Posts

BRAND FINANCE GIFT™ 2021

Microsoft Overtakes Apple to Become World’s Most Intangible Company

  • With an intangible asset value of nearly $2 trillion, Microsoft becomes world’s most intangible company, overtaking Apple, Saudi Aramco, and Amazon, as Microsoft Teams keeps global economy running through COVID-19 lockdowns.
  • Corporates booming – global intangible value has grown by nearly a quarter over past two years of pandemic, from $61 trillion in 2019 to $74 trillion in 2021
  • Over past 25 years, intangibles have seen astronomical growth – increasing 1145% from estimated $6 trillion in 1996. At this historic rate of change, global intangibles could be worth $1 quadrillion by 2050.
  • Brand Finance and International Valuation Standards Council call for more comprehensive reporting of intangible asset value to facilitate investor understanding and economic recovery post-COVID

Every year, the Brand Finance Global Intangible Finance Tracker (GIFT™) report ranks the world’s largest companies by intangible asset value.

This year’s number one company in terms of total estimated intangible value is Microsoft (US$1.90 trillion), which has jumped from 4th position in 2020 to overtake Apple (US$1.87 trillion), Saudi Aramco (US$1.64 trillion), and Amazon (US$1.47 trillion). Microsoft Teams has become embedded into business life for global organisations, once again proving the value of Microsoft’s ability to innovate and roll-out at scale. Microsoft is investing heavily in its business suite solutions. Although Apple is the more valuable company by approximately $200 billion, Microsoft is estimated to have more intangible value with its portfolio of brands and business operations.

Intangible assets are identifiable, non-monetary assets without physical substance. Intangible assets can be grouped into three broad categories – rights (including leases, agreements, contracts), relationships (including a trained workforce), and intellectual property (including brands, patents, copyrights).

Intangible assets boom during COVID-19 pandemic

Over the past year in particular, global intangible asset value has grown faster than usual, and at $74 trillion it exceeds pre-pandemic levels by nearly a quarter, having increased 23% compared to $61 trillion in 2019. The COVID-19 pandemic has demonstrated even further the importance of people, innovation, reputation, and brand for businesses all around the world. Intangible assets are now unequivocally a boardroom priority.

Increases through the pandemic were primarily fuelled by the growth of the world’s largest organisations which were resilient to investor uncertainty due to their scale and their focus on technologies which we continued to rely on through lockdowns. This year, growth has been driven by China and the USA, with several industries recovering from the downturn in 2020.

In times of crisis, brands – especially those most valuable and strongest in their categories and markets – become a safe haven for capital. Like gold or fine art during past economic downturns, nowadays well-managed, innovative, and reputable brands are what the global economy turns to in the hour of need. There can be no better evidence for why brands matter than the role they have already played and will continue to play in the post-COVID recovery.

David Haigh, Chairman & CEO, Brand Finance

Global intangible value grows by over 1000% in 25 years

25 years ago – when Brand Finance was established – global intangible assets were worth only an estimated $6 trillion, less than a tenth of the same value today. As of September 2021, global intangible assets are worth over $74 trillion. This is a 1145% growth over 25 years – approximately 11% per annum.

It is a pivotal moment in financial reporting for intangibles. Total estimated intangible value has grown by over 1000% in the past 25 years. At the same rate, total global intangible value could stand at over $1 quadrillion by 2050 (that is $1,000,000,000,000,000). As investors grapple with balancing various issues such as Climate Change and ESG over the coming years, it is essential that the data they need to understand these vast sums is readily available.

Annie Brown, Associate, Brand Finance

Internally generated intangibles should be recognised in financial reports

The majority of intangible assets are not recognised, due to the limitations set by the financial reporting rules, which state that internally generated intangible assets such as brands cannot be disclosed in a company balance sheet.

Investors should not be deprived of this critical information. Intangible assets such as strong, valuable brands and innovative technology can be the differentiators that drive a $2 billion company to $2 trillion in 25 years – as witnessed with Apple. This information vacuum for investors is part of the reason why Brand Finance endeavours to estimate the extent of “undisclosed intangible value” in our GIFT™ study each year.

David Haigh, Chairman & CEO, Brand Finance Plc

To truly aid investors and provide them with useful information, we believe management should be allowed and required to:

  1. Identify the key intangibles of the entire business – both internally generated and acquired.
  2. Provide an opinion on the value of those intangibles in the notes to the financial statements.
  3. Provide an opinion of the overall business value at the reporting date, to help investors to understand whether or not their capital is allocated efficiently.

Despite the importance of intangible assets to the capital markets, only a small percentage are recognised on balance sheets, typically via acquisition from a third-party transaction. The pandemic has further exacerbated the disparity between market values and book values for those industries most reliant on brands, technology, and human capital for value creation. The IVSC supports Brand Finance, and all others, that look to make progress on this most critical issue.

Kevin Prall, Technical Director, International Valuation Standards Council (IVSC)

Movistar, Telefónica, Yoigo and Cellnex, the Spanish companies that were already in the ranking

Euskaltel enters the Brand Finance ranking of the world’s most valuable telecommunications brands

  • The Spanish presence in the sectorial ranking of telecommunications brand value increases. Euskaltel joins Movistar, Telefónica, Yoigo and Cellnex among the most valuable brands in the world.
  • The two brands of the Telefónica Group, Movistar and Telefónica, decrease in value and brand strength but continue to be the first among the Spanish ones.
  • Yoigo is the only Spanish in the ranking that increases both in value (20.1%) and in brand strength (+4 points). Cellnex is the one with the greatest increase in brand value (28.4%).
  • The 150 brands in the sector have lost a cumulative 68 billion in brand value compared to 2020.
  • Verizon extends lead ahead of AT&T as the world’s most valuable telecommunications brand, brand value increased 2% to 58.6 billion euros.
  • Jio shines as the strongest and fastest growing in the world on the Brand Strength Index (BSI) with a score of 91.7 out of 100.

Access the full Brand Finance Telecoms 150 report here.

Madrid, February 23, 2021.- Euskaltel is already among the most valuable Spanish telecommunications companies in the world according to the report that assesses the 150 most valuable international brands in the sector, Telecoms 150 2021 from Brand Finance , the leading independent consultancy in valuation of intangibles whose rankings comply with the ISO 10668 and ISO 20671 of valuation and evaluation of brands respectively and that contributes with its brand value database to create one of the indicators of the UN Global Innovation Index (GII) . The American Verizon leads the brand value ranking with a value of 58.6 billion euros, + 2% compared to 2020.

With the Euskaltel Euskadi team back in “LaVuelta” after 8 years and results 24.5% higher than 2020 despite the coronavirus year, the Euskaltel brand is living a good brand trajectory, so much so that this year it has managed to enter the list of the most valuable in the world in a sector as competitive and internationally atomized as telecommunications. This year it has distributed a dividend of 25 million among its shareholders. According to the company, this would be the fifth consecutive year that it has managed to do so since it went public in 2015. In addition, it has signed a brand license agreement with the Virgin Group to use the Virgin brand ,one of the most recognized and respected brands in the world, in Spain and thus promote its national expansion strategy. The Virgin brand will coexist with the Group’s three established brands (Euskaltel, Telecable and R), which will continue to provide leading services in each of their respective regions. Euskaltel believes that the combination of its strong regional brands with the Virgin brand, which it will use at the national level, will provide excellent growth opportunities.

Teresa de Lemus , Managing Director of Brand Finance Spain : “Despite the isolation mitigated by calls and the increase in content consumption, the most valuable Spanish telecommunications brands have gone from a brand value of 11.0 billion euros to a value total mark 9.1 in one year¨

Brand value
Mark Brand Value Ranking 2021 Brand Value Ranking 2020 Variation in Brand Value Ranking Brand Value Variation
Movistar 17 13 -4 -22.7%
Telephone 68 64 -4 -20.4%
Yoigo 115 131 16 20.1%
Cellnex Telecom 123 144 twenty-one 28.4%
Euskaltel 145 New 12.9%

Telefónica and Movistar, both brands of the Telefónica group, this year were hard hit by COVID-19, and this has been reflected in the value and brand strength of both firms. Both companies, the most valuable telecommunications companies in Spain, fell 4 places in the sector ranking to 68 and 17 respectively. Despite continuing to be the first Spanish to appear in the ranking (they are still among the first 100 in positions 17 – Movistar- and 68 -Telefónica- in terms of brand value) both companies have decreased their value by more than 20% ( -22.7% Movistar and -20.4% Telefónica).

The outlook for the group in the coming years is not very encouraging according to our analysts and the group is expected to experience lower growth in the next period. Despite the challenging environment, Telefónica remained at the forefront of developments in the sector. Its 5G network was activated with the goal of achieving 75% coverage by the end of the year in line with the brand’s message of “reaching as many households as possible.” Telefónica has suffered a setback in the field of play when the regulatory body, CNMC, has just ruled that the Spanish operator, the owner of the rights, will continue to be obliged to share them with its rivals, Orange between them, whether they want to or not, until 2023. They also launched “Movistar Salud” and performance improvements were implemented for “Movistar Prosegur Alarmas”.

Both Yoigo and Cellnex are among the 10 brands that have grown the most in brand value. The significant expansion of the Cellnex Group’s geographic footprint (Portugal, France, the UK and Poland) is the main reason for the firm’s rapid revenue growth despite the rumors of a possible merger with American Towers . Yoigo, for its part, has seen its brand value increase thanks to the increase in the income of the Masmóvil Group , of which it is part.

Teresa de Lemus, Managing Director of Brand Finance Spain: “Perhaps we will soon see other Spanish companies in the ranking, such as Red Eléctrica, which proposes the entry of new partners for the telecommunications business built around Hispasat and the fiber optic subsidiary Reintel. “

Brand Strength Ranking

At Brand Finance we establish the Strength of the Brand, the second most important variable in addition to the Brand Value, according to three factors: “Income”, activities that support the future strength of the brand; “Fairness”, actual current insights from our market research and other data provider partners.

Brand Strength
Mark Qualification 2021 2020 qualification Brand Strength Ranking 2021 Brand Strength Ranking 2020 Brand Strength Ranking Variation Brand Strength Variation
Movistar AA + AAA- 65 40 -25 – 4.0
Telephone A + A + 138 119 -19 – 4.0
Yoigo AA AA- 103 107 4               2.6
Cellnex Telecom A + AA- 122 113 -9 – 1.4
Euskaltel AA- A + 114 New               5.7

This indicator has been negative for Movistar, Telefónica and Cellnex this year, with the two Telefónica Group brands falling 4 points, which fell 25 and 19 places in the strength ranking respectively, and -1.4 points from Cellnex Telecom, which fell 9 places to 113 Euskaltel is, of the Spanish companies, the one that registered the greatest increase (+5.7 points) followed by Yoigo (+2.6 points).

A sector that loses brand value and strength

The 150 brands in the sector have lost an accumulated 68 billion in brand value compared to 2020. In 2020, the 150 brands in the sector added an accumulated 624,742 million in 2020 compared to the 556,705 million recorded in this report.

The trend is reflected in Spanish brands. The 5 brands of 2021, including Euskaltel, add up to a total of 9.1 billion euros, -1.9 billion less than the sum of the value of the 4 Spanish brands that appeared in 2020, which amounted to 11.0 billion of euros.

In Spain, many operators put themselves at the service of their customers, including Movistar, the first to offer free content to their customers during the pandemic. All these actions affect the brand evaluation, so we will see the real impact on the brand strength index and its brand value in the coming years.

Verizon Retains No. 1 Ranking Worldwide and Region-wide

For the second year in a row, Verizon has been awarded the title of the world’s most valuable telecommunications brand after a 2% increase in brand value to 58.6 billion euros. This growth in brand value has not only driven it once again to position itself among the top 10 most valuable brands globally in the Brand Finance Global 500 2021 ranking , but has meant that the brand has continued to expand the gap that separates it from AT&T in second place (brand value down -18% to € 43.7 billion). A further 15 US brands are featured in the Brand Finance Telecoms 150 2021 ranking, with a combined brand value of € 150.6 billion.

From the 2 years ago when Verizon’s business transformation program began, Verizon 2.0 – focused on network transformation, go-to-market, brand, and business culture – the brand continues to make giant strides across the industry. The giant is widely recognized for being, among those in its category, the one with the best network and the widest coverage in the United States. And network usage increased during the pandemic, handling a staggering 800 million phone calls and 8 billion text messages a day. Verizon is making significant progress in its 5G expansion program, which now reaches more than 2,700 cities and 230 million people.

Teresa de Lemus, Managing Director Brand Finance Spain: “The Verizon brand is leveraging its brand strength to increase customer differentiation by migrating to unlimited plans and increasing adherence to content and partnerships such as Disney +, Apple and Discovery plus.”

Despite a 35.1% drop in brand value, making it the eighth fastest-falling brand in Brand Finance Telecoms 150 2021, Vivo (€ 1.3 billion brand value), is the most valuable telecommunications brand in South America. With the largest share of the Brazilian telecommunications market, Vivo is the leading fixed and wireless telephony brand in the country, even though it has been through difficult times in the last year due to the pandemic. However, the brand has taken steps towards innovation, using artificial intelligence to provide data that allows the Brazilian government to track the spread of COVID-19 throughout the country.

Other telecommunications brands in South America have also had complicated results such as the Argentine Personal (brand value of 215 million euros), which caused the brand to lose 55.8% of its value, becoming the third brand to suffer the most ranking drop. Personal’s Brazilian neighbor, Oi, is the fourth brand that has fallen the most, up 38.8% to 362 million euros. The brand has been plagued with financial problems in recent years, initially filing for bankruptcy in 2016 and running losses since. This has been compounded by the low levels of consumer recommendation and consideration we saw in our Brand Finance Global Brand Equity Monitor study, which has led to a decline in brand strength, as the Strength Index score of Oi’s brand (BSI) currently reaching 63.0 out of 100. The story is similar for the Chilean brand, VTR, which is the seventh brand that falls the most in the ranking this year, falling by 35.2% less, reaching 221 million euros. VTR’s drop in brand value is primarily attributed to a slight decline in revenue and an increase in weighted cost of capital over the past year.

Deutsche Telecom is crowned the most valuable brand in Europe

With a brand value of 43.5 billion euros, Deutsche Telekom has maintained its position as the most valuable telecommunications brand in Europe, moving up one place in the Brand Finance Telecoms 150 2021 ranking to third place. Following an impressive 20.6% growth in brand value, the fastest growing brand in the top 10, far outpacing the second fastest growing brand, Spectrum , which increased 4.8% to 18.2 billion euros.

As the largest telecommunications provider by revenue in Europe, Deutsche Telekom has reaped the rewards of its harvest by expanding to ultra-fast internet connections and increasing the popularity of its MagentaENIS service package. Last year, the German telecommunications brand also completed the merger of T-Mobile and Sprint in the US, which has significantly bolstered its total revenues, even despite the COVID-19 pandemic. With a successful merger under its belt, the telecoms giant is now looking back to Europe for further expansion, an effort likely to lead to greater success in the coming year.

Jio shines as the fastest growing and strongest brand in the world

In addition to measuring overall brand equity, Brand Finance also assesses the relative strength of brands, based on factors such as marketing investment, customer perceptions, employee satisfaction, and corporate reputation. Along with revenue forecasts, brand strength is a crucial factor in brand equity.

Indian telecom giant Jio is shaking up the industry as the world’s strongest telecom brand, with a Brand Strength Score (BSI) of 91.7 out of 100 and a Brand Strength rating of AAA +.

Despite its recent founding in 2016, Jio has quickly become the largest mobile network operator in India and the third largest mobile network operator in the world, with nearly 400 million customers. Renowned for his incredibly affordable plans, Jio took India by storm by offering 4G to millions of users for free, simultaneously transforming the way Indians consume the internet, which is even known as the ‘Jio effect’.

The dominance of the brand across the country is also evident in the results of the market research conducted by Brand Finance. Jio scores highest on all metrics – Conversion Consideration, Reputation, Recommendation, Word of Mouth, Innovation, Customer Service, and Value for Money – compared to its telecom competitors in India. The brand does not have major weaknesses within the sector and, unlike other telecom brands globally, Jio has shown that it has broken the mold and enjoys genuine affection from consumers.

In addition to being a prominent brand for its brand strength, Jio is the brand that has grown the most in the ranking in terms of brand value, breaking the negative trend present throughout the industry, with an increase from 41.5% to 4.1 thousand millions of euros.

The Indian brand Airtel also celebrated a strong year, jumping 12 points in the ranking to 23rd after increasing the brand value of 28.3% to 5.2 billion euros.

Despite registering a 27.8% drop in brand value, China Mobile (€ 32 billion brand value) remains the most valuable brand in the region, followed by China Telecom (down -37 , 4% brand value to 11.3 billion euros) and China Unicom (down -20% to 6.7 billion euros). Despite being in the Top 20 of Brand Finance Telecoms 2021, China’s top three telecom brands experienced more significant losses in brand value than any of their Chinese competitors.

There are several reasons for China’s declining performance within the sector, namely the decline in the number of subscribers, including large-scale cancellations of business phone numbers, and the torrential rain that resulted in some of the worst flooding in the region in more than two decades. In the first quarter of 2020 alone, China Mobile lost four million users and China Unicom lost 7.5 million. Additionally, the mid-year floods affected nearly a quarter of a million people, with 41,000 homes destroyed when the floods washed away buildings and telecommunications infrastructure.

MEA brands stand out for innovation

Etisalat has been crowned the strongest telecommunications brand in the MEA, with a Brand Strength Index (BSI) score of 87.4 out of 100 and a AAA brand strength rating, the only brand in the region to achieve this rating.

Thanks to its strategy in recent years and its recent achievement of becoming the fastest network on the planet, the brand was in a position to respond immediately to the ‘new normal’ of the pandemic, providing solutions and flexibility in a way that connect emotionally with consumers. Etisalat Group is aiming to become a truly global player.

Teresa de Lemus , Managing Director of Brand Finance Spain :

“When COVID hit in 2020, Etisalat led from the front in ensuring business continuity, robust e-government, enabling smart cities and remote learning, to help drive the UAE’s digital future. By maintaining visibility and providing the nation with the fastest network on the planet, Etisalat has earned its place as the strongest brand in the region. “

STC is the most valuable brand in the region, its brand value rose 7.5% to 7.7 billion euros, simultaneously jumping 5 positions to 13th in the ranking. STC has recently doubled the capacity of its network, without ever compromising on customer service, something the brand takes great pride in. The brand has also achieved a AAA brand rating for the first time due to its branding and business transformation. With an increase of 4.4 points of strength, it rises an impressive 22 positions in the BSI ranking.

Note to editors

Every year, Brand Finance tests 5,000 of the largest brands, assessing their strength and quantifying their value, and publishes nearly 100 reports, ranking brands across sectors and countries. The 150 most valuable telecommunications brands in the world are included in the Brand Finance Telecoms 150 2021 report.

The full Brand Finance Telecoms 150 2021 ranking, additional information, charts, more information on the methodology, as well as definitions of key terms are available in the Brand Finance Telecoms 150 2021 report.

The brand value is defined as the net economic benefit the owner of a brand to achieve the grant brand license in the open market. Brand strength is the effectiveness of a brand’s performance on intangible measures relative to its competitors. See below for a full explanation of our methodology.

Follow us on Twitter @BrandFinance , LinkedIn Instagram , and Facebook.

About Brand Finance

Brand Finance is the leading independent, international consulting firm in brand valuation and strategy, with offices in 20 countries. We create bridges between the areas of marketing and finance. We provide clarity to marketers, brand owners and investors when quantifying the financial value of a brand. For our experience in strategy; branding; market research; Visual identity; finance; Tax aspects and intellectual property, at Brand Finance we support the client to make the right decisions that optimize the value of a brand and the entire company by building bridges between marketing and finance.

Every year, the independent brand valuation consultancy Brand Finance values ​​the most important brands in the world. More details on the methodology and terminology, as well as the definitions of terms can be found on our Brand Finance website .

Brand Finance collaborated in the development of the international standard on financial valuation of brands, ISO 10668, as well as in the recently approved standard on brand assessment, ISO 20671. Brand Finance is under the ICAEW regulations as a public accounting firm and is the first consulting firm in brand valuation to be part of the international committee on valuation standards, IVSC.

Methodology

Brand definition

The brand is defined as an intangible asset related to marketing that includes, among others, names, terms, signs, symbols, logos and designs, intended to identify goods, services or entities, creating images and distinctive associations in the minds of the parties interested. , thus generating economic benefits.

Brand value

Brand equity refers to the present value of earnings specifically related to brand reputation. Organizations own and control these profits by owning trademark rights.

All brand valuation methodologies are essentially trying to identify this, although the approach and assumptions differ. As a result, the published brand values ​​may be different.

These differences are similar to the way that equity analysts provide business valuations that are different from each other. The only way to discover “real” value is by looking at what people actually pay.

As a result, Brand Finance always incorporates a review of what brand users actually pay for brand use in the form of brand royalty agreements, found in more or less every industry in the world.

This is sometimes referred to as the “Royalty Relief” methodology and is by far the most widely used approach to brand valuations as it is grounded in reality.

It is the foundation of a public ranking, but we always augment it with a real understanding of people’s perceptions and their effects on demand, from our market research database on 3,000+ brands in 30+ markets.

Brand valuation methodology

For our ratings, Brand Finance uses the simplest and easiest-to-understand method possible to help readers understand, gain confidence, and actively use brand ratings.

Brand Finance calculates the values ​​of brands in their rankings using the Royalty Relief approach, a brand valuation method that meets the industry standards set out in ISO 10668.

Our evaluation of the Brand Strength Index or Brand Strength Index, a comprehensive scorecard of brand-related measures, also complies with ISO standards (ISO 20671) and works as a predictive tool of future changes in brand value and a dashboard to help companies improve marketing.

We do this in the following four steps:

  • Brand impact. We review what brands already pay in royalty agreements. This is augmented by an analysis of how brands impact profitability in the sector versus generic brands. This results in a range of possible royalties that could be charged in the industry by brands (for example, a range of 0% to 2% of revenue)
  • Brand strength. We adjust the rate higher or lower for brands by analyzing Brand Strength. We analyze the strength of the brand by looking at three main pillars: “Income”, which are activities that support the future strength of the brand; “Fairness”, which are actual current insights from our market research and other data partners; “Product”, which are brand-related performance measures, such as market share. Each brand is assigned a Brand Strength Index (BSI) score of 100, which feeds into the calculation of brand equity. Based on the score, each brand is assigned a corresponding brand rating up to AAA + in a format similar to a credit rating.
  • Brand impact x Brand strength. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.
  • Forecast of the calculation of the brand value. We determine brand-specific revenue as a proportion of parent company’s revenue attributable to the brand in question, and we forecast that revenue by analyzing historical revenue, capital analyst forecasts, and economic growth rates. We then apply the royalty rate to the expected revenue to derive the brand’s revenue and apply the relevant valuation assumptions to arrive at an after-tax discounted present value equal to the brand’s value.

Disclaimer

Brand Finance has produced this study with an independent and unbiased analysis. The derived values ​​and opinions presented in this study are based on publicly available information and certain assumptions Brand Finance used when such data was poor or unclear. Brand Finance accepts no responsibility and will not be liable in the event that publicly available information subsequently relied upon is inaccurate. The opinions and financial analysis expressed in the study should not be construed as investment or business advice. Brand Finance does not intend to trust the study for any reason and excludes all liability to any body, government or organization.

The data presented in this study is part of Brand Finance’s proprietary database, provided for the benefit of the media, and should not be used in whole or in part for any commercial or technical purpose without the written permission of Brand Finance.

Global Soft Power Summit 2021

BRAND FINANCE – Global Soft Power Summit 2021

25 February 2021, 12:00–16:00

2020 was a year like no other, putting the nations of the world to the test – from the impact of COVID-19 on economic activity and immediate GDP forecasts, to diminished long-term prospects. A nation’s soft power is, arguably, more important than ever.

Global Soft Power Summit 2021

Global Soft Power Summit 2021

Join us at Brand Finance’s Global Soft Power Summit 2021, hosted as a fully virtual event from the renowned Queen Elizabeth II Centre in Westminster, London. Practitioners and researchers of soft power will come together to explore the impact COVID-19 has had on nations around the globe, and to discuss predictions for the future following the turbulence of the last twelve months.

Hosted in partnership with BBC Global News, the Summit will feature a presentation of the results of the Global Soft Power Index 2021 by Brand Finance – the world’s most comprehensive research study on perceptions of nation brands, surveying opinions of over 75,000 people in more than 100 countries.

Due to governmental restrictions regarding COVID-19, this year’s Global Soft Power Summit will be hosted online. Click the link to register for the event.

The inaugural Global Soft Power Index 2020 report and the findings of last year’s study are free to access online. Our interactive dashboard allows you to explore the results from the survey in maps and charts, rank nations by metrics and statements, and choose data sets to create your own graphs.

To request a preview of your nation’s Global Soft Power Index 2021 results or to enquire about using the data for academic research, please email softpower@brandfinance.com.

Where

Online Event

Book Now

Media partners
BBC Global News

Speakers

Zeinab Badawi
Journalist and Presenter
BBC World News
Professor Joseph Nye
Harvard University
Carl Bildt
Co-Chair, European Council on Foreign Relations and Former Prime Minister of Sweden
David L Heymann M.D.
Professor of Infectious Disease Epidemiology
London School of Hygiene and Tropical Medicine
Rebecca Smith
Director
New Zealand Story Group
His Excellency Mohammed Bin Abdullah Al Gergawi
Minister of Cabinet Affairs
Ministry of Cabinet Affairs of the United Arab Emirates
Tom Tugendhat
Chair of the Foreign Affairs Committee, UK Parliament
David Haigh
Founder and CEO
Brand Finance

Banks learn the lesson and work their brand and reputation to overcome Covid-19 according to Brand Finance

  • The brand value of 7 banks places Spain in the top 10 worldwide according to Brand Finance. Spain contributes 2% to the total brand value of the ranking.
  • Spanish banks lose 6.3 billion euros due to Covid-19.
  • Ibercaja joins the list of the most valuable Spanish banks in the world.
  • Bankia is the bank that best resists COVID-19, the only one that rises in brand value and position in the ranking.
  • BBVA is the strongest bank in Spain (BSI 85.2 out of 100) and the fifteenth in the world. In a year in which all Spanish brands increase their brand strength, Bankinter is the Spanish bank that does so the most (+6.1 points to 71.5 out of 100).
  • While the 500 bank brands in the 2021 ranking increase their Brand Strength by an average of 1%, the 7 Spanish banks lose -0.7 points on average in 2021. With 92 points out of 100, the Russian Sber Bank is the strongest bank in the world. world.

Access the Brand Finance Banking 500 2021 report here

In Madrid on February 1, 2021.- The strength of the most valuable banks in the world increases 2.2 points on average while brand value falls for the second consecutive year. In this context, seriously impacted by the pandemic, reputation is presented as the integral variable of the strength of the brand that could make them take flight according to the market study carried out for the new report that assesses the most valuable brands in the banking sector in the world. world, Brand Finance Banking 500 2021, the leading independent intangibles valuation consultancy whose rankings comply with ISO 10668 and ISO 20671 for brand valuation and evaluation respectively and which contributes with its brand value database to create one of the indicators of the Global Innovation Index (GII) of the UN.

The photo of the 9 Spanish banks that represent us in the ranking is not much more encouraging. They lose 6.3 billion among all compared to 2020 and the average brand strength also drops -0.7 points. Teresa de Lemus, Managing Director of Brand Finance Spain: “Banking brands have managed to get the positive out of Covid-19 and have wisely used it to improve their reputation, a decision that is undoubtedly correct for the future”

Abanca , which last year climbed 79 in the ranking, this year rises one position to 331 since its brand value drops -0.7%. However, its solidity is demonstrated by the 3.5 point rise in strength, which now stands at 66 points out of 100, the second largest rise behind Bankinter among Spanish companies.

Banks learn the lesson and work their brand and reputation to overcome Covid-19 ac

Bankinter has been the one that has given the starting gun presenting results on January 21. The entity led by María Dolores Dancausa has reduced its profit by 42.4% until September, to 317 million euros, after a provision of 242.5 million euros due to the pandemic. We will have to be attentive to the ‘roadmap’ for the landing on the market of its insurer, Línea Directa , which was postponed and is now scheduled for mid-2021.

It seems that CaixaBank also followed a procurement strategy. According to the results presented last Friday, it closed 2020 with a net profit of 1,381 million euros, a figure that represents a decrease of 19% compared to the previous year, due to the extraordinary provision amounting to 1,252 million that the entity has made for cope with the impact of Covid-19. Bankia, a brand that will disappear when the merger process scheduled for this first quarter of 2021 is completed, reduced its own by 57% in its last presentation of results, on January 27, the entity closed the year with 230 million euros, a 57.6% less. These will be the last results of both separately before the integration of the two banking giants. An announcement that was already taken into account in the analysis for this study and therefore is included in the brand value of this ranking.

Banco Sabadell expects that it will also show declining numbers in its next presentation of results. Chaired by Josep Oliu, it falls 18 places (position 175) in the ranking, experiencing the largest drop among Spanish banks. This is the result of the loss of brand value, -28% lower than in 2020, the biggest drop of the group of 9 national banks in the ranking.

Santander and BBV are our most international representation. Included among the 500 most valuable brands in the world in the Brand Finance Global 500 2021 ranking presented on January 26. The two largest in the sector share a loss of -23% of their brand values. However, in terms of brand strength, BBVA’s scenario is superior. Santander lost -0.5 points (74.6) and BBVA increased in strength 0.6 points to 85.2. It is the strongest Spanish bank.

We have a new member this year, Ibercaja , who with a brand strength of 57.7 is placed 424 in the ranking. The greatest decrease in this indicator is recorded by KutxaBank, which loses 3 points in strength and falls 14 places to 288.

The banking sector as a whole faces a difficult short-medium-term future.

In addition to starting from a difficult situation due to the low levels of profitability in the sector, banks are seeing increased pressure as governments and central banks around the world continue to try to stimulate economic growth: through large aid packages , the reduction of interest rates and the relaxation of regulation in the banking sector. And add to this the increasing probability of multiple credit defaults, companies and consumers struggling to get out of the pandemic.

Teresa de Lemus, Managing Director of Brand Finance Spain: “Unlike their roles as instigators in the past, banking brands could now become the saviors of the global economy helping to overcome the impact of the pandemic.”

This role change has led to a change in the perception of banking. Favorable opinions among consumers are on the rise, and industry brand reputation indicators rise significantly for the first time since the financial crisis

according to the Global Brand Equity Monitor study by Brand Finance.

This improvement in the perception of the banking sector is reflected in the Brand Strength indicator (BSI), which increases 2.2 points on average among the 67 Global 500 brands and 1 point in the current sector ranking (of the 66.5 out of 100 in 2020 to 66.4 out of 100 in 2021) among the 500 in this report despite the drop in brand value.

Banking and telecommunications brands have the lowest results in

reputation and trust in many markets, especially the latter. Although its demand increased, like other sectors during the pandemic, when connectivity became vital, mistrust has eroded considerably.

Effect of the pandemic on the banking sector

As governments struggle to stimulate economic growth in the face of the current global health crisis, profits and interest rates in the banking sector suffer. C Banks learn the lesson and work their brand and reputation to overcome Covid-19 almost two-thirds of the 500 most valuable banking brands in the world have registered losses in value d Banks learn the lesson and work their brand and reputation to overcome Covid- 19e mark, according to our latest report.

The industry has seen a dramatic recession in the last two years compared to the performance of previous years. The total value of the brands in the annual Brand Finance Banking 500 ranking increased by 10% in 2018 to 0.9 billion euros to 1 trillion euros and 15% in 2019 (1.12 billion euros), in 2020 It lost value falling to 0.8 trillion euros.

The economic impact of the COVID-19 pandemic is noticeable, and the forecast for global GDP is for a reduction of more than 4%, which would show the largest global recession since World War II.

According to our analysts, of the 100 brands that lost the most brand value during each recession, 74 were banks. On the other hand, there were also banks 30 of the 100 brands that have overcome a recession with the most success.

In addition to calculating brand equity, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics that assess marketing investment, stakeholder equity, and business performance. Along with revenue forecasts, brand strength is a crucial driver of brand equity. Banks with a Brand Strength Index (BSI) below 60 points out of 100 experienced an average decrease in brand value of 20%, while banks with a BSI score above 70, the average drop in brand value was only 8%, which shows how important it is for banking brands to have stronger brands than their competitors during an economic downturn.

Teresa de Lemus, Managing Director of Brand Finance Spain : “Financial institutions were the main culprits in the latest financial collapse; This time they present themselves as agents capable of helping people overcome the repercussions of COVID-19. “

43 of the 67 Global 500 banking brands lose value

Of the 67 most valuable banking brands in the world included in the Brand Finance Global 500, 43 have declined in brand value year over year. The sum of the brand value of all of them decreased -68,000 million euros, from 818.4 billion in 2020 to 750.4 billion in 2021. This decrease in the brand value of the banking sector reflects the situation in the that many banks are found as a direct consequence of the COVID-19 pandemic.

In particular, Sber has increased its strength and is positioned as the strongest banking brand in the world, increasing its score in the Brand Strength Index (BSI) to 92.0 out of 100. However, Sber has recently announced a change in the form in which it is positioning its brand, seeking to use the trust and reputation that it has accumulated over so many years among Russian consumers, to move into lucrative new spaces such as TV broadcasting, self-driving cars and cloud services.

In the short term, organic brand value growth can be difficult to achieve. One way to see future growth in brand equity in the industry is through mergers and acquisitions.

Many of the large multinational banks have much stronger balance sheets than during the global financial crisis and may be trying to acquire smaller or struggling brands in their struggle to increase market share at a time of simplified banking environment. We have seen it recently in Spain, first with the acquisition of Popular by Banco Santander and more recently with the merger of CaixaBank and Bankia.

Chinese banks dominate the sector

Chinese banks maintain dominance in the Brand Finance Banking 500 2021 ranking, representing a third of the total brand value and seven of the ten that have grown the most in brand value. Chinese banks have been largely impervious to the problems plaguing their competitors in other parts of the world: while two-thirds of the brands in the ranking have experienced losses, Chinese banks recorded healthy growth in average brand value 3%. This is largely due to China’s timely and effective response to COVID-19, which included regulatory policy adjustments for asset management, wealth management and interbank, as well as increased investment in digitization.

Despite a 15% drop in brand value to € 61.9 billion, ICBC remains the most valuable banking brand in the world. As the largest bank in China, ICBC continues to do well with consumers, regardless of the decline in the bank’s brand value due to the negative impact the pandemic has had on the performance of its investment portfolio. However, the brand maintains a healthy lead ahead of China Construction Bank (-10% and a value of 50.7 billion) and the Agricultural Bank of China (-8% less and a value of 45.2 billion), They occupy the second and third place in the ranking, respectively.

China Guangfa Bank is also a notable injection into the country’s portfolio, entering the Brand Finance Banking 500 2021 ranking for the first time at an impressive 84th position and valued at 2.8 billion euros. The Hong Kong Monetary Authority recently granted China Guangfa Bank a banking license, expanding its footprint outside of mainland China.

5 US banks in the top ten

US banks represent almost a quarter of the total brand value of the ranking: the sum of the brand value of the 74 banks in the country reached 233.9 billion euros. Five US brands are in the top 10: Bank of America (down -13% of the value of 27.9 billion), Citi (down -8% to 27.4 billion), Wells Fargo (down -27% and has a value of 27 billion), Chase (-13% less to 24.5 billion). Bank of America remains the most valuable banking brand in the United States and ranks fifth overall, and JP Morgan is the only brand in the top 10 that increases brand equity.

Wells Fargo currently has the lowest reputation rating score of any bank in the United States. It experienced the biggest drop in brand equity, down two spots to seventh, and third among US banks.

Citi , the third-largest U.S. bank by assets, has become the strongest retail bank in the United States with a Brand Strength Index score of 80.7 out of 100 and a AAA brand rating (versus AA + of 2020). Citi has also moved up one place in the rankings to sixth, following a rapid rebound in profits in the third quarter of last year.

Experts set their eyes on Vietnam

Vietnam’s banking sector has seen the highest growth in brand value of any nation in the ranking, with an increase of 659 million euros (from 4.1 billion in 2020 to 4.7 billion in 2021 ). Vietnam’s ability to effectively control and restrict the effects of COVID-19 has enabled it to counteract the industry trend of declining brand equity. Internal reforms have strengthened the accountability of the Vietnamese financial sector, which has had the indirect effect of increasing not only revenues, but also the reputation and trust of brands. The sum of the value of Vietnamese banks during the last 5 years shows a brand value growth of 753%, the second most important national growth in the ranking.

With an increase of 148%, Union Bank of India is the fastest growing banking brand.

The Union Bank of India experienced the largest growth of the year, growing 148% to 1,028 million euros while climbing 128 positions to 169.

The merger between Andhra Bank and Corporation Bank is primarily responsible for this growth, understood as part of a national effort to consolidate the banking space in India. This success is also reflected at the national level. Besides China, India was the only nation among the top 10 countries with the highest brand value in the ranking that has seen growth in its brand. Among all brands they are up 3% this year.

The banks that stand out

While some of the world’s largest banks have failed during the pandemic, 23 newcomers have joined the 2021 ranking, hailing from Europe, Asia, the United States and South America.

The one that joins in the highest position is Truist at position 36, with a brand value of 6.8 billion euros. Formed in 2019, as a result of the merger between BB&T and SunTrust , they were ranked 68th and 86th respectively in the 2019 rankings, with a combined brand value of € 5.9 billion ($ 7.2 billion). . Teresa de Lemus, Managing Director of Brand Finance Spain : “This merger is another example of the power of rebranding and a careful brand strategy, which shows that brands can be revitalized even in the face of a global crisis.”

Sber surpasses BCA and is crowned the strongest banking brand in the sector

Sber has grown its brand strength year over year to become the strongest brand in the Brand Finance Banking 500 2021 ranking and the third strongest brand in the world across all sectors in the Brand Finance Global 500 , with a Strength Index of Brand (BSI) of 92.0 out of 100 and a coveted AAA + rating.

As the largest bank in Russia, Sber has benefited from its brand stability and high levels of customer loyalty. Both driven by the recent brand change carried out with the aim of consolidating its melting pot of services, which includes the banking, health and logistics branches, among others. Sber is poised for further success as the company has announced that it will continue to invest in its brand in the coming year, which is likely to increase its strength score further.

In market research conducted by Brand Finance, Sber consistently outperforms its competitors in reputation and familiarity – it is widely known, always on top of mind, and well regarded. As a result, the recommendation is high. The bank offers, in the eyes of consumers, the best offer available physically and online, which are solid bases to increase the strength of the brand.

Despite this success, Sber is not exempt from the problems stemming from the COVID-19 pandemic. The decline in brand value in local currency terms has been exacerbated by increased risk in the Russian economy, following the mid-year collapse of the oil price and the subsequent weakening of the Russian ruble, which ended in a fall in the general sectoral ranking of -33% to the value of 7.9 billion euros.

As the second strongest brand in the ranking, Indonesia’s BCA has maintained its strength score of 91.6 out of 100 and is the only brand, other than Sber, that has received an elite brand strength rating of AAA +. It remains one of the largest banks in the ASEAN region and has the highest market capitalization value on the Indonesian Stock Exchange.

South Africa brings to the ranking the third strongest banking brand this year, Capitec Bank , which has maintained its BSI score of 89.2 out of 100 and AAA rating. Surpassing 15 million clients as of December 2020, Capitec has more clients than any other South African bank, thanks to its excellent customer service and personalized experience. The South African brand, First National Bank , in fourth place in the world strength ranking, is also the most valuable bank in all of Africa with a brand value of 1,136 million euros (brand value drops -22%).

Access the Brand Finance Banking 500 2021 report here

Every year, Brand Finance tests 5,000 of the largest brands, assessing their strength and quantifying their value, and publishes nearly 100 reports, ranking brands across sectors and countries. The world’s 500 most valuable banking brands are included in the Brand Finance Banking 500 2021 report .

The full Brand Finance Banking 500 2021 rankings, additional ideas, tables, graphs, more information on the methodology, as well as definitions of key terms can be found in the report.

Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand on the open market. Brand strength is the effectiveness of a brand’s performance on intangible measures relative to its competitors.

About Brand Finance

Brand Finance is the leading independent, international consulting firm in brand valuation and strategy, with offices in 20 countries. We create bridges between the areas of marketing and finance. We provide clarity to marketers, brand owners and investors when quantifying the financial value of a brand. For our experience in strategy; branding; market research; Visual identity; finance; Tax aspects and intellectual property, at Brand Finance we support the client to make the right decisions that optimize the value of a brand and the entire company by building bridges between marketing and finance.

Every year, the independent brand valuation consultancy Brand Finance values ​​the most important brands in the world. More details on the methodology and terminology, as well as the definitions of terms can be found on our Brand Finance website . Brand Finance collaborated in the development of the international standard on financial valuation of brands, ISO 10668, as well as in the recently approved standard on brand assessment, ISO 20671. Brand Finance is under the ICAEW regulations as a public accounting firm and is the first consulting firm in brand valuation to be part of the international committee on valuation standards, IVSC.

Methodology

Brand definition

The brand is defined as an intangible asset related to marketing that includes, among others, names, terms, signs, symbols, logos and designs, intended to identify goods, services or entities, creating images and distinctive associations in the minds of the parties interested. , thus generating economic benefits.

Brand value

Brand equity refers to the present value of earnings specifically related to brand reputation. Organizations own and control these profits by owning trademark rights.

All brand valuation methodologies are essentially trying to identify this, although the approach and assumptions differ. As a result, the published brand values ​​may be different.

These differences are similar to the way that equity analysts provide business valuations that are different from each other. The only way to discover “real” value is by looking at what people actually pay.

As a result, Brand Finance always incorporates a review of what brand users actually pay for brand use in the form of brand royalty agreements, which are found in more or less every sector of the world.

This is sometimes referred to as the “Royalty Relief” methodology and is by far the most widely used approach to brand valuations as it is grounded in reality.

It is the foundation of a public ranking, but we always augment it with a real understanding of people’s perceptions and their effects on demand, from our market research database on 3,000+ brands in 30+ markets.

Brand valuation methodology

For our ratings, Brand Finance uses the simplest and easiest-to-understand method possible to help readers understand, gain confidence, and actively use brand ratings.

Brand Finance calculates the values ​​of brands in their rankings using the Royalty Relief approach, a brand valuation method that meets the industry standards set out in ISO 10668.

Our evaluation of the Brand Strength Index or Brand Strength Index, a comprehensive scorecard of brand-related measures, also complies with ISO standards (ISO 20671) and works as a predictive tool for future changes in brand value. and a dashboard to help companies improve marketing.

We do this in the following four steps:

  • Brand impact. We review what brands already pay in royalty agreements. This is augmented by an analysis of how brands impact profitability in the sector versus generic brands. This results in a range of possible royalties that could be charged in the industry by brands (for example, a range of 0% to 2% of revenue)
  • Brand strength. We adjust the rate higher or lower for brands by analyzing Brand Strength. We analyze the strength of the brand by looking at three main pillars: “Income”, which are activities that support the future strength of the brand; “Fairness”, which are actual current insights from our market research and other data partners; “Product”, which are brand-related performance measures, such as market share. Each brand is assigned a Brand Strength Index (BSI) score of 100, which feeds into the calculation of brand equity. Based on the score, each brand is assigned a corresponding brand rating up to AAA + in a format similar to a credit rating.
  • Brand impact x Brand strength. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.
  • Forecast of the calculation of the brand value. We determine brand-specific revenue as a proportion of parent company’s revenue attributable to the brand in question, and we forecast that revenue by analyzing historical revenue, capital analyst forecasts, and economic growth rates. We then apply the royalty rate to the expected revenue to derive the brand’s revenue and apply the relevant valuation assumptions to arrive at a discounted present value after tax that is equal to the brand’s value.

Brand Finance Global 500 Launch: The Role of Tech Brands in Driving Economic Growth

January 26, 2021, from 2:00 p.m. to 4:00 p.m.

Brand Finance Global 500 Launch: The Role of Tech Brands in Driving Economic Growth

Economic growth and technological innovation are historically perceived as concurrent. As we progress through the 21st century, the world is innovating at an increasingly rapid rate, and whereas previous predictions of technological development would be forecast over a 25 to 50-year period, this timespan has now become much shorter.

Nevertheless, 2020 saw the world experience unprecedented economic upheaval, as the health of populations and national economies took substantial blows. The primary focus of the foreseeable future will be to revive the global economy from the damage caused by the COVID-19 pandemic.

Join our webinar alongside a panel of C-suite executives as we discuss how important a role technology brands will play in the economic recovery after a year of turbulence, and how we predict where technological innovations will take brands in the next 5, 10, and 25 years.

Taking place at the time of our usual Davos event, the webinar will launch the Brand Finance Global 500 2021 rreport and present the findings of our annual study into the world’s 500 most valuable and strongest brands across all sectors and countries, as well as the Brand Finance Brand Guardianship Index 2021 ranking of the world’s top 100 CEOs.

To learn about your brand’s performance ahead of the launch, please email enquiries@brandfinance.com. Our Consulting Team is here to help.

Brand Finance is the world’s leading brand valuation consultancy, with offices in over 20 countries.

Brand Finance bridges the gap between marketing and finance by quantifying the financial value of brands.


Brand Finance helped craft the internationally recognised standard on Brand Valuation – ISO 10668, and the recently approved standard on Brand Evaluation – ISO 20671.
Brand Finance is a chartered accountancy firm regulated by the Institute of Chartered Accountants in England and Wales (ICAEW), and also the first brand valuation consultancy to join the International Valuation Standards Council (IVSC).

Brand Finance bridges the gap between marketing and finance by quantifying the financial value of brands. Drawing on expertise in strategy, branding, market research, visual identity, finance, tax, and intellectual property, Brand Finance helps brand owners and investors make the right decisions to maximise brand and business value.
Brand Finance, bridging the gap between marketing and finance.


Founded in 1998 in London by David Haigh,

it is present in Spain directed by Teresa de Lemus.

Madrid´s office has participated in brand valuation reports, marketing ROI analysis and strategic decisions, brand changes after an acquisition, brand strategies to increase market share or as an expert witness in legal procedures on loss of reputation. Some of our Spanish clients have been: Santander, Chupa Chups, Telefónica, Cepsa, Canal de Isabel II, LaLiga among others.

We are different from our technical rigor since we use an internationally endorsed methodology.

Brand Finance helped craft the internationally recognised standard on Brand Valuation – ISO 10668, and the recently approved standard on Brand Evaluation – ISO 20671. The company is part of ICAEW and is the first brand valuation consultant to join the IVSC International Committee on Valuation Standards.

The Brand Finance methodology used in the preparation of the annual rankings on the most valuable and strong brands in the world, is certified by the North American Marketing Accountability Standards Board (MASB) and complies with the Marketing Metric Audit Protocol (MMAP) audit protocols.).
We are very proud that, since 2020, the UN Global Innovation Index (GII) incorporates our brand value database to create one of the indicators by strengthening the weight of the brand category in its analysis.
We are defined by the slogan, “bridging the gap between marketing and finance” as we study and analyse the impact and role of “brand” in the turnover and value of business. We dedicate all our efforts in valuing the importance of intangible assets, particularly branding, to business results. We help brands study and analyse the benefits of intangible assets as well as the behavior of brand drivers in adding value to marketing and finance teams.

  

Every year, Brand Finance analyses over 5,000 of the world’s most valuable and strongest brands. Our database is one of our strengths and gives us a profound knowledge of the past, present, and future across sectors, allowing us to predict trends.

Using this plethora of information, we publish over 40 sector rankings and reports every year, publicizing the value of brand to businesses. The Brand Finance Global 500 is our yearly study of the 500 most valuable brands in the world. According to the latest report, SantanderZaraMovistarBBVAEl Corte Inglés, Iberdrola and Mercadona stood out as the most internationally recognized Spanish brands.

 

Spanish luxury brand, LOEWE, is among the 50 most valuable luxury and premium brands in the world, according to the Brand Finance Luxury & Premium 50 2020 report.
The sector has been highly impacted by the pandemic in both the fall in consumption as well as international mobility restrictions, but LOEWE has managed to overcome and increase its two main brand indicators: brand value and brand strength. LOWE’s brand value has increased by 21.5% since 2019, rising four places in the ranking to the 32nd spot, Valentino, Salvatore Ferragamo, Versace, and Dolce and Gabana in the apparel sector.

Teresa de Lemus, Managing Director, Brand Finance Spain, commented:“The value of the LOEWE brand represents Spain, contributing 0.7 to the total ranking and positioning our nation in the top 10 (rank 8), being the brand that contributes the most to the total sectoral value. This sector value this year is 232.7 billion euros, 10.4% higher than in 2019. “

Without a doubt, the most awaited report in our country is the Brand Finance Spain 100 which analyses the 100 most valuable Spanish brands. The seven brands included in the Global 500 report are joined by Mapfre, Repsol, and CaixaBank which feature in the top 10 nationally.

THE VALUE OF NATIONS

In addition to corporate brands, we also analyze other intangibles such as the reputation, soft power or influence of nations and country brands, among others. We measure the influence
of countries and the attributes that are most internationally recognized in the Brand Finance Global Soft Power Index report. At the beginning of 2020 we had the presence of Ban Ki Moon, eighth UN Secretary General, at the presentation of the report in London and Oxford. According to the 2020 report, Spain stands out
internationally as the friendliest nation in the world.

The world considers the Spanish to be the nation with the most fun and friendly inhabitants in the world. Those born in the land of quiet lunches, long nights of fun, flamenco, a taste for sharing time together eating or soccer are incredibly popular around the world. This is largely due to the fact that Spain undoubtedly continues to be an international benchmark as a nation of leisure and tourism, a sector that contributed 14.6% to national GDP in 2019.

Overall, Spain ranks 16th out of a total of 60 nations on the Index, with a final score of 47.6 out of 100. Despite the positive results in People & Values, Spain’s performance is not so much in other
areas, such as Governance, International Relations or Education & Science. Recent problems involving Catalonia, problems in building a coalition government, corruption scandals and the persistent effects of the Great Recession are likely to be responsible for these results. Strength and stability at home are obviously a precursor to influence abroad.

Brand Finance Group draws on brand valuation, strategy and knowledge experience to advise brands around the world. Brand Dialogue is the Brand Finance Group company specialized in
building and measuring communication strategies that add greater value to the brand. Supports Brand Finance customers and own customers to effectively design and communicate brand strategies.

“We understand communication as a business lever. We analyze and measure the attributes of the brand strength that act as levers in the communication of each brand and sector. On this analytical basis, we build communication strategies that increase brand value and business sales figure.” Cristina Campos, Managing Director of Brand Dialogue Spain.

Brand Dialogue and Brand Finance are helping clients to solve brand problems using advanced financial assessment techniques and market research analysis to obtain valid information and
recommendations and a solid foundation and basis in values.

Interview – Brand Finance Spokesperson Teresa de Lemus,

Managing Director Brand Finance Spain

I started my professional career in Brussels in advertising self-regulatory entities and the media defending the interests of the media, advertisers and regulators against the EU. My entire professional career since then has been aimed at representing business interests in favor of their highest and best benefit. After 15 years I joined Brand Finance due to the technical rigor and the philosophy of humility and customer orientation, an activity that I combine with my three babies and that is only possible thanks to the support and family involvement of my husband.

1. What changes have you noticed during the years at the helm of Brand Finance Spain?
Spain is a very open market, not only to technical knowledge that recognizes and values ​​it, but also to the possibility of doing things differently. I have been particularly interested in these years how marketing and finance departments are receptive to new processes and ways of studying and analyzing data or information as well as using new tools to improve their results if necessary.

2. In Brand Finance you work with top-level companies, Ibex 35 companies and other large Spanish companies. What level of importance do you see that they give to the brand in these companies? Are they convinced of the strategic value of the brand in the business?
Rather, I would almost dare to say it the other way around. They are companies that have reached those levels because they understand the power of the brand and know how to manage it. The brand is the summary of your value proposition, your reputation, your trust. They have it more than clear.

3. What about all those large family businesses that are unknown to the general public but with astronomical turnover figures?
At Brand Finance, it is the type of client that we enjoy the most, since they are the ones that obtain the most attractive results and the shortest term from our advice. They are usually companies with a lot of desire to do things, but bureaucracies and intra-stories make it difficult to carry out many very interesting projects.

4. What do you think will be the keys to branding and marketing in the coming years?
The creativity. Doing things differently will always be the key but there is a false belief in thinking that this is for “daring” or those who “have a nose”. Innovating and being creative does not have to be a leap into the void, but with the appropriate analysis and data, it is necessary to know how to base it on the correct information and properly guide it towards the result with better turnover for the business in the short and long term

5. What advice would you give to the brand managers of Spanish companies?
None. They are the ones who know the business. I can only offer you tools to facilitate your work with the internal and external clients, but beyond that I would not dare.

6. We have witnessed how, during the crisis, companies that have opted for branding and communication have better resisted the impact. Do you think it is because they already had a strong brand or other actions they have launched? What advantages does having a strong brand bring to a company?
The strong brand has to not only come but stay. We all know examples of brands that have known how to reinvent themselves and take advantage of their brand to diversify and others that did not see it coming. For that you have to watch 3 fronts a lot: What you have, with whom you compete and who buys you.

7. If we look at Spain, there are few brands that we can consider truly global. What do you think it is due to and what is the recipe to increase the internationalization of our brands? What brands do you see with the greatest potential to internationalize?
Spanish brands, for ease of language, have always tended to go to Latin America, which does not have to be the most appropriate. In both expansion and diversification decisions, many variables must be taken into account, as well as short and long returns. Try to risk as little as possible.

8. What are the great challenges that a brand and its managers currently face?
At Brand Finance we work every day to “unite the Marketing and Finance departments”, that is our motto and the substance of everything we do. Providing the tools to the brands so that these two areas speak the same language is essential to grow the brand and the business. At this time, more than ever if possible, it is essential that these areas have accurate information to properly establish strategies in a context of uncertainty.

9. In the current context where there are so many sectors affected, which do you think will be the Spanish brands that will benefit the most and why? Do you have any forecast for 2021?
In general, in all contexts, the more information available to decide, the better. At Brand Finance we are continuously studying the brand and the parameters that comprise it. We have recently obtained a finding of how two variables (familiarity and consideration) impact market share. These results, published in our BrandBeta report, are one more example of how information can give you light. Not only know what market share you can aspire to obtain but also to anticipate and correct it in time if you are not on track.

10. Before finishing, would you like something else?
Monitoring and measurement tools like ours where we value and evaluate the brand not only help to make decisions but also facilitate the argumentation and defense of a job well done, of the decisions taken and above all, of knowing what to correct as and when if something it is not working as it should.

We have the perfect storm to reposition the Spain brand, according to Brand Finance

  • The Spain brand loses 28% of its value according to the latest Country Brand Report (Nation Brands 2020) by Brand Finance.
    Injection of optimism for the Spain Brand: The Pfizer and Biden vaccine could encourage national and international consumption of our products and increase the presence of our brands outside our borders.
  • The Top 100 National Brands in the 2020 Brand Finance Nation Brands rankings lose € 11 trillion of brand value in 2020 as they battle the COVID-19 pandemic.
    China continues to close the gap with the US leader. The Asian rival already has a brand value of 16.9 billion euros while the United States remains the most valuable country brand in the world with a value of 21.4 billion.
  • The top 10 most valuable country brands reduce their value by 20% on average. Japan in third position this year, emerging relatively unscathed from the pandemic.
    Emerging as a haven for manufacturing in Southeast Asia, Vietnam defies the global trend and increases its country-brand value by an impressive 16%. On the opposite side, Argentina is the national brand that loses the most value in the ranking, its brand value is already 61%.
  • Data from the Brand Finance Global Soft Power Index, which looks at the soft power or influence of nations globally, has been included in the Brand Strength (BSI) ranking for the first time, meaning This year, the ranking also takes into account global perceptions about nations. With this, Germany, a nation admired for its strong and stable leadership, possesses the strongest national brand in the world, with a Brand Strength Index score of 84. 9 out of 100.

Madrid, November 12, 2020.- The country brand Spain has lost 28% of its value according to the latest Country Brand Report 2020 (Nation Brands) of Brand Finance, the leading independent intangible valuation consultancy whose rankings comply with the ISO 10668 and ISO 20671 of brand valuation and evaluation respectively and that contributes with its brand value database to create one of the indicators of the UN Global Innovation Index (GII). With a country-brand value 465 million euros less than in 2019, Spain remains at the gates of the top 10 of the most valued country-brands in the world, led by the United States with 21.4 billion euros. Everything seems to indicate that we are at a key moment. Do we have the perfect storm to be able to reposition the Spain brand?

The country brand Spain was in 2019, 80% higher than the 0.802 billion it had in 2015. The context that our country has experienced during the last year, being one of the most economically and health-impacted by COVID19, has been a key factor for the reduction of the image of our country inside and outside our borders.

Teresa de Lemus, Managing Director of Brand Finance Spain: “In a global market, the country brand is one of the most important assets of any state, and in what we need most now, it encourages internal investment, and adds value to exports. Teamwork between government and company is crucial to achieve a win win in a situation like the one we are experiencing. ”

Top 10 Country Brands + Spain

Ranking 2020 Ranking 2019 Marca-País Valor Marca-País 2020  Valor Marca-País 2019 % Variación
1 1 Estados Unidos         21.434         27.751 -23%
2 2 China         16.950         19.486 -13%
3 4 Japón           3.848           4.533 -15%
4 3 Alemania           3.443           4.855 -29%
5 5 Reino Unido           2.993           3.851 -22%
6 6 Francia           2.437           3.097 -21%
7 7 India           1.831           2.562 -29%
8 8 Canadá           1.716           2.183 -21%
9 10 Italia           1.604           2.110 -24%
10 9 Corea del Sur           1.530           2.135 -28%
11 11 España  –  – -28%

* Country-brand value visible only for the first 10 positions in the ranking

The pandemic has affected Spain more than most European countries, both in human and economic terms. The great dependence of Spain on tourism, as the tractor sector of our economy, has made the country particularly affected. However, not being the only one who has had to learn by trial and error gives her the opportunity to come out stronger as well as to take advantage of a rebound and growth to increase 7.2% in 2021. With the recent announcement of a Possible vaccine, which is expected to have a high success rate, it is possible that the country could recover and achieve even faster growth.

Teresa de Lemus, Managing Director of Brand Finance Spain: “At Brand Finance we have identified several levers that we could activate so that Spain can balance its dependence on tourism and position its brand wherever it will bring more return.”

Spain remains at the gates of the top 10 in country-brand

Spain maintains its position number 11 in the ranking of the 100 most valuable country brands in the world with a value of 465 million euros lower than in 2019. Considering that only 25 countries manage to overcome the 500 billion barrier and only 12 the Of the 1,000 billion euros, maintaining the eleventh position is quite an achievement for the managers of our country brand in the current context, but it will require efforts and concrete actions to reverse the trend.

The head of the ranking undergoes considerable changes. The United States leads the ranking for another year, although the distance that separates it from the voracious China decreases since it loses -23% of its value while China only reduces it by -13%. The top ten country brands in the ranking decrease in value by 20% compared to 2019, with India and Germany being the most disadvantaged of the top 10, losing -29.

However, in the same context and period of time, there are countries that have played their cards well. Vietnam climbs 9 places in the ranking (from 42nd to 33rd) after increasing its country-brand value by 16%. Other notable increases are Uzbekigstan (8.3%), Ethiopia (7.4%) and Pakistan (4%).

In contrast, the Argentine country brand is the one that has been most affected with a resounding 61% drop, reducing its value by more than half and dropping 12 positions in the ranking. It is followed by other significant decreases such as that of Qatar (45%), Costa Rica or Chile (40%).

Biden is expected to improve trade relations with Spain and facilitate the export of our brands and products so that all together we can get out of this pandemic and economic crossroads in which we find ourselves.

While the outgoing president has opted for a more isolationist international policy and has called into question issues such as NATO’s work, international cooperation or trade relations, Biden is expected to return the United States to the international scene. On the agenda, which will start in January 2020, there are several pending issues related to Spain: trade tariffs, defense spending and the future of military bases.

Next May, the renewal of the Defense Cooperation Agreement between Spain and the United States is scheduled, which affects the Spanish bases of Rota (Cádiz) and Morón de la Frontera (Seville). Another obstacle to overcome is the dispute over the tariffs that the Trump Administration imposed on Spanish products, making them more expensive by up to 25% in price.

The Trump government announced last August that it would maintain the tariffs it imposed on the EU in 2019 for products such as wine, oranges, cheese or oil. Joe Biden’s victory gives hope to the Spanish food sector (especially olive and wine), infrastructure, pharmaceuticals and energy, especially solar energy. On the other hand, they also foresee lower military spending and greater public investment in infrastructure, in addition to carrying out the decarbonization of the US energy network.

Teresa de Lemus, Managing Director of Brand Finance Spain: “Ibex35 companies such as Iberdrola, Acciona and Siemens Gamesa will be able to benefit from the new opportunities that this change of government generates. In the same way, increases are expected for the construction companies ACS and Ferrovial, with strong presence in the US market Viscofán, Inditex and Grifols complete the list of leading Spanish companies that have, in the coming years, the opportunity to gain presence and take the Spain brand to the most influential country in the world. ”

We must make it easier for our companies to grow

In February 2020, before the pandemic began, in Spain we only had about 5,000 large companies in our business fabric. In other words, more than 99% is made up of SMEs. Teresa de Lemus, Managing Director of Brand Finance Spain: “The Spain brand benefits many entrepreneurs who are now suffering to stay afloat. It is an intangible for everyone and for everyone”

GDP is expected to decline by -12. 8% according to the IMF (October), worse than expected in April. If we look at the picture of European economies, we see that Spain is the EU country that will suffer the greatest collapse, more than Italy, whose GDP will fall by -9.9%; Portugal -9.3% and Croatia -9.6%. Teresa de Lemus, Managing Director of Brand Finance Spain: “Although we need our dose of optimism, we must not ignore that our economy is in check, our companies damaged and hundreds of thousands of jobs in the process of destruction. Every crisis comes with an opportunity, every storm is followed by calm. ”

International panorama

Monumental loss of value of country brands

The world’s 100 most valuable national brands have suffered a monumental loss in their brand value due to the COVID-19 pandemic, amounting to € 11 trillion, according to the latest report by the world’s leading brand valuation consultancy Brand Finance. . 2020 has put the world’s nations to the test, from shocks to economies from COVID-19 on nations’ GDP forecasts, inflation rates, and overall economic uncertainty, to declining long-term prospects. term.

The Brand Finance Nation Brands 2020 report estimates that the total brand value of the top 100 national brands fell from € 83 trillion ($ 98 trillion) in 2019 to € 71 trillion ($ 84.9 trillion) in 2020, with a significant impact of the health crisis in almost all nations and in their respective economies.

Teresa de Lemus, Managing Director of Brand Finance Spain: “The downward trend of almost all the most valuable national brands in the world given the year we are currently experiencing is not surprising. We run the risk of an emerging and growing protectionism causing a reversal in the forward-looking globalization that has contributed to a prosperous global economy in recent years. That said, optimism has certainly prevailed, with forecasts that seem less dire than initially anticipated, and with the recent announcement that a working vaccine will begin to implemented, things are certainly looking up. ”

The United States and China play in another league

The United States and China continue to be well above the rest of the country brands in the ranking. In first and second position in this year’s rankings, they register brand values ​​of 21.4 billion euros and 16.9 billion euros respectively. Relations between the two nations remain particularly fragile due to the trade war that has consumed both economies in recent years.

The undisputed leader is the United States. It has posted a -23% loss in brand value after another turbulent year. The nation, now home to the majority of virus cases and deaths worldwide, the world’s largest and strongest economy, continues to meet harsh criticism and is questioned on the global stage. With Biden announced as the winner of the 2020 presidential election, in one of the most controversial and polarizing races in American history, the future of the nation will undoubtedly look very different from that of the incumbent president.

Despite this political uncertainty, the dominance and success of US brands globally will always provide the nation’s economy and reputation with a strong safety net. US brands Amazon, Google, Apple, and Microsoft took four of the top five spots on the Global Brand Finance 500 for the year.

Unlike the US, China’s brand equity has managed to remain largely stable, registering just a modest 13% drop this year. The Chinese government’s rapid response to the COVID-19 outbreak, along with its targeted stimulus measures in recent months, has resulted in the nation becoming the first major economy to recover from the pandemic and is currently expected to be the the only G20 economy to grow this year.

Teresa de Lemus, Managing Director of Brand Finance Spain: “Once again, we see China increasingly close to the US in our ranking of the world’s most valuable country brands. China has demonstrated its ability to recover from a meteoric pace, providing a beacon of hope that recovery can also occur on the global stage. ”

The Top 10 nations reduce their brand value by 20% on average

With the pandemic wreaking havoc on country brand values ​​around the world, the top 10 have seen a 20% loss in brand value on average. Japan has fared relatively better, posting a modest brand equity loss of 15% (country-brand value of € 3.8 trillion). Defying the odds of many who expected the nation to be one of the worst hit at the start of the coronavirus outbreak, due to its proximity to China, its densely populated cities, and growing elderly population, Japan has become a case of success registering the lowest numbers of infected and deaths from coronavirus and with its much healthier economy.

Ireland has weathered the negative trend this year as the only national brand in the top 20 with its brand equity intact (0% growth). This strong performance is, in large part, attributable to their forecasts looking less dramatic compared to others on the global stage, a particularly positive position given the dual threat of Brexit and COVID-19. The Irish economy has proven to be particularly resilient, supported by strong exports and continued consumer spending. If the UK reaches a Brexit deal, Ireland will be in an even stronger position as the disruption to trade with the UK is reduced.

UK, in the final stage of Brexit, retains fifth position

The United Kingdom has retained the fifth position, after a drop in brand value of -22% that leads to value its country brand at 2.9 billion euros. Despite Brexit being overshadowed by COVID-19 this year, the uncertainty surrounding the ultimate impact has persisted. The UK government is still involved in negotiations over fishing rights and competition rules, two sticking points for both parties.

Teresa de Lemus, Managing Director of Brand Finance Spain: “As the UK finalizes the Brexit negotiations, the nation is at a tipping point. Britain has a great opportunity to develop into an economy that functions in a similar way to its neighbor, Ireland, with lower taxes and a friendly ecosystem for start-ups. If the UK were to strike a good trade deal, the country-brand could certainly prosper and become the business hub off the coast of Europe, already that Singapore is in Asia. ”

What is the key to the success of the fastest growing country brand? Vietnam defies world trend by increasing its country brand by 29%

Vietnam is the national brand that has grown the most in this year’s ranking. Its brand value soared 16% to $ 288 billion. Vietnam, with staggeringly low COVID-19 cases and deaths, has become one of the top locations within the Southeast Asia region for manufacturing, becoming an increasingly attractive destination for investors, particularly from the US – trying to relocate the operations it had with China – in the aftermath of the US-China trade war. Recent trade agreements with the EU are further supporting the nation’s growth.

Cry for me Argentina

In stark contrast, Argentina has seen the biggest drop in the value of the country brand this year. A dramatic decline of 61% reduces their brand value to 158 billion euros. With COVID-19 cases surpassing the 1 million barrier, the smallest nation by population to reach this number, Argentina has been struggling to respond to the pandemic. Unrest has broken out across the country with protesters calling for a reform of the judicial system, for corruption cases to be investigated and for society on the streets complaining about the management of the pandemic. The nation’s economy, already in crisis, is receiving new and severe blows and the road to recovery will not be short.

Germany owns the strongest national brand in the world

In addition to measuring the value of the country-brand, Brand Finance also determines the relative strength of national brands through a balanced scorecard of metrics that evaluate brand investment, brand equity, and company performance. brand. For the first time this year, the country brand strength methodology includes the results of the Global Soft Power Index, the world’s most comprehensive research study on the perceptions of national brands, which has been conducted by surveying more than 55,000 people and in more than 100 countries. By these criteria, Germany is the strongest national brand in the world with a brand strength score of 84. 9 out of 100 and a AAA rating.

Teresa de Lemus, Managing Director of Brand Finance Spain: “Germany remains a reflection of where to look, in Europe and around the world. As Merkel prepares to resign as chancellor in 2021, a position she has held since 2005, Germany will hope that his history of reliable leadership in times of increasing polarization in Europe and the strength of his country-brand will help him in the year ahead as the nation works toward a post-COVID recovery. “

 

UN lists brand equity in Global Innovation Index for the first time

Using data from Brand Finance, the indicator now recognizes the contribution of brands as intangible assets to innovation in an economy.

  • The 2020 update of the Global Innovation Index (IIG) includes a brand equity metric for the first time in the study’s 13-year history.
  • The Brand Finance database that has the ISO certification with history of more than 5,000 most important brands in the world that it values ​​annually has been used to create the new measure.
  • Collaboration between UN WIPO and Brand Finance demonstrates international recognition of the importance of brands for value creation.
  • Hong Kong SAR has become the world’s leading economy in the new brand value metric, as well as the leading region in the entire country, with the highest global brand value scaled by GDP (in PPP $ ).
  • With a score of 33.29 out of 100 in the IIG’s global brand value indicator, Spain is among the countries whose brand value / GDP ratio is lower than expected for the size of the economy.

UN lists brand equity in Global Innovation Index for the first time

Access the IIG 2020 report here

Madrid, September 3, 2020.- For the first time in its 13-year history, the renowned Global Innovation Index (IIG) includes the value of the brand as one of its main indicators. The study uses findings from the ISO-certified database of the world’s 5,000 top brands analyzed annually by Brand Finance , the leading independent intangibles valuation consultancy whose rankings comply with ISO 10668 and ISO 20671 for brand valuation and evaluation. respectively.

Published by the World Intellectual Property Organization (WIPO), a specialized agency of the United Nations (UN), the IIG provides detailed metrics on the innovation performance of 131 countries and economies around the world. Its 80 indicators explore a broad view of innovation, including the political environment, knowledge and technology, infrastructure, business sophistication, and now brand equity as well.

The results of Brand Finance’s public study of the 5,000 most valuable and strongest brands in the world have been used to create a new GII indicator in 2020. The values ​​of the top brands in each economy are added and scaled by gross domestic product (GDP ). The indicator includes the contribution of brands as intangible assets to innovation in an economy. It is carried out between the metrics that collect the creative results of an economy and adds a new dimension to the evaluation of the world’s most innovative economies included in the IIG.

The Hong Kong Special Administrative Region (SAR) has become the world’s leading economy in the new brand equity metric, as well as the leading region across the country, with the highest global brand equity scaled by the GDP (in PPP $). Relative to the size of its economy, Hong Kong SAR is the most successful region in developing valuable brands, and this is a clear indicator of what is likely to happen in mainland China, which is currently ranked 17th in the same. metrics.

Experts predict that China’s GDP will exceed that of the United States by 2030. Teresa de Lemus, Managing Director of Brand Finance Spain, commented: “A nation’s brands are crucial drivers of both economic growth and economic development. Taking China as an example, we are witnessing the nation make significant progress in developing local brands, such as TikTok and Huawei , and the number of leading brands will undoubtedly continue to grow. If this accelerates, we at Brand Finance have predicted that China is likely to overtake the United States as the world’s leading economy by brand value by 2025. ”

Spain in the UN Global Innovation Index

Spain is among the economies in which the brand value / GDP ratio is lower than expected for the size of the economy. Like Spain, the large and fast-growing BRIC nations fall below the line (Graph 1 in Notes to the Editor), suggesting that their range in global brand value relative to the size of their economies leaves a significant potential for the growth of local brands. Economies that are above the trend line are the most successful in developing brands in proportion to their size.

Countries such as Central China, Italy, Australia, India, Mexico, Thailand, Russia, Belgium, Brazil or Indonesia are in a similar situation to Spain in the IIG. China and India especially, have been encouraging brand development in their homeland, in recent years, a trend that has been increased by COVID-19. As demand for these brands increases, nations will need to ensure that they are equipped to facilitate effective and efficient innovation to ultimately support the development of successful global brands.

In 2019, before including the brand value, Spain ranked 29th in the global ranking with a score of 47.85 out of 100. In 2020 Spain has decreased 2.25 points compared to the previous year to 45.60 / 100 and 30th but remains in the range of countries that are in line with expectations for level of development. This first year that the ranking includes brand equity, Spain scores 92.7 (33.29 / 100), ranking 21st for said intangible asset.

Teresa de Lemus, Managing Director of Brand Finance Spain: “With the inclusion of brand equity in the Global Innovation Index, the world’s economies have another important indicator of comparison of their intangible assets. Spain, in position 21 in the brand value ranking, already has another benchmark to be measured with the rest of the economies in addition to the Soft Power ranking where, in position 16 with a score of 47.6 / 100, our country stood out for being the nation with the funniest and friendliest inhabitants in the world. Two key references to improve not only our country brand but our global positioning ”.

See page 324 of the report.

A leading benchmark for measuring the innovation performance of an economy

The IIG ranking has become the global benchmark for government and business leaders, facilitating public-private dialogue and helping professionals and experts to credibly assess the annual progress of innovation around the world. The inclusion of brand equity among the IIG indicators demonstrates international recognition of the importance of brands for value creation, especially in supporting economic recovery, and the growing consensus on the need for a reliable and independent intangible valuation of assets.

Teresa de Lemus, Managing Director of Brand Finance Spain: “After 25 years of pioneering the discipline of brand valuation, Brand Finance is proud to partner with WIPO to create this important new measure of innovation. Brands create value and will help lift the global economy out of the recession caused by COVID-19. There has never been a more important time to recognize the role of brands. “

Sacha Wunsch-Vincent, co  editor and head of IIG, Department of Economics and Data Analysis, noted: “Innovation and branding go hand in hand; Brands are, in fact, a key way for companies to get returns on their R&D investments. We are pleased that IIG 2020 now includes branding, this important dimension of intangible assets. ”

After the launch of the IIG, David Haigh, CEO of Brand Finance will participate in the next 45th World Congress of the International Advertising Association (AIP) to discuss the new report “Why Brands Matter” by Brand Finance as a launch of the campaign of the AIP demonstrating the role of brands as an engine of post-COVID-19 recovery.

Analysis of the new brand equity metric

The Hong Kong Special Administrative Region (SAR) has become the world’s leading economy in the new brand equity metric, as well as the leading region across the country, with the highest global brand equity scaled by the GDP (in PPP $). Relative to the size of its economy, Hong Kong SAR is the most successful in developing valuable brands, and this is a clear indicator of what is likely to happen in mainland China, which currently ranks 17th on the same metric. .

With world-renowned sweets, watchmakers and financial services, Swiss brands have become world leaders in quality and excellence. The Swiss giant Nestlé , for example, has produced several brands that are now household names. Switzerland has one of the best global regimes for the protection of intellectual property, a key factor in promoting innovation and building successful brands. Furthermore, the strong controls on the use of the ‘Swiss made’ brand have also allowed qualified Swiss brands to differentiate themselves and leverage their nation’s reputation effectively.

Several successful small economies such as Sweden, the Netherlands and Malaysia emerge among the top spots for the economies that produce the most valuable brands.

Brand Finance analysis in Figure 1. illustrates how economies stack up in terms of their rank based solely on brand equity, compared to brand equity relative to GDP.

Economies that are above the trend line are the most successful in developing brands in proportion to their size. The economies that fall below the trend line, including Spain, are those in which the brand value / GDP ratio is lower than expected for the size of the economy. For example, large, fast-growing BRIC nations fall below the line, suggesting that their range in global brand value relative to the size of their economies leaves significant potential for local brand growth.. China and India especially, have been encouraging brand development in their homeland, in recent years, a trend more advanced by COVID-19. As demand for these brands increases, nations will need to ensure that they are equipped to facilitate effective and efficient innovation to ultimately support the development of successful global brands.

Complete Ranking – Global Brand Value

Ranking Economy Punctuation
1 Hong Kong SAR        100.0
2 Switzerland          84.2
3 Sweden          76.8
4 United States of America          73.0
5 France          63.9
6 UK          60.0
7 Malaysia          57.0
8 Republic of Korea          56.3
9 Netherlands          55.1
10 Japan          52.5
eleven Germany        51.48
12 Canada        47.81
13 Singapore        47.51
14 Denmark        47.07
fifteen Luxembourg        46.64
16 United Arab Emirates        46.27
17 Mainland China        42.47
18 Saudi Arabia        40.15
19 Viet nam        36.20
twenty Jamaica        34.11
twenty-one Spain        33.29
22 South Africa        31.42
2. 3 Italy        31.33
24 Taste        29.49
25 Finland        29.37
26 Australia        28.64
27 Ireland        25.12
28 Norway        23.41
29 Thailand        22.94
30 Mexico        22.20
31 India        22.09
32 Belgium        21.15
33 Philippines        20.92
3. 4 Austria        18.35
35 Russian Federation        17.80
36 Kuwait        17.64
37 Chile        15.66
38 Portugal        15.63
39 Poland        13.79
40 Colombia        13.59
41 Czech Republic        12.95
42 Indonesia        12.87
43 Brazil        12.13
44 Turkey        10.90
Four. Five Togo        10.16
46 Israel          7.60
47 Romania          7.22
48 New Zealand          6.75
49 Morocco          6.27
fifty Senegal          5.67
51 Burma          5.49
52 Panama          4.86
53 Bahrain          4.79
54 Kenya          4.69
55 Sri Lanka          4.60
56 Zimbabwe          4.38
57 Argentina          4.19
58 Lao People’s Democratic Republic          3.82
59 Hungary          3.78
60 Oman          3.47
61 Lebanon          3.44
62 Georgia          3.26
63 Jordan          2.79
64 Peru          2.46
65 Slovenia          2.31
66 Nigeria          2.27
67 Cyprus          2.24
68 Ivory Coast          1.99
69 Pakistan          1.59
70 Ethiopia          1.50
71 Egypt          1.50
72 Kazagistan          1.28
73 Greece          1.19
74 Slovakia          1.14
75 Costa Rica          0.95
76 Bangladesh          0.89
77 Dominican Republic          0.84
78 Iran          0.69
79 Ukraine          0.46
80 Estonia              –  
80 Latvia              –  
80 Lithuania              –  
80 Serbia              –  
80 North macedonia              –  
80 Mongolia              –  
80 Moldova              –  
80 Armenia              –  
80 Belorussia              –  
80 Uruguay              –  
80 Bosnia and Herzegovina              –  
80 Albania              –  
80 Botswana              –  
80 Rwanda              –  
80 Kyrgyzstan              –  
80 Nepal              –  
80 Paraguay              –  
80 Trinidad and Tobago              –  
80 Ecuador              –  
80 Honduras              –  
80 Namibia              –  
80 Bolivia              –  
80 Tajikistan              –  
80 Cambodia              –  
80 Uganda              –  
80 Burkina faso              –  
80 Cameroon              –  
80 Algeria              –  
80 Zambia              –  
80 Mali              –  
80 Mozambique              –  
80 Benin              –  
80 Yemen              –  

 

About Brand Finance

Brand Finance is the leading independent, international consulting firm in brand valuation and strategy, with offices in 20 countries. We create bridges between the areas of marketing and finance. We provide clarity to marketers, brand owners and investors, when quantifying the financial value of a brand. For our experience in strategy; branding; market research; Visual identity; finance; tax aspects and intellectual property, at Brand Finance we support the client to make the right decisions that optimize the value of a brand and of the entire company by building bridges between marketing and finance.

Every year, the independent brand valuation consultancy Brand Finance values ​​the most important brands in the world.

The brand value equivalent to the net economic benefit the owner of a brand get from llegarla to license on the open market. On the other hand, brand strength refers to how the brand performs on intangible measures compared to its competition. More details on the methodology and terminology, as well as the definitions of terms can be found on our Brand Finance website .

Brand Finance collaborated in the development of the international standard on financial valuation of brands, ISO 10668, as well as in the recently approved standard on brand assessment, ISO 20671. Brand Finance is under the ICAEW regulations as a public accounting firm and is the first consulting firm in brand valuation to be part of the international committee on valuation standards, IVSC.

The Brand Finance methodology used in the preparation of the annual rankings of the most valuable and strongest brands in the world, is certified by the North American Council, Marketing Accountability Standards Board (MASB) and complies with the Marketing Metric Audit Protocol ( MMAP) of the organization.