The power of a brand

I’ve always been fascinated by the power of brands within different sectors for a long time, probably due to Naomi Klein’s controversial No Logo. I recently came across the BrandFinance Global 500 tables. This basically aims to position the most powerful brands in the world by their percieved value. Although it’s quite focused on the financial sectors, it does help to give an indicator of general trends within certain sectors.

Coming off the back of the deepest and longest recession since WWII, it’s interesting to see which brands have maintained their value and which sectors hold the most powerful brand identities. In the UK, the most highly valued brand is Vodafone, who have usurped HSBC. This lends us a clue as to a macro economic trend, which sees the value of brands within the financial sectors decreasing in line with motifs formed from the recession. Interestingly enough, the reverse can be seen to within the communications and technology sectors, with brands from these two sectors making up half of those within the top 25 positions. It’s hard to pinpoint on a micro level where to attribute this success, as various factors can be seen to have made a difference, from the continued dominance of the IPhone to increased exposure in the BRIC economies.

In it’s conclusion, the article also states that the top 500 brands are starting to geographically diversify from the power bases of the UK and US. Although the article mentions new entrants from the emerging markets from their respective finanical sectors, it’s interesting to note that the top brand valued from outside of the UK and US is Toyota. It will be interesting to see where they stand next year, with the automative industry constantly tackling ever changing regulation and Toyota themselves starting the year off with a serious safety crisis.

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