In a bustling marketplace where countless brands jostle for attention, a select few have ascended to prominence, capturing the global spotlight. An exhilarating prospect revealing the world’s brightest gems of 2023, ranging from technology titans to retail royalty. As these brands capture the world’s attention, it is useful to dive into the intricacies that made them household names that modern consumers would struggle to function without.
What is Brand Value?
In this context, a company’s brand value is defined as its brand revenue multiplied by the brand’s strength. Brand revenues represent the portion of a company’s earnings attributed to sales from the specific brand, including any royalties earned on the brand. In contrast, brand strength refers to any brand investment, equity and performance.
Which Sector Contains the Most Valuable Brands?
The tech industry leads the charge in the grand parade of valuable brands, hogging the limelight worldwide. Brand Finance reveals a whopping 19.4% of the global top 500 brands belong to the tech realm. Together, these tech titans boast a jaw-dropping $891Bn (€829Bn) fortune, with Apple, Microsoft, and Samsung as the undisputed MVPs. Retail brands follow closely behind, securing a 15% slice, with media (14%), banking (10.2%), and the auto sector (8.6%) hot on their heels.
Top Brands by Value 2023
- Amazon
Amazon reigns supreme as the unrivalled global brand heavyweight, boasting an astonishing $299.3Bn (€278.4Bn) in brand value. With its dynamic blend of e-commerce and cloud services, Amazon’s dominance knows no bounds.
- Apple
Despite weathering economic turbulence, Apple holds a remarkable second place, flaunting a $298Bn (€277Bn) brand value. Renowned for its iconic iPhones and beloved products, this tech titan continues to conquer the hardware technology sales arena, establishing itself as a household name despite its discretionary offering.
Unsurprisingly, Google strides into the scene with its $281.4Bn (€267.1Bn) brand, poised to take the AI world by storm. With a firm foothold in the AI arena and daily interaction with consumers through its search and cloud services, Google is etching itself into the history books as a brand that’s here to stay, with endless possibilities.
- Microsoft
To lock in a spot among the tech elite of the United States, Microsoft commands attention with its staggering $191.6Bn (€178.2Bn) brand value. Much like Google, Microsoft boasts a colossal user following and unwavering brand allegiance, positioning them perfectly to forge ahead in their brand journey, unlocking fresh and prosperous AI horizons.
Beyond US Technology Dominance
As the world’s biggest economy, the US accounts for half of the top 100 brands, according to Brand Finance. Even beyond the lucrative technology sector, Walmart falls into fifth place, with its $113.8Bn (€105.8Bn) brand, making it the most prominent retail brand globally. However, beyond the US, multiple brands deserve recognition for their immaculate promise. In Asia, Samsung dominates with a $99.7Bn (€92.7Bn) brand, making it the most valuable in all of Asia and the sixth most valuable brand globally. ICBC, with $69.5Bn (€64.6Bn) and TikTok, with $65.7Bn (€61.1Bn), follow closely behind as the seventh and tenth largest brands globally. In Europe, Deutsche Telekom recently became the largest brand in its region, just missing out on the top ten brands worldwide with $62.9Bn (€58.5Bn) as it slips into eleventh place. Mercedes is the second biggest brand in Europe with a $58.8Bn (€54.7Bn) value but falls into sixteenth place on the global spectrum.
Brands to Look Out For
While the US technology giants currently sit atop the throne of brand competition, they are not guaranteed to remain there indefinitely. Some global brands on a path of prosperous growth could soon come into the equation of the top brands worldwide. In 2022-2023, BYD was the fastest-growing brand, expanding its value by 57% to challenge Tesla in the EV market. As the world’s second-largest producer of lithium-ion batteries, this brand is certainly worth keeping an eye on. ConocoPhillips (56%), Maersk (53%) and LinkedIn (49%) are rapidly expanding their brands as well, while Christian Dior rounds off the top five fastest-growing brands in the last year, with a 46% brand expansion. On the other hand, some brands are losing value just as quickly. According to Statista, Alibaba has lost 56% of its value in 2023, with Tmall following closely with a 44% value depreciation. Surprisingly, Statista reported a 42% decline in Facebook’s brand value, proving that no brand is invincible.
Summary
Brand value becomes the golden key to pursuing financial excellence, unlocking doors to unprecedented heights. In 2023, US technology companies dominate the ever-evolving landscape of brand value, reminding us that beyond the logo, it’s the enduring value that truly defines greatness. As we celebrate these brand legends, we also cast an eager eye on the rising stars, some of whom are truly on their way to joining the club of greatness.
Sources: Brand Finance, Visual Capitalist, Forbes Advisor, Statista
Piece written by Tiaan van Aswegen, Trive Financial Market Analyst
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