Dear friends of Millward Brown,
I am delighted to share with you the 10th Anniversary edition of the BrandZ Top 100 Most Valuable Global Brands.
One of the first questions that people ask on seeing the latest BrandZ results is how do brands build such value? We know from over 40 years of research that a successful brand is made up of three key components. How relevant or Meaningful a brand is to our lives; how Different it is to competitors and; how well we know and trust the brand, whether it is Salient. This topic is examined in more detail by our Chief Global Analyst, Nigel Hollis in his article.
It is no surprise to me that this year’s new number one is a brand that practically wrote the playbook on being meaningful, different and salient. Apple, with its relentless focus on the consumer experience, as demonstrated with the launch and success of the iPhone 6, returns to the top spot with a 67 percent increase in brand value. The biggest riser is Facebook with an increase in value of 99 percent due to success in monetising and cross-selling across its platforms. The highest new entry this year is the online retailer Alibaba; although mainly in China at the moment, this is a brand with global plans.
We’ve seen some interesting momentum shifts by category this year, with the technology brands and telecoms providers clearly continuing to gain traction and show strong potential for future growth. Based on our data, we’d expect to continue to see strong performances for brands like Apple, Facebook, Google and Verizon, as well as Telstra and China Telecom, who break into the ranking in 2015.
The brands in the Top 100 are now worth $3.3 trillion, an increase of 14% in the last year alone. Brand value is important because valuable brands lead to successful businesses. In the last 10 years the BrandZ Strong Brands portfolio has increased in value by 102.6%. In contrast the MSCI World Index, a weighted index of global stocks, has appreciated by only 30%. Put simply, $100 invested in the BrandZ portfolio 10 years ago would be worth $203 today compared to $130 if invested in the MSCI.
The benefits of investing in a brand that we have seen over the past 10 years are likely to become even more evident in the decade that follows. Market disruption and the changing consumer mindset make building and sustaining a valuable brand essential to business success. See the article by our Global Head of BrandZ, Doreen Wang to learn more.
While the value of investing in a brand has become clearer over the last 10 years, what is no less fiercely debated is exactly how that valuation is calculated. There are several different financial methodologies for valuing brands, each has its merits and advocates, but we are confident that the measurement we employ with the BrandZ ranking gives the most realistic result which is ultimately endorsed by consumers.
Millward Brown is extremely proud to be part of WPP, the world’s largest communications services group. This report is a great representation of the range of skills and experience within WPP. From Millward Brown there are contributions from across our business including Firefly, our qualitative network (article), Millward Brown Vermeer, our strategic brand consultancy (article) and Millward Brown Digital (article). I hope that you find it an interesting read.
Feel free to contact me directly if you would like to discuss any of the issues raised in this report, or see the contacts for details of experts from across our group. We can help you grow the value of your brand.
Chief Executive Officer, Millward Brown