Analysis of Brand values

The above representation shows the brand values of global companies, something which many would have seen……… possibly a cursory look, a view of the top 2-3 companies and perhaps a soft whistle at the brand values of Apple,Google ( Alphabet) & Microsoft. A deep-dive into this data throws up many interesting insights.

First, the insights on consumer behaviour. It is blatantly obvious that people have embraced Technology or rather Technology has enveloped people, so much so that it would appear that once cannot do without it. No wonder the mammoth brand valuations for Apple & Microsoft …………..and of course that remarkable search engine – Google. Google is stated separately because it is not only used by consumers for business or educational information but also for entertainment and networking. The huge brand value for Facebook & AT&T lends further credence to the above argument. Customer behaviour also veers towards online shopping as evidenced by the brand value for Amazon. In comparison, a brick-and-mortar retailer, Walmart comes in quite low in the order. The backbone for this huge technology shift shown in customer behaviour is provided by the likes of IBM,Cisco, Oracle, Dell, HP & SAP.

The second aspect of consumer behaviour is that eating habits have gone for a six.  Junk food dominates — McDonalds, Coca Cola, Pepsi, KFC …. all proven unhealthy intakes. Who cares? Drinking habits? Budweiser, Corona & Heiniken beers, thankfully no hard liquor brand at the top. A sad note is about the presence of smokers giving a high brand value to Marlboro.

Consumers splurge on luxuries  be it Rolex, Gucci, Zara, Nike and find L’Oreal, Colgate, Nestle & Gillette to be necessities. In the mad rush of consumerism, parenting too creeps in, yes, Pampers is a valuable brand. Entertainment is another major area for consumers as evidenced by Walt Disney, FOX, Netflix & ESPN with the electronic support coming largely from Samsung and a small portion from Sony & Huawei. The cars you drive are perceived to represent your personality and stature — a strong belief among consumers. Toyota, Mercedes, Audi, Honda, Hyundai, Volkswagen, BMW, Ford, Lexus, Chevrolet ……… a very strong showing by these brands. 

What funds these customer behaviour? Obviously there would be huge spends. The friendly bankers are always there Citi, HSBC, JP Morgan, Wells Fargo and of course for the ones with  insufficient bank balances, there are always Visa, Mastercard & American Express to fall back upon.

SPENDING seems to be the mantra. Companies who are not into consumer goods or consumer durables do not seem to get the recognition of their brands. Is it that people are ignorant of their existence? Some notable giants missing are ExxonMobil, Royal Dutch Shell, ICBC, Alibaba, Boeing, Bank of China and above all Berkshire Hathaway. This goes to show that brand-value does not have 100% linkage to the revenues, profitability or market-capitalisation of companies. Another interesting consumer behaviour which presents itself is that most consumers seem to be optimists or fatalists. They do not feel insurance is that important in today’s world. Allianz is the only insurance company whose brand value is up there.

Looking at brand values from the size of their country’s economies throws up another startling fact. China is the world’s second largest economy today. Yet only one brand, Huawei, rubs shoulders with the top global brands. Does it mean the size & profitability of the Chinese companies are largely driven by domestic consumption alone? Could be or alternately, China may be into supply of non-branded materials worldwide like steel, commodities, infrastructure material, etc.

The day is not far off when we will see an Indian brand among the top ones. I believe we have the capability to produce quality products and also promote them well on the global stage.