The Big Apple & BRICSA
Steve Jobs’ Apple has emerged as the most valuable brand on the globe, after an astounding 84 percent increase in value over the past year. This development marks the end of Google’s four-year reign at the top of the table in the sixth annual BrandZ Top 100 Most Valuable Global Brands study.
Apple’s ability to weather economic turbulence is attributed to its consistent focus on innovation and influential branding. Intuitive and firm brand management, it seems, is critical when it comes to long-term financial value. Apple’s brand value has increased by over 859 percent since 2006 and now stands at $153.3 billion – figures that show just what a strong branding case study the company really is.
Perhaps the most pertinent insight for South Africa that emerged from the study is the fact that 19 of the Top 100 brands now originate in “BRICs” markets, a huge increase from only two in 2006 and 13 in 2010. The study also found that one in five brands on the list are from the BRICs. The growing presence of brands from these countries highlights the expanding purchasing power of people in these emerging markets. While many of these brands are buoyed by the sheer size of their local customer base, many more now have international ambition.
Examples include Brazil’s Petrobras (No. 61 in the ranking with a brand value of $13.4 billion); India’s ICICI Bank (No. 53 and worth $14.9 billion) and Baidu, China’s largest search engine. Listed on the NASDAQ index, Baidu now has a brand value of $22.5 billion and moved up 46 places in the ranking to number 29. Despite these successes, consumers in the BRIC regions continue to favor Western brands. Louis Vuitton, for example, benefited from the new energy and confidence in the BRICs region. This boost alone helped move the luxury retailer into 26th place in the ranking, a three-spot increase from 2010.
How well do these developments bode for South African brands?
Charles Foster, MD of Millward Brown Africa, says “South Africa contributes to many of the top brand valuations through their global owners. Brands like Coca-Cola, McDonalds, Marlboro and Vodacom, and to a lesser extent Apple and Google have their contribution counted in the global numbers. Interestingly, we do have South African Company’s brands in the form of SABMiller with Millers Light, and Naspers, who hold a sizeable stake in Tencents, making the global ranks, testament to the local management’s ability to break into the globe. Whilst unfortunately no purely SA brand makes it into the top 100 list, MTN is probably the closest to making it, with perhaps Sasol and some of the banks close behind”.
South Africa’s inclusion in the BRICSA conglomerate is a sure sign that the country’s brands are well on their way to becoming as potent a force as those of other developing nations on the list.[Original article taken from Bizcommunity]