Interbrand, publisher of the annual Best Global Brands report, has hailed Aussie loo roll brand Who Gives A Crap as a shining example of the value long-term brand building can have for a business.
“Desire is the foundation of the model on which the luxury category is built. It helps explains how and why luxury brands consistently outperform others in our ranking,” wrote Interbrand in its report.
“So, what happens when you apply the same brand rules to the otherwise mundane? Consider the Australian toilet paper brand Who Gives A Crap. In creating connection built around a strong brand, the business was able to transcend a functional need— and in doing so, built desire. People want to buy Crap toilet paper. It’s not that we spend all our time thinking about toilet paper; just enough to disrupt the model and steal market share.
“If you can do that with toilet paper, you can probably do it with anything…”
Nathan Birch, CEO of Interbrand Australia, said, “I’m delighted to see for the first time an Australian brand mentioned in the report – Who Gives a Crap – fast becoming a global brand icon.
“Brands are moving from ‘finding customers for your competencies’ to ‘building competencies around your customers’. It’s allowing brands to expand beyond traditional category boundaries and tap into new arenas of opportunity.
“Our analysis shows that for every point increase in the combined Role of Brand and Brand Strength, businesses can expect a 2.3x return on their stock price. This underscores the critical importance of the brand as a competitive moat and long-term growth driver. Australian brands need to ask themselves that investing in brand is not just about making gloriously creative TV ads and performance marketing; it’s about creating sustainable business value.”
However, it was not all good news in the report. Interbrand has been analysing and collecting the data since the turn of the millennium and its numbers reveal a “staggering missed opportunity”.
Interbrand said that while performance marketing tactics can drive short-term financial gains, a lack of investment in long-term brand strategy has left the Best Global Brands with at least $US3.5 trillion ($AU5.19 trillion) of unrealised value. For this last year, this equates to $US200 billion (nearly $AU300 billion) of lost revenue.
The cumulative value of the world’s most valuable brands has increased 3.4 times since Interbrand first published its ranking from $US988 billion to $US3.4 trillion ($AU1.47 billion to $AU5.04 trillion).
Gonzalo Brujó, Global CEO, Interbrand said: “If these brands had been treated and managed as strategic growth assets, then this table could be worth as much as $US6.9 trillion ($AU10.23 trillion). The growth we see hides a staggering missed opportunity.”
Apple remains the most valuable brand, but its brand value has dropped for the first time in over two decades — seeing a three per cent decline.
Commenting on Apple, Greg Silverman, global director of brand economics, Interbrand said: “While others rushed into AI, Apple took a more deliberate path to ensure its AI releases matched its values. This slower-moving act of leadership has put long-term trust ahead of short-term revenue gains. Following these brand moves, Apple’s stock has moved up 20 per cent YTD and we anticipate that Apple’s value will increase in the 2025 rankings.”
14 of the top 100 brands of 2024 are automotive, making up more than any other sector in the ranking. Three auto brands – Toyota (#6), Mercedes-Benz (#8) and BMW (#10) – appear in the top 10. However, not all auto brands have achieved such success. Tesla (#12) has one of this year’s largest declines in brand value (-9 per cent). Meanwhile, Kia (#86), Hyundai (#30) and Toyota (#6) achieved double-digit growth.
Ferrari (#62) captured this year’s spot as the top-rising brand, with +21 per cent brand value growth. Louis Vuitton jumped three places (#14 to #11) with Hermès (#22) and Prada (#83) two of the biggest luxury brand risers this year, seeing brand value growth of +15 per cent and +14 per cent respectively.
Nvidia (#36), Pandora (#91), Range Rover (#96), and Jordan (#99) are this year’s new entrants – and Jordan is the first personality brand to make it onto the table. Uber (#78) and LG (#97) re-enter.
