The Brand Value of the UK Top 10 brands declined over 4 percent compared with a rise of 14 percent overall for the BrandZTM Top 100 Most Valuable Global Brands.
The decline reflects the diversity of categories comprising the UK Top 10, and the fact that these categories – telecom providers, global banks, oil and gas, retail, apparel and luxury – felt the impact of geopolitical disruption and changing consumer attitudes.
Global banks continued working to reorganize their businesses following for the financial crisis, and to restore consumer trust. The oil and gas brands faced two unexpected events: the collapse of oil prices and the sanctions that prevented collaboration with Russian state-owned oil companies to drill in the Arctic.
The Tesco brand value decline in part reflected a consumer attitude shift in favor of smaller stores, discounting and convenience. The Next brand found a sweet spot in affordable fashion. Burberry’s brand value decline was related to the overall value drop in the luxury category, partially because of the slowdown in China sales.
Telecom providers fared better in the UK, although competition heated up as the major players attempted to differentiate their brands as content providers. Vodafone sold its stake in Verizon Wireless to Verizon, which left Vodafone well-funded for expansion or acquisition.