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Top 10 brand flux reflects impact of dynamic market

Between 2006, the year WPP launched the BrandZTM Top 100 Most Valuable Global Brands ranking, and 2015, the Brand Value of the Top 10 almost tripled, to $1.1 trillion, one-third of the total value of the Global Top 100. But five of the Top 10 dropped out and were replaced. And no brand occupies the same rank today as it did 10 years ago.

This reality reflects both the essential power and stability of high-value brands and the extraordinary pressures that brands faced during the past 10 years, including the global financial crisis that bisected the decade, the changing consumption attitudes that emerged from the crisis, and the disruption that technology triggered across categories.

Most astonishing, 10 years ago, Apple, the world’s most valuable brand, did not even rank in the BrandZTM Global Top 10. Apple’s rise demonstrates the strength of the brand, which increased 1,446 percent in Brand Value since 2006. Apple’s performance also mirrors the overall influence of technology.

Four of the BrandZTM Global Top five most valuable brands in 2015 are in technology. Six of the Top 10 are technology or telecom provider brands. The addition of more technology brands to the Top 10 reduced the diversity of categories represented, eliminating banks, cars and retail. Now comprised of only North American brands, the Top 10 also became less geographically diverse.

IBM’s rise in the Top 10, from number eight to number four, shows that a heritage brand over a century old, can reinvent
itself. Similarly, the younger Microsoft brand refreshed both its products and its processes to compete in today’s more open and collaborative business culture.

The two telecom providers in the Top 10, AT&T and Verizon, demonstrate the impact of Brand Power on Brand Value. These big and salient brands stretched from being  voice and data conduits alone to offering content, in an attempt to serve customers in a meaningfully different way.

China Mobile slipped from the Top 10. While the telecom remains a powerful brand, it’s no longer China’s most valuable brand. That designation belongs to Tencent, the Internet portal and market-driven brand. The publicly held company surpassed state-owned China Mobile last year in Brand Value.

Two iconic brands that ranked in both the 2006 and 2010 Top 10 – Coca-Cola and McDonald’s – Illustrate how a powerful brand can sustain a business through difficult transitions. Both brands adjusted their products and communications to more

effectively address consumer concern about health and calorie intake.

The disappearance of Walmart and Citi from the BrandZTM Global Top 10 exemplified the impact of disruptive forces. The largest retailer in the world in sales, with over 10,000 stores worldwide, Walmart now ranks third in the retail category, after e-commerce leaders Amazon and Alibaba, which operate no physical stores.

Like other global banks, the financial crisis and an erosion of consumer trust hurt Citi. Although its business has rebounded as it has reorganized, the global banks category overall has not recovered in Brand Value to pre-recession levels. 

Market dynamics impact Top 10

Between 2006 and 2015, five of the Top 10 dropped out and were replaced. And no brand occupies the same rank today as it did 10 years ago