Interbrand has launched its Best Global Brands 2023 ranking, revealing many of the world’s top 100 brands are in a state of stagnation. The rate of growth in the overall brand value of the table slowed sharply after last year’s significant increase – rising 5.7 percent this year compared to last year’s 16 percent increase, taking the total brand value to $3.3 trillion ($3.1 trillion in 2022).
Interbrand cites lack of growth mindset, weaker brand leadership and poor forecasting were behind the slow down. This follows a longer-term trend in which brands operating exclusively in one sector, taking an incremental approach, have experienced slower brand value growth.
Gonzalo BrujoĢ, global CEO of Interbrand, said: “After a few years of strong brand growth, we have entered a period of stagnation, with this year’s table showing moderate growth in overall brand value.
“Businesses which have witnessed a rise in brand value, including Airbnb (#46), LEGO (#59) and Nike (#9) have all transcended their established category norms and play a more significant and meaningful role in society and consumer’s lives.
“As we continue to navigate economic and environmental headwinds, there is a need for improved business cases and better brand management, to drive future investment and sustain growth, within traditional sectors and beyond. Those who can successfully leverage their brand into new consumer pools of potential will reap the rewards of strong brand growth.”
More than two decades of analysis shows companies that address a more diverse set of customer needs, often across sectors, continue to dominate the top of the table – making up almost 50 percent of the total value. Based on the data, these companies operating across several different verticals are more stable, achieve higher top line growth, are more profitable, and benefit from a greater growth of brand value. For these companies, a focus on brand rather than product plays a greater role in driving choice (+12 percent vs average), meaning they are able to address more customer needs, within and across categories.
Manfredi Ricca, global chief strategy officer, Interbrand said: “A brand like Apple, can no longer be ascribed to a sector. It competes across different Arenas, helping its customers Connect (the iPhone), but also Thrive (the latest Apple watch was positioned as a health device), Fund (its new savings account drew nearly $1 billion in deposits in the first four days), and much more. Apple’s move across Arenas has enabled it to hold the BGB top spot for the 11th year, having overtaken Coca Cola in 2013.”
Kathleen Hall, chief brand officer, Microsoft, said: “We are honored to be recognized for continued strong growth in the Best Global Brands ranking this year. The combination of brand perception and financial performance is a great indicator of brand health and relevance and one we value tremendously. With our acquisition of Activision Blizzard, our prominent leadership position in AI, and our continued commitment to make a positive impact on society, we aspire to be a brand people can trust and build a responsible future with.”