Samsung breaks into top 10 list on Interbrand’s annual global rankings

Samsung’s brand value has shot up 40 per cent over the past year, propelling the brand into the top 10 list for the first time, at No. 9 in Interbrand’s annual global brand rankings.

In total, 10 Asian brands made the list, with Samsung leading the charge, leapfrogging from No. 17 last year to its current position. South Korean automotive brand Kia debuted at No. 87 based on its performance as one of the world’s fastest growing automotive brands. “In the US, Kia’s market share has grown for 17 consecutive years,” said the report.

Another strong performer is Japanese car maker Nissan, which jumped 30 per cent in brand value to No. 73 from No. 90 last year.

“Samsung is showing the way in creating unique user experiences across its product range, from mobile devices such as its Galaxy smartphones, to home devices such as TVs and washing machines,” commented Stuart Green, Interbrand’s CEO Asia-Pacific.

“It understands that consumers in the global marketplace want new and meaningful innovations that genuinely enhance their lives.”

Furthermore,Samsung’s sponsorship of the London 2012 Olympics has raised its brand awareness exponentially, positioning it as a truly global player, added Green.

Samsung’s performance is likely supported by its strong standing in Asia, where it outranks even Apple to clinch the top spot on Campaign’s Asia-Pacific’s Asia’s Top 1000 Brands league table, thanks largely to its pervasive media presence.

Overall, Coca-Cola retained its lead in Interbrand’s global rankings, followed by Apple, which more than doubled its brand value (129 per cent), jumping to No. 2 from No. 8. “In the face of increasing competition from Google and Samsung, the company has demonstrated its growing commitment to protecting the Apple brand and its intellectual property,” commented Interbrand. “The overwhelming response to the launch of the iPhone 5, especially here in Asia, is further confirmation of the brand’s strength and appeal.”

Social-media giant, Facebook (69), enters the report after making headlines as the third largest IPO in US history, and Google (4) experienced a 26 per cent increase in brand value over the last year, exceeding the brand value of rival Microsoft (5) for the first time in the history of Interbrand’s report.

The report is based on the financial performance of the branded products or service, the role the brand plays in influencing consumer choice and the strength it has to command a premium price or secure earnings for the company.

Other new entrants to the global rankings include Pampers (34), Prada (84), Ralph Lauren (91) and Mastercard (94).

The ranking’s top rising brands, besides Apple, Samsung and Nissan, include Amazon, which shot up 46 per cent in brand value to No. 20 thanks to the success of the Kindle Touch and Kindle Fire. Oracle has also jumped in the rankings from No. 20 last year to No. 18, thanks to its strategic acquisitions that extends its brand beyond database solutions.

While technology brands continue to dominate the global list, automotive brands have improved by leaps and bounds thanks to the development of more effective and technologically savvy ways of reaching target markets, observed the report.

Audi’s (55) digital showroom, Audi City, is revolutionising the future of retailing by combining digital product presentations and personal contact with dealers. Similarly, Ford (45) is working hard to improve MyTouch, its in-car communications and entertainment system. Brands like BMW (12) and Hyundai (53) are investing in global brand campaigns and are becoming more digitally connected and tailored to narrower target groups.

“For the most part, the entire industry appears to be focused on engaging customers and prospects in a more relevant and personalised manner throughout the entire purchase cycle,” said the study.

While luxury brands have proven resilient, FMCG and consumer packaged goods brands are the strong performers thanks to successful growth in developing markets.  

Another growing trend observed this year, said Interbrand, was the increasing number of FMCG brands expanding into the healthcare space. Avon (71) and Kleenex (80) were the only two brands to lose brand value (-4 per cent and -7 per cent respectively).Financial services brand are continuing to feel the impact of the 2008 global economic downturn. Recent events, such as the notorious Libor scandal, have tarnished the reputation of leading brands like Credit Suisse — it declined 5 per cent in brand value and ranked No. 95, noted the report.

However, there are reasons to be optimistic about the future of this sector, it added. “Five of the 12 financial services brands in this year’s report increased in brand value, including American Express (24), Morgan Stanley (54), AXA (58), Allianz (62), and Visa (74), with MasterCard a new entrant to this year’s report.”

“As global competition increases and many competitive advantages, like technology, become more short-lived, a brand’s contribution to shareholder value will only increase,” said Jez Frampton, Interbrand’s global CEO.