In the latest “Top 100 Most Valuable Global Brands” report, Apple has replaced Google, which was the winner for the past 4 years, to be the top valued brand. In this ranking list, the US companies accounted for almost half of the top brands, while China has become the second largest country which occupies 12 positions.
According to Millward Brown’s report released over a week ago, Apple’s brand value is up to $153.3 billion, representing 84% growth in 2010, and a total increase 859% in the past six years. Along with Apple, year-on-year standout performers for this brand valuation report also includes Facebook(246%) and Baidu(141%). Moreover, the brand value of Baidu, a Chinese Internet service company, is even higher than Facebook.
Technology and telecom brands continued to grow as a portion of the BrandZ Top 100 Most Valuable Global Brands. These categories now comprise over 33% of the Top 100 brands compared with only 25% in 2006. Four of the Top 5 ranking leaders were in technology. McDonald’s was the fifth. The fast food (22 percent), luxury (19 percent) and technology (18 percent) brands led sector brand value appreciation, although insurance marked a dramatic spike in value to first place because of results by two expanding Chinese insurance companies, China Life and Pingan.
Overall, US based brands based still accounted for a disproportionate amount of brand value. Nine of the top 10 are US brands while the lone foreign brand, China Mobile, is ranked ninth in the list. However, reflecting the influence of large emerging markets, 5 of the 13 brands that appeared for the first time in the regional rankings were based in China, including Tencent and China Telcom. In this year’s list, there are 12 Chinese brands in the list, an increase from seven brands last year from only two brands in 2006. Mr. Brown said,”it reflects the transformation of China from a center for low-cost production to a nation capable of product innovation and marketing originality. The success of the Beijing Olympics accelerated this change. It reinforced China’s self-confidence and captured the world’s attention and admiration with memorable infrastructure and spectacle.”
Brand value evaluation uses a methodology similar to that employed by analysts and accountants. The brand value published is based on the intrinsic value of the brand – derived from its ability to generate demand. The dollar value of each brand in the ranking is the sum of all future earnings that brand is forecast to generate, discounted to a present-day value.
Brand Equity ($Value) = (Price of Branded Product – Price of No-Name Product) x Total units sold
Overall, brand value rose 17 percent and the total value reached $240,0 billion. This probably shows a shift in the global economy from recovery to growth after the latest economic crisis.
Listing of the Top 100 Most Valuable Global Brands
|Rank||2010 Rank||Brand||Country||Sector||Brand Value($m)||Change in Brand Value|
|3||2||United States||Business Services||100,849||17%|
|5||24||United States||Computer Software||78,243||2%|
|14||15||United States||Internet Services||37,628||37%|
|16||30||United States||Financial Services||36,876||97%|
|20||18||United States||Financial Services||28,553||15%|
|22||19||United States||Business Services||26,948||9%|
|28||23||United Kingdom||Financial Services||22,587||-4%|
|32||28||United States||Consumer goods||19,782||-4%|
|34||33||United States||Consumer goods||19,350||11%|
|35||N/A||United States||Internet services||19,102||246%|
|38||41||United States||Media conglomerate||17,290||15%|
|40||52||United States||Financial Services||17,115||23%|
|41||39||United States||Oil and gas||16,973||10%|
|44||35||United States||Business Services||16,314||-2%|
|47||54||United States||Financial Services||15,674||17%|
|49||44||United States||Business Services||15,427||5%|
|51||40||The Netherlands||Oil, energy||15,168||0%|
|57||59||United States||Sporting Goods||13,917||10%|
|60||67||United States||Financial Services||13,543||16%|
|61||73||Brazil||Oil and Gasoline||13,421||39%|
|68||61||United States||Financial Services||12,033||-3%|
|69||89||United Kingdom||Financial Services||12,033||45%|
|82||76||United States||Internet Services||10,731||15%|
|84||88||United States||Financial Services||10,525||26%|
|89||81||United States||Home Furnishings||9,877||10%|
|90||N/A||Brazil||Finance and Insurance||9,600||29%|
|92||37||United States||Financial Services||9,358||-43%|
|98||98||Germany||Finance and Insurance||8,600||15%|
|100||78||United States||Financial Services||8,439||-9%|