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Country evaluation 2012-13


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Country evaluation 2012-13

  1. 1. Country Brand Index2012-13Country Brand Rankings Themes of 2012-13: Tomorrow’s Leading Leaders at a Glance Country Brands: The Future 154 8 40The Region Report The Dimensions of Future Forward a Country Brand60 69 93
  2. 2. I N T RO D U C T I O NWelcome to the eighthedition of FutureBrand’sCountry Brand Index.The Country Brand Index, or CBI, is a preeminent globalstudy of country brands. We annually measure and rankglobal perceptions around the world’s nations—fromtheir cultures, to their industries, to their economicvitality and public policy initiatives. The resulting indexis a mix of trend reportage, expert findings, data-richanalysis and future-positive prediction.Country Brand Index 2012–13 © FutureBrand, All Rights Reserved 2
  3. 3. I N T RO D U C T I O NCountry Brands Createthe FutureAt FutureBrand, we believe that the future is informed by how familiar we are with countries But there’s another aspect to our study that goescreated one decision at a time. Our decisions and whether we have visited them or not. beyond what people think today. Our globalrelate to the things that are closest to us—where experts look further than existing perceptionswe live, the companies we work for, the products Every time we make a decision informed by an of places to understand the broader forceswe use. And those decisions are often informed association with a place, it creates the future. that shape them, and as such, which specificby brands. As a result, brands are among the most When you multiply that with billions of people dimensions will come to be the most importantimportant drivers of the future. around the world every year, it can create waves drivers of choice in the future. This gives us that dictate the shape of our lives for decades to our Future 15 country brands—a collection ofThe same is true for country brands, but on a come. Just look at new decisions being made by brands that we believe will enjoy the strongestlarger scale. hundreds of millions of new Chinese consumers perceptions in years to come. to buy luxury goods, home appliances and tripsAs travelers, business leaders, employees, parents abroad. These affect global exchange rates, And finally, because our dimensions examineand consumers, we make decisions related to quality of life and new relationships the world over a balance of perceptions between pleasurablecountries every day: how we describe our identity, — many of which are informed by their intention experiences and ethical, environmental andwhere we choose to live, who and where we to buy a little bit of other cultures through their political considerations, we can also show howbuy our products from, where we educate our brands, capital cities and entertainment. the strongest future country brands—like thechildren, where we set up our companies and strongest brands of any kind—are those whichwhere we go on holiday. To the extent that we Our rankings show us what qualities people deliver what we want now as well as what societychoose countries in these contexts, our decisions associate with different places and their strength needs long term.are largely informed by the automatic associations of perception, giving us a good indication of thewe have with them. For instance, Switzerland is decisions they will make in relation to those placesgood for banking and watches, Japan is good for today. This will in turn have a positive or negativecars and electronic goods and Costa Rica is good effect on every country in the future.for coffee and beaches. Our choices are alsoCountry Brand Index 2012–13 © FutureBrand, All Rights Reserved 3
  4. 4. I N T RO D U C T I O N R A N K I N G S2012–13 Top 25 Country Brands1 SWITZERLAND +1 from 2012 2 CANADA -1 3 JAPAN +1 4 SWEDEN +3 5 NEW ZEALAND -26 AUSTRALIA -1 7 GERMANY +4 8 UNITED STATES -2 9 FINLAND -1 10 NORWAY +211 UNITED KINGDOM 12 +2 DENMARK +3 13 FRANCE -4 14 SINGAPORE +2 15 ITALY -516 MALDIVES +2 17 AUSTRIA 0 18 NETHERLANDS +5 19 SPAIN -5 20 MAURITIUS +221 IRELAND -1 22 ICELAND -3 23 UNITED ARAB EMIRATES +2 24 BERMUDA -3 25 COSTA RICA -1Country Brand Index 2012–13 © FutureBrand, All Rights Reserved 4
  5. 5. I N T RO D U C T I O NOur MethodologyBehind our Methodology that help us assess a brand’s maturity as wellThis year’s CBI is based on more research and as the key challenges it has yet to address. Ourdata than ever before. The 2012-13 report draws HDM also allows for measurements of a country’sits insights from several core resources. relative performance and progress year-to-year. The HDM takes seven areas into consideration:Quantitative Research Awareness, Familiarity, Associations, Preference,We started by collecting quantitative data from Consideration, Decision/Visitation and Advocacy.3,600 opinion-formers and frequent internationalbusiness or leisure travelers. Drawn from 18 Global Expert Opinionscountries around the world, we tapped their Additionally, we connected with a carefullyinternational experience and global perspective to selected and diverse panel of experts in policyunderstand today’s landscape, as well as offer a and governance, international relations,deeper base of relevant information for investors economics and trade, international law, nationaland tourists alike. security, energy and climate change, urban and regional planning, immigration and the media.We used FutureBrand’s proprietary Hierarchical These experts brings a unique point of view toDecision Model, or HDM, to determine how key the study of country or regional evaluation.audiences—including residents, investors, tourists Each participated in individual “deep dive”and foreign governments—perceived a country’s interviews with the aim of identifying the broaderbrand, from a baseline of awareness all the way themes and future drivers impacting tomorrow’sup to brand advocacy. This model offers insights country brands.Country Brand Index 2012–13 © FutureBrand, All Rights Reserved 5
  6. 6. I N T RO D U C T I O N O U R M E T H O D O LO GY HIERARCHICAL ASSOCIATION DIMENSIONS DECISION MODEL (HDM) The basic elements of a country brands strength as we know it today. FutureBrands proprietary model for determining how key audiences perceive a countrys brand. VALUE QUALITY GOOD FOR HERITAGE TOURISM AWARENESS SYSTEM OF LIFE BUSINESS AND CULTURE Do key audiences know that the country exists? How top-of-mind is it? Political Education Investment History Value for Freedom System Climate Money Environmental Healthcare Advanced Art and Attractions FAMILIARITY Friendliness System Technology Culture How well do people know the country and its offerings? Stable Legal Standard Regulatory Authenticity Resort and Environment of Living Environment Lodging Options ASSOCIATIONS Tolerance Safety Skilled Natural Beauty Food What qualities come to mind when Workforce people think of the country? Freedom Job of Speech Opportunity PREFERENCE How highly do audiences esteem the country? Most Like to Does it resonate? Live In CONSIDERATION Is the country considered for a visit? What about for investment or to acquire or consume its products? HUMAN CAPITAL SUSTAINABILITY GOVERNANCE INVESTMENT DECISION/VISITATION INFLUENCE To what extend do people follow through GROWTH and visit the country or establish a commercial relationship? ADVOCACY Do visitors recommend the country to family, friends and colleagues? FUTURE DRIVERS The core elements that impact a country brands strength in the future.Country Brand Index 2012–13 © FutureBrand, All Rights Reserved 6
  7. 7. Robert CeveroProfessorDepartment of City and Regional PlanningUniversity of California, Berkeley:“The public impression of a country is important as a source of national pride. Invariably, people source part of their own identity from the image of their country.”Country Brand Index 2012–13 © FutureBrand, All Rights Reserved 7
  8. 8. Themes of2012-13: Leadersat a GlanceA Model Nation for a Modern Era 9Global Symbols of Stability in a Tumultuous World 12An Iconic Brand in Decline 15Brand UK 18The Untapped Power of the PIIGS 21The Hard Benefits of Soft Power 27Island Nations on the Rise 30How Single-Minded Focus Pays Off 35Country Brand Index 2012–13 © FutureBrand, All Rights Reserved 8
  9. 9. T H EM E S O F 201 2-1 3: L E A D ER S AT A G L A N CEA Model Nation for a Modern EraSwitzerland (1)Backed by a strong value World Economic Forum and the International In contrast to the economic woes and widespreadsystem and stable economy, Olympic Committee. austerity measures of its European neighbors, Switzerland has managed to maintain economicthere’s nothing a peaceful Based in a particularly strong performance for Political Freedom, Environmental Friendliness and stability and hold its leading position in the Good for Business dimension for the third consecutivepopulation can’t do. Stable Legal Environment, Switzerland leads in the year. Though Switzerland’s natural resources are Value System dimension, following an impressive limited, the country’s high-value export industries six-place jump over last year’s rankings.Switzerland is a nation geared around its peopleand their needs. As a symbol of economic,cultural and social stability in our tumultuousworld, Switzerland shows that the cultivation The United Nations Office in Geneva is one exampleof freedom, tolerance, transparency and of an internationalenvironmentalism can put a country’s brand organization housedahead—even in difficult economic times. After in Switzerland—givingyear-on-year growth in the CBI, Switzerland residents unparalleledsurpasses two-time leader Canada to enjoy top access to major bodies of influence.overall honors.Switzerland’s role as an independent-yet-activemember of the international community has givenit the flexibility to build productive partnershipsand alliances while maintaining its historicneutrality. What’s more, the country is a haven forinternational organizations, giving Swiss citizensand residents front-door access to some of theworld’s most important and influential bodies,including the World Trade Organization, theInternational Committee for the Red Cross, theCountry Brand Index 2012–13 © FutureBrand, All Rights Reserved 9
  10. 10. T H EM E S O F 201 2-1 3: L E A D ER S AT A G L A N CEThough Switzerland’s naturalresources are limited, the country’shigh-value export industries haveremained competitive by drawingon long-held associations withquality, efficiency and style.Photo: A Swiss-made watch, considered among the best in the world.have remained competitive, drawing on long-held leading brand for the 2012-13 CBI’s Investment and personal sense of stability. A strong visionassociations with quality, efficiency and style. Climate and Regulatory Environment dimensions. backed by government funding, broad support Though it’s yet to be seen if a loss in economic and public participation has made SwitzerlandAccording to the Wall Street Journal, the country’s confidence within the Eurozone will catch up with a model for future-focused urban planning andluxury economy has experienced a boom, thanks the Swiss economy in the long-term, today, the sustainability—as well as the number one brandin part to an influx of tourists from Asian nations country is perceived as a world-class destination for Standard of Living and Most Like to Live In.seeking to avoid high import duties. that continues to draw tourists, residents, businesses and investment. Apart from improving overall quality of life, theseRanked number one in the 2012-13 World initiatives have drawn global attention to what aEconomic Forum’s Global Competitiveness Switzerland rose one place to become the cohesive national identity can accomplish.Report for its sound institutional environment, number one country brand in the Quality of Life Revered for its natural beauty, Switzerland ranksexcellent infrastructure, efficient markets and dimension overall, with the Swiss commitment to number two for Resort and Lodging Optionstechnological innovations, Switzerland is also the long-term durability helping internalize a national and number five for Attractions in the TourismCountry Brand Index 2012–13 © FutureBrand, All Rights Reserved 10
  11. 11. T H EM E S O F 201 2-1 3: L E A D ER S AT A G L A N CE dimension. Clearly, it’s a place people want to visit. In fact, Switzerland’s rankings in the Tourism and Heritage and Culture dimensions have increased sharply this year, with History up seven places, Art and Culture up fourteen places and Authenticity up four spots, to number three. Switzerland epitomizes the enduring country brand, with a favorable economic climate supported by a strong culture and set of values. Understanding the dynamics behind Switzerland’s success will help ensure its longevity and perhaps that of other nations. For now, the country continues to successfully drive demand, relevance, differentiation and authenticity in the face of a rapidly changing world. Banks such as this one in Bern are staples in the country’s long history of financial, political and cultural stability.COUNTRY HIERARCHICAL DECISION ASSOCIATION MODEL (HDM) Rank DIMENSIONS Rank Rank Rank Rank Rank VALUE 1 QUALITY 1 GOOD FOR 1 HERITAGE 4 TOURISM 4 SYSTEM OF LIFE BUSINESS AND CULTURESWITZERLAND AWARENESS 13 Political Freedom 1 Education System 2 Investment Climate 1 History 18 Value for Money 10 FAMILIARITY 11 Environ. 1 Healthcare 2 Advanced 5 Art and 10 Attractions 5 Friendly System Tech. Culture ASSOCIATIONS Stable Legal 1 Standard 1 Regulatory 1 Authentic 3 Resort and 2 Environ. of Living Environ. LodgingRANKINGS PREFERENCE 10 Tolerance 8 Safety 1 Skilled 5 Natural 1 Food 7 Workforce Beauty 11 5 2 1 CONSIDERATION 11 Freedom of Speech 4 Job Opp. 5 DECISION/VISIT 9 Most Like 1 to Live In ADVOCACY 19‘09 ‘10 ‘11 ‘12 118th Top 60 1st Top 60 1st Top 60 1st Top 60 1st Top 60 1st Top 60 1stCountry Brand Index 2012–13 © FutureBrand, All Rights Reserved 11
  12. 12. T H EM E S O F 201 2-1 3: L E A D ER S AT A G L A N CEGlobal Symbols of Stability ina Tumultuous WorldSweden (4) Germany (7)Shelter from the storm? financial crisis to achieve over 3% GDP growth manage fiscal policy independent of its EuropeanLook no further than a holistic in 2011 alone. Perceived as the number three Union neighbors. That flexibility has paid off for brand for Investment Climate and Advanced the country, which ranks fifth overall in Goodset of positive qualities. Technology, as well as the number one brand for Skilled Workforce, Germany ranks second for Business. Sweden’s strong commodities and banking sectors have helped the country emerge overall in the Good for Business dimension. All from the global financial crisis, ultimately rankingConcern around Europe’s financial crisis continues of these rankings represent significant gains over it fifth for Regulatory Environment and twelfth forto grow, and with it a decline in confidence the past twelve months—meaning it’s clear that Investment Climate in this year’s CBI.among Eurozone economies. Germany is the perceptions around Germany’s economic climatecrucial exception. Its role as an economic driver are as robust as ever. Country brand strength is certainly a functionhas not gone unnoticed in the CBI rankings. of economic strength, but it’s important toWhile the economies of most European Union In contrast to Germany’s role as Eurozone creditor, recognize that every dimension of CBI workscountries have declined since 2008, Germany’s Sweden has seen economic growth in large part holistically to influence perception. For example,has grown—emerging quickly from the global because of its separate currency and ability to Germany’s critical role in the stabilization of theCOUNTRY HIERARCHICAL DECISION ASSOCIATION MODEL (HDM) Rank DIMENSIONS Rank Rank Rank Rank Rank VALUE 2 QUALITY 4 GOOD FOR 5 HERITAGE 12 TOURISM 14 SYSTEM OF LIFE BUSINESS AND CULTURESWEDEN AWARENESS 22 Political Freedom 4 Education System 1 Investment Climate 12 History 35 Value for Money 15 FAMILIARITY 27 Environ. 4 Healthcare 1 Advanced 4 Art and 14 Attractions 18 Friendly System Tech. Culture ASSOCIATIONS Stable Legal 2 Standard 2 Regulatory 5 Authentic 4 Resort and 12 Environ. of Living Environ. LodgingRANKINGS Skilled PREFERENCE 32 Tolerance 2 Safety 2 4 Natural 7 Food 12 Workforce Beauty 10 7 4 CONSIDERATION 28 Freedom of Speech 1 Job Opp. 14 DECISION/VISIT 27 Most Like 9 21 to Live In ADVOCACY 12‘09 ‘10 ‘11 ‘12 118th Top 60 1st Top 60 1st Top 60 1st Top 60 1st Top 60 1st Top 60 1stCountry Brand Index 2012–13 © FutureBrand, All Rights Reserved 12
  13. 13. T H EM E S O F 201 2-1 3: L E A D ER S AT A G L A N CESweden’s economic security and predictability have made it a globally-recognized pace-setter in everything from life expectancy topolitical participation.Photo: Stockholm’s iconic skyline and harbor in summer.European economy may account for an overall Consideration to Visitation to Advocacy, Co-operation and Development’s Better Life Indeximprovement in the Value System dimension, in Germany appears to be more than weathering consistently ranks Sweden above other memberwhich the country is up three places from last the European storm. countries in categories that include education,year to rank ninth overall. The country’s Political employment, life expectancy and politicalFreedom perception moved an impressive Similarly, Sweden’s economic security and participation—consistent with the country’s year-twelve places ahead to number three overall, predictability have provided a platform for the on-year CBI performance.while Freedom of Speech improved ten places creation of a social welfare system that is amongto number seven. Germany enjoyed improved the most effective in the world. Residents enjoy a Germany and Sweden have demonstrated howperception for the majority of the Quality of Life markedly high standard of living that is recognized powerful and strong country brands can be in theattributes, including Standard of Living, Safety by the majority of international rankings, including face of adversity. By creating environments whereand Most Like to Live In and is the strongest- the CBI. This year, Sweden is the number two people can succeed, both countries have workedperforming country brand for Job Opportunity. brand for Value System and number four for to drive preference in everything from tourism toAnd finally, with a consistent conversion from Quality of Life. The Organisation for Economic investment to consumer goods and talent.Country Brand Index 2012–13 © FutureBrand, All Rights Reserved 13
  14. 14. T H EM E S O F 201 2-1 3: L E A D ER S AT A G L A N CEWhile the economies of mostEuropean Union countries havedeclined since 2008, Germany’shas grown—emerging quicklyfrom the global financial crisisto achieve over 3% GDP growthin 2011 alone.Photo: The European Central Bank’s headquartersin Frankfurt, Germany.COUNTRY HIERARCHICAL DECISION ASSOCIATION MODEL (HDM) Rank DIMENSIONS Rank Rank Rank Rank Rank VALUE 9 QUALITY 5 GOOD FOR 2 HERITAGE 7 TOURISM 7 SYSTEM OF LIFE BUSINESS AND CULTUREGERMANY AWARENESS 2 Political Freedom 3 Education System 5 Investment Climate 3 History 7 Value for Money 3 FAMILIARITY 4 Environ. 9 Healthcare 7 Advanced 3 Art and 6 Attractions 12 Friendly System Tech. Culture ASSOCIATIONS Stable Legal 6 Standard 5 Regulatory 6 Authentic 7 Resort and 11 Environ. of Living Environ. LodgingRANKINGS Skilled PREFERENCE 7 Tolerance 12 Safety 9 1 Natural 56 Food 8 Workforce Beauty 9 11 11 7 CONSIDERATION 5 Freedom of Speech 7 Job Opp. 1 DECISION/VISIT 3 Most Like 8 to Live In ADVOCACY 18‘09 ‘10 ‘11 ‘12 118th Top 60 1st Top 60 1st Top 60 1st Top 60 1st Top 60 1st Top 60 1stCountry Brand Index 2012–13 © FutureBrand, All Rights Reserved 14
  15. 15. T H EM E S O F 201 2-1 3: L E A D ER S AT A G L A N CEAn Iconic Brand in DeclineUnited States of America (8)Even the most stable, Obama Effect lending credibility and renewedpromising and iconic country attention to traditionally American ideologies. That same year, brand USA enjoyed significantbrands can loose strength. improvements in perception across a number of CBI measures, namely Political Freedom, Standard of Living, and Most Like to Live In.The United States is undeniably one of themost widely recognized country brands in the However, in the face of successive fiscal crises inworld. Its belief system and ideals—among both the United States and Europe, the influencethem values like freedom, democracy, ambition and normative values of the West are beginningand individualism—are major cultural exports, to lose clout with a global audience. Perhaps The White House in Washington, D.C.—currently home to Presidentalongside its popular destinations. The historic as a consequence, the United States brand has Barack Obama. On the cusp of the 2012 presidential election,election of President Barack Obama in 2008 declined eight places in the overall index since citizens across the country and around the globe wait to see thefed these brand perceptions, with the so-called 2009—a year when the US led across a number political, social and cultural direction of America’s future.COUNTRY HIERARCHICAL DECISION ASSOCIATION MODEL (HDM) Rank DIMENSIONS Rank Rank Rank Rank Rank VALUE 14 QUALITY 15 GOOD FOR 8 HERITAGE 31 TOURISM 5 SYSTEM OF LIFE BUSINESS AND CULTUREUNITED STATES AWARENESS 7 Political Freedom 9 Education System 14 Investment Climate 7 History 31 Value for Money 5OF AMERICA FAMILIARITY 1 Environ. 30 Healthcare 19 Advanced 2 Art and 24 Attractions 2 Friendly System Tech. Culture ASSOCIATIONS Stable Legal 14 Standard 15 Regulatory 15 Authentic 20 Resort and 8 Environ. of Living Environ. LodgingRANKINGS PREFERENCE 1 Tolerance 16 Safety 19 Skilled 10 Natural 62 Food 18 Workforce Beauty 1 4 6 8 CONSIDERATION 1 2 Freedom of Speech 9 Job Opp. Most Like 7 13 DECISION/VISIT to Live In ADVOCACY 3‘09 ‘10 ‘11 ‘12 118th Top 60 1st Top 60 1st Top 60 1st Top 60 1st Top 60 1st Top 60 1stCountry Brand Index 2012–13 © FutureBrand, All Rights Reserved 15
  16. 16. CHEM T ER N A M E2-1I 3:L E EO R ER S AT L EG L A N CET H A P E S O F 201 T T L A D SU BT I T ADespite recent economic challenges and a volatile social climate, theUS is also the number one brand in the world for Preference andConsideration—indicating that the country is both highly esteemed andfrequently considered for a visit.Photo: The always-bustling Times Square in New York City.of dimensions. Now, on the cusp of the 2012 governance—remains steady at number fourteen. Medicaid and private health programs—a fact thatpresidential election, citizens across the country But important attributes like Political Freedom, may influence the dimension in the future.and around the globe wait to see the political, Stable Legal Environment and Freedom of Speechsocial and cultural direction of America’s future. have suffered slight declines in perception. While Despite prevailing ideals of economic freedom, perception of the country’s Quality of Life has the US faces huge challenges in an uncertainThis November, the presidential campaign weakened—including Standard of Living, Job climate. Recent government interventionswill bring major tensions to the fore, Opportunity and Most Like to Live In—the US may have eroded the limits of public spending, withincluding domestic issues like the economy, be positioned to regain ground in the coming confidence fading in the government’s ability tounemployment, immigration and same-sex years. Today, the US holds a steady nineteenth promote or even sustain open markets—leadingmarriage; as well as major questions of foreign place for the Healthcare System ranking— many to argue that the current governmentpolicy, the quickly-approaching “fiscal cliff” albeit a surprisingly poor performance for the actively discourages entrepreneurship andand a staggering $14 trillion national debt. world’s largest economy. But the nation’s recent dynamic private sector investment. As such, theInterestingly, brand USA’s ranking for Value healthcare overhaul will see an additional 32 United States has suffered declining perceptionsSystem—a key measure of the perception of million Americans insured by 2016 through bothCountry Brand Index 2012–13 © FutureBrand, All Rights Reserved 16
  17. 17. T H EM E S O F 201 2-1 3: L E A D ER S AT A G L A N CEin the area of Regulatory Environment, where theUS fell six places and out of the top ten.It’s no surprise, however, that US firms are still ator near the forefront of technological advances,especially in relation to computer, medical,aerospace and military technologies.Consequently, the country remains perceived asthe second strongest performing brand globallyfor Advanced Technology–an important measurefor any nation looking to cultivate an attractivebusiness climate.Brand USA saw significant increases in perceptionin the Heritage and Culture dimension this year,with its History ranking climbing eight places,Art and Culture sixteen and Authenticity thirteen.The US is also perceived as the strongest-performing brand in the world for Preferenceand Consideration—indicating that the country isboth highly esteemed and frequently consideredfor a visit, investment or purchase of its products.The US is also perceived as the second strongest a unified, approachable image of the country forperforming brand in the world for actual visits orthe forging of commercial relationships. global audiences. It’s no surprise that US firms As the world’s middle class continues to grow and are still at or near the forefrontThe importance of perceptions of the US brand increases in influence—especially the purchasing of technological advances, especially in relation to computer,and its vacillation of strength in recent years has power of citizens in countries like China, Brazilnot gone unnoticed by either the public or private and India—the competition for tourists andsector. In fact, the US government enacted its first business will only be fiercer. The White House medical, aerospace andlaw addressing country perceptions—the TravelPromotion Act of 2009—to create a dedicated is attempting to seize this opportunity with its agenda for improved tourism and travel to the military technologies.public-private partnership organization, Brand US in hopes of stimulating the national economy Photo: Infinite Loop in Cupertino, California; home of Apple, Inc.USA, focused on improving the national image and improving its global image. The “Discoverof the US. In addition, this year President Obama America” campaign will first target Canada, Japanunveiled the first national strategy on travel and and the UK, followed by Brazil and South Korea.tourism, touting tourism as “the number one But only time will tell if these concerted efforts willservice we export.” Such initiatives have sparked reverse the decline in ranking of the US countrythe campaign of “Discover America” which posits brand or how today’s investments will be reflected in future editions of the Country Brand Index.Country Brand Index 2012–13 © FutureBrand, All Rights Reserved 17
  18. 18. T H EM E S O F 201 2-1 3: L E A D ER S AT A G L A N CEBrand UKUnited Kingdom (11)Humanity’s shining momentalso celebrates a countryregaining its strength.The United Kingdom has seen almost eighteenmonths of national celebrations and internationalcoverage. From the Royal Wedding in April 2011,to Queen Elizabeth’s Diamond Jubilee in June2012, to the London 2012 Olympic Games thissummer, the UK has captivated millions of peoplearound the world. And seeing significant gains ina country brand’s performance means impactingthe lives and livelihood of residents, visitors andpotential visitors in significant ways, long-term—a The opening ceremony, for instance, was widely The London 2012 opening ceremony was one of the definitive eventstask the UK has eagerly embraced. regarded as a success, bringing Danny Boyle’s in an eighteen month celebration of brand UK. celebration of British heritage and culture to lifeBrand UK’s performances for Awareness, through everything from a parachuting QueenFamiliarity and Preference are among the highest Elizabeth, to dancing NHS patients, to The Beatlesin the world—a fact that Olympic media exposure and Tim Berners-Lee. This fresh proclamation ofwill certainly reinforce. But with approximately 900 British-ness captured the imaginations of visitorsmillion opening ceremony viewers, over six million and commentators around the world—includingvisitors and 100,000 hours of broadcast coverage, the New York Times, who called the ceremonythe Games were an extraordinary opportunity “weirdly and unabashedly British.”to showcase British heritage, pageantry andnostalgia—not to mention project a new sense of These displays of cultural abundance—everythingambition for a modern Britain. from music, to fashion, to entertainment and beyond—confirmed brand UK, andCountry Brand Index 2012–13 © FutureBrand, All Rights Reserved 18
  19. 19. T H EM E S O F 201 2-1 3: L E A D ER S AT A G L A N CEAnglo-American influence in general, as a cultural countries—England, Scotland, Wales and Northernicon and fixture in pop culture. While the UK’sperformance in CBI’s Heritage and Culture Ireland—face a critical political impasse with the possibility of Scottish independence looming on Brand UK faces an uncertaindimension slipped last year, the brand is back up the horizon. Events like the Olympics offered a future as the people of Scotlandto number five overall—demonstrating an upward very public platform in which the countries could prepare to go to the polls in 2014trend in strength that was further reinforced bythe creativity, humor and diversity of the opening present themselves as a united front to the world, albeit under the geographical entity of team for a referendum that could seeceremony. Notably, brand UK’s performance Great Britain, versus the political entity of the the country dissolve itself fromfor History improved two places to number five, United Kingdom. the United Kingdom, ending aArt and Culture held steady at number five, andAuthenticity is up eighteen placed to number The United Kingdom faces an uncertain future 305-year-old political union.twenty two—the UK’s best performance in this as the people of Scotland prepare to go to the Photo: Panorama of Edinburgh, Scotlandattribute since CBI’s inception. polls in 2014 for a referendum that could see the country dissolve itself from the United Kingdom,The fanfare and ubiquitous display of the union ending a 305-year-old political union. Latentjack is particularly timely, as this collective of tensions between England and Scotland, as farCountry Brand Index 2012–13 © FutureBrand, All Rights Reserved 19
  20. 20. T H EM E S O F 201 2-1 3: L E A D ER S AT A G L A N CEreaching as the wars of independence 700 years Olympics will likely reinforce current impressions Money, jumping from seventy-fourth last year toago, are coming to the surface with the election that the UK prioritizes the environment, with the eighteenth place today. The country’s ranking forof the Scottish National party led by Alex Salmond, countrys rank for Environmental Friendliness Resort and Lodging Options also improved twentythe leading advocate for Scottish independence. already improving two places this year to two places to number twenty six.With the pageantry of the Olympics and Andy number eighteen.Murray’s win at the US Open completed, the Like any strong brand, the UK’s reputation is thefocus will now turn to the uncertain future of the The sovereign state also flexed its natural assets result of generations of interactions and won’tUnited Kingdom. during the 8,000-mile, 70-day Olympic Torch be radically determined by any one single event. Relay—which spanned the breadth of Britain— Eight years of country brand research have shownNevertheless, the United Kingdom continues to showcasing its natural landscapes and urban us that perceptions change slowly and over time,garner positive acclaim as a global leader across developments. Climbing an impressive twenty- but some brands are better equipped to harnessa diversity of attributes. For instance, 2012 marks four places to thirty-nine for the Natural Beauty new opportunities. China’s country brand, forthe UN’s official International Year of Sustainable attribute, it’s clear that perceptions are example, has steadily declined since the BeijingEnergy for All, as well as the final year in Britain’s growing stronger. Olympic Games—even though they were widelyfirst carbon budget. The UK has positioned itself regarded as a success. The lasting impacts of theas a willing leader in eco-consciousness, with the Not surprisingly, the UK’s ranking in Tourism UK’s banner year and the challenges to Britain’sLondon 2012’s Olympic organizing committee enjoyed the sharpest increase in performance identity over the Scottish question are difficult todelivering the most sustainable Games ever this year, moving eleven places ahead to number measure or predict, but the UK is certain to remainamidst mounting international scrutiny around nineteen overall. Many visitors were pleasantly a headline in the coming year.the environmental impact of major events. The surprised by hotel availability during the Games—positive impressions created through widespread which ultimately led to a widespread drop incoverage of the large number of recycling bins prices to stimulate demand. The country achievedacross the capital and within the park during the a dramatic shift in perception for Value forCOUNTRY HIERARCHICAL DECISION ASSOCIATION MODEL (HDM) Rank DIMENSIONS Rank Rank Rank Rank Rank VALUE 11 QUALITY 14 GOOD FOR 11 HERITAGE 5 TOURISM 19 SYSTEM OF LIFE BUSINESS AND CULTUREUNITED AWARENESS 10 Political Freedom 8 Education System 10 Investment Climate 18 History 5 Value for Money 18KINGDOM FAMILIARITY 3 Environ. 18 Healthcare 11 Advanced 10 Art and 5 Attractions 7 Friendly System Tech. Culture ASSOCIATIONS Stable Legal 10 Standard 16 Regulatory 12 Authentic 22 Resort and 26 Environ. of Living Environ. LodgingRANKINGS PREFERENCE 5 Tolerance 13 Safety 15 Skilled 11 Natural 39 Food 35 Workforce Beauty 11 CONSIDERATION 3 Freedom 11 Job Opp. 8 8 of Speech 9 13 DECISION/VISIT 4 Most Like 16 to Live In ADVOCACY 14‘09 ‘10 ‘11 ‘12 118th Top 60 1st Top 60 1st Top 60 1st Top 60 1st Top 60 1st Top 60 1stCountry Brand Index 2012–13 © FutureBrand, All Rights Reserved 20
  21. 21. T H EM E S O F 201 2-1 3: L E A D ER S AT A G L A N CEThe Untapped Power of the PIIGSPortugal (32) Italy (15) Ireland (21) Greece (39) Spain (19)Economically troubled, the qualities they share is an unprecedented opportunity to leverage strong, well definedyes. But beautiful associations that could enhance their financial competitiveness and return them on a sustainable(and hopeful), too. growth path.Portugal, Italy, Ireland, Greece and Spain represent Yes, all five countries are facing crippling debt,a grouping of nations defined by the economic macroeconomic imbalances, rigid labor marketscrises they share, but also the cultural and natural and increasing austerity measures. But Italy, Spainassets they have to offer. While the term PIIGS and Ireland in particular remain strong, top-has largely been used in relation to each nation’s twenty-five brands. Greece, on the other hand,worsening financial climate (with the exception of has continued on a multi-year downward trendGreece), these country brands are not as rapidly in the CBI, suffering a twelve-place decline in Separated only by the Guadiana River, the towns of Alcoutimin decline as we might imagine. In fact, one of perception to rank it thirty-ninth overall. in Portugal and Sanlúcar in Spain are vivid examples of both countries’ cultural and natural assets.COUNTRY HIERARCHICAL DECISION ASSOCIATION MODEL (HDM) Rank DIMENSIONS Rank Rank Rank Rank Rank VALUE 25 QUALITY 35 GOOD FOR 38 HERITAGE 61 TOURISM 36 SYSTEM OF LIFE BUSINESS AND CULTUREPORTUGAL AWARENESS 12 Political Freedom 25 Education System 31 Investment Climate 47 History 40 Value for Money 30 FAMILIARITY 16 Environ. 33 Healthcare 35 Advanced 36 Art and 38 Attractions 48 Friendly System Tech. Culture ASSOCIATIONS Stable Legal 22 Standard 41 Regulatory 36 Authentic 69 Resort and 50 Environ. of Living Environ. LodgingRANKINGS PREFERENCE 29 Tolerance 24 Safety 37 Skilled 33 Natural 77 Food 16 Workforce Beauty CONSIDERATION 15 Freedom 26 Job Opp. 44 of Speech DECISION/VISIT 20 Most Like 32 to Live In 34 29 30 32 ADVOCACY 27‘09 ‘10 ‘11 ‘12 118th Top 60 1st Top 60 1st Top 60 1st Top 60 1st Top 60 1st Top 60 1stCountry Brand Index 2012–13 © FutureBrand, All Rights Reserved 21
  22. 22. T H EM E S O F 201 2-1 3: L E A D ER S AT A G L A N CEPortugal’s ranking slipped two places this year, butthe country faces more declines in the midst of aneconomic crisis. Downgraded to junk status—orjust below the purview of investment—by Standard& Poor’s in January 2012, Portugal’s governmentfollows in the footsteps of Greece and Ireland inseeking a bailout from the European Union andInternational Monetary Fund. Prime Minister PedroPassos Coelho has promised to cut spendingand raise taxes in order to meet the terms of a 78billion Euro aid plan. These austerity measures arehurting an economy that already suffered fromslow growth rates, and as such, the country’sbrand has declined in Good for Business, fallingsix places to thirty-eighth overall. For InvestmentClimate and Regulatory Environment, Portugalalso experienced declines in perceptions this year.Similarly, rankings related to Greece’s businessclimate declined following a fifth year ofeconomic straights. As the country attempts A bank in Athens symbolizes Greece’s declining business climateto avoid default, Greece and its creditors are following a fifth year of economic straights.discussing a cut in the face value of its debt—putting the country’s already fragile three-partyCOUNTRY HIERARCHICAL DECISION ASSOCIATION MODEL (HDM) Rank DIMENSIONS Rank Rank Rank Rank Rank VALUE 72 QUALITY 87 GOOD FOR 78 HERITAGE 18 TOURISM 45 SYSTEM OF LIFE BUSINESS AND CULTUREGREECE AWARENESS 3 Political Freedom 88 Education System 87 Investment Climate 97 History 6 Value for Money 87 FAMILIARITY 9 Environ. 83 Healthcare 102 Advanced 63 Art and 11 Attractions 32 Friendly System Tech. Culture ASSOCIATIONS Stable Legal 77 Standard 85 Regulatory 78 Authentic 63 Resort and 53 Environ. of Living Environ. LodgingRANKINGS Skilled PREFERENCE 9 Tolerance 67 Safety 71 84 Natural 36 Food 23 Workforce Beauty CONSIDERATION 8 Freedom 59 Job Opp. 100 of Speech 14 DECISION/VISIT 8 Most Like 79 27 to Live In 22 39 ADVOCACY 37‘09 ‘10 ‘11 ‘12 118th Top 60 1st Top 60 1st Top 60 1st Top 60 1st Top 60 1st Top 60 1stCountry Brand Index 2012–13 © FutureBrand, All Rights Reserved 22
  23. 23. T H A P E S O F 201 T T L A D SU BT I T ACHEM T ER N A M E2-1I 3:L E EO R ER S AT L EG L A N CEEven though the financial crisishas impacted perceptions aroundthe business climate of thesecountry brands—and for Greeceand Spain, Quality of Life as well—the recession has not preventedthem from earning some of thestrongest scores for Preferenceand Consideration globally.Photo: View from the island of Santorini, Greece.coalition in a position of placating the public size or economic power. However, a declining The country’s ranking for Job Opportunity fell tobefore passing another round of austerity economic climate could have real and lasting a very weak one hundred this year.measures. Greece’s Good for Business ranking effects on the quality of life for citizens andis now seventy-eighth, with Investment Climate residents alike. This is certainly the case for Similarly, a quarter of Spain’s workforce isfalling thirteen places to ninety seven, Regulatory Greece, a nation that suffered its sharpest already jobless and close to half of its youthEnvironment falling fifteen places to seventy declines in perception this year in the Quality are without work. Spain’s ranking for Jobeight, and Skilled Workforce falling seven places of Life dimension, falling thirty-four places to Opportunity accordingly fell four places toto eighty four—all at their lowest levels since the eighty seven in the country’s lowest-ranked forty-sixth, with Most Like to Live In andCBI’s inception. dimension overall. Inherently connected to Standard of Living also suffering significant a nation’s ability to offer its people gainful declines. Once considered some of the mostAs reported every year in the CBI, country brand employment, quality of life in Greece is attractive places to live in the world, the PIIGSstrength isn’t directly correlated with geographic significantly impaired by rising unemployment. face the brain-drain of high unemploymentCountry Brand Index 2012–13 © FutureBrand, All Rights Reserved 23
  24. 24. T H EM E S O F 201 2-1 3: L E A D ER S AT A G L A N CErates and the risk of losing their valuable Madrid-Barajas Airport isworkforces to better opportunities abroad. a physical symbol of Spain’s prowess in the PreferenceEven though the financial crisis has impacted and Consideration dimensions, and is one ofperceptions around the business climate of these Europe’s leading airportscountry brands–and for Greece and, to a lesser with a shuttle connection toextent, Spain, Quality of Life as well—the recession Barcelona that is also thehas not prevented them from earning some of the busiest air route onstrongest scores for Preference and Consideration the continent.globally. In fact, Italy jumped one place aheadto become the number one country brandfor Tourism overall, ranking as the strongest-performing brand for Food and third strongest forAttractions. Italy is also the strongest-performingcountry brand this year for History, Art and Cultureand the Heritage and Culture dimension overall.It’s clear that Italy’s iconic collection of luxury,heritage brands are still considered among theworld’s most valuable, with demand growingquickly in Chinese and Indian markets.The World Travel and Tourism Authority reportsthat spending among international business andleisure tourists is projected to increase in 2012 inboth Portugal and Greece.COUNTRY HIERARCHICAL DECISION ASSOCIATION MODEL (HDM) Rank DIMENSIONS Rank Rank Rank Rank Rank VALUE 21 QUALITY 25 GOOD FOR 24 HERITAGE 11 TOURISM 15 SYSTEM OF LIFE BUSINESS AND CULTURESPAIN AWARENESS 5 Political Freedom 20 Education System 25 Investment Climate 32 History 11 Value for Money 34 FAMILIARITY 6 Environ. 31 Healthcare 25 Advanced 22 Art and 4 Attractions 15 Friendly System Tech. Culture ASSOCIATIONS Stable Legal 23 Standard 27 Regulatory 24 Authentic 29 Resort and 24 Environ. of Living Environ. LodgingRANKINGS PREFERENCE 13 Tolerance 17 Safety 31 Skilled 36 Natural 26 Food 6 Workforce Beauty CONSIDERATION 7 Freedom 19 Job Opp. 46 of Speech 10 14 14 19 DECISION/VISIT 6 Most Like to Live In 20 ADVOCACY 4‘09 ‘10 ‘11 ‘12 118th Top 60 1st Top 60 1st Top 60 1st Top 60 1st Top 60 1st Top 60 1stCountry Brand Index 2012–13 © FutureBrand, All Rights Reserved 24
  25. 25. T H EM E S O F 201 2-1 3: L E A D ER S AT A G L A N CE It’s clear that Italy’s iconic collection of luxury, heritage brands are still considered among the world’s most valuable, with demand growing quickly in Chinese and Indian markets. Photo: Exclusive boutiques in Piazza Filippo Meda, Milan, Italy.COUNTRY HIERARCHICAL DECISION ASSOCIATION MODEL (HDM) Rank DIMENSIONS Rank Rank Rank Rank Rank VALUE 23 QUALITY 21 GOOD FOR 23 HERITAGE 1 TOURISM 1 SYSTEM OF LIFE BUSINESS AND CULTUREITALY AWARENESS 8 Political Freedom 21 Education System 23 Investment Climate 38 History 1 Value for Money 28 FAMILIARITY 5 Environ. 35 Healthcare 28 Advanced 23 Art and 1 Attractions 3 Friendly System Tech. Culture ASSOCIATIONS Stable Legal 25 Standard 22 Regulatory 23 Authentic 19 Resort and 15 Environ. of Living Environ. LodgingRANKINGS PREFERENCE 4 Tolerance 22 Safety 33 Skilled 22 Natural 11 Food 1 Workforce Beauty CONSIDERATION 4 Freedom 18 Job Opp. 39 15 6 of Speech 12 10 DECISION/VISIT 5 Most Like 19 to Live In ADVOCACY 5‘09 ‘10 ‘11 ‘12 118th Top 60 1st Top 60 1st Top 60 1st Top 60 1st Top 60 1st Top 60 1stCountry Brand Index 2012–13 © FutureBrand, All Rights Reserved 25