Brand Growth in Period of Stagnation Says Interbrand’s 2023 Best Global Brands Ranking

Interbrand cites a lack of growth mindset, conservative brand leadership and uncertain forecasting behind the slowdown.

Brand Growth in Period of Stagnation Says Interbrand’s 2023 Best Global Brands Ranking

Interbrand cites a lack of growth mindset, conservative brand leadership and uncertain forecasting behind the slowdown.

According to Interbrand’s Best Global Brands 2023 ranking, many of the world’s top 100 brands are in a state of stagnation, with the rate of growth in overall brand value of the table slowing sharply after last year’s significant increase – rising 5.7% this year compared to last year’s 16% increase. Over all for 2023 the total brand value is $3.3 trillion compared with $3.1 trillion in 2022.

Interbrand cites lack of growth mindset, weaker brand leadership, and poor forecasting were behind the slowdown. This follows a longer-term trend in which brands operating exclusively in one sector, taking an incremental approach, have experienced slower brand value growth.

“After a few years of strong brand growth, we have entered a period of stagnation, with this year’s table showing moderate growth in overall brand value,” Gonzalo Brujó, Global CEO of Interbrand.


 

“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.

Best Global Brands 2023

  1. Apple
  2. Microsoft
  3. Amazon
  4. Google
  5. Samsung
  6. Toyota
  7. Mercedes
  8. Coca-Cola
  9. Nike
  10. BMW

Interbrand said that more than two decades of analysis shows companies that address a more diverse set of customer needs, often across sectors, continue to dominate the top of the table – making up almost 50% of the total value.

Based on the data, these companies operating across several different verticals are more stable, achieve higher top line growth, are more profitable, and benefit from a greater growth of brand value. For these companies, a focus on brand rather than product plays a greater role in driving choice (+12% vs average), meaning they are able to address more customer needs, within and across categories.

“A brand like Apple, can no longer be ascribed to a sector. It competes across different Arenas, helping its customers Connect (the iPhone), but also Thrive (the latest Apple watch was positioned as a health device), Fund (its new savings account drew nearly $1 billion in deposits in the first four days), and much more,” said Manfredi Ricca, Global Chief Strategy Officer, Interbrand.


 

“Apple’s move across Arenas has enabled it to hold the BGB top spot for the 11th year, having overtaken Coca-Cola in 2013.”

Interbrand’s Best Global Brands 2023

Kathleen Hall, Chief Brand Officer, Microsoft, said: “We are honored to be recognized for continued strong growth in the Best Global Brands ranking this year. The combination of brand perception and financial performance is a great indicator of brand health and relevance and one we value tremendously. With our acquisition of Activision Blizzard, our prominent leadership position in AI, and our continued commitment to make a positive impact on society, we aspire to be a brand people can trust and build a responsible future with.”

Other key findings

Interbrand prepared the following summary:

Top riser

Airbnb is this year’s top rising brand with its value increasing +21.8%. It also jumped 8 places in the table (from #54 to #46) despite only entering the ranking last year. The brand’s significant increase in value is in part due to its strong investment in brand and solid financial outlook – revenue was up 40% in 2022 vs 2021 and is expected to rise an additional 13% in 2023 vs 2022.

Automotive and luxury witness strongest growth

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.

Tesla held its position in the table this year (#12),but its rate of growth was the slowest among the automotive brands with its brand value increasing 4.0% compared to BMW and Mercedes which grew 10.4% and 9.5% respectively.

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.

Hermès (#23) and Dior (#76) are two of the biggest luxury brand risers with 10.2% and 8.4% growth in brand value respectively this year.


For the complete Top 100 ranking and report visit www.bestglobalbrands.com.

The Staff

The Staff

Gettin' it done, when the done needs gettin'.

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