Healthy brands sustain businesses in challenging times
South African brands poised for a return to growth
2019 marks the second year BrandZ™ has ranked South African brands. Overall BrandZ ranks 14 countries, with South Africa having the smallest GDP of them all. But what happens in South Africa matters both in its neighborhood and the world, where it plays an outsized role in the global imagination. That’s why we consider it important to understand what’s happening to brands in this unique market.
South Africa is certainly home to some of the world’s most interesting brands. These include Nando’s, which is expanding rapidly overseas; Discovery, whose Vitality Index model has been replicated across the globe; Woolworths, a beloved retailer well worth studying; and its banks and telecom providers, many of which are significant players in the African market as a whole.
Overall, the country’s top brands unfortunately lost value in 2019, however, take that with a pinch of salt. Much of the “loss” is due to macroeconomic and financial considerations—and in particular reflects the turmoil in markets and politics during our valuation period. In reality, great brands fell far less in value than average brands, proved highly resilient against outside forces beyond their control, and are poised for growth when better times return.
What brands are winning? The Top 30 ranking reveals that the best strategy for building value involves trying to be different. Brands that were perceived as doing that fell a modest seven percent, compared with 20 percent for poorly differentiated brands. That said, difference remains an opportunity rather than a reality for many SA brands, which have a chance to lean into new ideas to spur growth.
But whether you’re a global or local brand, you’ll find knowledge and insights in this report to help you grow your brand more effectively. Our Cross-Category Themes, for example, look at how major cultural and consumer trends are shifting expectations and buying power in South Africa. The insights provide succinct, action-oriented recommendations for brands based on our expert analysis of the market. In particular, I’d like to recommend the many excellent essays in our Thought Leadership section, written by our local, South African team. They offer advice and insights into everything from innovation and media to the importance of local knowledge and how SA’s brands can best expand beyond their country’s borders.
How we can help
At WPP, we create the transformative ideas and outcomes that help our clients succeed in today’s complex and disruptive world. To accomplish this objective, we bring together remarkably talented thinkers and doers from around the world. They provide expertise in advertising; insight; branding and identity, direct, digital, promotion and relationship marketing; media investment management, retail and shopper marketing; and public relations and public affairs.
One of our key WPP strengths—and a benefit for our clients—is that when we say we cover the world of brands, that’s exactly what we mean. WPP’s proprietary BrandZ™ database includes information from over 3.7 million consumers about their attitudes about (and relationships with) 166,000 brands in 454 categories across 51 country markets. All that produces more than 5.2 billion data points.
We have assembled an extensive library of BrandZ™ reports and I invite to you access them with our compliments at BrandZ.com. Here are just some of the reports you will find there: The BrandZ™ Top 100 Most Valuable Chinese Brands; BrandZ™ Top 100 Most Valuable US Brands; BrandZ™ Top 75 Most Valuable Indian Brands; BrandZ™ Top 50 Most Valuable Latin American Brands; BrandZ™ Top 75 Most Valuable UK Brands; BrandZ™ Top 50 Most Valuable French Brands; BrandZ™ Top 50 Most Valuable German Brands; BrandZ™ Top 50 Most Valuable Indonesian Brands; BrandZ™ Top 40 Most Valuable Australian Brands; BrandZ™ Top 30 Most Valuable Italian Brands; BrandZ™ Top 30 Most Valuable Dutch Brands; the BrandZ™ Top 30 Most Valuable Spanish Brands; and the BrandZ™ Top 75 Most Valuable Retail Brands. Gain access to all these reports at www.brandz.com.
We have the data, knowledge, experience, insight, determination, and single-minded purpose to help you create the transformative ideas and outcomes necessary for building valuable brands. To learn more about how to harness our passion to work for your brand, please contact any of the WPP companies that contributed expertise to this report. Turn to the resource section at the end of this report for summaries of each company and the contact details of key executives. Or feel free to contact me directly.
David Roth, CEO The Store WPP, EMEA & Asia Chairman, BrandZ™ and BAV Group
Brand Selection Criteria
Our proprietary BrandZ™ brand valuation methodology makes the Top 30 Most Valuable South African Brands 2019 the definitive study of brands in the country. The uniquely consumer-facing BrandZ™ methodology combines extensive and on-going consumer research with rigorous financial analysis.
We gathered brand perceptions from consumers across the global and local markets and asked about brands with all kinds of ownership structures: individual private brands, family-owned conglomerates, and MNCs (Multinational Corporations). We selected brands that met our qualifying criteria: that the brand was originally created by a South African enterprise; and that the brand is either owned by a publicly traded enterprise or that its financials are published in the public domain. This approach produced a carefully conceived ranking of brands in 23 consumer-facing categories, including cars, banks, apparel, technology, and entertainment.
To learn more about the BrandZ™ valuation methodology, please contact:
Elspeth Cheung, Global BrandZ™ Valuation Director, Kantar Elspeth.Cheung@kantarmillardbrown.com.