Top 30 brands worth over US$100 billion
The combined value of the BrandZ™ Top 30 Most Valuable Spanish Brands is US$103,103 million.
Fashion brands lead the way
The contribution of apparel brands to the shape and scale of the Spanish Top 30 sets this ranking apart from others around the world. One-fifth of the 30 brands in the ranking are fashion brands, and they contribute over one-third of the brand value of the ranking. This is driven by the might of Inditex, which is behind almost all of these highly successful apparel brands. These labels are not just big in Spain but have become key exporters and strong global brands.
Zara is Spain’s most valuable brand
The global pioneer of “fast fashion” tops the inaugural BrandZ™ Most Valuable 30 Brands ranking, with a brand value of US$25,135 million. This one brand represents almost a quarter of the total brand value of the Top 30; such is its scale and influence. Zara represents about two-thirds of the sales of its corporate parent, Inditex, taking fresh looks from the catwalk to the store in ever-shorter times. Zara is already a formidable force on the world stage, operating from some of the most prestigious shopping strips in 93 countries. Zara ranks 34 in the 2017 BrandZ™ Top 100 Most Valuable Global Brands – one of just two Spanish brands in the global ranking, the other being Movistar in 43rd place.
Mega brands dominate
The Top 5 brands in the ranking account for 67 percent of the value of the entire top 30. Between them, they are worth US$69 billion. This concentration of value at the top of the ranking is similar to what we have seen in other BrandZ™ country rankings; though the intensity of concentration is especially high here. The Top 5 in the global ranking, for instance, account for 37 percent of the Top 30 brands’ total value.
Brand equity is strong, but there is clear headroom
Spanish brands are proving effective at creating a predisposition among consumers to purchase their brand, but there’s plenty of scope for them to do better. The Spanish Top 30 have an average Brand Power score of 159, which means they are 59 percent more powerful at creating that predisposition than the average of all brands in Spain. But in some markets, we see Brand Power scores among the most valuable brands at well over 200, so double the power of the average brands in these markets. The Brand Power average of the Top 30 global brands is 222. This underlines the potential for future investment in building strong Spanish brands.
Age is no barrier to strength and relevance
The Spanish Top 30 covers brands with a spectrum of ages, from the oldest (Gas Natural Fenosa, founded in 1843) to some that are aged only in their 20s. There are a good number of brands that are over 100 years old, as well as many that launched in the latter part of last century. BrandZ analysis shows that while the older brands tend to have a slightly higher Brand Power ranking than the younger half, there is no real correlation between age and success. Age can deliver familiarity and youth can help a brand get noticed, but neither is the key – or a barrier – to building a strong, valuable brand.
Financial services among best performers
Banks and insurance brands occupy eight of the Top 30 places in the Spanish ranking, including two of the top five positions. The importance of banking to national development and to everyday life for consumers helps banks consistently achieve high places in BrandZ country rankings. Insurance, too, is essential to home life and to running a business in an advanced economy.
Sameness afflicts many categories
Spain’s most valuable brands are doing as good a job as the most valuable global brands when it comes to making their voices heard. They have strong scores for “salience”, which means they tend to spring to mind when people think of a category. What’s lacking, though, is clear difference in how people perceive several brands within a category, and this is an area on which Spanish brands should focus to achieve brand value growth.
Top 5 learnings for marketers
1 Invest in branding, reap the rewards
The BrandZ™ Top 30 Most Valuable Spanish Brands shows clearly that those businesses that invest in building brands that resonate in powerful ways with consumers, reap clear financial rewards. Consumers talk about brands, recommend the ones they like, and either ignore or pour scorn on those they don’t. There are many brands in Spain that people know and trust because they’ve grown up with them, but they don’t always have a clear appreciation of what sets one brand apart from the next, and for many brands there’s a sense that they are not worth the price they are charging. This makes brands vulnerable to competition, and is an area for attention.
2 Emotional connections boost brands
Brands that build a deep, emotion-based connection with consumers can punch above their financial weight in the BrandZ™ rankings. Brands need to deliver products and services that live up to promises made in their communications, but they also need to go beyond that, proving relevance to people’s lives and making a genuine, human connection that is memorable.
3 Innovation fuels prosperity
Innovation is not just a “nice-to-have” aspect to a business, and it’s not just for brands with a natural link to technology. Innovation is an essential part of building and sustaining a healthy, valuable brand, and this is as important to brands selling yogurt and insurance policies as it is to those in e-commerce or digital music. Innovative companies tend to become the most loved, and love sustains brands in between innovations and helps them recover faster after periods of difficulty.
4 Have a purpose that goes beyond selling
This is important in all markets, but in a sophisticated consumer market such as Spain, it is essential. Consumers are looking to connect with brands that don’t just try to sell them a product, even if that product does exactly what they want it to do. A brand is a conduit to a community, an experience and a feeling. And a brand can only generate that if it has a mission that is focused on making people’s lives better, even in very small ways.
5 Great advertising is only part of the picture
Some of the most memorable and valuable brands in the world have established their position by investing heavily in creative advertising. This is an important part of building brand value, but producing strong communications is only one aspect of brand health. Underpinning great advertising must be a great – and authentic – message that emphasizes why the brand is different, relevant, and improves people’s lives.