Retail brands have steamed ahead in Brand Finance Australia’s 100 2022 Ranking with TikTok named the world’s fastest-growing brand.
The total value of Australia’s top 100 brands has risen by 11 per cent to reach $161 billion, according to a new report published today.
Moreover, all major industries in Australia have risen in terms of total brand value.
The retail sector remains the most valuable in the ranking for the second consecutive year, with a cumulative brand value of $40.4 billion.
This accounts for 25 per cent of the nation’s total brand value.
Domestically, Woolworths has maintained its spot as the most valuable brand in Australia for the third year in a row.
This recent win for Woolworths follows a 9 per cent boost to its brand value which is $13.7 billion. Woolworths also has an impressive 33 per cent market share.
Brand Finance attributed Woolworths success to its strong reputation and loyal customers.
Brand Finance also praised Woolworths ability to adapt to the retail landscape and expand its online capabilities.
Mark Crowe, managing director, Brand Finance Australia, commented, “The Australian retail sector has moved from strength to strength during the pandemic.”
However, “The sector will need to continue to innovate and keep up with new trends to continue on this positive trajectory in a post-pandemic society.”
Australian Brand Strength Winners
Aside from calculating brand value, Brand Finance also determined the relative strength of brands.
Brand Finance determined relative brand strength through a scorecard of metrics that evaluated marketing investment, stakeholder equity and business performance.
Once again, retail brands outperformed other sectors in terms of brand strength.
Leaping 8 spots to become Australia’s strongest brand with a corresponding AAA brand strength rating was Bunnings.
On Bunnings rise, Crowe stated, “Bunnings’ efforts in responding to residential and trade demand along with aiding the vaccination rollout has not gone unnoticed by consumers.”
Consumers ranked the retailer highly in terms of its quality, innovation, value for money, loyalty and customer service.
Fellow retailers, Woolworths and Officeworks, enjoyed a similar brand strength growth, rounding off the nation’s top 3 strongest brands in 2nd and 3rd place, respectively.
Mixed Results For Banking Brands
With an overall brand value growth of 7 per cent, Australian banks appear to be on the slow road to recovery following an 11 per cent loss in 2021
However, traditional banking brands have become increasingly challenged by smaller emerging brands pushing into digitalisation.
Subsequently, the negative customer perceptions of quality and innovation for large banks have driven down brand strength across the big 4.
Commonwealth Bank has lost its mantle as Australia’s strongest brand and has experienced a 2 per cent decline in brand value.
Like Commonwealth Bank, ANZ, NAB and Westpac have also suffered brand strength losses due to lower customer perception scores.
As of January 2022, these banks are also embroiled in lawsuits pertaining to consumer credit insurance claims.
Legal action has driven down perceptions of their consideration, reputation and value for money.
International Results
TikTok has tripled in brand value over the past year and is now the 18th most vulnerable brand in the world.
With Covid-19 restrictions, TikTok has benefited from the surge of growth in digital entertainment, social media and streaming.
At the same time, strategic partnerships such as sponsorship of the EUFA Euro 2020 tournament, exposed TikTok to demographics outside its original Gen Z base.
Unsurprisingly Apple has also retained the title of the world’s most valuable brand.
Following a 35 per cent increase, Apple’s brand value stands at a record $US355.1 billion.
Aside from the tech giants core brand positioning, much of its recent success has come from the companies maintenance of brand equity.
Privacy and the environment are salient topics, and Apple bolstered its credentials on both fronts.
Offering greater transparency on the App Store’s privacy policy is one such example that’s reinforced the trust customers have in the brand.
