BEST GLOBAL BRANDS 2015 - BRANDS AT THE SPEED OF LIFE - Interbrand
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Better choices, richer experiences, more meaningful narratives, new form factors, and individualized attention. Today’s Best Global Brands are meeting rising expectations— and moving at the speed of people’s lives. 2 bestglobalbrands.com #BGB2015 3
Brands at the Speed of Life It’s why we hold brands to such high expectations—for better choices, richer That means the most successful brands—the ones with the most By Jez Frampton, Global CEO experiences, meaningful narratives, presence in a person’s life—are one-on-one attention, new form factors. designed to live in moments, even as As data and technology have helped they scale, try new things, and push optimize every experience, as GAFA boundaries. They often stand out by The Age of You began with an age- brands (Google, Apple, Facebook and Amazon) have changed the definition blending in, because people measure the entire experience by how much old truth: people want to be in control of service and connectivity, as people it adds to their lives and how little it have gained access to greater and more disrupts it. They empathize with an of their lives and, specifically, to nuanced choices, our expectations have individual’s priorities, figuring out how been fundamentally retrained. Brands to meet people exactly where they are, personally design the life they want to are now expected to move at the speed and when they want it, and tailor to how of people’s demands—at the speed of people move through their worlds. live. And people are using brands to their lives. do it, because brands are the vehicles Brands in Micro Moments Designing Mecosystems And that’s how we define mecosystems: through which things happen. But to move at the speed of people’s lives, brands have to understand that a select set of brands that create customized experiences around a they are experienced in micro moments. single individual, where every brand No matter how unified a brand’s in consideration slots in seamlessly, ecosystem, no matter how holistic its and where the most valuable micro experience, people’s connections with moments are curated, connected, and brands are fragmented—they move choreographed. As people shape their from one to the next, interacting with mecosystems—as they explore and, just thousands upon thousands a day. as importantly, edit—they are constantly But those micro moments are critical, being redefined, meaning that brands because in each, people judge a brand need to earn the right to stay in this set as a whole—every micro moment is every minute of every day. evaluated against significant macro expectations. 4 bestglobalbrands.com #BGB2015 5
So how does a brand earn a lasting As businesses adapt to this new age, role in this all-important mecosystem? as mecosystems give people greater By anticipating and evolving along with opportunity to design their lives, people’s personal expectations. Droves we start to see an interesting white of digital data, refined analytics, and space emerge. People can use their real-time, multi-platform interactions mecosystem to reimagine their time, help brands discover what people how they spend it, and how that makes want—even before they do—and cater room for the pursuit of their passions. to them quickly, reorganizing around What brands can help people imagine— these insights, because, in the Age of and make real—with this time is what You, people are the bottom line. will ultimately shape and define this new age. And this is what has the potential to Business Moving at the Speed of Life make the Age of You the most creatively For brands to truly move at the speed satisfying of all our times. of life, it means completely rethinking what speed means within an enterprise. Jez Frampton It’s not about forward movement, Global Chief Executive Officer but holistic evolution. It means jez.frampton@interbrand.com understanding that data is not just about insight, but a marketable commodity that will change the definition of trading. It’s running highly focused and integrated businesses that explore and attract unexpected partnerships, seamlessly crossing existing and emerging platforms. It’s elevating design as the most valuable enterprise tool to build truly connected experiences. And it’s engaging with a new breed of customers and consumers that are more than just co-creators, but editors and producers. 6 bestglobalbrands.com #BGB2015 7
100 Best Global Brands 01 02 03 04 05 26 27 28 29 30 +43% +12% -4% +11% -10% +8% +4% +8% +2% +16% 170,276 $m 120,314 $m 78,423 $m 67,670 $m 65,095 $m 18,768 $m 16,541 $m 15,267 $m 14,723 $m 14,031 $m 06 07 08 09 10 31 32 33 34 35 +16% 0% -7% -6% +29% +7% -3% +10% -6% -9% 49,048 $m 45,297 $m 42,267 $m 39,809 $m 37,948 $m 13,943 $m 13,940 $m 13,749 $m 12,637 $m 12,545 $m 11 12 13 14 15 36 37 38 39 40 +9% +7% +13% +4% -3% +7% -11% +6% +8% -4% 37,212 $m 36,711 $m 36,514 $m 35,415 $m 29,854 $m 12,257 $m 11,656 $m 11,578 $m 11,293 $m 11,278 $m 16 17 18 19 20 41 42 43 44 45 +5% +16% -3% +6% -1% +22% +9% +6% +5% +12% 27,283 $m 23,070 $m 23,056 $m 22,975 $m 22,250 $m 10,944 $m 10,800 $m 10,798 $m 10,328 $m 9,784 $m 21 22 23 24 25 46 47 48 49 50 +5% -3% +54% +3% -3% +9% -8% +14% +19% -14% 22,222 $m 22,218 $m 22,029 $m 19,622 $m 18,922 $m 9,526 $m 9,400 $m 9,254 $m 9,082 $m 8,882 $m 8 bestglobalbrands.com #BGB2015 9
100 Best Global Brands (continued) 51 52 53 54 55 76 77 78 79 80 +5% +7% -1% +10% +3% +17% +7% -12% +14% +6% 8,632 $m 8,588 $m 8,553 $m 8,498 $m 8,464 $m 5,551 $m 5,533 $m 5,530 $m 5,460 $m 5,391 $m 56 57 58 59 60 81 82 83 84 85 +12% +6% -5% +17% +12% -5% New +2% +6% +2% 8,055 $m 7,924 $m 7,702 $m 7,243 $m 7,083 $m 5,365 $m 5,362 $m 5,208 $m 5,161 $m 5,133 $m 61 62 63 64 65 86 87 88 89 90 +15% -8% -12% +6% +2% +16% +14% +15% +14% -7% 6,870 $m 6,811 $m 6,583 $m 6,509 $m 6,436 $m 5,130 $m 5,109 $m 4,952 $m 4,822 $m 4,763 $m 66 67 68 69 70 91 92 93 94 95 +6% +16% +17% +4% +13% -7% -6% +2% -4% -7% 6,306 $m 6,266 $m 6,257 $m 6,222 $m 6,097 $m 4,629 $m 4,540 $m 4,456 $m 4,407 $m 4,330 $m 71 72 73 74 75 96 97 98 99 100 -9% -12% +5% +5% -7% +3% New New New New 6,033 $m 5,976 $m 5,873 $m 5,666 $m 5,639 $m 4,270 $m 4,251 $m 4,243 $m 4,131 $m 4,114 $m 10 bestglobalbrands.com #BGB2015 11
Hallmarks of the There are some clear, common hallmarks among this year’s Top 100 A central purpose is particularly crucial for diversified companies. Microsoft’s 2015 Best Global Brands that show what it takes to keep pace with today’s consumers and secure a CEO Satya Nadella set a bold ambition to “reinvent productivity to empower By Paola Norambuena, Chief Content Officer place among the Best Global Brands. every person and every organization on the planet to do more and achieve Clarity of Strategy and Focus more.” Microsoft brought together its on Structure Among this year’s Best Global Clarity is a sure source of strength. In Windows and devices organizations to align its engineering structure to Brands, it’s those moving at the speed order to be coherent, efficient, and meet consumer expectations, top-performing its strategy, along with its commercial cloud—a move that’s grown revenue by of life that are accelerating. A review brands lean on an ambitious vision that 88 percent, driven by Office 365, Azure, shapes both behaviors and structures. and Dynamics CRM Online. of this year’s report reveals some Focus has been a driving force for top From strategy to structure, successful key insights—especially among new riser Nissan, which has embarked on brands are streamlining and integrating ongoing integration efforts. Armed their operations for greater agility entrants and top risers. Brands across with a clear vision for the brand, and focus. all categories are not only adopting disseminated by its Global Marketing leaders, the company has united its Relentless Customer-Centricity innovative technologies, but also divisions and agency partners in order to deliver on its product promise, while As brands gain focus, that focus is ever more zeroed-in on the customer. For embracing holistic change in order designing business strategies to engage perennial Top Ten brands like Apple, contemporary consumers in global Facebook, and Amazon, customer- to become stronger, faster, and markets. centricity is built into their DNA. But many brands are continuing to evolve more agile. Clarity doesn’t come just from within: by developing design-led strategies that Today’s savvy brands benefit from place customers at the core. tapping into their consumers too. Top riser 3M—known for everything from Scotch tape to circuits—asked its employees, as well as 15,000 customers in 15 countries, to help define its new brand platform, “3M Science. Applied to Life.” It has driven clear growth strategies: It’s focused on increasing R&D spends, divesting lagging businesses, and developing storied content to create product-awareness among its global, under-35 targets. 14 bestglobalbrands.com #BGB2015 15
In its first year as an independent It’s these authentic interactions that messaging into geo-targeted banner entity, PayPal breaks into the Best today’s savvier consumers seek as they ads. Toyota also extends its influence Global Brands report with the continued cull through the crowd of brands vying from behind the wheel and into mission of “powering the people for their attention. For heritage brands drivers’ daily lives as it joins Panasonic economy.” Simplicity, security, and ease like Hermès, which soared 22 percent to develop its cloud-connected of use are priorities that have been in brand value this year, authenticity Smart Center. internalized because they are central manifests in an unshakable devotion concerns for the company’s users— to craftsmanship, quality, and enabling Technology isn’t just relegated to the particularly sellers. PayPal is investing in customers to “indulge in moments cloud. While many of the Top 100 brands seamless technologies like mobile and of pure lightness.” Hermès recently are tapping technologies to create contactless payments and acquiring appealed to a new digital generation by innovation, others are using technology user-friendly platforms like Braintree partnering with the bastion of customer- in innovative ways. Moët & Chandon and Venmo. For PayPal, it’s not just centricity, Apple, to unveil the Apple rises back onto the Best Global Brands about meeting consumer needs, but Watch Hermès. report, buoyed by efforts to keep its letting those needs power the image fresh. It reinforced its place in business strategy. Tech-Powered Personalization the nightlife scene with “Bright Night,” While technology paves the way for the first-ever luminous champagne This outside-in approach is being innovation, brands across all industries bottle, which demonstrates how even adopted by other breakthrough brands. are harnessing its power to create the most distinctive brands can adopt LEGO brand, which made its Best unprecedented, personal experiences. simple technologies to captivate and Global Brands debut this year, taps delight consumers. into a rising “maker” ethos, popularized Adobe has become a partner in by tinkerers of all types. “LEGO Ideas” personalization by developing leading- Clarity, customer-centricity, and invites LEGO brand enthusiasts to edge tools that empower brands to using technology to power personal create, document, and crowdshare their create experiences tailored to their own experiences—all hallmarks of the own projects, with the chance of seeing customers. Its Experience Manager brands that have made the most them on shelves. The platform is an Screens and Adobe Target platforms impressive strides this year. As each innovative tool for bringing customers harness cloud connectivity and location- demonstrates, there is no singular closer to the business—and gathering targeting technologies to cater directly template for building a great brand, but valuable insights. to individuals as they move through the it’s enlightening to see how these broad buying funnel. characteristics manifest as individual brands evolve at the speed of life. Technology is also proving a force for cross-industry collaboration. Rising Paola Norambuena brands in all categories are partnering Chief Content Officer with tech giants to connect with paola.norambuena@interbrand.com customers in groundbreaking ways. Auto brand Toyota harnesses Google’s powerful API to push city-specific 16 bestglobalbrands.com #BGB2015 17
Highlights: Top Risers User-centricity is Part of Their DNA Creating Holistic Brand Experiences This year’s fastest risers—Apple Brands climbing up the value chain (+43%), Facebook (+54%), Amazon are those creating experiences that (+29%), and Adobe (+17%)—are brands reinforce the brand in multiple contexts. that have evolved around their users. The technology brands that dominate A deep understanding of how people the Top Risers list are naturals at live, work, and interact is embedded this—they have the scope, scale, and in their products, services, and brand capability to embed themselves in users’ message. With user-centricity at the daily lives. But even heritage brands core, these brands have been able like Hermès—up a soaring 22 percent to grow their audiences quickly and from last year—are investing in out-of- iterate their offerings based on store experiences and emotion-driven evolving demands. campaigns that invite customers to engage with the brand. Expanding Around a Core Product or Service The Top Risers’ burgeoning brand value is tied to a specific type of growth—one that starts with a strong central offer and builds products or services around that. Adobe (+17%) has spawned software, cloud services, and a suite of apps that all relate back to its core creative platform. Premium coffee purveyor Starbucks (+16%) is expanding its brand and growing its global footprint, with new offerings and menu options that build upon its original café experience. For all Top Risers, a strong brand proposition has been grounds for accelerated growth. 18 bestglobalbrands.com #BGB2015 19
Technology: The Game- Top riser Facebook, for example, has succeeded in changing the way people The accessibility and reach of technology brands on the consumer Changing Sector around the world connect and stay in touch, while new entrant PayPal has side also fuel growth on the enterprise side, as the number of By Antoine Veliz, Chief Experience Officer and evolved the way people and businesses connected users contributes to the Forest Young, Senior Creative Director transact. The ability to influence actions burgeoning big data pool and the relies not only on an innovative offer, but ever-billowing cloud. Even long- on communicating the value or benefit standing technology brands like The 13 technology brands in this of that behavioral change to the market. Intel, founded in 1968, have kept well afloat in the face of waning PC sales year’s Best Global Brands report There are several factors at play, which across the industry by refocusing on imbue the top technology brands with data center innovations and cloud represent more than a third (33.5 significant sway over people’s behaviors. computing. percent) of the table’s USD $1.7 1. Expansive Addressable Markets 2. Geared for Rapid Growth The most formidable asset that top Technology brands don’t only benefit trillion total, making technology technology brands possess is the from broad markets, but an inherent this year’s leading sector by value. size of their addressable markets. It’s predicted that 70 percent of ability to evolve more rapidly than other, more entrenched brands. The Today’s top technology brands have the world’s population will own smartphones by the end of 2016, resources that the top technology brands have amassed, along with the gone beyond the introduction of a for example. So whether you’re a relative lack of industry regulation device maker, chip manufacturer, (compared to the healthcare or auto successful product or service—they or network facilitator, the market sectors, for example), allow them to potential is huge. reinvent their products or services have delivered on the true measure with greater ease. Improvements Many of the top technology brands to software can happen quickly, of innovation: the ability to change also benefit from a low barrier to requiring minimal input from their the behaviors of the many. entry, especially in comparison to sectors like automotive and luxury. customer bases—testing and iterating ideas is core to the ethos Anyone can get into a relationship of these brands. with Google, Apple, Facebook, or Amazon for free—or close to it— allowing these brands to grow their user bases with relative ease. 20 bestglobalbrands.com #BGB2015 21
Built-in agility gives technology Following the Tech Leaders Pointing Toward the Future The concept of “privacy exchange”— brands the advantage of being able Organizations in any category can follow Top technology brands have also trading personal information for to pivot into different product or the lead of Apple—number one for become the savviest of marketers by perceived value—may also have a service categories as they evolve the third year in a row—by developing harnessing the equity built into their watershed effect on the amount of data along with people’s needs and product strategies with a succinct brand brands to hint at what lies beyond their people expose, which will allow AI to expectations. This is illustrated proposition to center their business. current products and services. Many become more nuanced, while putting by successful startups like Uber, Adobe’s understanding of how people have seeded their next big bets publicly, pressure on more brands to develop which has evolved from a car hailing work, both across organizations and at preparing audiences for what may AI as part of their own ecosystems. app into a provider of multiple home, has lead to an expanded service come next or positioning themselves as services. Furthermore, these fast portfolio that goes up the value chain in visionaries. Locking the Top Spot moving technology brands are not the enterprise sector and gets closer to Four of the Top Risers in this year’s just catering to people’s needs but the user through a suite of mobile apps. As technology becomes more a mirror Best Global Brands report illustrate the raising the bar for what’s possible— Few have leveraged their core service of the self, developments will continue to acceleration of the technology sector: not just meeting but setting the platforms like Amazon, however. What evolve around automation. New entrant Facebook spiked 54 percent, Apple speed of life. was created as a shopping platform Lenovo, for example, has moved beyond jumped 43 percent, Amazon rose 29 now powers content and entertainment the PC world with a slew of new smart percent, and Adobe is up 17 percent. 3. Seizing More Than the Moment services, and the lessons learned in products—from watches to shoes— It is difficult to imagine brands outside Technology brands are ones building that platform gave way to a powered by the open-innovation cloud of the tech sector enjoying the same with which we interact in multiple successful cloud service business. platform that the brand itself is helping speed of growth and performance that contexts, many times per day. As to develop. our top brands are. Their combination the top technology brands move The success of these businesses and of reach, culture, and integration – beyond their core product or service the strength of their brands have driven Automation extends to our very along with their position as harbingers and into our homes and vehicles, growth beyond the technology realm. thinking with advancements in artificial of what’s to come – will keep the top they’re also partnering with larger Brands in all sectors of this year’s report intelligence (AI). The leading technology spot locked up for some time. platform brands and developing are embracing technology brands as brands are harnessing AI to develop multitiered relationships with users business partners, platforms, or both. deeper interface dependencies— Contributors: that span the ingredient, interface, Finance and retail brands, for example, Amazon with Alexa, Apple with Siri, and infrastructure levels. These are placing their bets on technology and Facebook with M. Emerging AI is Antoine Veliz relationships grant brands access brands’ mobile payment solutions (e.g., getting even smarter, more anticipatory, Chief Experience Officer to much more than our phones. Apple Pay, Android Pay, Samsung Pay), and anthropomorphic, with the ability to antoine.veliz@interbrand.com while automakers are enhancing their develop more intimate relationships Some of these brands work in-car experiences with connected with users. Forest Young as ingredient brands in select services like Apple’s CarPlay. Senior Creative Director contexts as well as master brands From human to superhuman—AI has the forest.young@interbrand.com commanding their own experiences. potential to not just enhance individuals’ The ability to do both demonstrates lives, but to advance the capabilities of the strength of the platforms and an enterprise, as we’ve seen with the propositions they have been able continued applications of IBM’s Watson. to build. Top brands demonstrate that their technology is no longer something that exists simply on our desktops and in our pockets—it’s the thread that connects almost every context of our lives. 22 bestglobalbrands.com #BGB2015 23
Highlights: Top 10 Leading by Design The majority of those in the Top 10 are design-led brands with an understanding that design is not just about aesthetics, but that it’s a crucial enterprise tool. Brands like Apple (#1), GE (#8), and Amazon (#10) all focus on experience design, which cuts through systems, structure, culture, and service models. Design drives clarity within the organization, so brands can deliver a coherent experience to the customer. Adapting to Changing Expectations As brands become more people-centric, the leaders are listeners that respond adroitly to changing wants and needs. Brand bastions like Coca-Cola (#3) and McDonald’s (#9) have addressed growing health consciousness by introducing all-new menu offerings. Toyota (#6) is navigating changes in the way people approach their cars by stepping up sustainability efforts, speaking to younger consumers, and connecting to the Internet of Things (IoT). This year’s top brands demonstrate an ability to shift along with expectations, without missing a beat. Streamlining for Sustained Growth From restructures to divestitures, brands are maximizing their value by becoming more streamlined and efficient. This year, Microsoft (#4) aligned its leadership structure to match its business strategy, and Google (#2) created Alphabet Inc. to more effectively manage its broad portfolio. In order to focus on its digital efforts, GE (#8) has divested several of its finance businesses. In a fragmented marketplace, the top brands derive strength from prioritizing what they do best. 24 bestglobalbrands.com #BGB2015 25
Automotive: Making Inroads These are significant stats for an industry that is often seen as sluggish In emerging markets, the ambition to own a car is growing. A large part of Into Mobility’s Future and which faces major challenges moving forward, due to evolving the world’s population has remained carless, but as the middle class rises, By Daniel Binns, Executive Director, Global Brand Engineer customer expectations and the brands such as Nissan, Ford, and changing role of driving. General Motors are expanding into new regions like India, China, and Brazil. In Over the past few years, automotive An analysis of the 15 automotive brands these newly developing areas of the in this year’s Top 100 offers key insights world, automotive companies’ existing companies have made major strides on why they’re holding strong—and business models will likely still be what they need to do to stay on top. relevant in 20 years, but in developed in terms of technology, innovation, countries, staying competitive will call for significant evolution. Automotive and sustainability. And with 15 brands Auto Brands are Fueled by Broad companies will need to continue to represented in this year’s Best Global Markets and Vast Economic Impact The auto industry is huge, with more invest in technological advancements to keep up with new and existing drivers Brands report, auto is the dominant than 60 million (and counting) cars who are preparing themselves for the sold this year, and is still cycling off next phase of mobility. sector by number. Together, auto levels that predate the financial crisis. For many buyers, cars are more than Differentiation and Relevance brands make up 13.7 percent (USD a mode of transportation: they are Will Drive Continued Success emotional investments, status symbols, for Auto Brands $234,439 million) of the table’s total or even a source of livelihood. As brands across the board become more focused on individuals’ needs, the value, second only to the technology Auto companies also serve an auto sector—with its especially broad sector in collective worth. increasingly large segment of the world’s population. Generating high market—faces two distinct challenges: differentiation and relevance. Auto returns and massive sales, they’ve brands used to be highly differentiated, become the backbone of both global but now buyers are more interested and local economies. Though they are in individual models and how those being consolidated on the holding- vehicles fit into their lives. With so company level, giving them truly global much information at consumers’ scope, there are still many major, distinct fingertips, brand awareness is not brands, pulling millions of dollars in enough—organizations need to not only sales each year. innovate products but to create a truly differentiated brand experience. Top Ten brand Toyota, for example, 26 bestglobalbrands.com #BGB2015 27
is tapping into smart technologies like The Future of the Auto Sector spent USD $3 billion to acquire Nokia’s Contributors: its Intelligent Transportation System Revolves Around Ownership Here, a service comparable to Google (ITS), which enables the real-time and Mobility Maps. The auto sector also faces Daniel Binns exchange of data between vehicles To do this, auto companies must shift the impending entry of nontraditional Executive Director, and infrastructures. And Korean brand their focus from selling products to car manufacturers—Apple’s Project Global Brand Engineer Hyundai is figuring out how to tailor delivering a service, as driving itself Titan and Google’s self-driving car daniel.binns@interbrand.com its brand message to diverse global begins to look different. As the current project both represent strategic audiences by creating localized social car-buying generation begins to retire, investments by technology giants in Andrew Martschenko media experiences that enhance how will the behaviors of upcoming autonomous driving’s future. While Senior Director, Strategy individuals’ interactions with the brand. generations of buyers change? Major increasingly feasible, the large-scale andrew.martschenko@interbrand.com shifts in this sector will revolve around adoption of autonomous driving rides As the average age of new car buyers two pillars: ownership and mobility. on major regulatory considerations and Calin Hertioga climbs to 51.7 (according to Auto News) customers’ behavioral shifts. Director, Brand Valuation and the number of driver’s license Car ownership might not be as relevant calin.hertioga@interbrand.com applications among millennials declines, in the future as conversations evolve In the meantime, however, auto brands there is a concern about decreasing around fractional (i.e., shared) ownership are also working toward the future of Sabine Ruchty relevance within the automotive sector. models and ride-sharing grows with smart mobility. Mercedes-Benz, for Strategy Director In the race to increase their presence increasing speed. Since its launch in example, has adopted moovel, which sabine.ruchty@interbrand.com in people’s lives, connectivity is key, 2010, for example, Uber’s staggering integrates car2go, mytaxi, Flinkster, train as carmakers integrate with customers’ statistics reveal that it now has more services, public transport, and bicycle devices, homes, and things. Relevance than eight million users in over 290 data all into one simple app that guides also means rolling with changing cities around the world and is expected users on the smartest path through preferences—automotive brands must to process USD $10.84 billion in any city. learn how to harness new technologies bookings in 2015. In its home city of to anticipate the needs of diverse drivers. San Francisco, Uber is now tripling the revenue of the local taxi market, In a letter to Business Life, economist at about USD $500 million per year. Ross Parker wrote, “I would not be surprised if today’s car becomes Major auto brands like Mercedes-Benz tomorrow’s horse: a recreational and Ford are also beginning to enter and pleasure, sporting discipline, and an experiment in the ride-sharing space. increasingly rare sight on the road.” This Nissan likewise announced plans to prescient view underlines the changing supply cars to college students through role of vehicles, as cars move away a campus car-sharing venture with from being functional necessities to Enterprise Rent-A-Car. becoming tech-enabled extensions of personality, shareable assets, or even While many auto companies are sources of entertainment. Powerful harnessing new vehicle technologies automotive brands will have to take a to stay ahead of the curve, a true test more holistic view of mobility to maintain of innovation is whether or not these their stronghold and balance their advancements can actually change strategies to meet desires in diversified driving behaviors. In an attempt to lead markets that are moving at much the driverless-car revolution, Mercedes- different speeds. Benz, Audi, and BMW collectively 28 bestglobalbrands.com #BGB2015 29
Highlights: New Entrants Leveraging What They’re Loved For Focusing on Staying Real All five of this year’s new entrants and Relevant are established brands with a well- Even brands with solid propositions understood product or service that face the challenge of communicating remains central. The LEGO brand that to emerging audiences. This makes a strong entrance at #82 by year’s new entrants are finding ways leveraging the continued popularity to engage contemporary users with of its beloved toy blocks and PayPal creative marketing initiatives, like MINI’s (#97) arrives on the scene as the brand (#98) “Go With Your Gut” campaign that’s essentially become the badge for or Moët & Chandon’s (#99) luminous secure online payments. The 172-year- champagne bottle, “Bright Night.” The old Moët & Chandon (#99) also makes LEGO Group (#82) even launched a a formidable entrance by turning crowdsourcing site aimed at building its modern consumers on to the true brand ambassadors. The new entrants timelessness of its product. on our list are prime examples of brands that have remained true to their core Representing Global Scale and Scope while keeping relevant—a fine line that Though US brands dominate this year’s all aspiring top brands will have to tread. Top 100, with 52 brands representing 66 percent of the table’s total value, the new entrants this year hail from all corners of the world (Denmark, America, the UK, France, and China). Lenovo (#100) is the second Chinese brand to enter the Best Global Brands report, following Huawei’s (#88) debut last year. These new entrants lend diversity to the report, while representing the success of today’s top brands in navigating expanding global markets. 30 bestglobalbrands.com #BGB2015 31
Legacy Brands: Keeping Long- To illustrate, half of the Top 10 brands on this year’s Best Global Brands report Legacy brands are back. In the Standing Brands Relevant are more than 50 years old—and three of those are well past the century vernacular of luxury, you might say they are the new black. When Apple in the Digital Age mark (Coca-Cola, IBM, GE). Aside from surpassed Coca-Cola three years ago By Rebecca Robins, Director of Marketing and PayPal, which debuted after its break to take the #1 spot in Interbrand’s Best from eBay this year, the report’s New Global Brands study, it triggered a Business Development, EMEA & LatAm Entrants are all well established—most cascade of commentary on the rise of notably Moët & Chandon, founded brands born of a new and different age. in 1743. However, delve deeper into the study The buzz around rising brands In a recent op-ed published by The and what’s fascinating is the ascent of brands that have spanned generations. and new entrants has focused on Guardian, I explore the ways in which New entrants this year feature 60s icon some of the world’s top brands are MINI, revving in at #98; the LEGO brand, the technology sector, where the harnessing their rich heritage to an exemplar of creativity born from the remain both prescient and timeless. constraint of a depression, with an leading brands are characterized awesome arrival at #82 and Moët & Chandon, at #99, one of the oldest by their relative youth and agility. brands in the LVMH portfolio which However, youth is by no means dates back to the 18th century. the universal new pretender, and Moët & Chandon also tops the five oldest brands in the list (accompanied agility is not the exclusive domain by Colgate, Citi, AXA and Hermès) which span a combined legacy of over 1000 of young brands. Long-standing years. AXA breaks into the top 50 Best Global Brands this year and Hermès, brands combine legacy and one of the top five risers in the report, increased its brand value by 22 percent. customer focus to create real The five youngest brands, by contrast, resonance and relevance. (Facebook, Google, PayPal, eBay, and Amazon) haven’t yet amassed a century between them. 32 bestglobalbrands.com #BGB2015 33
Interbrand’s 2015 Best Global Brands The resulting blurring of boundaries The success of legacy brands also report examines what it takes for brands increasingly calls into question whether points to a trend in consumers’ tastes: to succeed in a hyper-fragmented we will even be defining brands by sector As individuals’ ecosystems become world. As brand experiences that are in years to come. Consider Apple’s reach saturated, those seeking the brands both immediate and personalised are into the traditional domain of financial they can trust gravitate toward expected by consumers, business and services with Apple Pay. authenticity. Legacy brands with a brands need to move fast in order to strong identity, who consistently bring keep pace. The success of a brand Collaborations in various manifestations the experience of their brand alive for has little to do with a brand’s age, but will continue to rise, as brands look to consumers, are poised to stand out. In everything to do with its ability to stay complementary capabilities to exert the Age of You, heritage that strikes the relevant. The question is, what are these their influence and desirability. Just this right chords of resonance and relevance legacy brands doing to stay relevant? week, the newly combined Yoox Net-A- can be a powerful asset. Porter climbed on its first listing on the A common theme is that they have Milan stock exchange, and LVMH (owner Rebecca Robins user-centricity at their core. They are of Louis Vuitton and Moët & Chandon) Director, Marketing and Business using tech to connect with customers in has asserted a serious commitment to Development, EMEA & LatAm more meaningful ways. Ultimately they e-commerce. At the same time, Hugo rebecca.robins@interbrand.com are succeeding in providing ever more Boss is accelerating the cutting of its @robins_rebecca integrated experiences for consumers, e-commerce cloth and Condé Nast is and blurring the boundaries of traditional planning to enter the fray with the hotly Rebecca is Interbrand’s expert on luxury, sectors of business as they go. anticipated e-commerce venture Style.com. and co-author of the book Meta-luxury: Brands and the Culture of Excellence. Consider The LEGO brand. It’s a The level of sophistication needed for a truly great example of a brand whose brand to maintain its presence as one of Citation Rebecca Robins, “Keeping long-standing brands original vision from 1932 has stretched the world’s most highly valued is not to relevant in the digital age,” The Guardian, 9 beautifully into the 21st century. The be underestimated—but the principles of October 2015, http://www.theguardian.com/media- journey from toy brand to entertainment success are fundamental. A brand needs network/2015/oct/09/brands-relevant-digital-age brand has been driven by the LEGO to evolve constantly to stay relevant but brand embedding innovation at its core it also needs a centre of gravity, a clear and its fusing of the physical and digital. vision and a commitment to stay true to the core of its DNA. A brand still has to An even more fascinating movement find a place in our hearts and minds.* among the legacy brands is the movement across brands—the “brand *Re-printed from theguardian.com tangos” that boost their reputations through collaboration. Think the Apple Watch Hermès cross-over. Legacy brands are tapping into tech brands to increase awareness and connect with consumers. Tech brands are tapping into legacy brands for their heritage and exclusivity. 34 bestglobalbrands.com #BGB2015 35
Best Brand Profiles Global Brands 2015 36 bestglobalbrands.com #BGB2015 37
1. Apple Technology 170,276 $m +43% “If you don’t cannibalize yourself, someone Apple’s relentless focus on the user is else will,” Steve Jobs once notably embedded in its very core, while the remarked. In the past year, Apple has again brand’s design sensibility runs across held true to this belief, as it continues to every touchpoint. People have become outdo its existing products and launch all- central to much of its marketing, as Apple new ones. The Apple ecosystem expanded weaves its products into users’ personal exponentially throughout 2015, along with stories, exemplified by Apple Music’s its customer-centric focus, as reflected by “Instant Boyfriend Mixtape” commercial a 43 percent rise in brand value this year. spot that aired during the 67th Primetime Emmy Awards. In its recent iPhone spots, Apple’s ambition to be a part of all facets “Loved” and “Hardware & Software,” of people’s lives has left few industries Apple speaks directly about the merits untouched—it’s created a huge ecosystem of its product and its benefits to the user, that keeps players big and small vying claiming “If it’s not an iPhone, it’s not an for access. Apple continues to cultivate iPhone.” Apple Stores will be getting a partnerships—particularly in the auto radical overhaul under the direction of industry, for example, with its connected Chief Design Officer Sir Jonathan Ive. CarPlay system—while staying ahead of the pack. Its next (literal) big thing is Apple also strives to make people feel Project Titan: a fully connected electric more secure. Its seamless mobile shopping car, rumored for release in 2019. service, Apple Pay, features biometric thumbprint technology that offers several The company doesn’t rest on its laurels layers of security beyond a credit card. when it comes to new products and The brand is also prioritizing users’ innovation—its proved prolific with a list privacy as it innovates: Apple Proactive, of releases that include Apple Proactive, for example, gathers data from the phone Apple Pay, Home app, iOS9, OS X El itself, rather than the cloud. Capitan, Apple Watch, Live TV, 3D Touch, iPhone financing, and Apple Music. The What keeps Apple so far ahead of its new tvOS iteration of Apple TV stands rivals—and perhaps poised to become to change how people consume content, the world’s first trillion-dollar brand—is its and Apple is exploring the possibility of instinct to constantly renew and challenge creating original programming. Its personal convention. Apple understands what it assistant, Siri—which continues to rival takes to accelerate to the top—and keep Facebook’s M and Microsoft’s Cortana— its number one spot. is about to acquire a sixth sense: Apple Proactive will deliver super-personalized services, tailored to users’ daily lives. 38 bestglobalbrands.com #BGB2015 39
2. Google Technology 120,314 $m +12% Nearly two decades after hitting the Web, One month later, Google again made Google has certainly diversified from its headlines when it announced a new original role as an Internet search engine. operating structure, which enables In addition to products like Android, Google’s many businesses to prosper Gmail, and Maps, which have enhanced independently under strong, dedicated its core business, the company has taken leadership. Under Alphabet Inc., the moonshots to heart, investing in driverless newly created holding company, Google cars, high-speed Internet, and home is the biggest subsidiary, representing gadgets—to name just a few. the brand’s core offerings—search, Web advertising, Gmail, Android, Maps, While these efforts have garnered high YouTube, and Chrome. Other businesses media attention, Google’s broad portfolio owned by Alphabet include the company’s has historically made it difficult for analysts more ambitious projects, such as Google to figure out how the core business is X, Calico, Nest Labs, Google Ventures, really doing, leading investors to express and Google Fiber. Google cofounder Larry concerns. Over the past year, it’s become Page will be in charge of Alphabet, while clear that the company is paying attention. Sundar Pichai, who was Page’s number During July’s earnings news call, Wall two, will take over the “new Google.” Street veteran Ruth Porat made her public debut as the company’s new CFO, This clarity around Google’s businesses is fresh off a successful stint as CFO at expected to bolster the brand’s reputation Morgan Stanley. The day after the call, as much as it’s expected to boost financial Google shares saw an approximate USD performance. A commitment to innovation $60 billion gain in market capitalization, has made Google more than the accepted marking the biggest one-day rise in market verb for online search, but a name that value for any company ever, and prompting evokes technology’s potential to achieve the New York Times to declare that what once seemed impossible. Larry Google, which has long fostered an image Page and Sergey Brin don’t just want as the cool kid in the room, finally had to make cars and homes that can run “adult supervision.” themselves, they want to help humans live without disease and cheat death. That’s a lot for one brand to take on. If they can achieve even part of that dream, they’ll cement Google’s place in history and launch a whole new roster of offerings that become integral to people’s lives. 40 bestglobalbrands.com #BGB2015 41
3. Coca-Cola Beverages 78,423 $m -4% When the celebrated TV series Mad Men Coca-Cola also spent almost USD $120 wrapped up earlier this year, viewers were million over the past five years to fund left with an iconic moment of marketing health and wellness programs—as well genius: Coca-Cola’s “Hilltop” ad. The 1971 as on research that drew criticism for commercial, which features a multicultural downplaying the role of sugary drinks in mix of youths singing “I’d like to buy the causing obesity. Coca-Cola’s commitment world a Coke,” speaks to a simpler time to corporate citizenship and sustainability for America—and for the brand. has earned praise, especially for its leadership in water conservation. Coca- Now, the world’s biggest beverage Cola and its bottlers at Coca-Cola brand is trying to recapture that magic Enterprises say they will reach their 2020 for millennials through its “Share a Coke” goal of replenishing 100 percent of the campaign, a global marketing initiative water they use by the end of this year— that began in Australia in 2011. The five years early. The initiative helped Coca- personalized bottles were so successful Cola Enterprises earn its first spot in the in the U.S. in 2014 that the campaign was Dow Jones Sustainability Index this year. expanded this year. In September 2015, Coca-Cola teamed up with Twitter to Despite its slight decline in brand value create a custom emoji—two Coke in this year’s report, Coca-Cola stands bottles clinking—that appeared in tweets firm at number three—a true marketing bearing the hashtag #ShareaCoke. The juggernaut and a favored global brand. result: a record 170,500 mentions over a 24-hour period. Few companies can harness the emotional horsepower that Coca-Cola can. The challenge, instead, for the 129-year- old beverage giant is that sales of cola and its carbonated cousins have been declining over the past decade amid health concerns. As a result, the company has broadened its array of lower-calorie and lower-sugar sodas, introduced smaller container sizes, and added healthier beverages to its brand portfolio, ranging from iced tea to coconut water. 42 bestglobalbrands.com #BGB2015 43
4. Microsoft Technology 67,670 $m +11% Few leaders appreciate the difference and partnered with retailers like Best Buy between size and influence like Microsoft to help users transition to the new OS. CEO, Satya Nadella. Since taking over Microsoft speaks to the future of humanity the top job in February 2014, Nadella has via a brand campaign that features babies brought a new direction and mindset—and and prompts people to imagine what the an increase of 11 percent, to USD $67.7 future might be for them, given that they billion, in this year’s Best Global Brands will “grow up with Windows 10.” ranking. Since Microsoft launched its new, aligned This new Microsoft has partnered identity, it has continued to drive greater with the likes Apple and Salesforce to cohesion across the many Microsoft leverage each other’s strengths, putting experiences—and restructuring has its own executives on stage at their big been a big part of this. Microsoft brought events. The new Windows 10 platform together its Windows and devices lets developers make apps that work organizations in an attempt to align its across different devices and migrate engineering structure to its strategy as what they’ve built for Android or Apple it began its 2016 fiscal year, resulting in devices into Windows with relative ease. some leadership shifts. On the commercial To make its ecosystem more desirable, side, it’s bringing together its commercial Microsoft is generating real excitement businesses with a focus on the cloud—a with developments like its HoloLens 3-D move that’s grown revenue by 88 percent, headset, which brings holograms to life driven by Office 365, Azure, and Dynamics through Windows, and has teamed up with CRM Online. Facebook-owned Oculus to let fans play Minecraft on a virtual reality headset. Nadella’s goal: to “Empower every person and every organization on the planet to For its Windows 10 launch, Microsoft achieve more.” adopted the theme of “Do great things.” Reinventing the experience shows its understanding of today’s digital lifestyle— using technology to help the people alongside it achieve everything from the simple to the progressive. It celebrated the five million fans that helped test the OS by hosting events in cities around the world, 44 bestglobalbrands.com #BGB2015 45
5. IBM Business Services 65,095 $m -10% IBM has remained an iconic leader at the IBM sees cognitive computing as the intersection of business and technology engine propelling the organization back to for more than a century by continuously the forefront of technology and business reinventing itself. In doing so, it has innovation. Watson is, some believe, the been guided by clarity about its role as most humanlike computer ever built, an enterprise innovation company. This and its capacity to make sense of the clarity–embedded in its business strategy, vast stores of “dark” data—80 percent culture, and brand message–has kept IBM of what we are now generating—could on the Top Ten list of Interbrand’s Best revolutionize entire industries. The first— Global Brands every year. and arguably most important—industry that Watson is tackling is healthcare. IBM As the world’s leading business-to- recently launched the Watson Health business brand, IBM has remained in business unit, and has systematically made the Top Ten, but its position has fallen acquisitions, hired top talent, and formed a couple of notches, reflecting the key partnerships to build this division. company’s struggles during its latest IBM and CVS announced a partnership major transition. Over the last few years, in mid-2015 that could change the way IBM has transitioned its focus to data/ patients, practitioners, and pharmacists analytics, cloud computing, mobile, social, give and receive care. The company and security. Although these strategic has also partnered with major oncology imperatives have grown rapidly, they do researchers—from Memorial Sloan not yet represent the lion’s share of the Kettering Cancer Center, to MD Anderson, company’s profit, leading to 14 straight to Cleveland Clinic, to the New York quarters of declining revenue. Genome Center—to tackle the lofty goal of curing cancer. As the company’s transformation continues, it has introduced a new, The technology behind Watson is branded point of view on the future of enhancing IBM’s capabilities across technology and business, which it calls the organization. Three cloud-based Cognitive Business, featuring IBM’s services announced in 2014—IBM Watson “Jeopardy!”-winning system, Watson. IBM Discovery Advisor, Watson Analytics, and has pioneered perspectives on the future Watson Explorer—have contributed to of technology, about once every decade. a 70 percent revenue increase in cloud With the rise of the Web in the mid-1990s, computing in the first half of fiscal year for example, IBM said that the Internet 2015. IBM’s robust data and analytics would be about business, not browsing, capabilities—along with partnerships with and its e-business strategy proved companies like Apple, Twitter, Facebook, prescient. In 2008, as devices proliferated and more—are helping the brand to and computing became extended to reassert its prowess. all manner of things, IBM presented its vision of a Smarter Planet, empowered by For IBM, Watson may be the key information and connectivity. Now, with the differentiator—the defining technology that emergence of artificial intelligence with sets the global brand apart from a myriad real-world applications, IBM introduces of competing innovators. what it calls the third age of information technology: the cognitive era. 46 bestglobalbrands.com #BGB2015 47
6. Toyota Automotive 49,048 $m +16% With the launch of its Global Vision, Toyota To engage drivers, Toyota is tapping marked its evolution from a trusted, into their universal sense of adventure. high quality automotive brand to one Its global “Feeling the Street” campaign synonymous with innovation. Toyota aims allowed people to vote on their favorite to lead the future of mobility through street musicians from around the world product development, sustainability, and a and follow six winners on a New Zealand focus on people. Its value is up 16 percent road trip. It is also harnessing digital to $49 billion in this year’s Best Global platforms and geo-targeting technologies Brands ranking—impressive, especially to position its cars within the context of in the wake of a June airbag recall that peoples’ lives. In the U.S., for example, affected nearly 1.4 million of its vehicles. Toyota targeted Los Angeles drivers with videos launched in the “Live Story” feature Toyota has long been at the forefront of on Snapchat, and has partnered with environmental consciousness in the auto Google to customize ads in 15,000 U.S. sector. In 1997, it released the Prius, its cities that inspire real-life, local adventures. first mass produced gas-electric hybrid car, and has since sold over eight million By embracing smart technologies, Toyota hybrid vehicles, including 31 models is also making strides to both connect across the brand’s range. In September and protect its customers. This year, it 2015, Toyota unveiled a sportier fourth- will introduce an Intelligent Transportation generation Prius with standout features System (ITS) safety package to drivers to meet the demands of contemporary, in Japan. ITS enables the real-time eco-conscious consumers: new automated exchange of data between vehicles and and intelligent safety packages, a more infrastructures, which sensors don’t comfortable and emotional design, and an pick up. Meanwhile, it’s partnering with increase in target fuel efficiency, from 32.6 Panasonic to become a forerunner in km/L to 40 km/L. cloud-based connectivity. The Toyota Smart Center will link people, cars, and Looking towards the future of sustainable homes, with features like GPS-enabled mobility, Toyota focuses on super-efficient, reminders to turn off your air conditioner. clean energy. Its zero-emissions Mirai This year, Toyota also joined the is the first hydrogen fuel cell electric autonomous driving race—with a focus on vehicle to top the 300-mile range. It’s technology that makes driving safer—by also attempting to bring fuel cell vehicles funding new research centers at Stanford (FCVs) to the broader market by granting University and the Massachusetts Institute royalty-free use of approximately 5,680 of Technology (MIT). of its globally held FCV-related patent licenses, including pending applications. As the largest automobile company in the world, Toyota’s pioneering initiatives could have a significant impact on the ways in which drivers experience their vehicles. 48 bestglobalbrands.com #BGB2015 49
7. Samsung Technology 45,297 $m 0% While the South Korean electronics giant previewing its innovative features. still dominates the global smartphone Ads aired during the 2015 Oscars market, Samsung has faced challenges put a human spin on the cutting edge in the mobile sector this year. The brand technologies behind Samsung’s Galaxy remains steady, supported by successes Note 5 and the SUHD TV—its highest- in categories like semiconductors, Smart definition set yet—highlighting how the TVs, and connected devices. Samsung products fuel creative processes and is moving forward with a focus on conversations. The ads align with a creating products that define whole company-wide commitment to proving that new categories, and taking advantage digital innovation can enrich peoples’ lives. of B2B opportunities. Its ongoing “Launching People” campaign, which shares the stories of people who With increased competition from Apple use Samsung products to turn their visions and lower-cost competitors in Asia, not a reality, won seven awards at this Samsung’s mobile division profits fell 37.6 year’s Cannes festival. percent in the second quarter, compared to the previous year. However, preliminary Samsung is also tapping into the software Q3 reports predict an uptick for the market through its Open Innovation Center, company, with overall revenues predicted with offices in South Korea, California, and to rise 7.5 percent year-over-year, ending New York. The centers are hubs where its two-year decline. Samsung is also employees can scout start-ups to invest enjoying the success of its semiconductor in, team with, or acquire—Samsung is unit, with second quarter profits at 3.4 the sole investor in start-ups that join its trillion won, compared to 1.86 trillion won accelerators. The brand is also angling last year. Samsung is now using its chips to become a leader in the expanding in its own smartphones and supplying big Internet of Things. At the 2015 CES, it businesses like Apple, which will reportedly pledged that 90 percent of all devices it tap Samsung to make chips for the next- creates, including televisions and mobile generation iPhone. devices, will be Internet-enabled by 2017. It’s proving a key player with launches Samsung strives to stay competitive in like the Gear S2, its seventh smartwatch, the mobile market with its Galaxy S6 and AddWash, an Internet-connected washing S6 Edge smartphones—touting features machine, SleepSense, a sleep tracker that rival the iPhone’s—and its phablets, that you slip under your mattress, and the the Galaxy Note 5 and S6 Plus. It’s also second-generation SmartThings home jumping on mobile payments with the automation hub and sensors. worldwide release of Samsung Pay, which has an advantage over Apple Pay, as the By creating products that empower new Galaxy phones work with old-school people and broadening its business focus, credit card readers, making the technology Samsung is looking towards a future that more universal. goes well beyond smartphones. But for Samsung, newness is the key to maintaining brand momentum for. Its global “Next is Now” campaign built anticipation around the launch of its Galaxy phones by 50 bestglobalbrands.com #BGB2015 51
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