- The total brand value of top brands grew only 5.7% this year, compared to 16% last year, according to a new Interbrand’s report shared with Marketing Dive.
- The Best Global Brands 2023 report cites a lack of growth mindset, conservative leadership and uncertainty as the main reasons for the dramatic slowdown in growth. This may suggest fears of a recession have yet to pass.
- Apple tops the list for brand value for the 11th year in a row and is the first to pass half a trillion dollars in value. Airbnb, ranked 46th, was the fastest riser in brand value with a 21.8% gain, while Nespresso made its way onto the chart for the first time at spot 98 out of 100.
Interbrand’s index of the top 100 brands by brand value shows economic concerns have not yet waned, as total growth slowed significantly in the past year to 5.7%. The report indicates possible growth troubles for the technology sector. While the top five brands (Apple, Microsoft, Amazon, Google and Samsung) remained unchanged from the year before, growth was relatively low. Of the five, Microsoft saw the most growth in brand value at 14%. Meanwhile, the Apple brand saw growth of just 4% and Amazon’s brand growth was even lower at 1%.
Perhaps key to a winning strategy, those that operate across multiple sectors have continued to dominate the top of the rankings this year, with such brands making up 50% of the total value on Interbrand’s index. Marketers that hone a stronger focus on the brand are most likely to succeed over the competition, per the report.
“A brand like Apple can no longer be ascribed to a sector. It competes across different Arenas, helping its customers Connect (the iPhone), but also Thrive (the latest Apple watch was positioned as a health device), Fund (its new savings account drew nearly $1 billion in deposits in the first four days), and much more. Apple’s move across Arenas has enabled it to hold the BGB top spot for the 11th year, having overtaken Coca Cola in 2013,” said Manfredi Ricca, global chief strategy officer at Interbrand, in the report.
Interbrand derives its brand value calculation from three core traits, including the financial performance of the branded products or services, the role brand plays in purchase decisions and the brand’s competitive strength and ability to create loyalty.
Automotive brands saw significant gains in brand value this year, especially luxury automotive makers. Porsche rose from spot 53 to 47 on the index, while Ferrari rose from 75 to 70. Hyundai jumped from 35 to 32. BMW ranked in the top 10 for the first time, at number 10. Total brand value for the automotive industry rose 9%, according to the report.
Some other brands this year have struggled. For instance, Budweiser saw its brand value drop 16%, falling in rank from 44 to 61, a drop that may be due to the recent controversy surrounding Bud Light’s activation with transgender influencer Dylan Mulvaney. While the tech industry notably headlined this year’s report, some brands saw pullback, including Intel, which fell 14% in brand value, while Philips fell 12%. On the media side, Facebook saw a brand value decrease of 8%.