New York—Coca-Cola remains atop Interbrand’s 2011 Best Global Brands report for the 12th consecutive year, and tech brands, such as Apple (#8), jumped in the rankings, but luxurygoods brands rebounded by focusing on their core values and expanding into new venues via digital marketing.
“I think that it would be fair to say that once again luxury has performed extremely well,” said Jez Frampton, global ceo of Interbrand, which produces the annual report.
“Post-credit crunch three years ago, everyone speculated that luxury brands would suffer, but they have fared well because they have focused on quality and productivity and keeping their core values,” he said. “There has also been a swirling focus on authenticity, and that’s what luxury brands are about.”
In fact, all luxury brands appearing in Interbrand’s report were able to increase their respective brand values by striking a delicate balance in 2011: “They each leveraged their iconic status and simultaneously engaged new consumers in unique and relevant experiences,” Frampton said.
Luxurygoods companies such as Louis Vuitton (#18), Gucci (#39), Hermès (#66), Cartier (#70), Tiffany & Co. (#73), Armani (#93) and Burberry (#95) all saw their respective brand values increase this year–a tremendous business achievement considering the world’s tumultuous economic conditions. Frampton notes that each of these luxury brands put a renewed focus on quality, craftsmanship and an increased emphasis on digital brand strategy, which obviously helped.
Most notably, Burberry (#95) increased its brand value by 20%, making the British luxury retailer one of the top risers in this year’s report, Frampton said. While luxury brands performed well across the board, “Burberry bested them all by focusing on its core competencies in fashion, digital innovation and global expansion.”
‘Uncertainty the New Status Quo’
Overall, the list reflects volatile markets and uncertain business climate that have characterized the year so far and brands are in the midst of adapting to a new reality.
“Uncertainty is the new status quo, so today’s brands need to be quick and nimble,” added Frampton. “Consistency, relevance and commitment are imperative if a brand is to keep pace in our rapidly changing world.”
Interbrand produces its Best Global Brands report based on its methodology that analyzes three key aspects that contribute to a brand’s value: 1. the financial performance of the branded products or services, 2. the role of brand in the purchase decision process, 3. the strength of the brand to continue to secure earnings for a company,
This year’s Top 100 Best Global Brands have demonstrated that, despite an erratic economic landscape, they are constantly flexing, evolving and innovating–all in an effort to meet the new needs of today’s consumer.
“By refining digital strategies and strengthening social networks, today’s most valuable brands are creating more relevant customer engagements. These brands have seized opportunities to host richer, more tailored experiences, which, in turn, help drive longer-term loyalty and value among consumers and partners alike,” noted Frampton.
Interbrand’s full 2011 Best Global Brands report is available (along with expanded content and methodology) on both www.Interbrand.com and www.BestGlobalBrands.com.
Founded in 1974, Interbrand is one of the world’s largest branding consultancies. With nearly 40 offices in 25 countries, Interbrand assists clients in creating and managing brand value effectively across all touchpoints in all market dynamics. Interbrand is widely recognized for its Best Global Brands report, the “definitive” guide to the world’s most valuable brands. It is also known for having created a broader platform for the discussion on brands in the Webby-award winning website www.brandchannel.com. For more information on Interbrand, visit www.interbrand.com