The Strategist

BrandZ: The world’s most valuable brands belong to IT companies

07/10/2018 - 14:31

The world's largest brands have lately been increasingly complaining that it is very difficult to convince young consumers to remain faithful to one brand.

Earlier, buyers preferred to buy familiar and well-established brands. Now, however, young people are increasingly trying something new. Therefore, it is more and more difficult for companies to sell their goods and services.

Nevertheless, the top 100 largest brands in the world still control most of the market, and their value for the year increased by 3% to $ 3.4 trillion according to the new BrandZ rating, compiled by the research agency Millward Brown for the Financial Times.

Over the past 10 years, the value of the top 100 brands more than doubled, reaching 133%.

The brand value is calculated on the basis of financial parameters such as revenues and profitability, and also studies are made of how consumers perceive brands.

In recent years, there has been an interesting trend. As digital technologies develop, IT companies are increasingly replacing companies operating in other sectors from the rating.

This year, top-5 brands at the top of the rating are IT companies: Google ($ 229 billion), Apple ($ 228 billion), Microsoft ($ 122 billion) and Facebook ($ 103 billion).

Coca-Cola left the top 10 of the rating for the first time. The brand’s cost decreased by 4% as a result of the global fight against drinks with high sugar content.

Nevertheless, the cost of the Coca-Cola brand over the past ten years has almost doubled from $ 41 billion in 2006 to $ 80 billion in 2016, which was the result of increased sales and profits of the company.

Other companies that followed this example include Marlboro, McDonald's and Louis Vuitton. They lost their position in the rating over the last decade, but still occupy a significant market share, and their brand value is much higher than 10 years ago.

In total, 54 brands that were in the top 100 BrandZ rating ten years ago, still remain in it, but the remaining 46 have been replaced by newcomers.

Below are the top 5 brands according to the ranking.

5. Facebook

Last year’s position: 12

The brand value: $ 102 551 million

Change in value for the year: + 44%

Facebook is one of the most popular social networks in the world; it has more than a billion active users, the number of which is constantly increasing.

The project was founded on February 4, 2004 and was originally conceived as a social network only for Harvard students. Later, however, the network was expanded. The founders of Facebook were Harvard University students Mark Zuckerberg, Eduardo Saverin, Dustin Moskovitz, Andrew McCollum and Chris Hughes.

Over the past year, the brand value has grown by 44%, and the brand has risen in the ranking from the 12th place in 2015 to the 5th place in 2016.

4. AT&T

Last year’s position: 6

The brand value: $ 107,387 million

Change in value for the year: + 20%

AT&T (American Telephone and Telegraph) is today one of the largest wireless and telephone service providers in the United States. The total number of its subscribers exceeds 150 million people, and the name itself has long been synonymous with quality.

Over the past years, AT&T climbed up, from 6th place in 2015 to 4th place in 2016. The brand value for the year has grown significantly - by 20%.

3. Microsoft

Last year’s position: 3

The brand value: $ 121,824 million

Change in value for the year: + 5%

Microsoft is the world-renowned manufacturer of software for desktop computers, mobile devices, clusters, servers and gaming consoles. In addition to software, the company also manufactures game consoles, computer manipulators and audio players.

The history of Microsoft is a story of dizzying success and constant development. The corporation repeatedly made mistakes and miscalculations, but always quickly corrected them, as a result winning new areas and setting new records.

Despite the fact that the brand’s value has grown by 5% for the year, its position in the rating has not changed: Microsoft takes the 3rd place just like in 2015.

2. Apple

Last year’s position: 1

The brand value: $ 228.46 billion

Change in value for the year: -8%

To date, Apple is one of the leaders in the global IT industry. The company manufactures computers, laptops, media players and software.

The company is one of the pioneers in many areas of the industry: Apple came up with the first truly personal computers, the first multi-color displays on PCs, the first operating systems with a graphical interface, the first computers with mouse support, the first personal audio player, the first online music store and so on .

The brand is recognizable all over the world. This year, its value fell from 1st to 2nd place, and the brand value decreased for the year by 8%. 

1. Google

Last year’s position: 2

The brand value: $ 229 198 million

Change in value for the year: + 32%

The Google brand begins its history with the registration of Google Inc. on January 7, 1998 in Menlo Park, California, USA. The company was founded by graduate students of Stanford University Larry Page and Sergey Brin.

The name Google is the beat-up spelling of the English word googol, the mathematical term for a number consisting of one and one hundred zeros. The name reflects the company's goal, creating an infinitely huge database to find the information you need.

In 2016, the brand became the leader in the BrandZ rating, ahead of its competitor Apple. The brand value increased by 32% for the year.