BrandZ Top 100 Most Valuable Global Brands 2013


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Brand value increases across categories.
Year of recovery, refinement, relevance

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BrandZ Top 100 Most Valuable Global Brands 2013

  1. 1. Methodology and valuation byBrand valueincreases acrosscategoriesYear of recovery,refinement, relevance
  2. 2. Brands take on greater importance,meaning and responsibility in today’srapidly changing, interconnected world.
  3. 3. 3Dear friends of Millward Brown,We’re delighted to present you with the 8th annual edition ofthe BrandZ™ Top 100 Most Valuable Global Brands. Usingdata collected by Millward Brown on behalf of WPP andtapping into the proprietary valuation method of MillwardBrown Optimor, we remain committed to helping youunderstand how brand building enhances the financial healthof your company. Last year, we saw negligible growth in thevalue of the BrandZ™ Top 100, a cause for concern in themarketing community. I’m delighted to share the return togrowth we have witnessed this year. The value of the world’smost valuable brands grew a respectable 7 percent and in theeight years we’ve been tracking brand value, the value of theBrandZ™ Strong Brands Portfolio has grown by an amazing58 percent. In spite of prolonged global economic volatility,the value of the world’s strongest brands outperformedthe stock market benchmark by a wide margin of 28%.We continue to see many technology brands at the top ofour ranking and there is little doubt that technology hasbecome the lifeblood of our modern economy. That said, thesebrands struggled to deliver value growth in 2012. Over thepast couple of years, mobile devices have sky-rocketed, butat the expense of personal computers. Likewise, hardwaremanufacturers have had to adapt to shifts to a more servicebased business model as more and more has shifted fromphysical equipment to cloud based solutions. As always, theability to adapt remains paramount in this ever-importantcategory and the nimble will inevitably be rewarded.And it’s not just technology brands that must adapt.Increasingly, we see consumers holding brands to higherstandards. Reputation has never been more important asbuyers expect brands to operate in accordance with higherideals and greater responsibility. The best brands understandand appreciate more than just what people buy. Instead,they seek to understand and deliver what people buy into. Soaligning your brand’s values with those of your customersisn’t just about doing good; it’s about good business.We hope you’ll enjoy the many insights in this report thatcome from all over the world of WPP. Those of you whoare followers of Sir Martin Sorrell will have heard him talkof a concept he calls “horizontality” – bringing the bestof WPP together to serve our clients better. This report isa proud example of how the many assets that live withinWPP can help you understand and deliver world-classbrand building to your organization. At Millward Brown,we’re proud to be at the center of BrandZ™ and prouderstill of the company we get to keep within WPP. We lookforward to helping you grow the value of your brand!Warmest regards,Eileen CampbellWelcome
  4. 4. 4 BrandZ™ Top 100 Most Valuable Global Brands 2013 5ContentsPart 1HighlightsPart 4The Fast GrowingMarkets8....................... Introduction10..................... Key Results12..................... Cross-Category Trends16..................... Take Aways20..................... Thought Leadership Radically Reimagining Brands Stewart Pearson,Vice Chairman, Chief Client Officer Wunderman24..................... The BrandZ™ Top 100 Most Valuable Global Brands 201328..................... Overview30..................... Top Risers32..................... Newcomers33..................... Category Changes34..................... Brand Contribution36..................... Regions40..................... Thought Leadership The Era of Adaptive Marketing Norm Johnston, Chief Digital Officer Mindshare Consumer & Retail44.....................Apparel48.....................Cars52.....................Luxury56.....................Personal Care60.....................Retail64..................... Thought Leadership Shaping Seamless Retail with unique Experience Signatures Aaron Shields, Strategy Director Tim Greenhalgh, Chief Creative Officer FITCH Food & Drink66..................... Beer70..................... Fast Food74..................... Soft DrinksPart 2The Top 100Part 5ResourcesPart 3The Categories78..................... Thought Leadership E-commerce Becomes Everywhere Commerce Sue Pratt, Head of Marketing Salmon Financial Institutions80..................... Banks86..................... Insurance92..................... Thought Leadership Leveraging Financial Services Brands Terry Tyrrell,Worldwide Chairman Brand Union Commodities94..................... Oil & Gas98..................... Thought Leadership Total Disruption at Retail Anne Zybowski,Vice President – Retail Insights Kantar Retail Technology100................... Technology106................... Telecom Providers112................... Brazil116................... China122................... India126................... Russia130................... Thought Leadership Speed Kills: How Brands Can Move Fast Shane Atchison, Global CEO POSSIBLE134................... BrandZ™ Valuation Methodology136................... Other BrandZ™ Reports138................... WPP Companies & Associates140................... WPP Company Contributors146................... WPP Company Brand Experts148................... BrandZ™ Top 100 Team149................... BrandZ™ Valuation Contacts
  5. 5. 76 BrandZ™ Top 100 Most Valuable Global Brands 2013Part 1 | HighlightsPart 1Highlights
  6. 6. 8 BrandZ™ Top 100 Most Valuable Global Brands 2013 9Part 1 | Highlights IntroductionBrandZ™Top 100 Rises7 percent With growthacross categoriesThere was a new tone.It fit the new normal. Both brandsand consumers adjusted to constantuncertainty and sober expectationsabout economic growth. They fit intothe calculus of consumption the impacton the natural environment, personalhealth, and human wellbeing along thesupply chain.Shaped by these considerations, brandvalue appreciated.The value of the BrandZ™ Top 100 MostValuable Global Brands rose 7 percent to$2.6 trillion last year, compared with aflat performance a year ago.All but two ofthe 13 categories analyzed in this reportimproved in brand value.Technology andoil and gas declined modestly.These results indicate that strong brandscontinue to regain value lost during therecession and now, in some cases, surpasstheir pre-recession levels.The total brand value of the BrandZ™Top100 Strong Brands Portfolio has improved77 percent since 2006. In addition, theBrandZ™ Top 100 Strong Brands Port-folio, comprised of diverse public compa-nies, appreciated 58 percent during thateight-year period, compared with a mar-ket value gain of only 23 percent by theS&P 500.Despite a sharp decline in the growth ofits brand value last year, Apple remainednumber one in the BrandZ™ Top 100ranking, on the strength of the meaningfuldifference of its brand. Google movedto the number two position, marginallysurpassing IBM, which continues to bethe world’s most valuable B2B brand.These brands demonstrate both thecapacity to grow brand strength quickly(Apple was founded in 1976, Googlein 1998) and sustain it over time (IBMcelebrated its centennial in 2011).Three key themes emerge from theBrandZ™ Top 100 Most Valuable GlobalBrands 2013:RecoveryThe economy continued to improve—not everywhere, but in the US. Allcategories experienced healthy sales.RefinementWith confidence still fragile, brandsresisted introducing break-throughinnovations and instead encouragedconsumer spending with incrementalproduct and service improvements.RelevanceReaching these more reflectiveconsumers required offering productsand services that not only projectedmass appeal, but also promisedpersonal relevance for the individual.Year of recovery, refinement and relevanceBrandZ™ Portfolio outperforms S&P 500Over the past seven years, the S&P 500increased 23 percent in market value. Incontrast, the BrandZ™ Portfolio of thestrongest brands appreciated 58 percent.The comparison shows that strongbrands outperformed the stock marketbenchmark by a wide margin of 28%.23%58%-60%-40%-20%0%20%40%60%BrandZ™ Strong Brands PortfolioS&P 500Apr 06 Apr 07 Apr 10 Apr 13Apr 08 Apr 11Apr 09 Apr 12Introduction Up 7%Source: Bloomberg
  7. 7. KeyResultsFinancialbrands improveMany of the bank brands grewsignificantly in brand value basedon new, successful initiatives to driverevenue in a more regulated, lowinterest rate environment. Some ofthe gain in brand value restored valuelost after the global financial crisis.Financial brands—Globaland Regional Banks, creditcards and Insurance—account for almost 20 percent ofthe brand value of the BrandZ™Top 100, the second highestgrouping after technology.Three of the BrandZ™ Top 10newcomer brands are financial,increasing the number of financialbrands in the BrandZ™ Top 100to 25 from 23 a year ago.The financial brands improvedoverall about 20 percent invalue. The banks, in particular,experienced a strong profit rebound.Global Banks grew 23 percentin brand value and regionalbanks grew 15 percent.With a 19 percent rise in brandvalue, following a 16 percentdecline last year, the Insurancecategory returned to its 2011 level.Food & drinkexperiencemixed resultsChanging consumer habits, ongoinghealth concerns and economicpressure on core customers moderatedresults. Brands emphasized value,added healthier menu options, andremodeled locations.Beer improved 36 percent,the greatest percentage brandvalue rise of all categories. Beerbrands showed strength in mostmarkets, particularly the BRICs.Fast food increased 5 percent.Flat customer traffic in the US,along with economic pressure inEurope and slower growth in theBRICs, reduced the rate of increasefrom 15 percent a year ago.Soft drinks rose 5 percent,following a rise of only 1 percenta year ago. The change in valuereflects effective brand marketingand the ongoing popularity of energyand sports drinks. But becausethe category was redefined to bemore inclusive this year, resultsare not completely comparable.10 BrandZ™ Top 100 Most Valuable Global Brands 2013 11Part 1 | Highlights Key ResultsConsumercategoriesreboundConsumer categories experienced thestrongest brand value appreciation asconfidence and spending improvedoverall, despite economic difficultiesin Europe and the slowdown in theBRIC markets.Apparel grew 21 percentfollowing a rise of 13 percent ayear ago. Consumers felt ready tospend, particular on fast fashionand premium offerings, andbrands matched their desires.Retail rose 17 percent after a5 percent decline a year ago.Adjusting to the new normal ofsteady but cautious purchasing,consumers were ready to spendwhen they found value.Personal care improved11 percent following a 5percent decline last year.Cars rose 5 percent after a7 percent decline last year, apositive swing driven by resurgencein Detroit and the brand valuerise of several German brands.Luxury grew 6 percent, a strongincrease but softer than the 15percent rise a year ago becausesales slowed in the BRICs.Technology brandvalue remains flatIn a year of product iteration, ratherthan innovation, the overall brand valueof the technology category remainedflat. The race to assemble and dominateecosystems defined the year for B2Cbrands. In B2B, some brands discoveredopportunities in big data and the cloud,while others struggled to reposition awayfrom device-driven strategies.Without the surge in Apple andFacebook brand value that helpeddrive category growth, Technologydeclined 1 percent in the BrandZ™2013 ranking, after five years averaging8 percent annual category growth.The value of the Telecom categorygrew 1 percent, driven by the increasein mobile data transmission.Technology and Telecom brandstogether make up the largest segmentof the BrandZ™ Top 100, bothin number of brands representedand in their aggregate value.Over a quarter of the BrandZ™ Top100 brands are in Technology orTelecoms. The exact number is 28,up from 24 brands in 2006 but downfrom 31 brands in last year’s ranking.Technology average brand value,$44.2 billion, is double the average$21.1 billion value of other brandsin the BrandZ™ Top 100 (excludingtechnology and telecoms).The top three BrandZ™ most valuableglobal brands are in technology:Apple, Google and IBM. Andsix of the BrandZ™ Top 10 areTechnology brands or Telecoms.Tencent, the Chinese messagingplatform, grew 52 percent in brandvalue based on the success of itsWeChat utility for voice and textcommunication over the Internet.Driven by the success of its Galaxysmartphone, and positive impact on itsdigital devices and home appliances,Samsung improved 51 percent inbrand value, moving up 25 places inthe BrandZ™ ranking to number 30.Commoditycategoriesdecline in valuePolitical unrest compounded thechallenges of the high-risk oil and gascategory, which explored for naturalresource reserves in some of the earth’smost difficult and fragile environments.The Oil & Gas category declined 4percent in brand value, the largestdecline across all categories.The steep brand value decline of Brazil’sPetrobras offset the generally positivebrand value improvement of both theprivate international oil companies(IOCs) and the state-controllednational oil companies (NOCs).A Colombian NOC, Ecopetrol, appearedin the BrandZ™ oil and gas categorybrand ranking for the first time.Russia’s Lukoil also debutedin the BrandZ™ oil and gascategory brand ranking.Top risers crosscategoriesAmong the BrandZ™ Top 100 MostValuable Global Brands, those thatrose fastest in value came from thesecategories—Apparel, Beer, Luxury,Retail and Technology. The categorydiversity indicates that a brand’s abilityto be different and relevant drives success,not its category.Prada appreciated 63 percent inbrand value, leading all brandsin rate of brand value growth.Zara surpassed Nike as thehighest valued apparel brand.HSBC led the ranking of global banks.Wells Fargo overtook ICBCas leading regional bank.Amazon surpassed Walmart to claimthe number one spot in retail.Toyota reclaimed the top positionin cars, with BMW down a notch.Fast growingmarketsinfluence brandvalue growth,even aseconomies slowThe number of brands from the fastgrowing markets in the BrandZ™Top100 Most Valuable Global Brands2013 totals 17, compared with 20 ayear ago.The fast growing marketsrepresented in the BrandZ™ Top100 are: China (12 brands, downone from a year ago); Russia(2 brands, same as a year ago);India (2 brands, same as a yearago); Africa (1 brand, same as ago).No Brazilian or Mexican brandsappear. They were representedby one brand each a year ago.The 17 brands from fast growingmarkets in the BrandZ™ 2013 Top100 total $328.8 billion in brandvalue compared with $330.8 billionin total brand value for the 20 brandsin the BrandZ™ 2012 Top 100.Although not quite large enoughfor inclusion in the BrandZ™Top 100, other brands from fastgrowing markets appear in thecategory rankings: Brazil (4brands), Columbia (2), Chile(1), Mexico (1) and China (1).The growing presence ofAustralian brands in the BrandZ™Top 100 reflects economicstrength relative to slowdownsin other developed markets.Three of the newcomer brands tothe BrandZ™ Top 100 are Australian:two banks, ANZ and Westpac,and Woolworths supermarket.A fourth new Australian brand,Coles supermarket, appearsin the Retail category ranking,but not in the Top 100.Commonwealth Bank of Australiaranks in the BrandZ™ Top 20 Risers.Brand and category performance
  8. 8. 12 BrandZ™ Top 100 Most Valuable Global Brands 2013 13Part 1 | Highlights Cross-Category TrendsTechnology has become likebreathing. We can’t live withoutit. And we’re not aware of it untilthere’s a problem. In the technologycategory, devices, content anddistribution systems havecoalesced into parallel andcompeting ecosystems.Brand implicationsNew and shiny alone isn’t enough.No brand is unassailable. Thewinning brands attempt to beomnipresent and indispensible.ExampleNot long ago derided as “dumbpipes,” telecom providersare creating their ownbranded ecosystems.Having encountered excellent brand experiencein some categories, consumers now apply thesestandards across all categories. They expect excellentbrand experience and have little patience when it’smissing. And they don’t necessarily expect to payextra for it.Brand implicationsNo category is immune from this expectation. Noaspect of the brand is excluded, including: how thebrand engages in physical and virtual stores; howthe brand communicates to customers; and howcustomers communicate about the brand in theirsocial networks. Brands need to benchmark againstthe best-in-class brand experience.ExampleThis phenomenon can be called the “Apple Effect,”since the brand established a standard for design,functionality and service delivered by both physicaland online stores. Meeting those high expectationschallenges any brand, including Apple, toconsistently improve.Cross-CategoryTrendsWe increasingly move seamlesslybetween the personal, socialand businesses aspects of ourlives. Or we occupy these spacessimultaneously. Technology enablesthis fluidity.Brand implicationsBrands must keep up as we moveamong the personal, social andbusiness aspects of our lives. Brandsthat force us to pause or switchdevices risk losing us. The rigid B2Cand B2B designations don’t fullyapply anymore. To move smoothly,brands can’t be defined by a narrowfunction. Brands need to assume ahigher purpose; then we grant thempermission to be present all the time.ExampleBYOD shows how consumers aredriving this trend. The Bring YourOwn Device attitude is transformingthe workplace as people reject IT-issued gear in favor of the brandsand devices that they use in theirpersonal lives anywhere, anytime.Consumers shop from a broad portfolio of brands.A woman may purchase an affordable dress butmatch it with a luxury accessory. Consumers calibratetheir expectations realistically. They’re fine when thecustomer service of a value brand lacks intimatepersonal attention, but impatient if it lacks efficiency.Consumers don’t expect everything from a brand—just what they’ve paid for—and maybe a bit more,like finding some luxury feel in a mass setting.Brand implicationsTechnology enables brand marketers to satisfy theseservice expectations. By collecting and analyzingcustomer data, brands can tailor products, servicesand messages to be relevant for individual customers.ExampleIn both super luxury and mass luxury, brands createpersonalized experiences to make customers feelespecially unique and valued. A customer buyingan accessory might receive a thank you on Twitter;a couture customer might be invited to an exclusivefashion show.Location is everywhere. Locationis no longer a barrier because youcan reach the consumer anywhere,physically or virtually, at a time thatsuits the consumer.Brand implicationsBrands in all categories need to meetcustomers wherever the customersare. Each space, physical or virtual,can serve a different and appropriatefunction. A physical space can helpshowcase brand experience andcultivate customer intimacy, whilethe virtual world can perform thefunctional benefits of wide productrange and simplified purchasing.ExampleIn the insurance category, brandshave increased their presence insocial media. And one leading brandis experimenting with storefront café-like locations that appeal to younger,first-time customers looking forinformation without a hard sell.1 3 4 5Technologyis a life forceLocationis notimportantConsumers expectwhat they’ve paidfor—and maybe abit moreCustomers expectthe experiencethat a brand promisesto be executedflawlessly acrosscategories2Life isblended10 current influences on brands
  9. 9. The role ofreputationis rising14 BrandZ™ Top 100 Most Valuable Global Brands 2013 15Part 1 | Highlights Cross-Category TrendsBrands are attempting to restoretrust after it eroded in certaincategories, particularly financialinstitutions. Corporate reputationbecomes more important as a way toconfer credibility.Brand implicationsAfter years of fracturing into subbrands, some corporations arepromoting their brands under thecorporate umbrella of authority.Corporate reputation is especiallyimportant to fortify brands on topicslike environmental responsibility andgood citizenship.ExampleAs the recent BrandZ™ reporttitled RepZ discovered: strongcorporate reputation correlates withhigh market share and improveskey brand metrics. And corporatereputation and brand reputationincreasingly are one in the same.Even in a year of slowed economicexpansion in the fast growingmarkets, it’s clear that brandpresence in these markets is nolonger optional for some categories.Brand implicationsThere’s a correlation betweenhigh brand value and presence infast growing markets. Presencedoesn’t assure high brand value, butabsence makes high value muchmore difficult to achieve in somecategories. Being well represented infast growing markets helps brandsnot only by driving sales, but alsoby influencing higher assessmentsof forward-looking earnings, whichcan lift share prices. The full impactrequires being present, relevant andwell differentiated.ExampleGlobal presence especially drovegrowth in categories such as luxury,fast food and soft drinks.Brands increasingly are executingthe role formerly filled by traditionalmedia—organizing and reachingaudiences with relevant content.That’s because the brand’s customerdata often is more targeted anddetailed than the mass-marketaudience data of TV or print media.Brand implicationsThis phenomenon is most apparentin retail because retailers collectand organize an enormous volumeof customer data that can bemonetized by creating contentrelevant to an audience segment anda sponsoring supplier. The apparelcategory is experiencing asimilar phenomenon.ExampleWhile fashion brands still find itimportant to advertise in industrymagazines, their own catalogs oftentell the brand story more extensively.Some brands produce their ownfashion shows, broadcast in-storeor online.6 7 8Brands arebecomingmediaPresence infast growingmarkets isimperative forglobal brandsThe middlegets squeezedThe individualis the expertBrands at the premium or price ends of the valuecontinuum present consumers with a clearer choicethan brands in the middle. When the value propositionisn’t clear, it’s more difficult to persuade today’scautious consumer to purchase.Brand implicationsIn today’s economy, brands that effectively make acase for premium or value are better positioned thanthose squeezed in the middle with a less well definedreason for being and a limited story to tell. There’s amarket in the middle, but there’s little room for error.Brands in the middle can’t be mediocre, at least notfor long.ExampleIn apparel, most of the fast fashion brands and themore premium brands improved in brand value, whilethose appealing to the broad middle were more likelyto struggle.Information is available everywhere, anytime toeveryone. The brand-customer conversation is amongequals. Brands and customers learn from each other.Brands gain direction and co-creation possibilities.Brand ImplicationsThe brand-customer relationship becomes more ofa partnership. Comments on social media are fast,direct, informative and inexpensive. Paying closeattention to these comments forges a closer brand-customer relationship and results in products andservices that more closely match customer desires.ExampleThe sales rebound of the Detroit automakers resultedfrom many factors, including a shift from exclusivereliance on traditional media to a sophisticatedpresence on social media.9 10
  10. 10. 16 BrandZ™ Top 100 Most Valuable Global Brands 2013 17Part 1 | Highlights Take AwaysTakeAwaysStand for a higher purposeBrands too narrowly defined by what they do may thrivewhen their specialty is in high demand.But they’re vulnerableas fads or even trends change. In contrast, brands with ahigher purpose enjoy consumer permission to introduceother relevant products and services. This phenomenon wasespecially evident in technology, where some B2B brandsstruggled to expand from device-driven strategies, whilebrands with a broader purpose—make life easier, better,simpler—enjoyed greater flexibility. The best brands arebuilt on an ideal that encompasses not what people buy, butwhat they buy into.Make the purpose as salient andglobal as the brandGood citizenship is not optional. Brands that sustaingreatness over time connect to a fundamental reality: peoplewant a better life for themselves and for the people closestto them. In an interdependent, transparent world a betterlife must be available to everyone. For global brands, therising middle classes of Africa, India and Latin Americarepresent not only potentially lucrative markets, but also theopportunity of the century, to help millions of people risefrom poverty.Be meaningfully differentThe key word is meaningfully. Across categories, the mostvaluable brands generally are meaningfully different likethis: They’ve discovered important customer needs thatthey’ve filled in ways that make the brand stand out andkeep customers returning. In luxury, meaningful differencemay pertain to craftsmanship or exclusivity; in technology,it could be about product efficacy and style; in oil and gasthe highest quality engineering skill may be a meaningfuldifference. Meaningful means making a difference in the lifeof the customer, which helps the brand gain market share,maximize profitability and sustain success.Multitask like your customersTime-stressed consumers multitask.They want the productsthey buy to multitask. This trend is most apparent in softdrinks and personal care. Having a refreshing beverageis fine. But it seems better—and serves a purpose beyondhydration and thirst quenching—if the beverage also boostsenergy and adds vitamins or replenishes carbohydrates.It’s the magic of the “and.” In personal care, consumersare turning to cosmeceuticals, products that provide thebeauty enhancement of a cosmetic with pharmacologicalproperties that improve skin, for example. Not every brandneeds to multitask. But all brands need to be aware how themarketplace has conditioned customers to expect solutionsthat perfectly match the way they live their lives.Address changing consumer habitsand concernsResponding to consumer health concerns, carbonated softdrink brands are introducing juices and other beverageoptions and the fast food brands are adding more healthyoptions to menus. There’s a gap between what consumerssay they want (healthy drinks and food) and what theyoften choose (taste and calories). But habits are changingover time, especially among the young. And despite whatpeople do today, what they say may indicate what they’ll dotomorrow. Brands need to listen closely.Make good and better as if it’s the bestConsumers who buy good and better increasingly expectsomething similar to best. Now, the newest mid-market carmodels often are equipped with the kinds accessories thatnot long ago distinguished luxury brands. With electronicentertainment and guidance wizardry broadly available,luxury brands differentiate their cars with refinements, likethe quality of the interior finishes. This democratization ofquality is likely to raise value expectations across categories.Purpose ConsumersInsights for growing brand value
  11. 11. 18 BrandZ™ Top 100 Most Valuable Global Brands 2013 19Part 1 | Highlights Take AwaysBe the message and the mediumMarshall McLuhan had it right when he said, “The mediumis the message.” But now the aphorism is flipped. Themessage is the medium because of several contemporaneousdevelopments, including: the advent of social media, therapid and wide dissemination of information, democraticaccess to audiences, and the emergence of big data.Brands have at least as much ability to organize audiencesand deliver relevant messages as traditional broadcast andprint media.Be genuine and honestThe advantage of traditional media is objectivity andauthority. In contrast, brands have a particular point ofview and an agenda. The key is not to pretend otherwise,but to be genuine and honest. Social media opinions can beharsh. The corrective is not to sanitize them, but to respondas appropriate and use the opinions to improve product andcommunications.Integrate the brand experience inall channelsThe industry parlance has moved from multi-channel toomni-channel to where no single word captures what itmeans for a brand to be present everywhere. Meanwhile,brands across categories are working to get it right. Theluxury brand Burberry creates live fashion shows that arebroadcast in its stores and on its website.Walgreens, the USdrug store chain, aligns is website and mobile presence with8,000 store locations that customers can visit for shopping orpick-up. The challenge is execution, harmoniously aligningall of a brand’s physical and digital representations. Thestrategic use of technology, mobile location based servicesand big data can provide a competitive advantage. Gettingall that right reinforces brand experience.Be ready for the next new and shiny thingBecause people felt uncertain last year, new and shinydidn’t quite tempt them. Even in technology, a categoryknown for innovation, brands shifted to iteration. That’sbecause brands generally didn’t want to take big risks whenconsumer confidence was still fragile and a wallet openedonly slightly could snap shut quickly. Incremental changewas enough to keep consumers happy and keep pace withthe competition.The period of incremental change won’t lastforever, however. The next new and shiny thing needs to beready before consumers realize they want it.Keep up with the fast growing marketsThe BRICs took a breather. The slowdown revealed keydistinctions in their levels of development. Brazil experiencedmixed conditions: Monetary policy stimulated growth ofthe consumer sector but hurt banking, commodities andexports. With Brazil hosting two global events—the WorldCup and the Olympics—in the next three years, growthwill intensify. In China, the government’s drive to develop aconsumer society will continue to increase purchasing powerwell beyond the largest cities. At the end of 2012, Indiaexpanded direct foreign investment, allowing multiple brandmerchants, likeWalmart, to operate as retailers.The openingof India’s economy, slow and deliberate as the countrymanages internal competing interests, is inexorable. Therate of GDP growth in Russia actually outpaced the otherBRICs.With the entrance of Russia into the WTO last year,and the Olympics in Sochi in 2014, Russia is ready for moreWestern brands and the development of Russian brands.TheBRICs breather won’t last forever. And then there’s Africa…Inspire employeesThe customer comes first. The customer is always right.This is the conventional wisdom. It contains some truth andmisses some truth. As banks attempt to restore customertrust lost during the financial crisis, they’re working toimprove internal morale, especially among employeeswho face customers everyday and ultimately represent thebrand most directly. It’s an equation championed by the USretailerWhole Foods.The brand asserts: Happy, enthusiasticemployees satisfy customers; who produce the sales andprofits that the drive stock price, which rewards shareholders.It sounds like the new conventional wisdom.Treat customers as individuals,not demographicsIntelligent use of big data enables brands to treat customersas individuals rather than demographics. Sales people withtablets that instantly access a customer’s buying history andpreferences can respond more personally. Communicationcan be more individualized.A customer spending an averageamount of money over time might receive a personalizedthank you, while a higher-spending customer might receivean invitation to a special event. The data-driven ability tounderstand and respond to customers individually crossesmost categories. Until now, for example, insurers focusedmore on acquiring new customers than on introducing moreproducts to existing customers. With the ability to quicklyanalyze data, insurers can anticipate when a homeownerinsurance customer may be ready for a life policy. Brandshave an opportunity to develop mutually rewarding,individual long-term customer relationships. Customers, notdemographics, spend money.Invest in brand when others hesitateIt’s always difficult to invest when the economy is troubled,sales are slow, budgets are being cut and caution, even fear,becomes contagious. But after the gloom, when the sunreturns, the only question is whether a pot of gold waits atthe end of the rainbow. That depends on investment. Whenthe recession hit, the sales of US home improvement retailerHome Depot already were pressured because of internalproblems, including service levels, which tarnished the brand.Home Depot invested to fix the problems and restore itsstrong brand. In the BrandZ™ 2013 Most Valuable GlobalBrands report, Home Depot was a top riser for the secondconsecutive year. Its brand value rose 43 percent, following a31 percent increase a year ago. Strong brands need tending,but they respond—often quickly.Communication Growth
  12. 12. RADICALLYREIMAGININGBRANDS We are in the throes of a 50-year paradigm shift,the first significant change in the role and meaning ofbrands in culture and commerce since the period ofMad Men and the advent of television.The future of marketing is personal, mobile, social andlocal. Big data makes every experience personal. Over 6billion people have access to a mobile device connectingthem to information,opportunities and each other.Socialnetworks connect individuals anytime and anywhere,with people like them whose opinions matter to them.Technology empowers local marketers to be relevant totheir consumers yet still benefit from the efficiency of aglobal platform and content.Always-on connected consumers engage with brands inmultiple roles. They are participants as well as buyers,conversationalists and sometimes creators, critics orchampions, and all at different times. They expectconsistent experiences relevant to their role and informedby their history at every touch point. They will stayconnected to and share their data with brands they trustin return for valuable content and innovative services.The whole consumer is a radical and new multifacetedway of thinking about consumers as they connect asindividuals and network in communities. Brands mustbe reimagined as experiences and services designed forthe whole consumer by the whole enterprise.Understanding and staying connectedto the whole consumerBrands do not need to limit their thinking to onedimension. Brands can understand the potential ofconsumers as buyers, participants and influencers withina unified analytics and targeting framework. Brandscan understand the multiple roles that consumers playin their lives, and so the multiple ways brands will needto engage consumers to meet their needs.Brands can see consumers truly as individuals.The data flows from personal devices, increasinglywearable and invisible. It will enable us to understandinterests, passions and behaviors within and beyondthe category. The winning brands of the future willSocial responsibility,sustainability exemplifymarketing as engagementPerhaps the most significant illustration of theparadigm shift in the role of marketing is theconsumer desire to play a role in social responsibilityand sustainability solutions. Far seeing enterprisesare responding to global trends by making significantinvestments in social responsibility and sustainability.How do they connect these initiatives to consumerswho care?Consumers care about commitment to corporatesocial responsibility. A Burson-Marsteller surveyreported that 75 percent of consumers agreed that itis important for a company to be socially responsible.In his book “Grow” former P&G CMO Jim Stengelleveraged Millward Brown’s BrandZ™ analysis todemonstrate that, “Maximum profit and high idealsaren’t incompatible, but in fact inseparable.”Using connected data marketers can identify thesegments that participate in and are motivatedby social issues. They can weave into marketingstorytelling the enterprise’s CSR content, personalizedfor these individuals and the communities in whichthey participate.By adopting a whole consumer framework marketerscan bring social responsibility and sustainability tolife, expand its reach and demonstrate its measurablebusiness impact on brands.reimagine themselves as experiences and servicesoffering compelling reasons for consumers to stayconnected. The outcome will be disruptive new businessmodels and revenue streams.This marketing model is a renaissance of consumerrelationship marketing (CRM), first envisaged by LesterWunderman when he created our agency 50 yearsago. To engage the whole consumer means aligningthe whole enterprise. This means change managementand organizational alignment around consumers,experiences and services.In the old paradigm different functions were responsiblefor engaging different consumer behaviors. Buyerswere the responsibility of sales, with content focusedon product features and pricing. Participants werethe responsibility of marketing, with content focusedon brand and emotional value. Influencers were theresponsibility of PR or corporate, with content focusedon sponsorship, events and social responsibility.Data from digital and mobile analytics, and sociallistening, enables marketers to respond to the desiresof consumers with personalized content and socialexperiences. Marketing tools leverage insights andmodels to connect content with consumers. Yet whilea majority of enterprises understand the power ofpersonalized content, relatively few have orchestratedprograms in place. This is a critical gap for marketingto address.New paradigm changes the role of marketingIn the new paradigm, the renaissance of CRM demandschange in the traditional organization. Now we knowthat buyers, participants and influencers are the samepeople.They have different roles at different times, eachrequiring individual response and engagement. Theyhave different demands for content and services, andwant them personalized to their context.In the new paradigm the role of marketing becomes toorchestrate content, experiences and services from thewhole enterprise to engage the whole consumer. In theshift, marketing moves from a communication role (ofbrand, product and sales information) to the missioncritical commercial and strategic role of orchestratingengagement. To fulfill this new role, marketing must dothe following:Access all the enterprise’s contentacross all the enterprise’s silosWeave brand narratives and see themamplified by consumersConnect consumers in their multiple roles with thecontent and services relevant to their personal andcommunity desires, irrespective of time or placeThe role of marketing is now to create, curate andactivate. Marketers should oversee the output of all otherfunctions in the company creating content so that theycan orchestrate engagement of the whole consumer.To manage a brand, a marketing team must now beproducer, listener, analyst and developer as well as(traditional) strategist, planner, creative and projectmanager. The role of the producer means that this is apublishing or news model, but one that operates in real-time and is responsive and proactive. Marketers can nolonger distribute content and track the results. Marketerscan no longer manage a series of campaigns.To grow the brands of the future the marketer’s role isthe orchestration of content for the engagement of thewhole consumer and the accountability for brand valueand marketing performance.Wunderman specializes in social, mobile, data andanalytics, with 170 offices in 60 countries.www.wunderman.comTo satisfy multi-faceted,always-on consumers20 BrandZ™ Top 100 Most Valuable Global Brands 2013 21Thought Leadership Radically Reimagining BrandsStewart PearsonVice Chairman, Chief Client
  13. 13. 23TheTop 10022 BrandZ™ Top 100 Most Valuable Global Brands 2013Part 2 | The Top 100Part 2
  14. 14. 24 BrandZ™ Top 100 Most Valuable Global Brands 2013 25The Brand Value of Coca-Cola includes Lights, Diets and ZeroThe Brand Value of Budweiser includes Bud LightCategory BrandBrand value2013 $MBrandcontributionBrand value % change2013 vs 2012Rankchange1 Technology 185,071 4 1% 02 Technology 113,669 3 5% 13 Technology 112,536 3 -3% -14 Fast Food 90,256 4 -5% 05 Soft Drinks 78,415 5 6% 16 Telecoms 75,507 3 10% 27 Technology 69,814 3 -9% -28 Tobacco 69,383 3 -6% -19 Credit Card 56,060 4 46% 610 Telecoms 55,368 3 18% 011 Conglomerate 55,357 2 21% 012 Telecoms 53,004 3 8% -313 Regional Banks 47,748 3 20% 114 Retail 45,727 3 34% 415 Logistics 42,747 5 15% 116 Regional Banks 41,115 2 -1% -317 Telecoms 39,712 3 -8% -518 Retail 36,220 2 5% -119 Technology 34,365 2 34% 320 Credit Card 27,821 4 34% 921 Technology 27,273 4 52% 1622 Regional Banks 26,859 2 10% 223 Cars 24,497 4 12% 524 Cars 24,015 4 -2% -125 Global Banks 23,970 3 24% 6Category BrandBrand value2013 $MBrandcontributionBrand value %change 2013 vs 2012Rankchange26 Entertainment 23,913 3 40% 1727 Telecoms 23,893 2 -11% -728 Credit Card 23,514 4 16% 229 Luxury 22,719 4 -12% -830 Technology 21,404 3 51% 2531 Technology 21,261 4 -36% -1232 Baby Care 20,594 5 13% 333 Technology 20,443 5 -16% -834 Beer 20,297 4 28% 1435 Apparel 20,167 3 60% 3136 Technology 20,039 2 -11% -937 Regional Banks 19,975 2 12% 138 Regional Banks 19,968 4 16% 239 Oil & Gas 19,229 1 5% -540 Luxury 19,129 4 0% -841 Retail 18,488 2 43% 2142 Personal Care 17,971 4 30% 1543 Cars 17,952 4 11% 344 Fast Food 17,892 4 5% -245 Personal Care 17,823 4 -6% -1246 Regional Banks 17,781 4 22% 847 Retail 17,749 2 40% 1748 Regional Banks 17,745 3 36% 1249 Oil & Gas 17,678 1 -1% -1050 Personal Care 17,250 4 15% 1The Top 100 ChartPart 2 | The Top 100China Construction BankValuations include data from BrandZ™, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).StarbucksTop 100 Most Valuable Global Brands 2013
  15. 15. 26 BrandZ™ Top 100 Most Valuable Global Brands 2013 27Category BrandBrand value2013 $MBrandcontributionBrand value % change2013 vs 2012Rankchange51 Fast Food 16,691 4 12% 152 Regional Banks 16,565 3 New New53 Technology 16,503 3 2% -854 Technology 16,362 2 -29% -2855 Retail 16,303 4 -9% -1956 Apparel 15,817 4 -3% -1257 Insurance 15,279 3 5% -458 Regional Banks 14,236 2 10% 359 Regional Banks 14,196 1 12% 460 Telecoms 13,829 2 -10% -1061 Technology 13,757 2 -12% -1262 Logistics 13,732 4 17% 863 Regional Banks 13,716 3 19% 964 Global Banks 13,386 2 37% 1865 Oil & Gas 13,380 1 11% 366 Telecoms 13,336 2 -22% -2567 Oil & Gas 13,127 1 -6% -1168 Luxury 12,735 5 48% New69 Apparel 12,732 2 -6% -1170 Regional Banks 12,655 3 19% 471 Cars 12,401 3 -2% -672 Technology 12,331 1 16% 173 Alcohol 12,193 3 3% -474 Retail 12,040 3 31% 1575 Soft Drinks 12,029 4 -5% -8Category BrandBrand value2013 $MBrandcontributionBrand value % change2013 vs 2012Rankchange76 Retail 11,879 3 13% 077 Technology 11,816 2 -11% -1878 Oil & Gas 11,520 1 11% -179 Telecoms 11,448 3 23% 980 Retail 11,039 3 New New81 Global Banks 10,836 3 25% 1182 Telecoms 10,633 3 11% 383 Soft Drinks 10,558 3 6% -384 Insurance 10,558 3 4% -685 Regional Banks 10,396 2 8% -286 Cars 10,186 3 3% -587 Global Banks 10,160 2 1% -888 Regional Banks 10,070 3 New New89 Telecoms 10,054 3 -13% -1890 Telecoms 10,028 3 -37% -4391 Fast Food 9,953 3 12% 092 Technology 9,826 3 New New93 Global Banks 9,668 2 New New94 Telecoms 9,531 2 New New95 Luxury 9,454 4 63% New96 Global Banks 9,232 3 8% -197 Oil & Gas 9,036 1 5% -498 Logistics 8,940 3 18% 299 Retail 8,885 2 -5% -12100 Cars 8,790 3 3% -4The Top 100 ChartPart 2 | The Top 100Valuations include data from BrandZ™, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).The 2012 Brand Value of Gucci has been restated to $8,602The Brand Value of Pepsi includes DietsThe Brand Value of Red Bull includes sugar-free and ColaPetroChinaMTNTop 100 Most Valuable Global Brands 2013
  16. 16. BrandZ™Top 100 up 7 percent,Rise touches most categoriesThe BrandZ™ Top 100 MostValuable Global Brands 2013 rose 7percent in brand value to $2.6 trillion.The increase followed flat growth of lessthan 1 percent a year ago.Modest recovery in developed economies,particularly in the US, drove the positivechange in BrandZ™ 2013. And, despiteslower economic expansion, the BRICscontinued to propel certain categories,especially luxury. Brand value increasedin every category but two—technologyand oil and gas, which declined slightly.The beer category experiencedthe sharpest brand valueincrease, 36 percent.With a 19 percent rise in brand value,the insurance category reboundedfrom a 16 percent decline a year ago.The apparel category grew 21percent in brand value on top of a13 percent increase a year ago.The minimal decline in technologyand oil and gas resulted less from theperformance of an entire category, andmore from the brand value fluctuations oftwo important brands, Apple and Brazil’sgovernment-controlled Petrobras.Economic and competitive pressures,rather than brand issues, drove thechanges. In fact, Apple increased slightlyin brand value to remain world’s mostvaluable brand, illustrating how brandpower sustains a company throughbusiness challenges.Top Risers and NewcomersThe three fastest growing brands—Prada, Brahma, and Zara—came fromdiverse consumer categories: luxury, beerand apparel. Prada increased 63 percent,driven by the ongoing appetite for luxury,particularly in fast growing markets.The 61 percent brand value rise ofBrahma, a Brazilian beer owned byAB InBev, the world’s largest brewer,demonstrated the power of a globalmarketer and the continued vitality inthe BRICs.The fast fashion apparel brand Zara grew60 percent in brand value, indicating thatvalue still drove shoppers, even thoughconsumer confidence remained fragile.Eight newcomers, from five categories—luxury, retail, banks (global andregional), technology, and telecomproviders entered the BrandZ™ Top 100:the Italian luxury brands Gucci andPrada; from Australia, the regional banksANZ and Westpac, plus the supermarketWoolworths; and JP Morgan, a globalbank. In addition, the technology brandYahoo! and BT, the telecoms provider,entered the Top 100.Brand ContributionThe leaders in Brand Contributionalso came from diverse categories.Brand Contribution is a key metric thatmeasures the impact of brand alone onbrand value, with financials and all otherfactors stripped away.Colombian beer Aguila and fast foodoperator Panera scored highest in BrandContribution. Both brands appearedfor the first time in the BrandZ™ globalreport, not in the Top 100, but in therankings of their respective categories.All the brands in BrandZ™Top 100 MostValuable Global Brands 2013 achievedthe distinction of appearing in this reportdespite mixed economic conditions. Theyshare something else in common.Their high brand value, relative toother brands, resulted from their abilityto appeal to relevant customers with aparticular balance of being “meaningful”(meet expectations and generateaffection), “different” (unique in apositive way) and “salient” (the brandof choice).2928 BrandZ™ Top 100 Most Valuable Global Brands 2013Total brand value of the BrandZ™Top 100 Most Valuable GlobalBrands has grown steadily since thereport was introduced in 2006.The Top Risers during these eightyears increased 425 percent inbrand value.Half of the eight Fastest Riserscome from the technology category:Apple increased in brand value 1,058percent; Amazon, 664 percent; SAP,259 percent; and IBM, 212 percent.Telecom Verizon rose 256 percent inbrand value.The other Top Risers, from diversecategories, include the luxury brandHermès up 296 percent, and apparelbrand Zara with a 295 percentincrease in brand value. The fastfood brand Subway achieved thegreatest brand value increase—anastounding 5,798 percent.What factors account for the overallbrand value rise in the BrandZ™ Top100 over the past eight years andfor the extraordinary performancesof these fastest risers? What is itthat distinguishes the most valuablebrands and enables steady growth?BrandZ™ analysis indicates thatthese eight characteristics drivebrand value and financial success:1. Great valueIt’s not about price, but what you getfor your money. Hermès and Subwayboth offer great value.2. Relevant for todayContinuing to renew the brand isessential to remain in contention.IBM reinvention, with its highermargin consultancy that drives a“Smarter Planet,” is totally in tunefor today.Key characteristics of successful brands3. Harnessing technologyBeing available 24/7, beingsocial, being connected is notjust the domain of social media.No brand can afford to be outof touch nowadays. Amazon’sonline customer management andpurchase recommendation was agame changer.4. ReputationHow the brand genuinely behavestoday will be assessed immediately,globally, in a flash. Brand strength,what you stand for, is a valuablecomponent of a good reputation.SAP is rated in the BrandZ™research as being particularlyresponsible as a company. And thisunderpins a good reputation.5. Meaningfully differentConsumers will stay loyal if theyfeel they are getting the best. Toconsumers, brands that meet theirneeds are more appealing. Thesebrands are unique in a positive way.Consumers see them as ahead ofthe game in setting trends. Thesebrands generate the greatestcontribution to driving current andfuture sales. Apple is the archetypical“meaningfully different” brand.Analysts and stock market sentimentmight at times be more negative, butApple has a vital and living brand.6. PersonalityA distinctive brand character is morelikely to generate consumer passionand create brand advocates. Brandsshould not worry about polarizingopinion. It’s better to stand forsomething. Verizon is what BrandZ™classifies as a “King”—a brand thatis Assertive and In Control but Wise,Desirable and Trustworthy.Each of the eight Top Risers hasa distinct personality.7. Get abroad and aboutExpansion of the offer using thebrand in its meaningfully differentpositioning is a route to successfulgrowth. All, except Verizon to date,have moved into new internationalterritories chasing growth andsuccess. Being present in growthmarkets in this global economy is amust if the brand has a relevant offer.8. A great branded experienceA brand is only as good as its lastexperience. Recommendation isa powerful force and can make orbreak a brand even more quicklyin this connected world. Zara hasbuilt its reputation and based itsconsiderable innovation on deliveringfashion fast, which provides a greatconsumer experience.Subway5,798%Apple1,058%Amazon664%Hermès296%Zara295%SAP259%Verizon256%IBM212%Fastest Risers2006 to 2013Source: BrandZ™ dataBrandZ™ Top 100Brand Value Growth2006The BrandZ™ Top 100 MostValuable Global Brands have grownsteadily in value since the launchof the annual report in 2006OverviewPart 2 | The Top 100OverviewSource: BrandZ™ data200720082009201020112012201310.6%21.2%0.8%4.4%17.1%0.4%7.0%
  17. 17. Category BrandBrand value2013 $MBrand value2012 $MBrand value %change2013 vs 20121 Luxury Prada 9,454 5,788 63%2 Beer Brahma 3,803 2,359 61%3 Apparel Zara 20,167 12,616 60%4 Apparel Calvin Klein 1,801 1,183 52%5 Technology Tencent 27,273 17,992 52%6 Technology Samsung 21,404 14,164 51%7 Luxury Gucci 12,735 8,602 48%8 Credit Card Visa 56,060 38,284 46%9 Retail The Home Depot 18,488 12,968 43%10 Entertainment Disney 23,913 17,056 40%11 Retail eBay 17,749 12,663 40%12 Beer Stella Artois 6,319 4,529 40%13 Beer Skol 6,520 4,698 39%14 Apparel Next 4,121 2,973 39%15 Global Banks Citi 13,386 9,760 37%16 Personal Care Nivea 6,322 4,642 36%17 Beer Heineken 8,238 6,058 36%18 Regional BanksCommonwealthBank of Australia17,745 13,083 36%19 Retail Amazon 45,727 34,077 34%20 Global Banks Barclays 7,989 5,961 34%Valuations include data from BrandZ™, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Value appreciatesdespite economic stressBrand Value appreciated by anaverage of 44 percent among theBrandZ™ 2013 Top 20 Risers, comparedwith an average increase of 35 percentthe previous year. The sharper increasesuggests that strong brands gainedmomentum despite the fluctuatingglobal recovery.The Top 20 Risers individually farexceeded the substantial 7 percent brandvalue growth of the BrandZ™ Top 100Most Valuable Global Brands overall.The diversity of categories represented inthe Top 20 Risers—apparel, banks, beer,luxury, personal care, retail, technology,entertainment and credit cards—affirmsthat strong brands can emerge in allsectors of the economy.Multiple factors accounted forthis performance, including BrandContribution, the portion of brand valueattributed to the brand alone and notto financial or other factors. Among theother influences were:DifferentiationThe introduction of desirable products,supported with clever marketing, wasa key driver of brand value growth.RecoveryIn other instances, brand value growthreflected value regained since therecession because of investments in thebrand made during the global slowdown.GeographyGenerally, brands with a globalpresence were more likely to enjoybrand value appreciation, despiteslower growth rates in BRIC countries.DifferentiationIn technology, one of two categories thatdeclined slightly in brand value, Tencentand Samsung improved brand value 52percent and 51 percent, respectively.In both cases, the brands demonstratedan ability to anticipate and meetconsumer desires with clearlydifferentiated products.Tencent expanded the user base forsome of its products. Samsung gainedconsumer approval, and challengedApple’s dominance, with the features andmarketing of its Galaxy smartphones.The smartphone success strengthened theKorean brand across its wide range ofhome electronics and digital devices.RecoveryThe Home Depot is the only brand in theBrandZ™ 2013 Top 20 Risers that alsoappeared in last year’sTop Riser ranking.The US home improvement retailer’s 43percent brand value growth follows a 31percent increase a year ago.During the recession, the homeimprovement business suffered more thanmost categories. As business slowed, TheHome Depot acted. It improved customerservice and addressed other problems thathad depressed its sales, decreased its shareprice and tarnished its brand. Driven bythe US housing recovery, consumer andcontractors started spending again. AndThe Home Depot was ready for them.Of the banks that improved in theBrandZ™ 2013 ranking, Citi andBarclays experienced the greatest lift,37 percent and 34 percent, respectively.These gains reflect the recovery of brandvalue lost because of the financial crisis.Citi’s brand value declined 38 percent ayear ago and has not yet reached its pre-recession level.These brand value improvementsfollowed the initiatives by both Citi andBarclays to introduce products andservices aimed at growing businessin a more regulated, low interest rateenvironment. Barclays underwent achange of management, with the newCEO pledging to refocus the bank oncustomer service.GeographyEven as the rate of economic expansionslowed in the BRIC countries, luxury salesgrew. Wealthy Asian clients, for example,continued to support the brands bothwith purchases made at home and whiletraveling abroad, which helped bolsterresults in Europe. Prada led the list ofTop Risers with a 63 percent increase inbrand value. Both an increase in salesand an increase in its Brand Contributionscore contributed to Gucci’s 48 percentrise in brand value.Brand Contribution also remained animportant factor in beer. Brahma andSkol, two local Brazilian brands ownedby global brewer AB InBev, enjoyed widepopularity at home. Based on worldwidedistribution and popularity, StellaArtois, another AB InBev brand, alsogrew in brand value. Heineken benefitedfrom its global premium reputation.Overall, strength in Asia, LatinAmerica and Africa offset the weakenedEuropean economies.The impressive brand value growth of60 percent for Zara and 52 percent forCalvin Klein also reflected worldwidebrand acceptance and growth, especiallyin China and other fast growingmarkets. The increasing brand value ofCommonwealth Bank of Australia inpart can be attributed to nation’seconomic strength relative to otherdeveloped markets.3130 BrandZ™ Top 100 Most Valuable Global Brands 2013Top 20 RisersPart 2 | The Top 100The diversityof categoriesrepresented intheTop Risersaffirms thatstrong brandscan emerge inall sectors ofthe economyTop Risers
  18. 18. three australianbrands make rankingThree Australian brands appearin the BrandZ™ 2013 newcomerranking: two banks, ANZ and Westpac;and a retailer, the supermarketbrand Woolworths.In addition, the Australian supermarketbrand Coles is listed in the retail category,although it does not appear in the Top100. Newcomers are brands that appearfor the first time, or after an absence, inthe BrandZ™ Top 100 ranking.Last year, the BrandZ™ 2012 newcomerranking also included an Australian bankbrand, Commonwealth Bank of Australia,a glimpse of a trend more fully realizedin BrandZ™ 2013. CommonwealthBank rose to number 48 in the BrandZ™2013 ranking, up from number 60 in the2012 ranking.The growing brand value of brandsfrom Australia indicates the strength ofthe country’s economy relative to otherdeveloped markets, and how the country’sproximity to fast growing Asia markets isinfluencing growth.The impact of Chinese consumerpurchasing power was among the driversof brand value growth of the two luxurybrand newcomers, Gucci and Prada.Gucci last ranked in BrandZ™Top 100 in2010. Both Gucci and Prada appeared inthe luxury category ranking a year ago,in BrandZ™ 2012.No brands from BRIC countries appearin the BrandZ™ 2013 newcomer ranking.Two years ago, in BrandZ™ 2011, sevenBRIC brands made the list: five fromChina and one each from Brazil andRussia. A year ago, the BrandZ™ 2012newcomer ranking included two Chinesebrands, one Indian brand and one brandfrom South Africa.The newcomer ranking generally includesat least one technology or telecom brand.This year it’s Yahoo!, which benefitedfrom the appointment of a new CEOfrom Google, and continued leadershipin Japan.BT raised its global profile with its smoothexecution of all the communications forthe Olympics and Paralympics in theLondon 2012 Summer Games.Investmentin fiber optic infrastructure strengthenedthe brand competitively. Strong revenueand profits pushed newcomer JPMorgan into the BrandZ™ Top 1002013 ranking.3332 BrandZ™ Top 100 Most Valuable Global Brands 20132013 rank Category BrandBrand value2013 $M52 Regional Banks ANZ 16,56568 Luxury Gucci 12,73580 Retail Woolworths 11,03988 Regional Banks Westpac 10,07092 Technology Yahoo! 9,82693 Global Banks J.P. Morgan 9,66894 Telecoms BT 9,53195 Luxury Prada 9,454Valuations include data from BrandZ™, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Value risesfor most categoriesStrong category-by-category brandvalue growth reflects the overall 7 percentincrease in the 2013 BrandZ™ Top 100Most Valuable Global Brands.A year ago, the overall brand value of theTop 100 remained flat in the BrandZ™2012 report, with a rise of less than 1percent. Half the categories grew in brandvalue and half declined. One remainedeven. No category grew in brand valueby more than 15 percent.In the BrandZ™ 2013 Top 100 report,every category is up year-over-yearexcept for two—technology and oiland gas, which declined modestly. Sixcategories improved brand value by morethan 15 percent.Some categories improved dramatically.The brand value of the beer categorygrew 36 percent compared with a declineof 1 percent a year ago. Insurance is up19 percent compared with last year’s16 percent decline. The overall brandvalue growth resulted from manyfactors, including:Strengthening of the global economy,despite continued weakness in Europeand slower growth in the BRICsStrong recovery of somecategories (banks), incrementalprogress in others (cars)Brand strength that enabled brands toendure difficult times and flourish duringthe early stages of economic recoveryThe strong brand value rise in the beercategory illustrates the power of brandstrength. Not surprisingly, beers generallyscore high in Brand Contribution, theamount of brand value attributed toCategoryBrand value % change2013 vs 2012Beer 36%Global Banks 23%Apparel 21%Insurance 19%Retail 17%Regional Banks 15%Personal Care 11%Luxury 6%Cars 5%Soft Drinks 5%Fast Food 5%Telecoms 1%Technology -1%Oil & Gas -4%Valuations include data from BrandZ™, Kantar Worldpanel, Kantar Retail and Bloomberg.brand alone rather than financial andother factors. With the exception ofluxury, beer is the category where theproduct most depends on the emotionalconnection with the consumer.Several factors influenced brandvalue growth in the apparel category.First, consumers were more willing tospend money. Second, they spentcautiously, and brand influenced whatthey purchased.The BrandZ™ 2013 ranking dividesthe category formerly called financialinstitutions into global banks andregional banks. The total brand valueof the regional banks was more thandouble that of the global banks. Bothgroups experienced strong brand valueappreciation. The regional banksimproved 15 percent in brand value, theglobal banks, 23 percent.The rising brand values for banks, reflectboth improvements in the economy andbrand building efforts, such as productsand services aimed at finding newcustomers, better serving their needsand regaining their trust. Similar factorsinfluenced the brand value rise of theinsurance category.Both the soft drink and fast foodcategories registered a 5 percent rise inbrand value. These categories remainedunder pressure as consumer concernwith healthy eating increases. Theleading brands introduced new products,including lower calorie options.The car category’s 5 percent growth inbrand value follows a 7 percent declinea year ago. The positive swing in brandvalue reflects an industry that’s still stuckin neutral in Europe, moving forwardin China, and rapidly gaining speedagain in the US, based on the economicrecovery and brand reinvention by theDetroit Three.The growingbrand value ofbrands fromAustraliaindicates thestrength ofthe country’seconomy relativeto other developedmarketsNewcomers and Category ChangesPart 2 | The Top 100Newcomers Category Changes
  19. 19. Nine of the 15 brands listed in theBrandZ™ 2013 Brand Contributionranking also appeared last year.The repeat performances of these brands—Pampers, Baidu, Guinness, Natura, Skol,Coca-Cola, Falabella, Chanel and LouisVuitton—underlines the durability ofBrand Contribution strength.BrandContributionisasalientcomponentof brand value. It is the portion of brandvalue driven by brand itself, ratherthan financial or other factors. BrandContribution measures a brand’s abilityto stand out and generate desire andloyalty in the mind of the consumer.BrandZ™ methodology bases BrandContribution on in-depth, quantitativeinterviews with over two millionconsumers in 30-plus countries. Thisrigorous, objective and consumer-facingresearch distinguishes BrandZ™ asthe most authoritative brand valuationmethodology. BrandZ™ scores BrandContribution on a scale of 1 to 5, with5 being the most positive. (For a fullexplanation, please see Methodology onpage 134).Most of the BrandZ™ 2013 BrandContribution Top 15 also rank in theTop 100. Some appear only in thecategory rankings. All outperformed theaverage Brand Contribution levels oftheir respective categories. The mix ofstrategies and tactics for achieving thiscompetitive advantage vary by brandand category.Beer and luxury are the most representedcategories in the Brand Contributionranking with three brands each. BrandContribution is especially importantin these categories, where the productdepends so much on effective marketingcommunication and the emotionalresponse of the consumer.The Brand Contribution leader, Aguila,is a Colombian beer brand owned bySABMiller. It appears for the first timein BrandZ™ 2013, in the beer categoryranking. Guinness enjoys strong BrandContribution in part because of itsconsistent brand proposition. Diageo,the alcoholic beverage company, marketsits Guinness brand worldwide as apremium beer.Skol is a local Brazilian brand owned andmarketed by AB InBev, the world’s largestbrewer. The personal care brand Naturaalso is Brazilian.The presence of Skol andNatura indicate how local brands canbuild consumer preference even when themarket includes global competitors.The slowdown in China’s economicgrowth affected luxury brands, but Guccisales remained strong in most regions,even Europe. And an increase in BrandContribution contributed to Gucci’ssubstantial rise in brand value.Chanel and Louis Vuitton illustratehow luxury brands cultivate BrandContribution in various ways. Chanelemphasizes the brand’s exclusivity,while Louis Vuitton tends to be moreaccessible, widely celebrating its heritagein travel and evoking the elegance ofearlier periods.The presence of a retailer in the BrandContribution ranking reflects the highprofile of the department store Falabella,particularly in its home market, Chile,but also throughout South America.The Coca-Cola brand continues to scorehigh in Brand Contribution even as thecompany’s carbonated beverages remainthe focus of consumer health concerns.The strength of Coca-Cola’s BrandContribution score illustrates the powerof an iconic brand to help support thebusiness it signifies.3534 BrandZ™ Top 100 Most Valuable Global Brands 2013Strong brand equity drivesSustained market advantageBrandContributionmeasures abrand’s abilityto stand out andgenerate desireand loyalty inthe mind of theconsumerBrand ContributionPart 2 | The Top 100Category BrandBrand value2013 $MBrand value2012 $MBrand value %change2013 vs 2012Brandcontribution1 Beer Aguila 3,903 New New 52 Fast Food Panera 3,025 New New 53 Baby Care Pampers 20,594 18,299 13% 54 Technology Baidu 20,443 24,326 -16% 55 Luxury Gucci 12,735 8,602 48% 56 Logistics UPS 42,747 37,129 15% 57 Beer Guinness 4,473 4,044 11% 58 Personal Care Natura 3,707 3,307 12% 59 Beer Skol 6,520 4,698 39% 510 Fast Food Chipotle 4,972 New New 511 Personal Care Crest 3,680 3,379 9% 512 Soft Drinks Coca-Cola 78,415 74,286 6% 513 Retail Falabella 5,611 5,263 7% 514 Luxury Chanel 7,075 6,677 6% 415 Luxury Louis Vuitton 22,719 25,920 -12% 4Valuations include data from BrandZ™, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).Brand Contribution
  20. 20. 23%22%47%7%Top 100 Brandsby Region1%AfricaAsiaEuropeNorth AmericaUK17%13%65%5%Top 100 Brandsby Value Share0%Almost half of the brands in the BrandZ™ Top 100 ranking are basedin North America. They account for two-thirds of the Top 100’s $2.6trillion in brand value. Just less than one-quarter of the BrandZ™ Top100 brands are based in Asia, and they total 17 percent of the Top 100total brand value.North American brandsdominate in number, valueAfricaAsiaEuropeNorth AmericaUK3736 BrandZ™ Top 100 Most Valuable Global Brands 2013BrandBrand value2013 $MBrandcontributionBrand value change2013 vs 2012Rankchange1 Apple 185,071 4 1% 02 Google 113,669 3 5% 13 IBM 112,536 3 -3% -14 McDonald’s 90,256 4 -5% 05 Coca-Cola 78,415 5 6% 16 AT&T 75,507 3 10% 27 Microsoft 69,814 3 -9% -28 Marlboro 69,383 3 -6% -19 Visa 56,060 4 46% New10 GE 55,357 2 21% 0Valuations include data from BrandZ™, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).Top 10 North AmericaSome of the morerecent arrivals likeApple and Googlegrew so quicklythat their brandvalue growthis beginning toresemble thepace of a moremature brandRegionsPart 2 | The Top 100RegionsAlmost half of the brands in theBrandZ™ Top 100 ranking are basedin North America. They account fortwo-thirds of the Top 100’s $2.6 trillionin brand value. Brand value growth inNorth America was flat, however.Growth rates fluctuated by region: Asia,Continental Europe, Latin America,North America and the UK. The BRICmarkets drove the greatest swings, withthe Top 10 brands from Asia up 13percent in brand value, while the LatamTop 10 declined 13 percent. The keyreasons for the contrast in growths ratesacross regions were:Strong individual brand performancesin China, despite a slower nationaleconomic growth rate, and brandgrowth in Korea, Japan and Australia;The slowdown of the Brazilian economyand the impact of governmentpolicy on strategic categories,including energy and banking; andModest growth in the value of leadingtechnology brands based in NorthAmerica, relative to prior yearsIn addition, the resilience of luxury andapparel brands based in ContinentalEurope balanced the overall impact ofthe region’s troubled economies. And acouple of global banks based in the UKimproved sharply in brand value.Asia appreciates in brand valueMany of China’s leading brandscontinued to appreciate in brand value,despite the slowdown in the rate ofeconomic growth. The country’s mostvaluable brand, China Mobile increased18 percent in brand value. China Mobilewon more 3G subscribers than its rivalswith its aggressive marketing. It is alsoexpanding its 4G network.Tencent, with a 52 percent rise in brandvalue, continued to draw more users toits instant messaging service and otherofferings. The success of its Galaxysmartphones drove the improved 51percent in Samsung’s brand value andburnished the Korean brand across itswide range of home appliances anddigital devices.Toyota reclaimed the number one positionin the BrandZ™ car category ranking,suggesting that the Japanese brand hasrecovered from the product recall crisisof 2009. The presence of two Australianbanks, Commonwealth and ANZ, reflectsthe country’s economic strength relativeto other developed markets.Latam declines in brand valueThe brand value decline by the Top 10Latam brands resulted from the impactof the troubled Brazilian economy andthe government’s response with policiesaimed at expanding the middle class andcontrolling inflation.These factors negatively impactedPetrobras, the government-controlled oiland gas company, and major Brazilianbank brands, including Bradesco andItaù. At the same time, governmentpolicies to stimulate spending helpedconsumer products. The Brazilian beerSkol increased 39 percent in brand value.Corona, the Mexican beer, improved 29percent in brand value. In addition, twoColombian brands entered the BrandZ™category rankings for the first time, thebeer brand Aquila and Ecopetrol, an oiland gas brand.Continental Europe and the UKexperience modest growthDespite economic problems across thecontinent, the Top 10 brands based inEurope increased 5 percent in brandAsia up, Latam down,Other regions moderatevalue, in part on the strength of apparel.Fast fashion apparel brand Zaraimproved 60 percent.In a year when the technology categoryimproved only modestly in overallbrand value, Germany-based SAPappreciated 34 percent as the business-to-business sector recovered and SAPintroduced solutions for using big datafor enterprise transformation.The 4 percent brand value rise in by Top10 UK-based brands resulted primarilyfrom the financial rebound of banking.Barclays, with a 34 percent rise in brandvalue, worked to restore trust. Improving24 percent in brand value, HSBCrefocused on developing its profitableinternational trade business.North America up slightlyThe Top 10 North American brands arealso the BrandZ™ Top 10 Most ValuableGlobal Brands, with one exception. GEappears at number 11 in the BrandZ™Top 100, following China Mobile, in tenthplace with a slightly higher brand value.The collective brand value of the NorthAmerican Top 10 totals over $900 billion.Although these large and stable brandsimproved a modest 2 percent in brandvalue, 2 percent of almost $1 trillion is alot of brand value.Some of the more recent arrivals likeApple (established in 1976) and Google(established in 1998) grew so quicklythat their brand value growth isbeginning to resemble the pace of a moremature brand.That said, GE (established in 1892)grew 21 percent in brand value becauseof the strength of the brand and recoveryin some of its key industries, such as jetengines, with strong demand from fastgrowing markets.Up 2%
  21. 21. BrandBrand value2013 $MBrandcontributionBrand value change2013 vs 2012Rankchange1 China Mobile 55,368 3 18% 02 ICBC 41,115 2 -1% 03 Tencent 27,273 4 52% 34China ConstructionBank26,859 2 10% -15 Toyota 24,497 4 12% 06 Samsung 21,404 3 51% 47 Baidu 20,443 5 -16% -38Agricultural Bankof China19,975 2 12% -19CommonwealthBank of Australia17,745 3 36% New10 ANZ 16,565 3 New NewValuations include data from BrandZ™, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).Top 10 AsiaMany of China’sbrands appreciatedin brand value,despite theslowdown ineconomic growthBrandBrand value2013 $MBrandcontributionBrand value change2013 vs 2012Rankchange1 Vodafone 39,712 3 -8% 02 HSBC 23,970 3 24% 03 Shell 17,678 1 -1% 14 Tesco 16,303 4 -9% -15 BP 11,520 1 11% 06 Standard Chartered 10,160 2 1% 07 BT 9,531 2 New New8 Barclays 7,989 2 34% 09 O2 5,965 2 -30% -210 Dove 4,927 3 5% -1Valuations include data from BrandZ™, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).Top 10 UKThe brand valuerise by theTop10 UK-basedbrands resultedprimarily from thefinancial reboundof banking3938 BrandZ™ Top 100 Most Valuable Global Brands 2013BrandBrand value2013 $MBrandcontributionBrand value change2013 vs 2012Rankchange1 Corona 6,620 4 29% 32 Telcel 6,577 3 -22% 03 Skol 6,520 5 39% 24 Petrobras 5,762 1 -45% -35 Falabella 5,611 5 7% -26 Bradesco 5,446 3 -19% New7 Ecopetrol 5,137 1 21% New8 Claro 4,454 2 3% New9 Itau 4,006 2 -39% New10 Aguila 3,903 5 New NewValuations include data from BrandZ™, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).Top 10 Latin AmericaThe Brazilianeconomy drovethe brand valuedecline of theTop 10 LatambrandsRegionsPart 2 | The Top 100BrandBrand value2013 $MBrandcontributionBrand value change2013 vs 2012Rankchange1 SAP 34,365 2 34% 22 BMW 24,015 4 -2% 23 Deutsche Telekom 23,893 2 -11% -24 Louis Vuitton 22,719 4 -12% -25 Zara 20,167 3 60% New6 Hermès 19,129 4 0% -17 L’Oréal 17,971 4 30% 28 Mercedes-Benz 17,952 4 11% -19 Orange 13,829 2 -10% -110 Movistar 13,336 2 -22% -4Valuations include data from BrandZ™, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).Top 10 Continental EuropeDespite economicproblems acrossthe continent, theTop 10 brandsbased in Europeincreased 5 percentin brand value,mostly on thestrength of luxuryand apparelUp 5%Up 4%Up 13%Down 13%
  22. 22. Across the globe, privacy has become a politicalhot button and governments are collaborating withindustry leaders to come up with sensible solutions thatbalance understandable consumer privacy concernswith legitimate marketers’ wishes to create a moreeffective and impactful online experience.Why is this important? At the very heart of this issueis arguably the future of marketing itself. Withouta proper—simple, intuitive, legal, ethical—onlineexchange of data, both consumers and brands will findfar reaching implications to the way they buy, sell,create, and configure products and services.The majority of consumers already realize that in returnfor some of their personal information, brands can do amuch better job adapting their products and associatedmarketing to meet their unique needs. According to thedata from the UK Direct Marketing Association: 75percent of consumers would share personal informationwith a brand with which they have a relationship; 62percent would share if they were simply in the market tobuy something.At Mindshare we have a name for this accelerateddata-driven and consumer-focused mentality: AdaptiveMarketing. It’s an approach that enables marketersto truly adapt every part of a brand’s marketing mixto meet its consumers’ interests and needs. And it alldepends on data.Optimizing advertisingUsing Adaptive Marketing, advertisers can now optimizeboth their media and creative to ensure consumers aregetting more relevant content both online and offline.TV advertising can be optimized based on assessing howviewers respond to a TV spot with their Twitter activity,Google searches, and Facebook posts.For example, to maximize the impact of Kleenex’s TVads, our Mindshare UK team adapts theTV media planto local markets by using Google search terms to identifylocations experiencing flu outbreaks. A recent GroupM/Thinkbox study in the UK found that 20 percent ofthe total online response to a TV ad happens within 10minutes after the ad is aired.That response rate is likelyto rise with the growing second screen trend, in whichpeople view TV while communicating with their socialnetwork on a tablet or other device.In addition, content itself can be shaped instantly.With technology like WPP’s Xaxis, Collective’s Tumri,and Google’s Teracent advertisers can assemble ads inreal-time based on a target audience’s behavior andpreferences. Mindshare is even using social data to adaptad units. Our Shanghai office recently launched SocialDNA 1.0, a digital display ad unit that dynamicallysyncs with users’ public profiles from QQ, Ren Renand Sina—Chinese messaging, social media andmicro blogging sites—to create a personalized brandedexperience for users. Dynamic, effective, pricingAdvertising is of course only one element of AdaptiveMarketing. Consumers are using their personal data toadapt brand relationships in a variety of ways.Pricing, for example, has become infinitely moredynamic. Companies like Staples adjust prices on theironline shop based on a person’s physical location andwhether one of its competitors has a physical storenearby. Sporting teams have also started using onlinedata, such as search volumes, weather forecasts, andplayer status to adjust ticket prices in real-time.Marketers are using digital data to adapt their actualproducts. Nike lets runners customize their trainers viaNike ID, while Coca-Cola has introduced Freestylevending machines, which enable consumers to createtheir own beverage by mixing together existing Cokeproducts and then sharing their favorite creationsvia Facebook.Is all this adapting worth it? It depends. Some luxurybrands may actually benefit from their inflexibilityand elusiveness. For others, the benefits of AdaptiveMarketing can be enormous: many of our clients areseeing a dramatic increase in sales with lower cost-per-action (CPA), while others are building a powerful armyof Facebook fan advocates.Serious structural changesWhat all marketers should consider is the threat fromnew companies with adaptability built into their DNA.In an age of margin pressures and the constant threat ofcommoditization, some level of Adaptive Marketing maybe a necessity rather than a luxury or one-off experiment.Becoming an Adaptive Marketer can require seriousstructural changes including rethinking the entire mediaprocess to make it more fluid and “always-on” anddeveloping a library of creative assets—images, calls-to-action, applications—that can instantly be deployed.Processes need to be revised to reflect the need for speedand rapid iteration. New technologies and new talentalso may be required.Finally, data must be ethically harnessed, liberated,and applied. Some of these changes are not easy, butthe rewards can be enormous, indeed essential. As JackWelch, the former CEO of GE once said: “There are onlytwo sources of competitive advantage: the ability to learnmore about our customers faster than the competitionand the ability to turn that learning into action fasterthan the competition.” Who knew Jack was our firstAdaptive Marketer?Mindshare is a global media and marketing servicesnetwork with 113 offices in 82 countries.www.mindshareworld.comThe Era ofAdaptiveMarketingUsing real-time data tosharpen brand relevance40 BrandZ™ Top 100 Most Valuable Global Brands 2013 41Thought Leadership The Era of Adaptive MarketingNorm JohnstonChief Digital
  23. 23. 4342 BrandZ™ Top 100 Most Valuable Global Brands 2013Part 3 | The CategoriesTheCategoriesConsumer& Retail44.....Apparel48.....Cars52.....Luxury56.....Personal Care60.....RetailTechnology100.....Technology106.....Telecom ProvidersFinancialInstitutions80.....Banks86.....InsuranceFood& Drink66.....Beer70.....Fast Food74.....Soft DrinksCommodities94.....Oil & GasPart 3
  24. 24. ApparelSUCCESSFUL APPARELBRANDS STRESS CLARITYAND PURPOSEConsumers expect seamless experienceConsumers spent more freely onapparel, both in store and online.With a 21 percent increase in brand value,on top of a 13 percent rise a year ago,the apparel category continued its steadyrecovery since a 9 percent decline in 2009,during the depths of the financial crisis.Shoppers sought value: either goodquality at a fair price or exceptionalquality that earned its premium. Brandsin the middle got squeezed. Consistentwith this trend, fast fashion continuedto thrive while craftsmanship gainedgrowing respect.An attitude that The Futures Company,a strategic insight consultancy, calls“Considered Consumption” continuedUp 21%to constrain spending. But consumersabandoned that post-recession mentalitywhen items seemed unique and worththe price.Recognizing the importance of brandexperience in refocusing the purchasingdecision away from price alone, brandssought to tell compelling and unifiedstories in store and online. In addition,these related trends emerged:DifferentiationBrands with physical stores leveragedthat presence to offer locationconvenience and showcase the brand.PersonalizationBrands attempted to personalizeproducts and services for individualcustomers rather than market segments.Margin improvementThe more upscale brands,especially, attempted to both controlcosts and push up prices.Fast fashion set the paceIllustrating the continuing appeal of fastfashion, Zara increased 60 percent inbrand value to become the most valuablebrand in the BrandZ™ apparel ranking.Zara enjoyed strong like-for-like saleseven in economically troubled Europe,and it continued its China expansion.Profit increased 12 percent year-on-year.The Spanish-owned brand benefited fromits presence in more than 80 countries andits rapid inventory turnover, which addedurgency to the purchase decision becauseshoppers understood that merchandiseavailable today may be gone tomorrow.Zara opened a flagship store on NewYork’s Fifth Avenue last year, a blockaway from H&M, the Swedish-basedcompetitor, and adjacent to its rivalUniqlo, the Japanese apparel brand.DefinitionThe apparel category is comprisedof mass-market men’s and women’sfashion and sportswear brands,but excludes brands viewed byconsumers as luxury.Brand value2013 $MBrandcontributionBrand value %change 2013 vs 20121 Zara 20,167 3 60%2 Nike 15,817 4 -3%3 H&M 12,732 2 -6%4 Ralph Lauren 5,618 4 10%5 Adidas 4,882 4 26%6 Uniqlo 4,627 2 25%7 Next 4,121 3 39%8 lululemon 3,764 4 New9 Hugo Boss 3,524 4 8%10 Calvin Klein 1,801 3 52%Valuations include data from BrandZ™, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).Top 10 Apparel4544 BrandZ™ Top 100 Most Valuable Global Brands 2013Consumer & Retail | ApparelPart 3 | The Categories
  25. 25. India55%Lululemon eachyear selects a cityand stages anenormous sale ina major venuethat drawsconsiderablepublicity,attendanceand salesInsightDesire opens walletsPurchasing behavior remains rationalweek in and week out, particularly inWestern Europe where the economyis difficult. But even there, peopleare prepared to forget their recessionmentality if something is beautifulenough. If something is an object ofdesire all rational behavior goes outthe window.Oliver JoycePartner, Client LeadershipMindshare WorldwideOliver.Joyce@mindshareworld.comTelling a brand storyTo differentiate, Uniqlo explained howunique and innovative technology enablesthe brand to produce cold weatherouterwear that’s warm, and warmweather underwear that’s cool—as well asaffordable and stylishly designed. Colorvariety was a major part of the brand’sexcitement and in-store experience.Uniqlo, which focuses on more utilitarian,basic clothing, rose 25 percent in brandvalue. Ads featuring celebrity modelsreinforced Uniqlo’s proposition thatcustomers can dress on trend withoutspending over budget.The brand expanded aggressively withinternational net sales growing 63percent, while sales in home marketJapan were up only 3 percent.The 65 newstores in China accounted for more than50 percent of the international new storeopenings. Uniqlo operates around 300stores in 13 countries.The more established H&M, founded in1947, operates about 2,800 stores in 48countries. The sluggish economy in someof those countries resulted in same-storesales declines. The company planned togrow its US presence with more storesand online shopping. In a much-viewedexample of combining high fashion withlow price, actress Helen Hunt wore anH&M dress to the 2013 Oscars.Newcomer faces competitionLululemon appears on the list of mostvaluable apparel brands for the firsttime. The Canada-based specialistsportswear brand operates over 200stores in North America and Australia.The brand transformed functional yogaand workout apparel into the uniformof health-conscious, fashionable women.Like-for-like sales increased 16 percentin 2012.Lululemon protects the equity of its brandby rarely discounting its merchandise,even excess inventory. Instead, lululemoneach year selects a city and stages anenormous sale in a major venue, such asa sports stadium.These much anticipatedspecial events draw considerable publicity,attendance and sales.Early in 2013, lululemon recalled a keyitem because of a manufacturing defect.The uncharacteristic stumble opened apotential opportunity for more establishedcompetitors, including Nike. Like the fastfashion brands, Nike focused on growingsales in China, where it has worked toredefine sports around self-expression andfun rather than the traditional Chineseapproach, which sees sports as communaland obligatory.Seeking a higher purposeAs part of its strategic effort to grow themarket, Nike has formed runners groupsand invested in the construction of sportsfacilities.ForNike,theconnectionbetweenathletics and health is fundamental. Itintroduces innovative technology, suchas the Nike+ FuelBand, to advance thisagenda. The wristband converts dailyphysical activity into a score that enablesthe wearer to track personal progress andcompete with social friends.Like Nike, apparel brands of all sizesconnected with a higher purpose relevantto their brand essence. Patagonia, apurveyor of performance clothing,emphasized social responsibility. In aninitiative called One for One, Patagoniapartnered with TOMS Shoes, a companywhich matches every pair of shoespurchased, with a new pair of shoes for achild in need.Product provenance was importantbut sensitive. Ralph Lauren gainedtremendous brand exposure for designingthe uniforms worn by US athletes atthe summer Olympics in London. Thebrand’s decision to source the uniformsin China received criticism in the US,however. Concern about ethical sourcingand safe labor standards heightenedfollowing fatal disasters at Bangladeshapparel factories.SpotlightBRIC consumers seekadvice for purchasingConsumers in Brazil, India andRussia are more likely to seek advicebefore purchasing things thanconsumers in the US or Europe.European consumers are least likely.The finding suggests that socialshopping is more of a phenomenonin the BRICs. While the contrastmay be cultural in part, it couldalso reflect the increased choiceof products and brands facingconsumers in fast growing markets.Action Points471. Be personalApparel is not one size fits all.Customers want to feel that theservice is bespoke even if themerchandise is mass. As much aspossible, get to know customersindividually through the data theysupply or one-on-one in the stores.2. Be genuineBe whatever the brand stands for,but stand for something. The list ofthe most valuable brands includessome brands that emphasize socialresponsibility and others that extolstyle at a good price. What theyshare in common is this: they have adifferentiated brand proposition andthey deliver it.3. Be consistentCustomers will shop the brandwherever it appears. All products,presentation, service and attitudeneed to feel the same across allcustomer touch points.4. Engage with bloggersBecome familiar with the relevantbloggers. Who reads their posts? Alarge following is good but size isn’teverything. A well-informed bloggerreaching a key audience can alsobe helpful. Meet with the bloggersand show them new products as youmight in a press briefing.46 BrandZ™ Top 100 Most Valuable Global Brands 2013Consumer & Retail | ApparelInsightProvide a fullbrand experienceBrands need to think not just aboutproduct, but also about the wayconsumers are interacting with thebrand. Brands need to think aboutthe girl who wears the dress. Whatis her life like? What are her friendslike? How does she behave in hersocial life?Alexis CuddyreArt DirectorDigit, LondonAlexis.Cuddyre@digitlondon.comPart 3 | The CategoriesBrands get creative intough economyAlongside luxury, apparel is rated as themost “sexy” category in the BrandZ™research. Since the recession, manyof the top apparel brands are alsoconsidered strongly “creative.” Duringthe same period, brand promise hasrisen on average and price perceptionshave become more favorable, reflectingthe pressures of survival in a toughretailing climate.Source: BrandZ BigData™, over 2 million consumerinterviews regarding over 10,000 brands in 30-plus countriesInsightsBrandZ BigData™BrazilUSEurope49%42%23%Purchasing advice seekersAny who agree:“I ask advice beforebuying new things”Source: Global TGI 2012(Europe: UK, France, Germanyand Spain)Russia55%
  26. 26. the recall problems of 2010.The brand value of the Top 10 brandsimproved 5 percent in the 2013 BrandZ™ranking compared with a 7 percentdecline last year. Brand value remainedat only 71 percent of its pre-recessionlevel. These other developments alsoshaped the category:Cost controlsCarmakers continued to use commonplatforms for different brands toyield production economies.Luxury featuresCars at all levels enjoyed the kindsof technological features once onlyavailable on luxury models.Hybrid growthDesire for price and performancewas balanced with concern for theenvironment, although pure electriccars still sought acceptance.US surge raises most brandsWith US sales of 2.1 million cars, Fordwas the country’s best-selling brand.Its closest competitor, GM’s Chevrolet,sold 1.9 million cars. With a 35 percentincrease in sales, the Volkswagen brandrecorded its third consecutive year ofCarsOffer better quality and more featuresCar sales improved in someregions, but they remained belowpre-recession levels.That was especially true in the US, wherean improved economy drove a 13 percentyear-on-year sales increase to 14.5million cars. Sales spiked at the end ofthe year because of replacement demandfollowing Hurricane Sandy.Car sales rebounded in the UK as well,to over 2 million vehicles.The 5.3 percentsales increase compared with 2011was the highest year-on-year rise since2001, according to the Society of MotorManufacturers and Traders.Sales growth in China continued,although at a somewhat slower pace.Weak consumer confidence continuedto inhibit sales in Europe. Registrationsdeclined 8.2 percent year-on-year to 12.1million cars, according to the EuropeanAutomobile Manufacturers’ Association.The European slowdown impactedBMW’s earnings and was in partresponsible for the swap at the top of therankings, as Toyota surpassed BMW toreclaim brand value leadership. The risesuggested thatToyota had rehabilitated areputation for reliability compromised byCARS TURN THE CORNERON SALES WITH DEMANDRISING IN THE USDefinitionThe car category includes massmarket and luxury cars butexcludes trucks. Each car brandincludes all models marketedunder the brand name.4948 BrandZ™ Top 100 Most Valuable Global Brands 2013Up 5%Consumer & Retail | CarsPart 3 | The CategoriesTop 10 CarsBrand value2013 $MBrandcontributionBrand value %change 2013 vs 20121 Toyota 24,497 4 12%2 BMW 24,015 4 -2%3 Mercedes-Benz 17,952 4 11%4 Honda 12,401 3 -2%5 Nissan 10,186 3 3%6 Volkswagen 8,790 3 3%7 Ford 7,556 3 8%8 Audi 5,545 4 18%9 Hyundai 4,000 2 11%10 Lexus 3,472 3 2%Valuations include data from BrandZ™, Kantar Worldpanel, Kantar Retail and Bloomberg.Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).