The strong get even stronger
The evolution of the BrandZ™ Global Top 10 over the past 12 years reflects the dominance of technology and the disruptive impact of the global financial crisis, technological innovation, and changing consumer attitudes about health.
Only three brands that appeared in the Global Top 10 in 2006—Google, Microsoft, and IBM—remain in the Top 10 in 2017. These technology leaders demonstrate the ability of relatively young brands, like Google and Microsoft, and heritage brands, like IBM, to be relevant, each in its own way: Google primarily with search and constant innovation; Microsoft with the versatility of its Surface devices and its expanding cloud business; and IBM with its reinvention, cloud focus, and cognitive computing.
Equally revealing is the presence of three brands in the Top 5 that were not even in the Top 10 just 12 years ago. The innovative technology of these brands—Apple, Amazon, and Facebook—
has disrupted categories and improved people’s lives worldwide. The presence of the Chinese internet portal Tencent, and the disappearance of state-owned China Mobile, also indicates the power of technology, along with China’s evolution to a more competition-driven economy.
AT&T’s rise reflects its scale and the transformation of telecom providers from voice and data transmitters to content and entertainment brands. The strength of payments brands relative to other financial services sectors, along with the ability of Visa to communicate its benefit to consumers, explain that brand’s value rise.
The presence of Amazon, and the disappearance of Walmart (now No. 31), reflect the massive disruption of the retail category by e-commerce. The financial crisis and the slower value growth of the financial services categories explain the value decline of Citi (now No. 59). Coca-Cola (now No. 13) and Marlboro (now No. 12) who felt the impact of consumer health concerns. In addition:
- Over the past 12 years, the value of the Top 10 increased 249 percent, while the Top 100 increased a healthy 152 percent.
- Over the past 12 years, the value of the Top 10 as a proportion of the total Global Top 100 value increased from 28 percent to 39 percent.
- The Top 10 in 2017 are worth around the same as the entire Top 100 12 years ago—$1.4 trillion.
- The No. 1 and No. 2 brands—Google and Apple—are worth more than the Top 10 combined 12 years ago—$480 billion vs. $409 billion.
- Nine of the Global Top 10 are worth over $100 billion, compared with six brands last year.
- In 2017, the average age of a Top 10 brand was 42 (started in 1975). That is, less than half the average age of a Top 10 brand 12 years ago, which was 88 (started in 1929).
Finally, 12 years ago, a Global Top 10 brand scored an average of 216 in Brand Power, compared with an average of 142 for a brand ranked below the Top 10. Today, a Top 10 brand scores 266, on average, in Brand Power, compared with 175 for other Top 100 brands. (An average score in Brand Power, the BrandZ™ measurement of brand equity, is 100.)
Top 10 ranking changes significantly…
Only three brands that appeared in the BrandZ™ Global Top 10 in 2006—Google, Microsoft, and IBM—remain in the Top 10 in 2017.
… Top 10 brands get younger…
The average age of a Top 10 brand in 2017 is 42 (started in 1975). That is less than half the average age of a Top 10 brand in 2006, which was 88 (started in 1929).
… And the strong get even stronger
In 2006, a BrandZ™ Global Top 10 brand scored an average of 216 in Brand Power, compared with an average of 142 for a brand ranked below the Top 10 in the Global 100. Today, a Top 10 brand scores 266, on average, in Brand Power, compared with 175 for other Top 100 brands.