A lack of growth mindset, weaker brand leadership and poor forecasting have contributed to the slow growth of brands in 2023, according to Interbrand’s Best Global Brands Report.
The report revealed that the total brand value of the world’s top 100 brands grew just 5.7% this year, compared to a 16% value growth in 2022. This follows a longer-term trend in which brands operating exclusively in one sector taking an incremental approach have experienced slower brand value growth.
Despite only entering the table last year, the fastest riser in value was Airbnb, with a value growth of 21.8%, jumping eight places (from #54 to #46).
Gonzalo Brujó, Global CEO of Interbrand, said brands that can successfully enter into new consumer pools will ‘reap the rewards of strong brand growth.’
‘Businesses which have witnessed a rise in brand value, including Airbnb (#46), LEGO (#59) and Nike (#9) have all transcended their established category norms and play a more significant and meaningful role in society and consumer’s lives,’ he said.
Airbnb’s significant increase in value is partly due to its investment in its brand and solid financial outlook. The company saw revenue up 40% in 2022 vs 2021 and is expected to rise an additional 13% in 2023 vs 2022.
Automotive and luxury come out on top
Automotive brand value rose by 9% in 2023, with BMW (#10) entering the top ten for the first time (#10). Porsche (#47), Hyundai (#32) and Ferrari (#70) all achieved a double-digit rate of growth and accounted for three of the top five fastest-growing brands.
‘Automotive brand top risers have increased scores across Affinity, Trust, Presence and Participation — key drivers of brand value — ultimately increasing their connection with customers,’ says Greg Silverman, Global Director of Brand Economics at Interbrand.
Luxury is once again a top-performing sector, with its brand value rising by 6.5% this year. This is due to luxury brands’ resilience and ability to transcend categories to create luxury experiences such as restaurants, hotels and retail pop-ups.
Additionally, Apple remained the #1 brand for the 11th year in a row (+4%), Microsoft experienced the highest brand value rise within the top 10 companies (+14%), and Zara (#43) and Sephora (#97) were two retail stars of the table with brand value rising 10% and 15% respectively.
Featured image: Andrea Davis / Unsplash