Top brands misses out $3.5 trillion on brand value; automotive sector dominates the market, reveals Interbrand report
Nvidia, Pandora, Range Rover and Jordan are the new entrants in the list while Jordan is the first personality brand to make it to the list.
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The world’s biggest brands have missed out on $3.5 trillion in brand value creation as the top 100 best brands have lost at least $200 billion dollars in revenue over the past 12 months alone, reveals a report by Interbrand.
However, the cumulative value of the world’s most valuable brands has increased 3.4x since the year 2000 from $988B to $3.4T. Gonzalo Brujó, Global CEO, Interbrand said, “If these brands had been treated and managed as strategic growth assets, then this table could be worth as much as $6.9T. The growth we see hides a staggering missed opportunity.”
Nvidia, Pandora, Range Rover and Jordan are the new entrants in the list. While Jordan is the first personality brand to make it to the list.
Auto brands dominating the market
As per the report, 14 of the top 100 brands of 2024 are from automotive sector. Toyota, Mercedes-Benz and BMW are ranked in the top 10 list with ranks 6, 8 and 10 respectively. Tesla, Honda, Hyundai, Porsche, Audi, Volkswagen, Ford, Nissan, Ferrari, Kia and Range Rover are amongst the other brand in the list of top 100.
Interestingly, Tesla with rank 12 has been one of brands this year’s with largest decline in brand value as it saw a negative growth of 9%. Meanwhile, Kia, Hyundai and Toyota achieved double digit growth.
Apple being the 'Apple of Eyes'
Undoubtedly, Apple remains the most valuable brand. However, its brand value has dropped for the first time in over two decades. The brand has spotted a negative growth of 3% in brand value. Commenting on Apple, Greg Silverman, Global Director of Brand Economics, Interbrand said, “While others rushed into AI, Apple took a more deliberate path to ensure its AI releases matched its values. This slower-moving act of leadership has put long-term trust ahead of short-term revenue gains. Following these brand moves, Apple’s stock has moved up 20% YTD and we anticipate that Apple’s value will increase in the 2025 rankings.”
Luxury brand remains in demand
The report suggested that the brand value of luxury brands continued an upward trajectory, that is 7% up from 6.5% last year. This means that luxury brands are extending relevance by creating new consumer experiences and expanded digital touchpoints, demonstrating powerful creativity that taps into the human condition.
For instance, Ferrari captured this year’s spot as the top-rising brand with 21% brand value growth. Louis Vuitton jumped three places, from rank 14 to 11.
Additionally, with Hermès and Prada became two of the biggest luxury brand risers this year, seeing brand value growth of 15% and 14% respectively.
Notedly, this year Uber and LG re-entered to the list of top 100 brands with ranks 78 and 97, respectively.
“With more and more businesses focusing on quick scale-up and faster short-term growth, there is an ever-increasing stake that the investor community now has in businesses around the world. They run the show now, with businesses becoming mere instruments and asset classes in the quest for alpha. This has changed the fundamental nature of businesses and brands with greater focus on short term marketing and cost efficiencies. This is a myopic view, and more often than not, limits real and sustained value growth for businesses and brands. Performance marketing tools, capabilities and systems have fundamentally evolved over the past quarter of a century. As these tools shift, so too do the pressures and expectations placed on brand and marketing leaders,” Ashish Mishra, CEO, Interbrand India and South Asia said.
