Newzbusiness.com
Just connect

Brand Finance Global 500 2021

Recent events have truly demonstrated the nation’s position on the global stage

0

Brand Finance Global 500 2021

  • Saudi Aramco retains its position as the Middle East’s most valuable brand, despite recording a 20% brand value loss to US$37.5 billion.
  • ADNOC is the second most valuable brand in the region, brand value US$10.8 billion
  • Fastest network in the world, Etisalat, is the region’s strongest brand with a Brand Strength Index (BSI) score of 87.4 out of 100 and only brand in the region with AAA brand strength rating.
  • STC is the region’s fastest-growing brand, brand value up 14%
  • Five years since it last held the top spot, Apple is named world’s most valuable brand by Brand Finance Global 500 2021 ranking as diversification strategy finally pays off, brand value US$263.4 billion.
  • Accounting for 14% of total brand value in the 2021 ranking, tech remains the most valuable sector in the Brand Finance Global 500
  • E-commerce brands thrive in new normal, with Alibaba.com doubling in brand value, but chain retailers cash in on home delivery too – Walmart climbs up to 6th rank.
  • WeChat overtakes Ferrari to become the world’s strongest brand with a top score of 95.4 out of 100 and AAA+ brand strength rating.

David Haigh, CEO of Brand Finance, commented:

“As the UAE approaches its 50th anniversary in December, the nation continues to flourish and showcase its accomplishments in undertaking an impressive growth trajectory, under the visionary leadership of Sheikh Khalifa bin Zayed Al Nahyan, Sheikh Mohammed bin Rashid Al Maktoum and Sheikh Mohammed bin Zayed Al Nahyan. The nation’s world-class brands are helping spearhead global transformation across their respective industries – from ADNOC’s innovation in sustainability, Etisalat’s accomplishment becoming the fastest network globally,

DP World’s position as a leader in logistics to Emirates flying the flag – quite literally – the world over. Recent events have truly demonstrated the nation’s position on the global stage, from its efforts in the face of the pandemic, including international aid to vaccine development, to the historic peace deal with Israel – the UAE demonstrates that it is a force to be reckoned with. We have seen the transformation from desert to Mars – what will the next 50 years hold?”

 

Oil & gas brands lead the way.  

Saudi Aramco retains its position as the region’s most valuable brand in the Brand Finance Global 500 2021 report, despite recording a 20% brand value loss to US$37.5 billion. Owing to the sheer size and scale of the business, as well as its low costs of production, Saudi Aramco has been in a stronger position to negotiate the fallout from the pandemic than many of its counterparts, but still suffered a significant hit to profits.

While brand value has fallen, Aramco’s brand strength has remained stable. Other intangibles such as relationships, particularly with the Saudi Arabian government, play a greater role in performance.

David Haigh, CEO of Brand Finance, commented:

“Aramco is the hidden giant of the oil industry whose brand has finally emerged into the light of public attention. It has always been known as a b2b brand but has aspirations to become a well-known consumer brand. At present, its scale is huge, but its brand equity is at an early stage of development. We believe that over the next decade, the brand will grow from strength to strength as it enters the world stage.”

Fellow Oil & Gas brand the Abu Dhabi National Oil Company (ADNOC) is the second most valuable brand globally. ADNOC has managed to successfully shelter its brand value during an incredibly challenging year for its industry, with only a 6% brand value loss to US$10.8 billion, making it the most resilient of all National Oil Companies (NOC) globally.

ADNOC’s transformation since 2016 has taken the brand from strength to strength. Under Group CEO H.E. Dr Sultan Ahmed Al Jaber’s astute leadership, ADNOC has evolved into a trusted global player with one brand and one strategic vision at its core. It has attracted some of the world’s leading institutional investors as partners across its business and has raised more than US$64 billion through such transactions since the start of its transformation. Due to ADNOC’s competitive advantage in cost and carbon efficiency per barrel of oil produced, it is likely to be “the last barrel standing” in the ongoing transition to a low carbon economy.

ADNOC is actively investing in diversifying its portfolio beyond raw commodity exports with recently announced efforts in hydrogen, ammonia and other value-add Downstream products – part of the brand’s longstanding commitment to future-proofing its economic contributions to the UAE and maintaining a legacy of environmental stewardship. To date, the Group has invested in several measures to reduce its carbon footprint, notably through a significant expansion of carbon, capture and storage (CCS) technology across its business.

ADNOC is set to raise the profile of Abu Dhabi and the GCC by launching the highly anticipated futures exchange for Murban crude.

David Haigh, CEO of Brand Finance, commented:

ADNOC has been the principal enabler of the UAE and Abu Dhabi success story since its inception just under 50 years ago. Since taking the helm, Group CEO H.E. Dr Sultan Ahmed Al Jaber has successfully transformed the company into a leaner, more efficient and internationally competitive energy producer. Today, ADNOC plays a critical role in driving local industry growth, supporting Abu Dhabi’s soft power position globally and advancing the UAE’s sustainable economic development goals.

ADNOC’s enduring brand strength reflects the strength of its reputation as an industry leader in both cost and carbon-efficient oil production, a critical driver of innovation and technology in the UAE and a partner of choice for local and international investors.”

Etisalat is the region’s strongest brand.

In addition to measuring overall brand value, Brand Finance also evaluates the relative strength of brands, based on marketing investment, customer perceptions, staff satisfaction, and corporate reputation. Alongside revenue forecasts, brand strength is a crucial driver of brand value. According to these criteria, Etisalat has been crowned Middle East’s strongest brand for the first time, overtaking Emirates Airlines, with a Brand Strength Index (BSI) score of 87.4 out of 100 and a corresponding AAA brand strength rating – the only brand in the region to achieve this rating. This increase puts Etisalat among the top 25 brands globally for BSI.

Thanks to its strategy over the last few years and its recent achievement of becoming the fastest network on the planet, the brand was in a position to respond immediately to the ‘new normal’ of the pandemic, providing solutions and flexibility in a way that connected emotionally with consumers. Under the guidance of its dynamic new Group CEO, Hatem Dowidar, Etisalat Group, is turning its sights on transforming into a truly global player. Etisalat has also climbed 17 spots in the brand value ranking this year, from 225th to 208th.

David Haigh, CEO of Brand Finance, commented:

“When COVID struck in 2020, Etisalat led from the front ensuring business continuity, robust e-governance, enablement of smart cities and remote learning, to help drive the digital future of the UAE. Staying relevant and enabling the nation with the fastest network on the planet, Etisalat has earned its place as the region’s Strongest Brand, and ready deliver on its ethos of Together Matters as the UAE welcomes the world at Expo 2021.”

STC is the region’s fastest-growing brand, up an impressive 14% to US$9.2 billion and simultaneously jumping 53 positions to 189th. STC has recently doubled its network’s capacity, never compromising customer service – something the brand prides itself on. The brand has also achieved a AAA- brand rating for the first time because of its brand and business transformation.

David Haigh, CEO of Brand Finance, commented:

“STC’s brand has evolved and grown following its successful master brand refresh and extension into Kuwait and Bahrain at the beginning of last year. The company continues to execute its DARE strategy successfully and has strengthened its positioning as a company that enables digital life. Its commitment to digital transformation has been shown with STC Pay, recognised as the first tech unicorn in Saudi Arabia.”

 

Apple is named world’s most valuable brand.

According to the latest Brand Finance report- the world’s leading brand valuation consultancy, Apple has overtaken Amazon and Google to reclaim the title of the world’s most valuable brand for the first time since 2016. Apple has the success of its diversification strategy to thank for an impressive 87% brand value increase to US$263.4 billion, and its position at the top of the Brand Finance Global 500 2021 ranking.

Under Tim Cook’s leadership, especially over the past five years, Apple began to focus on developing its growth strategies above and beyond the iPhone – which in 2020 accounted for half of the sales versus two-thirds in 2015. The diversification policy has seen the brand expand into digital and subscription services, including the App Store, iCloud, Apple Podcasts, Apple Music, Apple TV, and Apple Arcade. On New Year’s Day alone, App Store customers spent US$540 million on digital goods and services.

Apple’s transformation and ability to reinvent itself time and time again is setting it apart from other hardware makers and has contributed to the brand becoming the first US company to reach a US$2 trillion market cap in August 2020. With rumours resurfacing that Apple’s hotly-anticipated Titan electric vehicle foray is underway again, it seems that there is no limit to what the brand can turn its hand to.

David Haigh, CEO of Brand Finance, commented:

“Steve Jobs’ legacy continues to flow through Apple, with innovation built into the brand’s DNA. As Apple reclaims the title of the world’s most valuable brand from Amazon five years since it last held the top spot, we are witnessing it Think Different once again. From Mac to iPod, to iPhone, to iPad, to Apple Watch, to subscription services, to infinity and beyond.”

The world’s Top 10 most valuable brands
The world’s Top 10 most valuable brands

 

Amazon thrived in 2020

Despite relinquishing its position at the top, second-ranked Amazon has still managed to record a healthy 15% brand value growth to US$254.2 billion. The retail giant is one of the few brands that benefitted considerably from the pandemic and the resulting unprecedented surge in demand as consumers turned online following store closures. Over Q2 and Q3 of 2020, e-commerce platforms experienced the highest revenue growth since 2016.

Most recently – further leveraging the pandemic circumstances – Amazon has acquired 11 passenger planes from struggling North American airlines to expand its air logistics capabilities. A tactical purchase to support its fast-growing customer base and a strategic move towards building its own end-to-end supply chain, the fleet can allow the brand to become a serious contender in air transportation in due time.

Another example of Amazon’s relentless innovation in the face of global adversity, the brand has also announced its foray into the health sector with the launch of Amazon Pharmacy and fitness tracker Halo. Before it brought success to Apple, daring diversification had already been the hallmark of Amazon’s growth strategy, which it continues to pursue with impressive results.

David Haigh, CEO of Brand Finance, commented:

“Playing a crucial role in supporting a new economic model in lockdown, Amazon has found itself at the centre of attention more than ever before. With a revenue, the boost came reputational risks – from questions about the treatment of workers to accusations of benefitting from the tragedy of the pandemic to pushback against a global corporation supporting local retailers. Jeff Bezos has a difficult task at hand to steer the Amazon brand through dangerous waters.”

Technology drives brand value.

In a year epitomised by global lockdowns, working from home becoming the new normal and unprecedented reliance on digital communication, retail, and entertainment, tech brands and brands successfully leveraging technological innovation have significantly boosted their brand values. Accounting for 14% of total brand value in the 2021 ranking, tech remains the most valuable sector in the Brand Finance Global 500, with 47 brands represented and a combined brand value just shy of US$1 trillion at US$998.9 billion.

Aided by the increased demand for home deliveries and safe means of travel during the pandemic, Uber has seen a 34% brand value jump to US$20.5 billion and entered the top 100 at 82nd. Similarly, Meituan, China’s largest provider of on-demand online services has gone up by an impressive 62% to US$7.2 billion, resulting in one of the biggest hikes up the ranking, as it jumped 216 spots to 265th.

Similarly, software providers such as Microsoft (up 20% to US$140.4 billion), SAP (up 9% to US$18.0 billion), Salesforce (up 29% to US$13.2 billion), Adobe (up 25% to US$11.7 billion), and a new entrant to the ranking, Servicenow (up 39% to US$4.3 billion), all enjoyed a boost in brand value as businesses raced to transition online. Offices gave way to remote working for the greater part of last year.

David Haigh, CEO of Brand Finance, commented:

“With the onset of the pandemic, tech brands have experienced unprecedented demand for their products and services. Simultaneously, across sectors, brands that have pushed the boundaries of technological innovation have remained a cut above the rest, able to pivot their business to adapt to consumers’ changing needs. 2021 is the final call to get on board for all brands still stuck in the 20th century.”

WeChat overtakes Ferrari

Apart from calculating brand value, Brand Finance also determines brands’ relative strength through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Certified by ISO 20671, Brand Finance’s stakeholder equity assessment incorporates original market research data from over 50,000 respondents in nearly 30 countries and across more than 20 sectors. According to these criteria, WeChat has usurped Ferrari to become the world’s strongest brand with a Brand Strength Index (BSI) score of 95.4 out of 100. The Chinese mobile app is merely 11 brands to have been awarded the elite AAA+ brand strength rating.

Alongside revenue forecasts, brand strength is a crucial driver of brand value. As WeChat’s brand strength grew, its brand value also enjoyed a rapid boost, increasing by 25% to US$67.9 billion and jumping 9 spots on the ranking to enter the top 10 for the first time.

According to Brand Finance’s original market research, as one of China’s home-grown tech successes with robust equity, WeChat enjoyed a high reputation and consideration among Chinese consumers. The brand has successfully implemented a broad and all-encompassing proposition, offering services from messaging and banking, taxi services, and online shopping – the all-in-one app has become essential to many users’ daily lives.

Meet the world’s top Brand Guardians

This year’s top CEO in the Brand Finance Brand Guardianship Index is Mastercard’s, Ajay Banga. Mr Banga announced his transition from CEO to executive chairman in 2020, rounding off a successful and decorated 10 years as CEO. Since taking the helm of Mastercard, Mr Banga has embraced technological innovation, ensuring the brand remained relevant despite a period of rapid change in financial services. Mr Banga also champions the idea of financial inclusion and has leveraged his influence to build strategic partnerships with financial institutions worldwide to help fight poverty.

David Haigh, CEO of Brand Finance, commented:

“COVID-19 has presented perhaps the greatest challenge to all CEOs this year. Leaders have had to protect shareholders’ financial interests and protect their people from the genuine threat to health and life posed by the pandemic. It has required resolve and vision to safeguard – and in some cases grow – one of these leaders’ most important assets, their company’s brand.”

The world’s Top 10 most strongest brands
The world’s Top 10 strongest brands

View the full Brand Finance Global 500 2021 report here

 

[email protected]

Leave A Reply

Your email address will not be published.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More