Fast Growing Markets

As BRICs slow, new markets and brands emerge

During the past decade, these markets, especially the BRICs—Brazil, Russia, India and China—served as the mostly dependable engines of global economic growth. And even during the economic crisis of 2008 and 2009, the total value of the brands from fast growing markets continued their steady climb.

In 2006, the BrandZ™ Top 100 included only two fast growing market brands, from China. Less than a decade later, fast growing markets account for one-infive brands in the 2012 Top 100. During this period, the value of brands from fast growing markets in the Top 100 increased in value by 663 percent.

But in the 2012 BrandZ™ Top 100 Most Valuable Global Brands the rate of brand value appreciation in the fast growing markets slowed. Some factors were country specific. The attempt to moderate inflation contributed to the economic slowdown in India and Brazil, for example. But, overall, the BRIC deceleration illustrated the interdependence of nations in a global economy. China reduced demand for commodities from Brazil. And all the BRIC countries felt the decline in demand from financially troubled countries in the Eurozone.

Value declines for some brands, but new brands appear

As the spotlight dimmed on some brands, at least temporarily, other brands emerged from the shadows. China Mobile, the country’s most valuable brand, and China’s most valuable bank brand, ICBC, declined. At the same time, the Chinese oil and gas giant Sinopec appeared in the Top 100 for the first time, as did Moutai, a leading brand of baijiu, China’s traditional clear alcohol.

Similarly, Petrobras, Brazil’s oil and gas company, declined and two Brazilian bank brands, Itaú and Bradesco, fell below the Top 100 in value. But three Brazilian brands—the beers Skol and Brahma, and the cosmetic producer Natura—ranked among the Top 15 brands in Brand Contribution, the measure of how brand itself, rather than financials or other factors, contributes to earnings.

Russia’s telecom MTS declined. But following a major effort to refresh the brand, the financial institution Sberbank increased in value 25 percent, which placed it among the BrandZ™ Top 20 fastest risers. While the Indian bank ICICI declined, the Indian telecom Airtel appeared in the BrandZ™ Top 100 ranking for the first time. The first African brand, MTN, a South African telecom, debuted in the ranking.

Two Chilean brands appeared for the first time in the BrandZ™ ranking of brands in the retail category. An operator of department stores and specialty outlets, Falabella is one of South America’s largest retailers. Sodimac, a Falabella company, is a consumer home improvement and B2B construction materials retailer.

Current results suggest future direction

This maturation of fast growing market brands reveals several trends that point to likely future developments.

  1. The representation of fast growing market brands in the BrandZ™ Top 100 will increasingly include brands from both the BRICs and other nations from Asia, Africa and Latin America.
  2. Brands from the fast growing markets are predominately in infrastructure and financial categories, reflecting their status as state-owned or statecontrolled enterprises. But technology brands also appear because of the ubiquity of technology and expanding entrepreneurship. Over time, the fast growing market brands will be present in many more categories, cultivating consumer allegiance at home and increasingly seeking new opportunities abroad.
  3. Compared with brands generally, the BrandZ™ Top 100 score higher in the BrandZ™ metrics about Trust, Recommendation and Desire. Brands from fast growing markets score even higher in these metrics than the Top 100 overall. And while the Top 100 also exhibit a much more robust BrandZ™ Pyramid than brands generally, the fast growing market brands again outperform the Top 100 overall.

The BrandZ™ Pyramid illustrates the building blocks of a brand’s connection with its customers. The Pyramid is built on a foundation of “presence,” or awareness of the brand, and culminates at “bonding,” which measures the emotional attachment when a customer believes that a brand offers more advantages than its competition.

Learn more about each country:

Brazil
Expanding middle class drives brand growth

Russia
Turning point as consumers seek brands, not institutions

India
Diverse - Different - Determined

China
Chinese brands benefit from improved quality and sharp pricing

BrandZ Top 100 2012

BrandZ Global 2012 Report Top 100 Report

Top 100 Chart


Methodology and valuation by Kantar Millward Brown


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