In a world post-COVID pandemic, inflation, and two wars, many of the world’s top 100 brands are in a state of stagnation. In its latest report Best Global Brands 2023, Interbrand said the rate of growth in the overall brand value of the table slowed sharply after 2022’s significant increase. It rose 5.7 percent this year compared to last year’s 16 percent increase.
Some of the reasons that can be attributed to this drop are a lack of growth mindset, weaker brand leadership, and poor forecasting. It also includes a slowdown. Analysis shows that companies that address a more diverse set of customer needs continue to dominate the top of the table. These companies, as per the report which operate across several different verticals are more stable.
They achieve higher top-line growth, remain more profitable, and benefit from a greater growth of brand value. It should be noted that these companies focus on their brand rather than their product plays a greater role in driving choice. This means that they can address more customer needs, within and across categories.
Gonzalo Brujo, Global CEO of Interbrand, said this year’s table shows moderate growth in overall brand value among the world’s biggest brands. “Businesses which have witnessed a rise in brand value, including Airbnb (#46), LEGO (#59), and Nike (#9) have all transcended their established category norms and play a more significant and meaningful role in society and consumers’ lives.”
He said there is a need for improved business cases and better brand management to drive future investment and sustain growth within traditional sectors and beyond. “Those who can successfully leverage their brand into new consumer pools of potential will reap the rewards of brand growth.”
Manfredi Ricca, Global Chief Strategy Officer, Interbrand, highlighted that 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.”
The companies that ranked in the top 10 in the Interbrand report were:
- Apple
- Microsoft
- Amazon
- Samsung
- Toyota
- Mercedes
- Coca-Cola
- Nike
- BMW
Apple remains at the top for the 11th consecutive year and is the first brand to rise above half a trillion USD in brand value. Interbrand said the strongest performing sectors are automotive and luxury with sector value rising 9 percent and 6.5 percent respectively. BMW entered the top 10 for the first time, with Porsche at #47, Hyundai at #32, and Ferrari at #70 also performing well.
Microsoft is the top 10 highest brand value riser. Kathleen Hall, Chief Brand Officer, at Microsoft, said the combination of brand perception and financial performance is a great indicator of brand health and relevance, and one the company values tremendously. “With our acquisition of Activision Blizzard, our prominent leadership position in AI, and our continued commitment to make a positive impact on society, we aspire to be a brand people can trust and build a responsible future with.”
Zara (#43) and Sephora (#97) are two retail stars with brand value rising 10 percent and 15 percent, respectively.
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