance—progressed in their use
of technology to improve customer 1 2 3 4 5 6 7
experience, add efficiencies, and
reach new, younger consumers.
Its 34 percent rise in value made
Insurance the highest category
gainer after retail. Chinese and Asian-
focused brands drove much of that
gain because of local economic
growth and rapid adoption of fintech.
RETAIL INSURANCE TECHNOLOGY LUXURY GLOBAL BANKS REGIONAL BANKS FAST FOOD
Regional economic strength drove Category Value % Change Category Value % Change Category Value % Change Category Value % Change Category Value % Change Category Value % Change Category Value % Change
the 16 percent value rise of regional 2018 vs. 2017 2018 vs. 2017 2018 vs. 2017 2018 vs. 2017 2018 vs. 2017 2018 vs. 2017 2018 vs. 2017

+35% +34% +28% +28% +24% +16% +13%


banks. BCA, an Indonesian bank,
entered the BrandZ™ Global Top
100. Almost a decade after the
Category Value % Change Category Value % Change Category Value % Change Category Value % Change Category Value % Change Category Value % Change Category Value % Change
financial crisis, the global banks 2017 vs. 2016 2017 vs. 2016 2017 vs. 2016 2017 vs. 2016 2017 vs. 2016 2017 vs. 2016 2017 vs. 2016
reported strong results, with value
rising 24 percent after a decline of
1 percent a year ago. However, the
+14% -1% +13% +4% -1% +2% +7%
Total Category Value Total Category Value Total Category Value Total Category Value Total Category Value Total Category Value Total Category Value
banks contended with the prospects
of open banking and blockchain, and
a changing regulatory environment.
$578.0 Bil. $108.7 Bil. $1,592.3 Bil. $133.1 Bil. $131.8 Bil. $263.2 Bil. $242.4 Bil.
Both the oil and gas and cars
categories contended with the 8 9 10 11 12 13 14
uncertain future of carbon, and the
need to sustain their businesses today
while preparing for a future based
around different energy sources.
The large integrated oil companies
shifted their investments from oil
to gas. The European companies
focused more attention on alternative
fuels, while the American companies
PERSONAL CARE CARS APPAREL SOFT DRINKS BEER TELECOM PROVIDERS OIL & GAS
were preoccupied with developing
Category Value % Change Category Value % Change Category Value % Change Category Value % Change Category Value % Change Category Value % Change Category Value % Change
enormous shale reserves at home. 2018 vs. 2017 2018 vs. 2017 2018 vs. 2017 2018 vs. 2017 2018 vs. 2017 2018 vs. 2017 2018 vs. 2017

Car brands sold big SUVs, the


consumer model of choice
throughout the world, while at the
+8%
Category Value % Change
+7%
Category Value % Change
+5%
Category Value % Change
+4%
Category Value % Change
+3%
Category Value % Change
+2%
Category Value % Change
+1%
Category Value % Change
2017 vs. 2016 2017 vs. 2016 2017 vs. 2016 2017 vs. 2016 2017 vs. 2016 2017 vs. 2016 2017 vs. 2016
same time the brands developed car-
sharing businesses and other mobility
options. Driven by consumer interest +1% 0% -7% 0% +5% +6% +5%
in SUVs and luxury, car sales grew in Total Category Value Total Category Value Total Category Value Total Category Value Total Category Value Total Category Value Total Category Value

$124.7 Bil. $149.6 Bil. $111.3 Bil. $160.7 Bil. $82.6 Bil. $455.6 Bil. $97.6 Bil.
most regions, although at a slower
pace, even in China. On the strength
of a new pemium segment, Maruti
Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg and Kantar Consulting)
Suzuki, an Indian car brand, entered
the BrandZ™ Cars Top 10.

128 129
5 The Categories BrandZ™ Top 100 Most Valuable Global Brands 2018

BrandZ™ Top 100


The Consumer Categories Most Valuable Global
Brands 2018
The apparel category is comprised
Category Brand Value of mass-market men’s and women’s
Year-on-Year Change fashion and sportswear brands.

+5%
Apparel imitates luxury
Category Brand Value
12-Year Change

+167% with more design focus


Apparel Top 10
Total Brand Value
Bright colors, personalization express consumer mood
$111.3 billion
Bold colors and designs initiatives responded to the “see Fast fashion brands, which
signaled respect for diversity now, buy now” trend in luxury, have depended on innovative
which reduces the time between technology and logistics for rapid
and also expressed a need
runway introduction and in- product design, fabrication, and
for fantasy and escapism as a store availability, making it more distribution, increasingly used
counterpoint to the sobering difficult for mass brands to copy data from social media to produce
state of global geopolitics. or preempt luxury. In addition, the apparel influenced by consumer
Sales in developing markets, in mass fashion brands added more recommendations. Brands created
Asia and elsewhere, outpaced sub-brands at a time when luxury capsule collections in collaboration
is rationalizing its fashion brands. with bloggers or other influencers.
sales in established markets.
Sportswear and fast fashion

_apparel
again drove the value growth
of the apparel category, which APPAREL TOP 10
increased 5 percent, after a 7 Brand Brand Value
Value 2018 Brand % Change
percent decline a year ago. $ Million Contribution 2018 vs. 2017

1 Nike 38,479 4 +13%


Brands sought inspiration from their
archives and the designs that made 2 Zara 26,860 3 +7%
them popular originally. Nostalgia 3 Adidas 12,456 4 +50%
for the decade of 1990s continued
4 H&M 8,884 2 -15%
to influence style and result in more
licensing agreements. In an unusual 5 Uniqlo 8,166 3 +8%
inversion of trends, some of the fast
6 Lululemon 3,912 5 +10%
fashion brands adopted a luxury
category practice and introduced 7 Victoria's Secret 3,442 3 -32%
premium collections with longer shelf 8 Under Armour 3,160 4 -46%
life.
9 Asos 3,092 4 NEW

Some of the mass apparel brands 10 Massimo Dutti 2,818 4 +0%


also expanded their design teams Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg)
to develop original designs. These Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 (lowest) to 5 (highest).

130 131
5 The Categories BrandZ™ Top 100 Most Valuable Global Brands 2018

The Consumer Categories

APPAREL

INSIGHT
Adidas led the apparel category
Inclusiveness
INSIGHT in value growth, rising 50 percent INSIGHT
Inversion primarily because its image as an on- Trust
trend streetwear brand was closely Fashion brands
Luxury hurries aligned with fashion preferences.
Consumers seek embrace people Fierce competition, including Amazon
private label, impacted Victoria Secret
as fast fashion
In addition, Adidas excelled at mass
more originality with disabilities as the brand attempted to revise
premiumization. The brand also
goes premium connected with consumer values and from fast fashion One in five Americans identify its range and adjust to womens’
sold around a million pairs of shoes as having a disability that changing attitudes about sexuality,
INSIGHT
In the fashion space we are made from plastic reclaimed from the Some of the fast fashion brands makes dressing and expressing identity, and apparel comfort. H&M
Amazon Effect
seeing an inversion of trends ocean. have experienced consumer themselves more challenging. closed many existing stores and
between luxury and mass backlash for demonstrating What should be a shared slowed the opening of new locations
market players. Fast fashion a lack of creativity by simply human experience becomes as it focused more on perfecting its Amazon confers
New channels, competition
players like H&M, for example, copying design/graphic work a frustrating exclusion. e-commerce presence. legitimacy
are introducing more premium of little-known designers. I’ve Leading brands like Tommy
focused collections, indicating
As the apparel brands attempted
had conversations with friends Hilfiger are taking note. By on unbranded
to be on trend, on time, and more H&M continued to manage a portfolio
a shift toward more long-term about this, and their attitude is, challenging long-standing
personalized, they faced new of brands, some more premium than Amazon has given legitimacy to
planning for those upmarket they’d buy a solid color item design conventions like buttons
collections. Conversely, luxury competition. The low barrier to the parent brand, and each centered a host of products that have no
from a fast-fashion brand, and over-the-head openings
brands are looking for ways entry of e-commerce resulted in a but they’d be skeptical about about a slightly different aesthetic. brand but are offered at a good
on shirts, they are introducing
to introduce newness more proliferation of Asian brands, often buying anything with a design, innovations that make Cheap Monday emphasizes fashion price and receive many positive
frequently without applying that from China, that not only competed which possibly had been fashionable clothes wearable as fun, for example, while &Other reviews. These products, which
sentiment across their entire on price, but also benefited from the copied without permission. for everyone. Stories presents a more premium may not even intend to build
ranges. Historically, luxury interest in Asian culture and fashion. They would not buy anything offering. H&M announced the launch a brand, are stealing share
brands have operated around with artwork on it. from existing brands. Younger
of an outlet brand called Afound. Also
a bi-annual calendar with two Jaime Klein Daley consumers don’t care so much
These brands often existed on social shifting attention to e-commerce,
major drops per year. Yet we EVP, Strategy and Insights about prestige brands, as
media sites, such as Instagram Zara announced it would slow the they are already shopping fast
are now seeing them create Whitney Krause James Possible
or Facebook, sometimes with Jaime.KleinDaley@possible.com growth of its regular stores but fashion. If they see something
smaller ranges that stimulate Partner, Analytics Practice
purchasing links to Amazon closing Kantar Millward Brown develop flagship locations. Zara sister on Amazon that looks similar
the market at regular intervals
and help them stay front-of- the social commerce loop. Being seen Whitney.Krause@kantar.com brand Massimo Dutti planned the to a Zara or H&M product,
mind between big seasonal on Amazon conferred legitimacy. In same approach. and it has good reviews, these
drops. Gucci is a good example addition, Amazon has become an consumers are going to wear it
of a brand that is exploiting this important destination for apparel Apparel and technology for a season. Such consumers
strategy, by creating capsule shopping in the US and offers its own Apparel was also marketed to specific are just fine buying the
collections in collaboration private label brands, an influence that audiences. Subscription models Zara planned to launch an AR app unbranded product on Amazon,
with artists and other creative included Rockets of Awesome, that shoppers in 120 flagship stores creating a difficult dynamic for
likely will spread to other markets.
personalities to generate Consumer ease with online shopping intended to save time spent shopping could activate on their smartphones, legacy brands.
interest more often. also drove the rise of sites like UK- for kids’ clothes by supplying regular enabling them to see certain fashions
based Asos, an e-commerce online- deliveries of items to keep or return. being modeled. The app included a
Geetu Bedi
only apparel brand that appears for Le Tote has a maternity line for click to purchase function. Zara also Senior VP, Account Director
Anusha Couttigane
Senior Analyst, Research Services
the first time in the BrandZ™ Top renting clothes needed only during experimented with making fast fashion BAV Consulting
Geetu.Bedi@bavgroup.com
Kantar Consulting 10 Most Valuable Global Apparel pregnancy. Expanding the notion of even faster. Using RIFD technology in
Anusha.Couttigane@kantarconsulting.com Brands. And in an expression of the inclusivity, Tommy Hilfiger introduced a London pop-up click-and-collect
sharing economy, brands also faced Tommy Adaptive, featuring clothing store, customers could view items in
challenges from rental sites similar to designed to make dressing easier for a special mirror and order them for
luxury’s Rent-a-Runway. people with certain disabilities. rapid delivery to the store.

132 133
5 The Categories BrandZ™ Top 100 Most Valuable Global Brands 2018

The Consumer Categories

APPAREL

BRAND BUILDING
ACTION POINTS
Nike, which continued to lead the
BrandZ™ apparel ranking, expanded
the use of its Flyknit technology—a
flexible fabric used for shoe uppers—
to other apparel, starting with a sports
bra. Nike also experimented with an
in-store augmented reality (AR) system INNOVATIVE BRANDS RISE IN VALUE…
called The Nike Makers’ Experience Consumers see innovative brands as Different, and Difference is an important
that enables customers to custom- driver of brand equity. Innovation especially impacted the year-on-year value
design sneakers. In an example fluctuations of brands in the 2018 BrandZ™ Apparel Top 10 ranking. Brands that
of wearable technology, Adidas scored high in Innovation increased 11 percent on average, while brands that
introduced a sneaker embedded with scored low in Innovation decreased an average of 2 percent. High Innovation
a chip that was readable at public scorers included Adidas, which increased 50 percent in value. Under Armour,
transportation turnstiles in Berlin. which dropped 46 percent in value, was among the low scorers in Innovation.
1 Be original
Innovation
Known for the technology used in its It is becoming even harder to have a
Innovation Value 1-Year
Lifewear clothing, Uniqlo embarked unique selling proposition, which is why
*Average Brand = 100 Index* Value Change
on an effort to digitally integrate its differentiation is so important and potent.
online and physical stores, in part to HIGH INNOVATION 112 $65,353 Mil. +11% Brands seen as different are more likely
to command a premium. Apparel brands
-2%
4 Know your
increase its e-commerce business. LOW INNOVATION 104 $45,915 Mil.
In another effort to build sales with need to review what they the stand for,
Source: BrandZ™ / Kantar Millward Brown
greater accessibility, Uniqlo planned
to place vending machines, stocked
and what they represent in style and value.
customer better
with basic clothing items, at mall and The advice is not new, but the
airport locations in the US. The focus
on technology and apparel basics
… AND INNOVATION, MEANINGFUL DIFFERENCE
PUSH ADIDAS INTO TOP 100 2 Expand design horizon level of knowledge required and
the means for obtaining it have
helped differentiate the brand from Adidas entered the BrandZ™ Global Top 100 on the strength of being seen as Innovative Collaborate with independent designers changed. Customers expect apparel
other fast fashion competitors. and Meaningfully Different. The brand was on trend with its streetwear designs and favored by youthful consumers and to closely match their fashion needs,
illustrated a higher purpose with a shoe made of plastic reclaimed from the ocean. bloggers. Feature the indie artwork which can be assessed through
Lululemon, also known for the Adidas also focused on mass personalization. Over the past 12 years, the Adidas score and publicize the link to the designer social media, the brand’s own data,
in Meaningfully Difference increased from 101, around average, to 135. Its brand value to communicate on-trend sensibilities,
fabric technology used in its athletic and data obtained from partners.
increased 439 percent over the same period. Meaningful Difference, a BrandZ™ metric, connection with the customer, support for
clothing, focused on improving the
drives brand equity and measures the extent to which brands meet consumer needs in
gathering and analysis of data to the art community, and transparency.
ways that are relevant and distinctive.
develop customer communities and
improve the consumer experience Meaningful Difference
on its website and app. With several
acquisitions, athletic apparel brand
12-Year Change 3 Be inclusive 5 Be tech wise
Under Armour continued its transition Do not abandon the mass-market, but look Make wise technology
to becoming a digital health and 135 on the fringes, to markets of substantial investments. The operative
fitness community. The customer size that have been relatively ignored. For word here is wise. Technology
data will inform product development. example, Tommy Hilfiger established an online can be expensive, but only the
Meanwhile, sales in the US slackened, community of people with disabilities who right technology, closely aligned
although they continued to grow 12-Year collaborate with the brand on designing clothing with strategy, solves problems.
elsewhere. Value Change for people who have difficulty with buttons,
zippers or other aspects of traditional tailoring.
101
2006
Average Brand = 100
2018
+439%
Top 100 grew 204%

Source: BrandZ™ / Kantar Millward Brown

134 135
5 The Categories BrandZ™ Top 100 Most Valuable Global Brands 2018

BrandZ™ Top 100


The Consumer Categories Most Valuable Global
Brands 2018
The car category includes mass-market and luxury
Category Brand Value cars but excludes trucks. Each car brand includes
Year-on-Year Change all models marketed under the brand name.

+7%
SUV, luxury propel sales,
Category Brand Value
12-Year Change

+1% but pace of growth slows


Cars Top 10
Total Brand Value
Brands build for today and prepare for tomorrow
$149.6 billion
After no increase in value a Despite expressed consumer concerns ownership, cars are a more affordable
year ago, the car category rose about climate change, SUVs of all big-ticket purchase.
sizes drove sales across most markets,
7 percent, on the strength of
primarily because these models Mass imitated luxury in car
SUV sales and luxury brands.

_cars
make drivers feel safe and powerful. technology, and luxury imitated mass
Sales increased in most SUV volume in Europe grew about in car model variations, with SUVs and
regions of the industrialized 20 percent. And contrary to the hatchbacks. Most of the luxury brands
world, but at a slower rate, conventional wisdom that younger offered entry models, on-ramps to the
even in China. Safer, and more people are less interested in cars or brand for younger drivers who want
driving, in markets like the UK, where the badge but cannot yet afford the
technologically advanced
housing prices limit early home full luxury sticker price.
than ever, cars required
less frequent replacement.
Changing attitudes about CARS TOP 10
ownership and more Brand Brand Value
Value 2018 Brand % Change
mobility options, especially $ Million Contribution 2018 vs. 2017
in urban areas, also affected 1 Toyota 29,987 4 +5%
purchasing.
2 Mercedes-Benz 25,684 5 +9%

Although carmakers in China sold 3 BMW 25,624 4 +4%


over 10 million cars for the second 4 Ford 12,742 3 -2%
consecutive year, the rate of growth
slowed. In the US, actual unit sales 5 Honda 12,695 4 +4%
declined for the first time in seven 6 Nissan 11,425 3 +1%
years, to 17.2 million. It could have
7 Audi 9,630 4 +3%
been a sharper decline except that
hurricanes in the US drove a high 8 Tesla 9,415 4 +60%
level of replacement sales. The rate 9 Maruti Suzuki 6,375 3 NEW
of growth also slowed in the EU,
but sales increased for the fourth 10 Volkswagen 5,986 3 NEW
consecutive year, to 15.6 million. Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg)
Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 (lowest) to 5 (highest).

136 137
5 The Categories BrandZ™ Top 100 Most Valuable Global Brands 2018

The Consumer Categories

CARS
Strength in the middle
INSIGHT
INSIGHT
Emotion The Toyota Camry remained
Emotion
America’s No. 1 best-selling selling
Brands must sedan, as its reputation for quality
Practicality, values
inspire passion and reliability generated a high level
INSIGHT
drive millennials of loyalty. The brand continued to
for car driving dominate the hybrid market with
Experience
Some of the car brands are its Prius, and it announced a joint
trying to solve problems In today’s world of climate
venture with Panasonic to accelerate Car buying
that people don’t have. They change discussions, diesel
On the strength of a new premium
are providing too much emission scandals, and development of all-electric vehicles. is emotional
INSIGHT offering showroom “Nexa”, Maruti Toyota again led the BrandZ™ Cars
Ownership Suzuki, an Indian car brand, entered technology. Our research with proliferation of mobility options
Top 10 ranking.
and utilitarian
millennials suggests that all it is a challenging task for
the BrandZ™ Cars Top 10. And several automotive brands to build
the technology they need is in There are two distinct trends:
Steep housing Chinese manufacturers announced
their smartphone. They look demand for their products. Ford continued to build trucks, car as “white goods” and car
export ambitions. Great Wall plans Rational arguments used
ladder favors to introduce its Wey SUV to North
at stripped-down vehicles
to be the norm for volume
like its F series, and SUVs, like its as self-actualization. Both
because they are going to keep recently-released Rapture. It planned address the question of what
car ownership America in 2021. Geely is considering the car for a while, but they brands, thinking they are to discontinue some passenger car is the best way to monetize
launching its new Lynk brand in will upgrade a phone annually. selling transportation devices. models, including the Taurus, which the automotive opportunity. At
In Britain, buying a house has Europe, in cooperation with Volvo, That is a different issue than Premium manufacturers have one end is transportation as a
was the best-selling car in the US, in
been the traditional means for the emotional connection always understood the need commodity; mobility solutions
which it owns. Geely acquired a stake its day. Ford’s China sales slowed as
young people to signal progress that people have to their cars, to build emotional brands, and that enable people to move
in Daimler, maker of Mercedez-Benz. the brand encountered more stronger
and independence. Yet today, which remains significant. In they have inspired brand desire from Point A to Point B on
they can’t get on the housing through passion points. Now, competition from Chinese brands.
America it is associated with demand. The per-mile cost of a
ladder because of the high Luxury sells younger audiences don’t feel
personal freedom. When we given journey is higher than for
cost—but, with leasing, cars talk to millennials, we find that the same need for automotive On the strength of its crossover and a car owner, but the passenger
have become relatively cheap Mercedes-Benz sold more cars than they are practical. They don’t mobility and rational proof will SUV models, Nissan sales increased doesn’t care because an owned
monthly. So they use prestige BMW worldwide. In its redesign and want to splurge, but there is not convince them to invest worldwide. US sales continued to be car stands idle 95 percent
car brands as a substitute messaging, Mercedes effectively also excitement around luxury in a car, so moving forward, strong but discounting hurt profits. of the time and requires the
method of signaling status. It’s reached younger car buyers. Its name plate. Brand and status is all manufacturers—volume, The brand intends to control its owner to take on the burdens
as if the established purchasing campaign, titled “Grow Up,” featured important. But millennials are premium and luxury brands— of taxation, depreciation, and
incentive programs in the US and be
pattern has been inverted: while also looking for a brand that will have to make active driving maintenance. It’s the hassle
rapper A$AP Rocky. BMW continued more aggressive in China. Although
people used to wait until their shares their values. a real passion, or lose relevance. free, “smart” solution. At the
to make cars that people want to SUVs and trucks drive the US market,
50s before driving a Mercedes other end, manufacturers are
but bought a flat in their 20s, drive, which was reflected especially Nissan sells more sedans. That is
in strong sales in China, although sales building ever-more experiential
now they’re shopping the other Andreas Sigl also the case with Honda, which
Stacy Graiko cars. Brands are leaning on
way around. declined in the US, where the brand Managing Director introduced a new Accord, hoping to
Managing Director, Qualitative Practice their heritage and reimagining
faced fierce competition from other Kantar Millward Brown, Firefly Burson Cohn & Wolfe stimulate more sedan sales. US tax
Andreas.Sigl@bm.com models from the past that
SUV makers. The brand effectively Stacy.Graiko@kantarmillwardbrown.com
law changes benefited both Nissan are very emotive and provide
Justin Holloway advertised its accessibility in its price and Honda, as well as other car much more than a commuting
Planning Director
messaging about cost per month. companies. experience. Brands with classic
GTB
Justin.Holloway@gtb.com models span the mainstream to
Audi launched the Q2, a smaller Volkswagen stock declined after the esoteric, track only exotica,
SUV. While stretching down, Audi it booked the fines that followed and at the top end these cars
messaging emphasized brand Maruti Suzuki continued to outpace fraudulent reporting of its diesel work as investible asset, similar
rather than functionality. Audi has The rise of Tesla, which increased 60 to the art market—invest, enjoy
the growth of the Indian car market car emissions in the US, but US
been shifting the center of brand percent in brand value, following a and reap the financial rewards.
because it created network of premium sales revived on the strength of
gravity down for several years. It has 32 percent rise a year ago, reflects dealerships selling an affordable luxury the Volkswagen brand and the
These models narrowed the price sustained the brand with sophisticated the fascination with a technology models through “Nexa” showrooms, introduction of new models, including Matt Woodhams
gap between entry-level luxury and communication, and the brand brand that is also in the space travel which met the aspirations of the rising SUVs. Worldwide, Volkswagen Brand Director, Client Service
fully-loaded mass. By making their enjoyed success, particularly with business, and the sense of potential middle class, particularly young people. recorded its best sales performance Kantar Consulting
Matt.Woodhams@kantarconsulting.com
products accessible, and adding a strong demand in the US. In China, as more affordable Tesla’s enter the To appeal to younger customers Maruti ever, with strong sales in most
luxury badge, luxury car makers drove Audi is repositioning to a lifestyle car market, although the introduction of also enhanced digital aspects of its markets, especially China, and the
extra volume and still commanded a from a car that had been favored by the Model 3 encountered production sales and service for both premium and brand reentered the BrandZ™ Cars
price premium. the government for its fleets. problems that hurt the share price. mid-market models. Top 10.

138 139
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The Consumer Categories

CARS
MEANINGFUL DIFFERENCE SUSTAINS VALUE GROWTH...
The BrandZ™ Cars Top 10 managed to increase substantially in Meaningful Difference
during the past 12 years, even when value plunged after global financial crisis and
recovered slowly. Meaningful Difference—especially in the luxury segment—helped
INSIGHT brands sustain value through this difficult period. The BrandZ™ metric Meaningful
Brand Difference drives brand equity and measures the extent to which brands meet
INSIGHT consumer needs in ways that are relevant and distinctive. An average score is 100.
Ownership Ford invested in software to operate
city transportation systems and it Heritage helps Meaningful Difference | Value
People enjoy introduced its Chariot ride-sharing sustain brands INSIGHT 12-Year Change 127
Technology
the convenience
van in London, early in 2018, having going forward
launched the app-driven service in
of owning a car San Francisco two years earlier, and What is electric, autonomous, Tech badge 108
expanded to several other US cities. bought online and used can strengthen $149.6 Bil.
The ownership preference is every day? A car or a washing
not going to go away. A lot of Brands developed sharing programs machine? The suggested
brand loyalty Average Brand = 100
people don’t live in cities. If my
that also work as brand marketing future of automotive could be $147.4 Bil.
home is on a rural road I may The car industry is evolving like
tools. Cadillac, Volvo, and Porsche worrying to the aspiring brand
prefer to have a car parked the mobile phone industry. The
offered subscription services the marketer. Brand becomes more
at my house rather than to car maker will create a shell,
of an irrelevancy in a world 2006 2018
wait for the ride share service connect customers to the brands, and the tech company will
where cars are simply about
to arrive. Recent research providing a car model most create everything on the inside, Source: BrandZ™ / Kantar Millward Brown
transportation, even if they’re
on electric vehicle owners appropriate for the occasion. Using a including the communication
electrified and available in
indicates a preference for particular app to get around London, various ownership models. For
system. Brand loyalty is …BUT BRANDS BUILD STRONG EQUITY IN VARIOUS WAYS…
ownership. Although dealers it was possible to hire a black cab— declining. If an Apple or Google
the shrewd automotive brand Tesla, the luxury electric car with limited distribution, has built its equity based on Brand
are bundling services, many or a Porsche, exposing potential puts a badge on a car it will
a means of avoiding a future of Promise, and scores remarkably high in being Different—268. In contrast, Maruti Suzuki,
people, especially those who’ve make a difference. In luxury the first Indian brand in the BrandZ™ Cars Top 10, achieves a much lower, but respectable,
customers to the Porsche experience. commoditized machines has
owned electric cars, think they it’s a bit different because of 134 score in Different, which is balanced by strong Meaningful and Salient scores of 181
BMW acquired Parkmobile, an app for been to draw on the brand’s
can outsmart the lease cost. the prestige that comes with and 221, respectively. Maruti Suzuki brand equity reflects great brand delivery.
booking and paying for parking spots. “soul.” For example, some
They’re thinking, “I’d rather own owning a luxury car.
brands, taking note of a growing Brand Equity
the car and buy my own service classic car market, are looking
and work out my own charging Most of the brands developed
backward to sustain their future 84 MEANINGFUL 181
packages because I can get plans for electric and autonomous Jenny Kimmerich
desirability, dialing up a sense Managing Partner, Content & Partnerships 268 DIFFERENT 134
a better deal.” Ownership is a vehicles. Toyota announced a major
of heritage through reimagining GTB
habit, and for some it provides investment in autonomous cars, 60 SALIENT 221
classic models. However, in Jenny.Kimmerich@gtb.com
important convenience with the with the establishment of a separate future, conveying a sense of
vehicle parked outside the door. company, Toyota Research Institute- Great Brand Promise Great Brand Delivery
soul could be about provenance
Advanced Development. Ford invested or experience, for example. Source: BrandZ™ / Kantar Millward Brown Average Brand = 100

in a startup called Argo AI to develop There is value in the story


Stephen Wallace autonomous car technology. BYD, behind a brand and product and
Planning Partner …TRUST AND RECOMMENDATION DRIVE VW REBOUND
a Chinese brand, is already a major this is a key lever to pull to be a
GTB In a demonstration of brand strength, Volkswagen returned to the BrandZ™ Cars Top 10 this
Stephen.Wallace@gtb.com manufacturer of electric vehicles for sustainable brand in a category Most car brands continued to sell
year. Despite the brand’s well-publicized emissions scandal, consumers continued to trust and
personal and commercial use. that is being disrupted by tech. through extensive dealer networks, recommend Volkswagen because of their experience with the brand. At the same time, they
One thing is certain. Automotive but Tesla sells direct, and other lost trust in the Volkswagen corporation and assigned it blame for cheating on emission results.
brands that invest only in sales and distributions possibilities
Ironically, as car brands shift to Trust and Recommendation Brand Recommendation
mobility solutions might as well
mass transportation, they potentially emerged in China, where Alibaba Brand Trust
not be a brand in the future. Volkswagen 12-Year Change Corporate Trust
become more desirable, particularly sells cars on its e-commerce site and,
at the luxury end, where scarcity in partnership with Ford, introduced
Facing forward and nostalgia drive interest in classic Piers Lindsay-Taylor a car vending machine. In a strategic 108 108
car models from the past. In some Director, Sales and Client Management alliance with Ford, members of
As the world moves away from markets, Ford is bringing back the
Kantar Millward-Brown Alibaba’s Tmall can sign up for a car 107
Piers.LindsayTaylor@kantarmillwardbrown.com
combustion engines and looks for Mustang, for example. Reflecting the online and obtain it for a three-day
104 105
ways to solve urban congestion, car connection between cars and watches test drive, using facial recognition
Average Brand = 100
makers, especially mid-market brands, as objects for self-expression a Danish to release a car from a giant vehicle
are competing for leadership as company produces watches from vending machine, which operates like 97
mobility providers. salvaged Ford Mustangs. a robotic parking garage.
2006 2018
Source: BrandZ™ / Kantar Millward Brown

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5 The Categories BrandZ™ Top 100 Most Valuable Global Brands 2018

The Consumer Categories


GERMANY

BRAND BUILDING
Total Value of German Brands in the BrandZ™ Global Top 100

$210.9 Bil.

ACTION POINTS

1 Value the past


Find the bits of brand heritage that can
add enhancement to mainstream brands
and tell a more textured and interesting
story. When applicable, explain how a car 4 Fix the buying
brand became part of the larger culture. experience
People buy cars similarly to the
way they buy other things—with

2 Talk about the future a lot of online research and a trip


to brick and mortar locations
Consumer wants to know that the car they for touch and trial, as necessary.
purchase today will be worth something Typically, car buyers do not
tomorrow. Being seen as innovative and expect their trip to the dealer to
future-focused helps reassure consumers be uplifting. Surprise them.
that the brand will sustain its value.

3 Think differently 5 Be electrifying


Car brands traditionally have been divided In the shift to electric vehicles
into categories—mass and class. It is now it is important to communicate
more useful to think about how the car more than the environmental
brand fills a particular consumer need. In and functional benefits of the
this dichotomy the brand is either utilitarian technology. The excitement of
(for getting from Point A to Point B), or driving needs to remain part of
experiential (for enjoying the journey). the brand story.

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5 The Categories BrandZ™ Top 100 Most Valuable Global Brands 2018

BrandZ™ Top 100


The Consumer Categories Most Valuable Global
Brands 2018
The luxury category includes brands that design,
Category Brand Value craft, and market high-end clothing, leather
Year-on-Year Change goods, fragrances, accessories and watches.

+28%
Brands refine experience
Category Brand Value
12-Year Change

+120% both in stores and online


Luxury Top 10
Total Brand Value
Iconic meets ironic as luxury adopts streetwear
$133.1 billion
The definition of luxury Brand experience, which is Competitive pressure also impelled
expanded, as younger fundamental to luxury, was expressed luxury leaders to focus more on data
innovatively in physical stores using to understand market changes and
consumers discovered new
artificial intelligence and virtual reality, identify potential customers, which
niche brands and older and online brand experience improved, is not a natural practice for brands
customers sought traditional too, partly in response to challenges with deep heritage and a base of core
luxury products, but also found from smaller designer brands available customers that they know well. But
satisfaction and expressed on e-commerce because of the low customer needs and desires changed
individuality with exclusive barrier to entry. with shifting societal trends.
experiences as well as
philanthropy. These dynamics,

_luxury
along with the rebound of
China’s economy, drove the LUXURY TOP 10
strong 28 percent increase in Brand Brand Value
Value 2018 Brand % Change
category value, following a 4 $ Million Contribution 2018 vs. 2017
percent rise a year ago. 1 Louis Vuitton 41,138 5 +41%

2 Hermès 28,063 5 +20%


Democratization continued as brands
tested the tension between exclusivity 3 Gucci 22,442 5 +66%
and accessibility, attempting to be as
4 Chanel 10,383 5 -6%
relevant as mass, but more exclusive.
Streetwear influence increased and the 5 Rolex 8,721 5 +8%
“see now, buy now,” trend—eliminating 6 Cartier 7,040 4 +20%
the time lag from runway to store—
7 Burberry 4,483 5 +5%
gained momentum.
8 Prada 3,925 4 -1%

9 Dior 3,612 3 +54%

10 Saint Laurent/Yves Saint Laurent 3,316 3 NEW


Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg)
Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 (lowest) to 5 (highest).

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The Consumer Categories

LUXURY
INSIGHT
Democratization

Luxury can
be expensive
and inclusive Rolex continued to do well in the
INSIGHT INSIGHT watch sector, whose fortunes
We’re seeing the Brands paired heritage with innovation have been roughly inverse to the
Status Experience
democratization of luxury in that appealed to contemporary tastes. invention and global adoption of
Individuals with sufficient money but today’s market landscape. Not Louis Vuitton also partnered with
Status switches limited time increasingly wanted to only do luxury brands have to artist Jeff Koons who created a limited Exclusivity sells, the smartphone. Rolex, a pioneer of
sports marketing, continued to invest
to “Competitive enjoy their wealth, not just with the make themselves accessible collection of paintings—reproductions but values change in long-term partnerships that sustain
accumulation of exclusive, expensive, to a more diverse audience,
Altruism” and expertly crafted material items, they also have to compete
of some of the great masters— the experience brand consistency. Rolex partnered
that were printed on Louis Vuitton with the Oscars, to connect it with
but with time well spent, which is why against new categories, like handbags. The brand continued its
As neighborhoods become In luxury automotive we the younger, movie-going generation
many of the most valuable luxury experiences and travel. In the
more homogenized with high- association with the streetwear brand see an evolved experience, and recall the appearance of Rolex
makers branded hotels, including work we’re doing in the luxury
income consumers clustering Supreme, and it introduced bold animal where the customer is not
space, we find individuals who watches in many well-known films.
together, we’re seeing a big Hermès, Versace, and Dior. And for prints. buying a product, but rather
may treat themselves to a nice
change in the idea of “keeping some wealthy consumers, adding a membership to an exclusive
meal as a reward for a job well In the Cartier New York Fifth Avenue
up with the Joneses.” It used to another luxury car in the driveway was Experiencing strong demand for its club. Aston Martin, for example,
done, or get a Starbucks every mansion store, opened for its first full
be that if you lived in a wealthier less satisfying emotionally—and as a iconic bags and silk scarves, Hermès launched “Art of Living,” a
morning, or buy a membership year following extensive renovations,
area and owned a Mercedes, status badge—than philanthropy. curated portfolio of lifestyle
to an upscale gym. These enjoyed a record profit year. The brand the brand mounted its Cartier Haute
you’d park it outside to show experiences that are normally
purchases are considered introduced a new website in North
off. Today in certain zip codes, reserved for a very limited Joaillerie Exhibition, featuring rare
Heritage and innovation luxury purchases to them, but America and plans to introduce it in audience. It’s been a productive precious stones and jewelry creations.
where everyone has a luxury car, luxuries they can afford on a Europe and China. It also expects way for the brand to engage Cartier also held an exhibit at
neighbors keep it in the garage regular basis. The question is,
Gucci led the BrandZ™ Luxury Top to open eight new stores in 2018, with customers one-on-one.
to avoid ostentatious displays of how do true luxury brands play London’s Design Museum connecting
wealth. Instead of showing off 10 in value growth. With its vibrant including locations in California and Experiences offered by these
in a space where “luxury items” the brand to a golden age of French
through fancy cars or clothes, patterns and colors, Gucci captured the China. To reach a wider audience, brands are becoming super
may be at a lower price point, innovation in the nineteenth century.
these consumers are engaging moment and influenced the category. including younger consumers, Hermès engaging rather than merely
but still at the high end of their At the same time, celebrities like Kylie
in what’s called “competitive Ubiquitous at red carpet galas, Gucci has partnered with Apple and designed passive spectator events. In 2017,
category? The other challenge Jenner and Kanye West have stoked
altruism.” They’re trying to outdo was endorsed by celebrities and the a collection of watchbands for the Aston Martin China took a small
for luxury brands is attitude. the popularity of the long-established
each other in generosity and beneficiary of much buzz on social Apple Watch. group of their key customers
Brands can’t afford to be Cartier Love Bracelet.
altruistic endeavors to enhance media. An unusual and popular social and media touring across 800
exclusive or snobby. They may
their status. It’s important for kilometers of rugged, high
media influencer, Lil Miquela, is a be exclusive by way of price, Chanel mixed its equestrian heritage
brands to pick up on this in altitude Western Sichuan scenery
computer-generated avatar who wears but they can’t afford to alienate and its classic look with a more
order to better connect with this to demonstrate “the essence
Gucci and other luxury brands. any consumer, no matter if futuristic interpretation of fashion at
audience’s needs. For example, of Grand Touring” in an Aston
they are a luxury consumer or a pop-up club in New York created
look at what Stella McCartney Martin. En route, guests visited a
Many brands, particularly, Louis not. If a brand doesn’t connect
is doing with the circular to promote the brand’s Boy·Friend Tibtan primary school, donating
Vuitton, Hermès, and Gucci organized with people from all walks, it’s a
economy—she’s encouraging all watch collection. It also collaborated books, and school bags to more
problem.
of her products to be resold in a promotions based on brand heritage with Adidas on a pair of sneakers. than 100 pupils in a remote
second-hand environment. stories. Louis Vuitton advanced many Brand founder Coco Chanel was village, part of the brand’s CSR
brand initiatives outside the store, profiled in Good Night Stories for efforts in the region.
Lyle Maltz
including the Volez, Voguez, Voyagez Director Little Girls, a best seller that profiles
Katerina Sudit exhibition of its vintage luggage Kantar Consulting a hundred women role models from
Managing Partner, Executive Director Lyle.Maltz@kantarconsulting.com Frances Wain
Mindshare
collection, which it displayed in venues the arts, science, literature, and other Account Director
Katerina.Sudit@mindshareworld.com such as the former American Stock disciplines. While the brand has Prism
Exchange building in New York City’s effectively broadened its appeal to FWain@prismteam.com

financial district. younger customers, the accessibility


has also opened the brand to
challenges from disruptive, pure-play
e-commerce competition.

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LUXURY
Insights
Iconic meets ironic Toplife, respectively. In a country where
most deliveries are made by men riding
Iconic met ironic in Burberry’s bicycles piled with packages, packages
collaboration with streetwear from JD.com’s Toplife will be delivered
Values
designer Gosha Rubchinsky, who by a well-dressed young man wearing
reinterpreted the brand’s classic plaid white gloves.
in fanciful, tradition-defying ways. In
For ultra-wealthy,
an augmented reality development Personal values also drove the philanthropy is Engagement
with Apple’s ARKit, Burberry users evolving definition of luxury, with more another luxury
can enhance their own social media individuals deriving satisfaction not Brands balance
images with Burberry-inspired artwork. only from the material objects they Gone are the days when all ultra-
Prada created throw-back collections collect and display, but also from the Millennials high-net-worth individuals had
timely offerings
that evoked the 90s, which continued contributions they make to charities similar expectations from luxury. and timelessness
to be at the center of a nostalgia trend. and other causes. This “competitive Young consumers The majority of these people
today earned their fortune, as In the luxury world today, we
But slackening demand in Asia hurt altruism” also helped propel the growth
results. of a second-hand market for luxury
redefine luxury, opposed to inherited it, as it used see classic brands embrace
INSIGHT goods. Consignment companies, like find niche brands to be the case in the past. Their an edgier point of view and a
Experience self-made fortune means more bolder, more modern aesthetic
Dior has been especially active in The RealReal, operate both online
The luxury consumer is getting to them than just financial assets to reach new affluent consumers
China and is promoting its fine jewelry and physical stores, and illustrate
and materialistic treats. They who are younger, more diverse,
Luxury shoppers collection with a design point of view, the “circular economy,” a growing younger. Millennials are driving
earn in order to experience the and more globally-connected.
the trends, influencing up and
expect more an example of expressing the trend phenomenon.
down, generationally. They are world and make it a better place. At the same time, those same
toward playfulness, even at the high Although some of these “new brands must transmit their
than products end. And the brand engaged models Although the second-hand market
redefining what they consider
rich” are millennials, there are rich heritage to maintain the
luxury, and it’s less about the
such as A$AP Rocky and Rami Malek can serve as an on-ramp to luxury for traditional brands and more also other generations that share interest and loyalty and of their
Consumers expect more from
to underscore the street cred of its younger consumers, the availability of about the niche brands that similar values. Demographics core customers. To balance
the luxury brands than the
menswear. Saint-Laurent introduced well-priced authentic luxury in almost- they’ve discovered. They aren’t are going out of fashion and being timeless and timely,
products themselves. They
new rather than brand-new condition necessarily expensive but have luxury brands need to zoom in we see brands playing with
are demanding experiences. online sales in China in a partnership
also potentially threatens traditional rarity in other ways. In the on consumer interests, values, limited-edition collaborations
Look at Louis Vuitton’s involving Farfetch, an e-commerce
US, these young people are and passions instead. Thus, the with hip and avant-garde
storefront, for example. It’s company, and JD.com. To display the luxury brands. The traditional brands
getting to wealth faster and right balance between pleasing designers, partnering with
always spectacular. Maybe it’s brand’s contributions to fashion and also face competition from new,
they’re much more ethnically customers with traditional values unexpected muses such as
the younger consumer who’s celebrate the cities that inspired them, smaller designers who can offer the
diverse. They often buy into and appealing to the “new rich” social influencers to develop
going in that direction or simply Yves Saint Laurent opened museums craft and exclusivity of luxury, but at
the experience around the is widely discussed in many content and collections, and
those who want more—more a lower price and sometimes with
in Paris and in Marrakesh. product. The classic brands boardrooms. While the right creating immersive offline and
value for money, whether that’s
assurances of ethical supply chains, are responding in many ways, balance will look different for digital experiences that bring
experience or philanthropy. That
The impact of Chinese consumers which the apparel brand Everlane calls certainly by perfecting their each luxury brand, and there are to life a brand’s values and help
exchange is changing slightly
on luxury spending increased as the “radical transparency.” e-commerce presence. many flavors to choose from, new audiences feel part of the
from what it was in the past.
economy strengthened. Chinese the common truth is relatively brand’s legacy and future.
Philanthropy is part of the brand
simple—strategies should remain
identity, what the brand believes consumers continued to spend on
Beth Howard true to a brand’s DNA and
in, and it is especially important luxury while traveling, but luxury
VP, Group Director heritage. Theresa Bertrand
to younger shoppers. brands also equalized the overseas and Senior Vice President
Kantar Millward Brown
China domestic prices for luxury items Beth.Howard@kantarmillwardbrown.com Burson Cohn & Wolfe
Theresa.Bertrand@cohnwolfe.com
to encourage more spending at home, Veronika Vdacna
Rubi Pabani a goal of the Chinese government. Global Business Director
Managing Partner, Plus Mindshare
Mindshare Alibaba and JD.com, China’s largest
Veronika.Vdacna@mindshareworld.com
Rubi.Pabani@mindshareworld.com e-commerce platforms, added luxury
sites, called Luxury Pavilion and

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LUXURY

BRAND BUILDING
INSIGHT
Data
ACTION POINTS
SUPER LUXURY BRANDS RISE FASTEST IN VALUE…
Even high-end Luxury brands constantly struggle with the category’s central tension: limit sales to
luxury needs maintain the exclusivity that defines luxury; or risk brand dilution to widen appeal.
Over the past 12 years, super luxury brands that have protected exclusivity increased
data analysis 190 percent in brand value, more than double the growth of brands that attempted a
wider appeal. Brands that successfully managed the difficult balance of exclusivity and
Data is a massive area but not popular appeal increased 111 percent in brand value, and achieved strong scores in Brand
a natural one for many luxury Experience, Desirability, and status or “Want to be seen using.”
brands. In other categories we
might have regular conversations Luxury vs. Super Luxury
about data strategy. In luxury it’s
more typically a learning agenda. Luxury Both Super Luxury

1 Be bold
Average Brand = 100
There is a continuum between
brand and performance and, in
most categories, brands have a
BRAND EXPERIENCE 104 108 110
Take risks. Be willing to communicate a
4 Market across
combination of both. In luxury
DESIRABILITY 112 118 119
unique point of view both in design and media
the continuum is weighted to WANT TO BE SEEN USING 109 111 113 communication. Heritage is important.
brand, with exceptions. There But even a royal family needs to refresh As the market for luxury expands,
are brands in the e-commerce 12-Year Change +80% +111% +190% and put on a modern face. Be flexible with new, younger consumers,
space, which are generally wider, Luxury: Burberry, Cartier, Dior, Gucci, Prada, Tiffany it is important to be present in
about who speaks for the brand.
more mass, and younger luxury Both: Louis Vuitton diverse media, which means both
brands. But the real high-end Super Luxury: Chanel, Hermès, Rolex Source: BrandZ™ / Kantar Millward Brown
social media and the traditional
luxury brands are naturally
2 Be timeless and timely
fashion press. Print is resurging
more protectionist about their
… GUCCI LEADS THE LUXURY BRANDS IN VALUE RISE among young people as more
clients and have personal
tactile and tangible than digital.
relationships with their best Gucci led the BrandZ™ luxury Top 10 in value increase with tremendous one-year gain Luxury brands by definition do not chase
customers. These brands think of 66 percent. Over 12 years, the Gucci brand increased 414 percent in value. Its recent the latest trend. They tend to defend
they know their customers, but bold designs and colors captured the mood of the times, and Gucci increased its scores in consistency and tradition. But customers
the customers are changing Meaningful Difference and Trust. are changing and being on-trend is crucial.
and increasingly come from
broader geographical areas and Meaningful Difference | Trust The challenge is to express the latest trends
in continuity with respected tradition.
5 Be cordial
backgrounds than ever before. 12-Year Change Being exclusive is fine. For luxury
Year-on-Year it is necessary. Being snobby is
Value Change
3 Link brand with data
105 poor manners, which may impress
Susannah Outfin
Managing Partner some people, but is sure to
Mindshare
Susannah.Outfin@mindshareworld.com 102 105 +66% More than in most categories, luxury is about
brand and originality of design, not analysis of
alienate the younger customers on
whose buying power the future of
luxury depends, and who have no
data. Luxury brands should be neither data-driven
12-Year problem walking down the street—
nor data-adverse. Artistic intuition, rather than
Value Change or clicking away—to another brand.
Average Brand = 100
data, connects fashion with the zeitgeist. But data
96 can inform artistic intuition without subverting it.
2006 2018 +414%
Source: BrandZ™ / Kantar Millward Brown

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BrandZ™ Top 100


The Consumer Categories Most Valuable Global
Brands 2018
The personal care category includes brands in health
Category Brand Value and wellness, beauty, and facial, skin, hair, and oral care.
Year-on-Year Change

+8%
Brand value increases
Category Brand Value
12-Year Change

+98% despite disruptive trends


Personal Care Top 15
Total Brand Value
E-commerce, changing attitudes influence shopping
$124.7 billion
The personal care category
increased 8 percent in value, PERSONAL CARE TOP 15
compared with a rise of only Brand Brand Value
Value 2018 Brand % Change
1 percent a year ago. The four $ Million Contribution 2018 vs. 2017
brands that rose significantly— 1 L'Oréal Paris 26,107 4 +9%

_personal care
over 20 percent—responded
2 Colgate 18,516 5 +4%
well to ongoing category
3 Gillette 15,358 5 -6%
disruptions, especially from
e-commerce, where the low 4 Lancôme 11,274 5 +20%
barrier to entry facilitated 5 Nivea 7,394 4 +9%
the appearance of small 6 Clinique 7,173 5 +20%
brands, often from Asia, with
7 Garnier 6,758 4 +5%
convincing stories about safe
8 Dove 6,020 4 +4%
and effective products at a
good price. 9 Estée Lauder 5,436 5 +29%

10 Pantene Pro-V 4,218 4 +3%


Referred to as the “Amazon Effect,”
this disruption occurred also in the 11 Olay 4,040 4 +8%
aisles of brick and mortar stores 12 Shiseido 3,827 4 +42%
where shoppers equipped with mobile
13 Crest 3,368 4 +1%
devices sometimes received coupons
and other notifications to influence the 14 Oral-B 2,686 4 +1%
purchase decision at the shelf. Social
15 Head & Shoulders 2,490 3 +3%
media inspired conversations that
Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg)
enabled new brands to build awareness Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 (lowest) to 5 (highest).
with little marketing investment, and
beautiful and accessible photography
drew personal care browsers to
Instagram.

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PERSONAL CARE
Insights
Simplification

Products must
Survival Identity
Brands contended with these other The simplification trend was in match simpler
disruptions, too: changing shopping tension with the personalization trend.
Survival tips Personal care care regimens
habits, with consumers making more Consumers seem to simplify in some
trips but putting less into their baskets; instances and personalize in others, can help brands becomes more A key threat to brands comes
discounting, and the appeal of lower- usually those associated with beauty. in disruptive time personalized from the changes in how
price private label products; and direct- The ultimate personalization was the consumers are using personal
INSIGHT to-consumer distribution models, like development of ingredients based on Despite the relentless disruption, In a world where we recognize care. Year-on-year, around the
Identity subscription, that challenged traditional genetic science. Some of the newest I wouldn’t consider the personal more personal identities, world, we are seeing consumers
brands and disintermediated retailers. personal care brands did not refer to care category down for the fluidities, and unique needs simplify, using fewer products
count. To stay relevant in a and using them less often. In
Ethnic, racial gender, as notions of gender fluidity led
rapidly changing environment
than ever before, it is surprising
that true personalization in the UK, the average person
Social media, particularly micro to product fluidity.
identity shapes bloggers, became a source for will require a willingness the personal care category is now has four fewer personal
to challenge and change care moments every week
care products gaining consumer insights. However, At the same time, new niche brands,
entrenched ways of doing
only just starting to emerge.
compared with five years ago.
in a category divided between older, in hair care, for example, rapidly But emerge it is; today we are
business; the next generation seeing brands fuse creativity This decline in usage creates
The film Black Panther struck more traditional consumers and the introduced product variations, adopting a delay in replenishment trips,
of personal care products and light biohacking to create
a cultural chord for many younger generation, where power has the constant renewal ethos of the fast which hits brands’ top line.
will come from collaboration, potent products tailor-made for
reasons. One which is pertinent shifted to consumers and away from fashion. Other personal care products As consumers reduce their
integration, and anticipation. individuals. Consider Function
to personal care brands is the repertoire, the window of
manufacturers and retailers, brands imitated the superfoods trend with Collaboration means working of Beauty, the haircare brand
growing preference among opportunity for a brand to be
sometimes lacked a comprehensive, fashionable ingredients like coconut oil. with entrepreneurs, retailers, that formulates bespoke
African Americans to wear their used narrows and creates an
data-informed understanding of In the midst of this constant change, and tech partners to find shampoo and conditioner. Their
natural hair. For too long black even more competitive space.
exactly how consumers shopped brand loyalty was fragile. Consumers new solutions to existing lab in downtown New York is
women have felt marginalized Time pressures, a desire for a
online and offline. depended on a brand repertoire and challenges, and even more open for expert consultations
and disparaged for wearing more natural look, more flexible
bought the sale-priced brand, as a exiting, new problems to solve. and there are 12 billion potential
their natural hair and forced to working conditions, and less
Through vertical integration, combinations—nearly two for
conform to westernized beauty At the same time, changing personal Tinder mentality afflicted retail. strict workplace dress codes
personal care companies will everyone on earth. Or Care/of,
norms. In the US and South values and time constraints influenced have all had a negative impact
have more control over the the personalized supplement
Africa, women and young girls consumer attitudes toward personal In China, niche brands, often from across personal care categories,
path to purchase; winning brand tailored not just to a
were even being sent home care. With evolving ideas of beauty Korea and Japan, pressured the major particularly those categories
consumers through cost and person’s goals and needs,
from school or reprimanded and the rise of naturalness as an ideal, brands because they are easily available that are beauty and grooming
time effective ways to buy. but also to their geographical
at work. We highlighted this related. Despite having more
people simplified their personal care online, from Alibaba or JD.com, for Anticipation is about looking at location and their level of
issue with Pantene last year by simple routines, consumers
regimes and used fewer products. example. Young consumers view the wealth of insights personal trust towards different global
introducing the new Gold Series are still as demanding as ever
Time-compressed lives, and a rise these brands as innovative and they care companies have about approaches to health. At a
range, but there’s far more and want brands to provide
in people working from home, create social media buzz about them, consumers’ buying and usage time when we as marketers are
that needs to be done. The them with the solutions to their
contributed to this trend. influencing older consumers. behaviors. This will enable them challenging ourselves to see
challenge is how brands can be complex needs. Brands need
to deliver the perfect products individuals and sides of people,
authentic and central to these to engage consumers with
that we never knew we needed. and not segments and types of
kinds of conversations—not Simplification and To meet the changing expectations
With bold investments and solutions that fit in to their busy
just to sell more product, but of consumers, and counter the people, it is inspiring to see new
personalization brave decisions, the personal brands taking a deeply holistic lives and address their individual
to genuinely meet customer impact of small disruptor brands, the needs if they want to stay within
care sector will not only survive approach to understanding the
needs. Women gravitated to products with large personal care companies are the consideration set.
the deluge of disruption but people they serve and in doing
multiple functions, even in Asia, where introducing their own versions of thrive despite it. so, truly injecting the personal
consumers traditionally follow daily smaller, more nimble brands. Unilever into the personal care category.
Aisling Ryan Josephine O’Brien
Chief Strategy Officer multi-step beauty regimes. Both introduced Love Beauty and Planet,
Client Manager
Grey men and women used products to a brand positioned as natural and Avra Lorrimer
Kantar Worldpanel
Aisling.Ryan@grey.com Managing Director Alice Clapp
enhance—rather than alter—their ethical, and ApotheCARE, a more Josephine.OBrien@kantarworldpanel.com
Hill+Knowlton Strategies Strategist and WPP Fellow
natural appearance. Although premium, natural and sensorial brand. Avra.Lorrimer@hkstrategies.com Y&R
men shaved less, they used more P&G bought Native, a premium-priced Alice.Clapp@yr.com
moisturizer, for example. natural ingredient deodorant marketed
direct-to-consumer.

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Insights

Technology and Lancôme hosted live-streaming AR


communication makeup demonstrations in the run-up Activism
to Halloween, which leveraged the
Brands that increased most in value increasing use of makeup during the
fall holiday. Lancôme launched an
Social activism Naturalness
responded effectively to the category
INSIGHT trends and disruptions. Shiseido, which elaborate philanthropic effort called shapes shopping
Shopping led the personal care brands in value the “Write Her Future” campaign, in America Personal care
rise, improving 42 percent, benefited in which the brand’s ambassadors,
Choice
helps achieve
Brands need more from its functional excellence. including actors Penélope Cruz, Julia American consumers are no
personal best
Shiseido acquired a beauty startup Roberts, and Kay Winslet, participate longer okay with the status
data to understand called MatchCo, to expand the in a social media campaign to fight Shoppers seek both quo. These consumers, from
In the personal care category
complex journey possibilities of customizing makeup illiteracy among women. in-store inspiration, diverse backgrounds, reflect
globally, there is a shift
America’s multicultural heritage
digitally, using a mobile device. The
Brands need to wear two hats—
technology matches the user’s skin and Clinique personalized communication
edited online choice and take both vocal and silent from outward appearance
approaches to challenging categories, like male shaving
physical and virtual—because
recommends the appropriate makeup. and connected well with younger and fragrance, to products that
the majority of sales are still The mass retailers are not out of societal issues. While some find
customers, emphasizing the purity the game, but online choice has power in speaking out, others that enhance naturally, like
being driven through brick and
Japanese provenance underpinned of its ingredients. In an innovative shifted the market dynamics. use their wallets to make an conditioners and lotions. In
mortar, although Amazon is
Shiseido’s reputation for technology marketing event. Clinique compared Easy online access means that impact. Whether it is an end oral care, people are brushing
taking a growing share. Given
and proven functionality, and its ability the skin care routine with the oral care consumers will go into a brick to purchasing brands that do and flossing more, generally
this complexity, brands are
routine, attempting to change behavior and mortar retailer occasionally not align with preferred social taking better care of their teeth.
showing a greater interest in to combine premiumization with scale.
for inspiration: to open the causes or other small acts of Men are shaving their faces less
how consumers are shopping In Japan, the brand planned to focus and increase frequency. Adapting
lens, feel and see what’s out resistance, this silent activism frequently, but they are adding
the category, both from an on skin care products, and in China to changing consumer habits, the
there, browse and explore. is a weapon to promote a moisturizing occasions. Men
online mobile perspective it emphasized its digital strategy and brand also marketed its line of make-
Or they’ll shop mass if a store change. More importantly, and woman aren’t wearing
through to the store, so they brand prestige. Shiseido launched a up designed to remain intact during
is geographically desirable/ these consumers actively fragrance every day.
can optimize their relationships workouts.
three-year plan to become one of the
with their bricks and mortar part of their routine for regular look for brands that support
top three global prestige cosmetic purchases (e.g. on the way a cause. With 57 percent of
partners. The brands don’t
have a true understanding of brands. Changing views of beauty home from work). But given the consumers more likely to buy a Erica Williams
Client Executive
what’s going on at the shelf, growth of one-click options for brand because of its stance on Kantar Worldpanel
however, because they lack Estée Lauder also did well in Asia, The L’Oréal Group accelerated refill and the fatiguing nature social or political issue, and 67 Erica.Williams@kantarworldpanel.com
complete data. In addition, their particularly China, where it is available its investment in digital, with the of routine shopping, the less percent of consumers saying
competitors used to be other in 117 cities. The brand experienced a acquisition of AR provider ModiFace, inspired shopper is increasingly they purchased a brand for the
big brands. Now they’re up- rebound in skincare, and also benefited which will serve L’Oréal Paris and its likely to narrow his/her lists and first time because of its stance
and-coming niche brands. from the changing desires of Chinese sister brands. L’Oréal Paris repositioned shop on Amazon. on a touchy social issue, it’s a
customers who are purchasing more trend worth watching because
its hair care products in the US as
it impacts how and why people
makeup and fragrance. Its use of remedies for hair damaged by curling
Beth Howard Leslie Pascaud are buying.
VP, Group Director
technology included an augmented irons and other styling processes. EVP & Brand Practice Lead North America
Kantar Millward Brown reality (AR) mirror in some stores, and Actor Wynona Ryder introduced the Kantar Consulting
Beth.Howard@kantarmillwardbrown.com its social media activity helped draw campaign in an ad aired during the Leslie.Pascaud@kantarconsulting.com
Mebrulin Francisco
more young people to the brand with Golden Globes. The brand did well Managing Partner,
online influencers hosting how-to in Asia, despite the competition from Director Multicultural Marketing Analytics
GroupM
videos. local brands. L’Oréal Paris continues Mebrulin.Francisco@groupm.com
to innovate and use social media
Appeal to young people and growth effectively. It benefited from growing
in China drove strong sales results for popularity of masks with its recent
Lancôme. In a collaboration with the launch of Pure Clay Masks.
digital company YouCam Makeup,

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PERSONAL CARE

In an effort to more effectively reach


LUXURY PERSONAL CARE BRANDS GROW VALUE FASTER…
young people, Olay participated in a New products, programs
new partnership with two magazines, Personal care is a diverse category that includes products as distinct from each other as
Cosmopolitan and Seventeen, and expensive makeup and basic toothpaste. Over the past eight years, brands that tilted more
With the introduction of its Nivea
Amazon. Some of the editorial is toward the high-end of the product spectrum increased more in value, which is similar
Urban Skin Range, the skincare brand,
to the experience in the car category or the luxury category itself. In 2006, luxury brands
accompanied by QR codes that link to owned by Beiersdorf, a German
comprised about a third of the value of the BrandZ™ Personal Care Top 15. In 2018, the
additional content and purchase options. company, continued to innovate and split between luxury and mass is about half and half.
Also appealing to young consumers, extend the specialized products it
the mass brand Garnier launched a offers for specific needs. The urban INSIGHT Proportion of Value
campaign for recycling beauty products. range, formulated to counter the Consumers 12-Year Change
Social media influencer Remi Cruz is the effects of pollution, reflects consumer +201%
spokesperson for the campaign, called interest in quality ingredients. In line Older people
Rinse, Recycle, Repeat. with other trends, Nivea introduced
an app with Google, and the brand
drive greatest Luxury
Dove continued to refresh its view on derived 25 percent of its China sales buying volume 34% Luxury
real beauty by connecting to culturally from its e-commerce relationships
resonant issues around femininity and with Alibaba and JD.com. Although much of the 49%
masculinity. In the UK, it launched a conversation in this category Mass
is about the influence of social
campaign amplifying its long-running The oral hygiene sector faced
media and the efforts to appeal
66%
Self Esteem Project, which includes continued pricing pressure, especially
to younger people, in fact,
online tools to help girls feel confident in in developed markets. Brands older people still generate the Mass
their own skin. The #RealBeauty Pledge drove growth with new products.
campaign continued with women at
majority of sales in personal +44% 51%
Introductions in North America, care and grocery. While it’s
all stages of life talking about their idea included new toothpastes like Colgate important for future growth 2006 2018
of beauty. The brand introduced Baby Clean-in-Between, with a foaming that personal care brands Source: BrandZ™ / Kantar Millward Brown
Dove in the US, Canada, and the UK. agent for cleansing spaces between understand and reach younger
And to the support the effort, Dove teeth, and Crest Gum Detoxify with a audiences, it’s also important … CONTRASTING STRENGTHS DRIVE GROWTH OF
aimed to alter incorrect stereotypes of foam that cleans below the gum line. that they don’t ignore older
LUXURY AND MASS BRANDS
motherhood with a YouTube campaign Colgate introduced a toothpaste with customers by focusing on social
media without reaching young Within the same category—personal care—consumer luxury and mass brands have
called #RealMoms. ayurvedic ingredients in India.
families and older people. contrasting personalities and rely on divergent strengths to build brand equity. Consumers
see luxury personal care brands as Different—sexy and desirable; and they see mass
Pantene introduced a premium hair Gillette added a subscription model, brands personal care brands as Meaningful—caring and straightforward. Luxury brands
product using micellar technology, called “Gillette on Demand,” with grew substantially more in value, increasing 201 percent compared with 44 percent
Michael Nyhan
which removes impurities. And it blades also available by texting. The Consumer Insight Director for mass brands, in part because their high Difference score enables luxury brands to
promoted its line of shampoo for brand also revised its advertising Kantar Worldpanel command a price premium.
Michael.Nyhan@kantarworldpanel.com
African-American hair, emphasizing to shift from shaving to grooming,
its beauty and multiplicity of styles,
Luxury vs. Mass
leaving room for the popular stubble Luxury Mass
with the tagline, “Strong is Beautiful.” look. The brand has been at the eye Average Brand = 100
Head & Shoulders introduced a of the storm of disruptors, including MEANINGFUL 97 116
packaging innovation to meet consumer the advent of subscription model;
environmental concerns, with a bottle simplification of personal care DIFFERENT 121 109
made from recycled beach plastic. The regimes, with men shaving less; SEXY 115 100
brand selected US skier Gus Kenworthy and changes in attitudes toward
as a brand ambassador whose strength DESIRABLE 113 102
masculinity. Ultimately, a brand known
of character enabled him to reach for blade innovation, asked how much CARING 102 112
the Pyeongchang Winter Olympics innovation does a man need, and how
as an openly gay athlete personifying STRAIGHTFORWARD 94 105
much is he willing to pay for it?
the brand’s “Shoulders of Greatness” Source: BrandZ™ / Kantar Millward Brown
campaign.

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PERSONAL CARE

BRAND BUILDING
ACTION POINTS

1 Become a platform
Leverage the strengths of being a large brand
and establish relationships with smaller 4 Expand the retail
brands to co-create. For mature brands, these experience
relationships can add vitality and revenue.
It is important to have an impactful
presence on Instagram and other
Find the individual
2
social media. But even as big box
stores disappear, unconventional
in the data locations pop up. Brands need to
be present with easy, frictionless,
Obtain the data necessary to communicate
compelling in-person experiences
in relevant ways across many narrow
that help create and strengthen
segments of the market. Look beyond the
relationships with customers.
usual cohorts: the online shopper, brick and
mortar shopper, mobile shopper. The same
person is shopping across these venues.
The journey is different for each individual. 5 Be brave
Disruption is coming from all sides
Enhance the all the time. Try new technologies
3 retail experience and channels. Have a point of view.
Take a stand or risk seeming generic.
Expect and embrace some failure in
Add excitement to the in-store experience so the the service of long-term growth.
shopper at shelf connects with the brand. And
pursue this activity as part of the larger strategy to
develop a relationship with the individual customer
and potentially sell to that person directly.

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BrandZ™ Top 100


The Consumer Categories Most Valuable Global
Brands 2018
The retail category includes physical and digital distribution
Category Brand Value channels in grocery and department stores and specialists
Year-on-Year Change in drug, electrical, DIY and home furnishings. Amazon
appears within retail because it achieves approximately 90
percent of its sales from online retailing.

+35%
Category Brand Value
12-Year Change
Operating across channels,
+274% retailers exhibit strength
Retail Top 20
Total Brand Value
New online-offline alliances portend more disruption

$578.0 billion Retail had a good year—but


not all retailers. Those that RETAIL TOP 20
effectively mixed online Brand Brand Value
Value 2018 Brand % Change
with offline did well, and the $ Million Contribution 2018 vs. 2017
e-commerce leaders did even 1 Amazon 207,594 4 +49%
better. The retail category
2 Alibaba 113,401 3 +92%
increased 35 percent in brand
value, more than double the 3 The Home Depot 47,229 3 +17%

14 percent rate of a year ago. 4 Walmart 34,002 2 +22%


But three of the BrandZ™ 5 JD.com 20,933 3 +94%
Retail Top 5 drove much of the 6 Costco 18,265 3 +12%
gain, with No. 1 Amazon up 49
7 IKEA 17,481 3 -8%
percent and the two Chinese
8 Ebay 14,829 3 +20%
e-commerce leaders, Alibaba
and JD.com, rising 92 percent 9 ALDI 13,785 3 +12%
and 94 percent, respectively. 10 Lowe's 13,111 3 -2%

11 7-eleven 9,227 4 +1%


Holiday shopping, an important
barometer of category health, was 12 Tesco 9,079 4 +13%
strong in most markets, particularly the
13 Walgreens 8,842 3 -13%
US. It seemed as if the retailer survivors
of the e-commerce disruption and 14 CVS 8,450 3 -13%

_retail
category transformation had adapted 15 Lidl 8,219 2 +14%
to the new reality. But certain sectors
16 Target 7,620 3 -12%
within retail continued to struggle and
prospects overall were nuanced. 17 Whole Foods 7,088 5 NEW
Inflation with potentially higher prices
18 Woolworths 6,880 4 +5%

19 Carrefour 6,607 3 -3%

20 Falabella 5,373 5 NEW


Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg)
Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 (lowest) to 5 (highest).

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INSIGHT
RETAIL Environment

Consumers expect
brands to reduce
INSIGHT
China use of plastics
under the Walmart brand, announced
justified retail’s optimism, but rising customers, sold $25 billion during One of the most moving sights
interest rates tempered the mood. Singles Day. Amazon, which more
China signals of 2017 was in the final episode intentions to acquire one of America’s
INSIGHT
Higher interest rates would pressure resembles in individual retailer, sold future of retail of the BBC’s Blue Planet II, with largest healthcare providers, Humana.
Innovation
a mother whale cradling her A Walmart entrance into healthcare
some retailers to restructure debt over $1 billion during Prime Day. and mobile use dead calf. The show ended with stretches not only the brand, but
or face rising costs, a problem for
a plea from presenter Sir David the very definition of retail. Often Brand leaders
companies that have been marginally Retail redefined If you want to see the future of
profitable, and a potential trigger of retail, look to China—in many
Attenborough for the world to enabled by new technologies, retail is explore new
reduce its reliance on single use transforming into elaborate networks
further industry consolidation. Alibaba CEO Jack Ma invented the term ways, it is leading the world. In plastics. There was an instant capable of recognizing and rapidly
retail models
New Retail to describe how a business part that reflects the receptivity impact on consumers globally,
of the Chinese consumer to fulfilling consumer wants and desires Brands need to be opened-
Two broader disruptions—the based on a simple exchange between and major retailers were quick
new technology. If you consider across an ever-expanding range of minded about changing the
proliferation of voice technology buyer and seller has evolved to a to respond: In January, British
mobile activity on Singles products and services. traditional model of retail. Brands
for shopping, and powerful new complex integration of data-enriched supermarket Iceland took out
Day, for example, somewhere newspaper ads announcing its that are innovative survive. And
alliances and acquisitions— also online and offline selling platforms around 90 percent of purchases vow to remove plastic packaging In a move toward vertical integration, increasingly we’re seeing those
threatened retail’s good mood. linked with sophisticated logistics that on Alibaba were made through from its own label products America’s second-largest drugstore that aren’t dying. Fortunately—
Voice evolved into a new genre of together form a system in which the mobile on Alibaba’s AliPay and excitingly—the space to play
by 2023, directly attributing its chain, CVS, plans to combine with
shopping—conversational commerce. retailer can anticipate the customer’s platform. Chinese consumers is extensive. Augmented reality
decision to the impact of Blue Aetna, a health insurer. Walgreen’s,
It drove revenue, enabling shoppers needs and fulfill them quickly, are using mobile in every aspect is a good example of one area
Planet II. The other major British the largest US drug chain, expects
to articulate more clearly the intent accurately, and consistently with pick- of their lives. And the Chinese supermarkets all followed with to explore and realize. Using
to buy roughly half the stores of Rite
driving their purchase. Devices sold up or deliver options. Amazon CEO Jeff consumer can also pay the rent, similar announcements. In AR technology, Ikea introduced
or buy household products, or Aid, America’s third largest chain. And
well during the holiday season, led by Bezos summarized the attitude needed February, Dutch supermarket the ability for people to hold up
hail a ride-sharing vehicle—all Walgreens corporate parent, Walgreens their phone in the room they
Amazon’s Alexa. for success in this new world: “It’s Ekoplaza rolled out the world’s
on the same platform. Boots Alliance Inc., announced plans are looking to refurnish, and
always Day One.” first plastic-free supermarket
to acquire a major drug distributor, picture exactly what a piece of
The integration of brick and mortar aisle. The French government
has pledged to recycle all AmerisourceBergen. Walgreens and Ikea furniture would look like in
and virtual shopping reached a new Symbolically echoing these Jon Bird plastics by 2025 and 11 CVS both declined in value, in part that space. Home improvement
stage. The strongest value rises came developments, Walmart shortened its Executive Director
companies, including L’Oréal, because of competitive pricing of retailer Lowe’s introduced a
from the pairs of retail brands that name from Walmart Stores to simply VML
similar app that instantly turns a
Jon.Bird@vml.com Mars, Evian, Coca-Cola, Unilever, generic drugs.
aligned to enable the consumer to Walmart. Walmart repurposed many phone into a useful measuring
and Walmart have also vowed
seamlessly transition between online stores as fulfillment centers. But and design tool. While these
to work towards eliminating Transformative technology
and offline, while providing the brands the business of retail became more single-use packaging by apps are about utility, they
with an unprecedented trove of data complicated, with multiple ways to then. These steps are clearly also enrich the ever-important
Amazon launched a potentially inspiration and exploration phase
that reveals shopper behaviors at all order or receive merchandise and aligned with consumers’ views:
transformative technology in its of shopping. We know there’s a
moments along the circuitous path to physical store space repurposed to conflation of purchasing and delivery, recent research conducted
Amazon Go stores, the grocery outlets growing expectation on brands
purchase. accommodate both showrooms a startup named Cargo planned to by MediaCom shows that 64
percent of British consumers that track purchases through the to add value to a consumer’s
and shopping areas and distribution enable drivers for rideshare operators
have started reducing their shoppers’ smartphone, eliminating life—and for retailers, the full
The Chinese versions of this online centers. to sell convenience store merchandise
use of plastic, and a massive the need for shelf pricing, and shopping experience. Through
and offline marriage were Alibaba and from compact displays in their cars.
88 percent think that it is the checkout, the greatest pain point innovation, retailers can prove to
JD.com, both of which have acquired Products were purchased on mobile, In a partnership with Westfield, the be both useful and inspirational
responsibility of brands to of most supermarkets. Along with
or aligned with bricks and mortar or a PC, or in a physical store, and shopping mall developer, Uber planned and—in turn build deeper, more
reduce the amount of plastic improving the customer experience,
operators. The US versions were the product was delivered from a to establish lounges in malls across the meaningful relationships with
they use. this technology potentially tells the
Amazon, owner of Whole Foods; and fulfillment center or a physical store. US. The arrangement enables Uber to customers.
retailer exactly how many units of each
Walmart, which had purchased Jet. Pricing was more dynamic. Jet.com, offer a more premium experience, and
product are available in each store, and
com. The scale of these giants, and for example, could adjust prices based it potentially increases time and money Geoff de Burca
this precision could enable a retailer to Claire Holden
the contrast in their business models, on the proximity of the customer from shoppers spend in the mall, because Managing Partner & Head of Strategy
MediaCom fulfill an e-commerce order from any Managing Director, Retail + Leisure
is best illustrated by the results of the retailer fulfilling the order. Jet.com they can leave purchases in the lounge Hill+Knowlton Strategies
Geoff.deBurca@mediacom.com of its stores. Walmart experimented
one-day special promotions. Alibaba, also purchased several online startups, instead of schlepping them. Claire.Holden@hkstrategies.com
with a similar technology.
which operates, in part, like enormous including the apparel brand ModCloth. Most dramatically, Walmart, which
shopping malls of independent Perhaps illustrating the ultimate operates over 11,000 stores worldwide
retailers, and has 515 million active

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RETAIL
INSIGHT
Metrics

Rapid change
requires new
Ultimately, the most disruptive investments made during the downturn an e-commerce-only business
technologies used by Amazon—voice 10 years ago. The brand planned to success metrics on Alibaba’s Tmall in China. Lidl INSIGHT
and automatic replenishment—limit now double the investment in its responded with a Lidl store on Tmall. Entrepreneurship
In mass market retailing,
or narrowly focus choice. Amazon’s stores. ALDI is selling organic products from
retailers and suppliers have been
Dash program enables consumers to Australia. Lidl is shipping products from
INSIGHT bound together in determining Retailers acquire
Opportunity reorder certain commodity products Grocery challenges mutual success through two Germany, implying high quality.
with a touch of a button. In partnership measurable objectives: space
and also cultivate
Contextual with certain manufacturers, some Grocery is the one area where and visibility. As a result, most The discounters generally are shopped entrepreneurship
product packaging contains a chip— Amazon has a disadvantage because retailers are benchmarked on more frequently than traditional
commerce opens the equivalent of a Dash button—that of its relative lack of physical locations maximizing productivity of supermarkets. To keep customers Legacy retailers are attempting
a retail frontier recognizes when the supply is depleted and the growing popularity of click space—measured as sales per interested, the chains will introduce to become more nimble and
and automatically reorders. and collect in the US. Although the square meter (or square foot). brands opportunistically, while they still entrepreneurial by developing
The biggest untapped Suppliers are benchmarked attempt to keep their basket around 30 those qualities in-house and
instances of click and collect has
opportunity for retailers is on maximizing return on also by bringing entrepreneurs
The success of this technological expanded in the US, the acquisition of percent cheaper than the competition.
contextual commerce. Apps visibility—measured in category into their businesses. For
wizardry, much of it conditioning Whole Foods by Amazon being a key Getting to that level requires managing
exist that enable relevant retail contribution ratios with an example, Target has taken on
consumers for smart home living, example, it has not yet reached the emphasis of productivity of the supply chain to constantly change a parts of the product line of
experiences to be created
depends on the scale of Prime, ubiquity found in Europe. shelf or gondola-end facings. In large portion of the mix. The challenge Casper, the online mattress
within online conversations.
For example, I’m a woman Amazon’s customer membership 2017, the #RetailApocalypse has increases as the store count grows. For company that positions itself
shopper talking to a friend who program, with around 90 million In contrast, Alibaba has taken another changed all that. Retailers have example, Lidl, which recently entered around the connection between
sends a photo of an event she members in the US alone. Amazon approach, seeing itself not primarily begun the process of closing the US, has about 11,000 stores restful sleep and health and
just attended. I like the outfit is using Prime, its membership as a retailer but rather as an enabler stores, converting spaces into worldwide. wellness. Walmart surprised the
she’s wearing. I tap that outfit program, strategically and in different of brands and other small businesses, service areas, and shrinking industry two years back with
and visual recognition software ways across country markets. Prime a role that it commemorated with its their self-service “shoppable” ALDI continued its expansion in acquisitions such as Jet.com
identifies the outfit and provides membership predisposes people to spaces. Worse, some have gone Australia, where it operates around and ModCloth. They’ve even
first traditional advertising, which was
a list of retailers where I can buy out of business. Meanwhile, established a center to cultivate
search first on Amazon. themed “To the greatness of small,” 500 stores. The German supermarket
it. And while I’m still having the suppliers have begun to shift entrepreneurial talent, calling it
and aired during the Olympic Winter Kaufland entered Australia amid rumors
conversation with my friend, I all their investments into digital Store No. 8. We’re also hearing
In a relevant use of augmented reality Games, in Pyeongchang, South Korea. content rather than physical that its sister brand, Lidl, would soon more about a reconsideration of
purchase the outfit in my size
for personalizing the retail experience, point-of-sale excellence. As we follow. Sales for Australian supermarket physical space, including pop-
and have it delivered. WeChat
is at the forefront of this type both IKEA, Lowe’s, and The Home So far both Amazon and Alibaba have think about how to measure Woolworth’s rebounded as the up stores and other innovative
of e-commerce and it’s just a Depot introduced smartphone apps had success with their respective success in the future, when company invested in improvements in venues, as a place where you
question of who will become that enable consumers to see how models, outside their home markets. using voice or other methods of its use of digital and data. experience a brand and capture
the leader in the rest of the furniture would look in a room in their And they have picked up valuable selling, will space and visibility data, rather than buy stuff.
world. Using machine learning, home. IKEA purchased TaskRabbit, an lessons. In India, Amazon created a be the metrics that matter? Growth strategies
the app learns to anticipate online service that connects people network of local stores that house Even if they matter, will it still
my requests and then makes with tasks to do with people willing to be possible to measure them? Gwen Morrison
inventory and become a local Tesco operates over 7,000 stores in
recommendations. The personalization of retail is CEO, The Americas
do them. IKEA expects TaskRabbit to distribution center, which serves 10 countries, using eight formats. In The Store WPP
underway which is a good thing
improve the experience of assembling Amazon’s last-mile delivery challenges its home market, the UK, where Tesco Gwen.Morrison@wpp.com
for consumers, retailers, and
its flat-pack furniture. and also improves the business of brands. However, it may be a continued to face intense competition
Dayoán Daumont
Consulting Partner, Innovation & Digital the local retailer. Pricing Prime at an bad thing for those who cling to from ALDI and Lidl, it took a back-
Transformation Lowe’s is experimenting with in-store affordable level has helped accelerate traditional success metrics. to-basics approach to be more
OgilvyRED 3D printing and increased customer Amazon’s growth in India. price competitive. Tesco also sought
Dayoan.Daumont@ogilvy.com
use of digital. Lowe’s also expanded opportunities from its recent acquisition
its contractor business. The Home The two German-owned discounters, Ray Gaul of Booker, a food wholesaler. In the
SVP, Retail Insights Europe
Depot planned to develop a business- ALDI and Lidl, continued head-to-head rest of Europe, where it faces other
Kantar Consulting
to-business e-commerce site. As the competition. Lidl entered the US and Ray.Gaul@kantarconsulting.com hypermarket competitors, Tesco worked
US economy expanded, The Home ALDI responded by expanding into to perfect its omni-channel operations,
Depot continued to experience strong the states where Lidl opened stores, including click and collect. It attempted
same-store results, benefiting from in the Southeast. ALDI launched to build greater loyalty in Asia.

166 167
5 The Categories BrandZ™ Top 100 Most Valuable Global Brands 2018

The Consumer Categories

RETAIL
INSIGHTS
Consumers

Retail enters
INSIGHT
Carrefour performed well outside of
an attention
Search
France, its home market, but France span economy
still drives around half of its profit. In
Online search France, Carrefour operates a multi- What omnichannel retail is
shapes offline store strategy, using appropriate showing us is not that people
will buy less—it’s that people
purchasing format according to location. A new E-COMMERCE BRANDS DOMINATE VALUE GROWTH…
will shop less. In the past,
CEO brings critical digital experience. Over the past 12 years, e-commerce brands grew in value from 14 percent to 62 percent of the BrandZ™ Retail Top 20. The increase
people had no choice but to
We’re seeing an increase in Similarly, France’s Auchan has done go shopping to get what they of 1,761 percent quantifies the impact of brands like Amazon, Alibaba, and JD.com, and the massive disruption of the retail category.
the percentage growth of better abroad, in other parts of Europe needed. Today, they have plenty Specialists, such as The Home Depot or Ikea, fared better during this period than hypermarkets and other traditional retailers with broad
customers who say that online and in Russia. Alibaba just made a of new options—and because product ranges.
research influences their offline major investment in Auchan China. of this, what they are willing to
purchasing. And we’re seeing
Proportion of Value
expend attention on is shifting.
an increase in customers who To fortify its efforts to compete with Some things just aren’t worth 2006 2018
utilize multiple online retailers spending time shopping for, so
in order to make a purchase
decision. We’ve reached a
Amazon, Target plans to acquire Shipt,
a grocery delivery startup. It also plans subscriptions, algorithms, and
auto replenishment become
1-Year Change +5
12-Year Change +51
%

%
21%
tipping point in the extent to
a substantial store remodeling program
and the addition locations in major
much more attractive ways for 17%

62 %
which product brands that

60
consumers to buy these items.

%
understand e-commerce is cities, including New York and Chicago.
Brands must think more broadly
an information source and are Target’s initiatives helped drive strong about how technology and 1-Year Change +9%
investing in online content holiday sales, but the investment expectations are intersecting 12-Year Change +191 %
and technology, but still few strained profits. to create a new relationship
who really understand how between people’s attention span
to do it. Product brands are
26%
Ebay has benefited from investments and commerce. Retailers have
also increasing investment in to improve the brand and differentiate long been skilled at managing
paid search, particularly on 1-Year Change +61%
product selection and inventory
Amazon, and we’re seeing
from other e-commerce players
of things people want to buy,
14% 12-Year Change +1,761%
with unique inventory. The product
more investment in Walmart as but in the future, winners in
range has shifted from functional Traditional
brands learn that paid search is retail will be best at attracting Specialist
available. to more emotional categories like
and retaining the attention of Source: BrandZ™ / Kantar Millward Brown E-Commerce
fashion and home and garden, which
consumers. In an attention
has appealed more to younger and economy, retailers will face
Tod Harrick women shoppers. Ebay serves 170 …TOP RISER JD.COM LEADS IN MEANINGFUL DIFFERENCE
new competitors but also have
VP Product million customers from 190 countries. new opportunities. They must Among the e-commerce brands, Meaningful Difference
Marketplace Ignition JD.com, the fastest rising brand in the
tod@marketplaceignition.com
The marketplace advertised the brand reshape commerce to fit into 12-Year Change
to build better understanding about BrandZ™ Global Top 100 2018, rose
consumers’ lives while offering
sharply in Meaningful Difference. JD.com
the competitive advantage against up the excitement of discovery
owns most of its logistics, which provides
Amazon. Ebay announced that it would and experience when they want
it. The best retailers will find closer control over the brand experience, 168
end its relationship with PayPal in 2020 including product quality and deliver
ways to help consumers free up
to have full control over the payment
their attention by making buying efficiency. Both Alibaba and Amazon 147 154
Costco launched in Iceland and in experience. flattened in Meaningful Difference, a
easier, so that those consumers
France, with more of a long-term phenomenon that can happen when
have more time to shop… with 131
investment, intending to succeed with Falabella, Chile’s most valuable brands achieve great scale. The BrandZ™
an approach that has worked well in brand, benefited from its dominance
them.
metric Meaningful Difference drives
130 123
Europe and Asia-Pacific—catering throughout Latin America, with a brand equity and measures the extent to
to the food culture with alcohol, total of around 80 department stores, which brands meet consumer needs in 2006 2018