Led by Asia, the Top 10
of all regions rise in value
Economy helps growth, Brand Power and Innovation sustain it
Every region rose in value in the regional rankings, which include the Top 10 most valuable brands in Asia, North America, Continental Europe, the UK, and the Top 6 from Latin America. Asia and North America led regional growth, driven by the value increase of Chinese and US brands. The positive performance in all regions benefited from a strong global economy. But the long-term growth depended on brand-related factors.
The regional rankings reflect the overall regional value changes within the BrandZ™ Top 100 Most Valuable Global Brands, where Chinese and US brands increased 47 percent and 23 percent, respectively. Asia and North America together comprise 88 percent of the total value of the BrandZ™ Global Top 100—up from 74 percent 12 years ago.
The rapid rise of China and the continued strength of the US (all but two of the North American brands are US) drove this concentration. The value of Chinese brands in the BrandZ™ Global Top 100 increased 1,444 percent over the past 12 years, and the number of Chinese brands in the ranking increased from one in 2012 to 14 today. Although a net of only three North American brands were added to the Top 100 over the past 12 years, North American brands total $3.1 trillion in value, a rise of 239 percent.
These gains came substantially from technology and related categories. For example, the leading Chinese brand, Tencent, increased 1,083 percent over the past seven years, since Tencent entered the BrandZ™ Global Top 100. Alibaba, increased 92 percent in the past year alone. Google and Apple, the leading US brands, increased in 707 and 1,782 percent in value, respectively, over the past 12 years.
In counterpoint to the value concentration in Asia and North America, brand value in other regions of the world grew more slowly and the proportion of value those regions contribute to the BrandZ™ Global Top 100 declined. Asia (excluding China), Continental Europe, and the UK increased in value only 21 percent, 37 percent, and 26 percent, respectively over the past 12 years.
The Asia (excluding China) portion of Top 100 value declined to 3 percent from 8 percent; the Continental Europe proportion declined from 21 percent to 9 percent, and the UK proportion declined from 5 percent to only 2 percent. Brands in these regions come from lower-growth categories compared with the US and China.
The Top 100 also became more regionally diverse. Twelve years ago, no Latin American brands were represented in the Global ranking. Today, brands from the rest of the world—primarily Latin America—comprise a small but growing 1 percent of the ranking. In addition, new countries are appearing in the ranking. This year, an Indonesian brand entered the Top 100 for the first time.
And brands from other regions comprise one percent of the Top 100 ranking.
Brand Power and Innovation
Regardless of region, brands ranked in the BrandZ™ Global Top 100 Most Valuable Global Brands score high in Brand Power, a BrandZ™ measurement of brand equity, the consumer’s predisposition to choose a particular brand. High Brand Power correlates with strong volume share. Brand Power is measured with an index where 100 is average. Chinese brands score the highest, 218. US brands score 176.
Brands from the US and China also score higher than brands from other countries in Innovation, a BrandZ™ metric. A score of 100 is average. The US brands score 120 and Chinese brands score 114. An analysis of the BrandZ™ Global Top 100, following the same 94 brands in 2006 and 2018, found that over 12 years, brands that score high in Innovation increased 273 percent in value, while low Innovation brands increase only 36 percent.
Strong brands typically outperform the average country or regional Innovation score. For example, Microsoft surpassed the US Innovation average with a score of 133. Microsoft increased 40 percent in brand value. JD. com, the Chinese e-commerce giant, surpassed the China Innovation average with a scored of 127.
Similarly, the German apparel brand Adidas, which rose 50 percent in value year-on-year, scored 114 in Innovation, compared with the average Innovation of 109 for German brands. And Louis Vuitton, the French luxury brand, which rose 41 percent in brand value year-on-year, scored 108 in Innovation, somewhat higher than the average 104 of French brands.
… But brands in all regions score high in Brand Power
North America (US) and the China dominate in the number and value of brands represented in the BrandZ™ Global Top 100. They also score high in Brand Power, a measurement of brand equity. Brand Power scores are high across regions, reflecting the strength of brands ranked in the BrandZ™ Global Top 100.
Innovation drives brand value growth…
An analysis of the BrandZ™ Top 100, following the same 94 brands in 2006 and 2018, found that over 12 years brands that score high in Innovation, a BrandZ™ metric, increased 273 percent in value, while low Innovation brands increase only 36 percent.
… And Innovative brands outperform local average
Leading brands typically outperform the average country or regional Innovation score. For example, with a score of 133, Microsoft surpassed the US Innovation average of 120, and JD.com scored 127 in Innovation, compared with an average Innovation score of 114 for all BrandZ™ Global Top 100 brands from China.