High brand value is matched by strong brand equity
Eight brands, from seven categories, entered the BrandZ™ Global Top 100 for the first time. Half of the brands were from the US, two were from China, and Germany and Indonesia each had one brand represented. Each of the brands was technology-related or proficient in the use of technology to differentiate the brand. Brands rose in value because of their individual circumstances and initiatives. They shared in common high scores in BrandZ™ measurements of brand equity. Here is a summary of each Newcomer in the order the brand ranks in the BrandZ™ Top 100.
Spectrum, a telecom provider, entered the Top 100 at rank 27. It offered no-contract packages of voice and data, a competitive stance in the US. JD.com, a leading Chinese retailer, and the fastest-rising brand in the BrandZ™ Global 100, developed a large and online and offline ecosystem, differentiated from its many competitors. Uber created car sharing, disrupting the cars category and influencing society’s idea of mobility. Despite sluggishness of the market for laptops, a key company product, HP emerged successfully from the Hewlett Packard split into two entities.
The rapid rise of e-commerce in China rationalized the logistics business, and SF Express emerged as the leader in size, with ambitious global plans. Instagram became a preferred social media platform for sharing photos and messages. The Indonesian Bank BCA served a wide customer base with innovations like its mobile app, called eBranch, and social media communications. Adidas perfectly caught the streetwear trend that influenced the apparel and luxury categories, and it succeeded in generating excitement for the brand, even in the US, which had been a challenging market for the brand.
Strong brand equity
A key factor shared by all eight newcomers is strong brand equity in all its BrandZ™ components: Power, a brand’s share of current demand; Premium, a brand’s ability to charge more than the competition; and Potential, a prediction of future demand. In Power, for example brands that dropped from the Top 100 ranking scored 141, and brands that remained scored 172. The Newcomers scored 238. An average score is 100.
Meaningful Difference scores also were significant. Being Meaningfully Different (meeting consumer ways in relevant and distinctive ways) builds strong brand equity (Power, Premium, and Potential). Meaningful Different scores are increasing. In 2006, the BrandZ™ Global Top 100 scored 110 in being Meaningful Different. That score has increased to 120. Newcomers scored 120. Dropout brands scored only 107. An average score is 100.
There is a positive correlation between high brand value and brand equity. Achieving both high value and strong equity requires brands to be Meaningfully Different, which becomes even more important in a world when brands need to impress consumers enough to circumvent automatic algorithmic choices. The Newcomer brands achieved strong Meaningful Difference. Brands that dropped from the BrandZ™ Global Top 100 achieved strong Meaningful Difference, too, but not strong enough for today’s marketplace.
Newcomers strong in brand equity…
The key factor all eight newcomers share in common is strong brand equity, in all its aspects: Power, a brand’s share of current demand; Premium, a brand’s ability to charge more than the competition; and Potential, prediction of future demand.
… And Newcomers are Meaningfully Different
Newcomers also scored high in being Meaningfully Different, which builds strong brand equity by meeting consumer needs in relevant and distinctive ways. Being Meaningful Different has become more important for competing successfully, and the threshold Meaningful Different score of Global Top 100 brands has steadily increased.