Overall, the total value of all 100 listed brands rose to a record value of 1.6 trillion US dollars - a total increase of 6.65% compared to the previous year. Once again, the German brands are proving particularly strong - almost all of them have recorded significant increases in value. Audi, Volkswagen, Allianz and Porsche even recorded double-digit gains. Audi and Volkswagen are the winners among the German brands, with brand value increases of 27 and 23 percent respectively. Hugo Boss and DHL are also pleased about their new entry into the ranking. The transportation service provider with US roots is also the highest newcomer. Mercedes-Benz is the only German brand to make it into the top 10 most valuable brands.
With a brand value increase of 21%, Apple's brand value rose to 118.9 billion US dollars, making it by far the most valuable brand in the world. The success of the technology brand continued unabated in 2014. In North America, Apple was able to reach a truce in the dispute over patent rights with competitor Samsung, which continues to dominate smartphone sales. The market launch of the Apple Watch will secure further market share for the technology giant in the future. The strong competition should not cause Apple any problems for the time being, as the Apple Watch is currently the most powerful smartwatch on the market. Software such as Apple's CarPlay also opens up completely new possibilities. It will be interesting to see how effectively Apple will use brand partnerships with healthcare, automotive and other companies, for example.
"The renewed double-digit growth in brand value makes it clear that the Apple story continues to be written consistently. Apple Pay, CarPlay and the Apple Watch are examples of how the brand is penetrating all areas of our lives," says J Justus Schneider, Chief Executive Officer Interbrand Central and Eastern Europe. Apple is becoming the "digital hub for consumers" that Steve Jobs foresaw back in 2001.
The motto of this year's Best Global Brands Report is "The Age of You". This means that people are becoming increasingly connected - via cell phones, cars and even in the home - everything is becoming "smarter". Brands will have to adapt to this and make an effort for each and every one of us. They will need to turn the brand experience into a communal experience, from monologue to dialog and ultimately into a fully curated experience for each individual. Leading brands will manage to develop integrated ecosystems around the individual consumer - so-called "mecosystems".
For Justus Schneider, Apple, with its vision of making everything in our lives easier, is the best example: "Individual products are highly relevant and deliver an authentic brand experience, but the more important aspect is how these products work together. The Apple ecosystem is the measure of all things and should give food for thought to any company that views its products in isolation."
Google in 2nd place
The other major pioneer for the age of the individual - Google - continues to grow unabated with a 15 percent increase in brand value. Google is now much more than just a search engine; in the past two years alone, the technology company has spent over 17 billion US dollars on acquisitions to add biotech companies, robotics technology, artificial intelligence and wearables to its portfolio. With the aim of gaining more information about people in order to provide more personalized information for people.
The newcomers of the year
Five brands make it into the top 100 for the first time in 2014: DHL, Land Rover, FedEx, Huawei and Hugo Boss. The highest newcomer is DHL - the global logistics company with American roots and headquarters in Bonn enters the exclusive club of the 100 most valuable brands for the first time, as does FedEx. With a brand value of 5.08 billion US dollars, DHL ranks 81st, well ahead of its competitor, which has a brand value of 4.4 billion US dollars and is ranked 92nd. Many years of systematic brand development at DHL, above all through consistent branding of services with the DHL brand and continuous investment in product innovations, have led to a significant increase in presence and awareness among customers.
"At DHL, as with other logistics service providers, the proportion of brand-induced sales has risen significantly. Customers are becoming increasingly aware of which company they commission. DHL has recognized the role of the brand and uses it consistently," notes Justus Schneider.
Against this backdrop in particular, the consistent improvements in the area of sustainability are also an important driver of economic success and brand value. Customers reward the sustainable orientation of the business.
With Land Rover in 91st place, another automotive brand storms up the rankings. The strategy of consistently developing the Land Rover brand on the basis of its core values is now paying off for the parent company Tata. Huawei (94th place) is the first Chinese brand to be among the 100 most valuable brands in the world. The telecommunications equipment supplier is now the third-largest smartphone manufacturer after Samsung and Apple.
With Hugo Boss, another German brand enters the Best Global Brands in 97th place - with a brand value of 4.14 billion US dollars. With its positioning "HUGO BOSS inspires people towards success", the brand is on the verge of becoming one of the leading global fashion brands in the premium and luxury segment. Formerly known for the perfectly fitting business suit, the Hugo Boss umbrella brand now encompasses the Boss, Boss Orange, Boss Green and Hugo brands for men and women. Each of the individual Boss brands is clearly positioned. Hugo Boss is pushing sales via e-commerce with enormous energy and linking digital media with online shopping. The brand is able to integrate its sponsoring commitments and brand ambassadors into its own eCommerce like almost no other premium fashion brand.
The top climbers: Facebook, Audi, Amazon, Nissan, Volkswagen and Starbucks
With sensational brand value growth of 86 percent to 14.35 billion US dollars, Facebook is the winner with the greatest momentum in the Best Global Brands for the second year in a row, rocketing from 52nd to 29th place. The brand is in a state of rapid growth. The company is trying to address the topics of mobile, security and self-control, which are particularly important for social media, with technical innovations that give users more control over their own data. Acquisitions of other innovation leaders, such as What's App, illustrate the strategy: to be the communication platform for entire generations. However, just like Amazon or eBay, Facebook must successfully position and differentiate itself in the digital market of tomorrow in order to avoid being overtaken by new young brands such as Ello.
Audi recorded the second-highest growth. With a remarkable 27 percent increase in brand value to 9.8 billion US dollars, the car manufacturer is in 45th place, making Audi one of the winners in this year's ranking. Recognizability and stringency in design across all model series, sophistication in the interior and focused messages in communication appeal well to Audi's target groups. The sales figures clearly show that this formula works in a competitive environment. With over 1.57 million vehicles sold in the year, Audi has surpassed its own record from 2012 by 8.3 percent. Mercedes and BMW still have many times the brand value, but the gap will certainly continue to shrink if Audi continues to consistently implement its technological roadmap from lightweight construction, electrification and infotainment to driver assistance and seamlessly networks real and digital touchpoints. The third-largest climber this year is Amazon. The online retailer grew by 25 percent and rose to 15th place, followed by Nissan and Volkswagen with 23 percent brand value growth each and Starbucks with an increase of 22 percent.
Automotive brands dominate the rankings once again
Overall, the automotive industry is clearly back on course for growth worldwide. 14 of the 100 most valuable brands come from the automotive sector and are all extremely fast-growing. The five German brands can also boast high increases in value: Mercedes-Benz manages an 8 percent increase in brand value, making the Stuttgart-based carmaker the only German brand to make it into the top 10 and, at 34.34 billion US dollars, it also remains the most valuable German brand. BMW remains close on the heels of Mercedes-Benz and climbs to 11th place with a brand value of 34.21. Audi is even one of the top climbers this year, moving up to 45th place with a value increase of 27 percent. Volkswagen is the second fastest growing brand in the segment, rising 23 percent to 31st place. In recent years, the brand has successfully positioned itself as a "Volkswagen" with premium appeal. Porsche also climbs four places to 60th place and achieves a brand value of 7.17 billion US dollars with an increase of 11 percent.
Toyota is now the most successful car brand in the ranking for the third year in a row. With a 20 percent increase in brand value, the Japanese car manufacturer improved to eighth place. However, all other car brands also recorded high increases in brand value. Nissan is also up 23%, rising nine places to 56th, while Honda has improved by 17% and remains stable in 20th place. Ford and Hyundai now occupy 39th and 40th place, with increases of 18% and 16% respectively. 15 and 13 percent increases in brand value respectively give Kia a new 74th place and Harley-Davidson a new 87th place. The US car manufacturer Chevrolet, new to the ranking last year, rises further this year to 82nd place. This year's newcomer Land Rover takes 91st place with a brand value of 4.47 billion US dollars.
Technology sector is the sector with the highest overall brand value
With a total brand value of 479.43 billion US dollars, the technology industry is once again the most valuable sector this year. Four of the technology brands are in the top 10 - two of which, Apple and Google, lead the ranking. Samsung is still trying to catch up with its competitor Apple. The South Korean technology brand managed to move up to 7th place with a 15% increase in value. For the first time in the history of the Best Global Brands, a Chinese brand has now also made it into the ranking. With a brand value of 4.31 billion US dollars, Huawei is now ranked 94th.
However, despite the continued great success of the industry, some brands from the technology sector have not managed to increase their brand value. Formerly leading brands such as Nokia and Nintendo in particular have failed to position themselves as relevant to consumers across all platforms and touchpoints, falling 44% and 33% respectively to 98th and 100th place. The technology company Dell is no longer included in the ranking due to its privatization in 2013.
Financial sector remains third strongest industry
Without exception, all eleven financial brands in this year's ranking have increased in value. The biggest increase in brand value was recorded by Santander, with an increase of 16 percent to 5.38 billion US dollars. The Spanish banking brand has thus moved up nine places to 75th place. Allianz can be pleased about the second largest increase in brand value of 15 percent. With a new brand value of 7.7 billion US dollars, the German financial services provider has moved significantly ahead of competitor AXA and is now ranked 55th. The French financial group improved by 14 percent to 8.12 billion US dollars and moved up to 53rd place. However, American Express remains the most valuable financial services provider in 23rd place, with a brand value of 19.5 billion US dollars. HSBC improved by eight percent, J.P. Morgan by nine, Goldman Sachs by three and Citi by ten percent.
Even the bank Morgan Stanley, which suffered a significant loss in brand value last year, was able to make up for this in 2014 and improve by 11%. Visa and Mastercard can also look back on a successful year and significant brand value increases of 10% and 13% respectively.
Nescafé remains Switzerland's most valuable brand
Nescafé remains the most valuable Swiss brand in 2014. With an increase in brand value of seven percent to 11.4 billion US dollars, the Swiss brand is ranked 38th. With an increase in value of six percent, Nestlé continues to successfully assert itself as the second Swiss brand in the ranking. The food manufacturer improved to 54th place with a brand value of 8 billion US dollars.
Interbrand's full Best Global Brands Report 2014, with detailed analysis, videos and interviews is available at Bestglobalbrands.com and under Interbrand.com.
Brand valuation by Interbrand
Interbrand's brand valuation methodology consists of three main components: an analysis of the financial performance of the brand's products or services, the importance of the brand in the purchasing decision and the competitive strength of the brand. These are preceded by a segmentation decision, and at the end of the process these areas are all brought together to calculate the financial value of the brand. Interbrand thus relates three parameters that contribute to the brand value:
- The entrepreneurial success of the brand, which results from the company's key financial figures
- The impact of the brand on the customer, which indicates how important the brand's contribution to the purchase decision actually is - the greater the role of the brand, the greater the share of the company's value
- Relative brand strength, which measures the ability of a brand to secure future profits and compares its value with the competition
Brand valuation provides an in-depth insight into how the brand creates demand and forms the bridge between the impact of the brand in its markets and the economic value created in the company.
Criteria for Best Global Brands
Every year, Interbrand publishes the "Best Global Brands" ranking, listing the 100 most valuable global brands. To be included in the ranking, they must fulfill five criteria:
- Firstly, sufficient, publicly accessible marketing and financial data must be available.
- Secondly, the brand must have a global presence and generate significant income in the most important global markets. In other words, at least one third of sales must be generated outside the country of origin.
- Thirdly, the brand must achieve a high market presence through communication.
- Fourthly, the Economic Value Added (EVA) must be positive.
- Fifthly, the brand's target group must not consist exclusively of B2B customers; the brand must have a large presence and awareness among end consumers.
The brand value shown corresponds to the present value of the income expected in the future, which is exclusively attributable to the presence of the brand.