BZ Global 2017 Report

Brand value increases 8%
to $3.6 trillion, led by tech

in year of disruptive change
NEW YORK - US
Value of all US brands

in Global Top 100
$2.6 Trillion
Photograph by Paul Reiffer

TOP 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
100 1 2 3 4 5 6 7 8 9 10 11
29
TOP 10 MOST VALUABLE GLOBAL BRANDS CATEGORY VALUE CHANGES
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Microsoft Accenture Oracle
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$16.9 billion billion billion billion billion billion billion billion billion billion u
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78
76 75 74 73 72 71 70 69 68 67 66 65 64 63 62 61 60 59 58 57 56 55 54 53 52 51 50 49
77
Contents The Categories
150 Overview
Consumer and Retail
154 Apparel
Disruption 160
168
Cars
Luxury
Welcome & Change 174

182
Personal Care
Retail
190 Thought Leadership
Retail
8 David Roth Business-to-Business Brands by Fiona Gordon
CEO Group Transformation Director
The Store WPP, EMEA & Asia
58 Overview Ogilvy & Mather
62 Value Growth 194 Thought Leadership
Collaboration
Tension of Change
by Stephen Wallace
European Brand Planning Lead
Resources
by Sara Gourlay
GTB
Global Practice Director, Technology
Hill+Knowlton Strategies
Emerging Brands
Regions & Food and Drink
198 Beer
290 BrandZ Brand
Valuation Methodology
68 Overview Countries 206 Fast Food
212 Soft Drinks
293 BrandZ Reports and Apps
Introduction The Global 74 Thought Leadership

Unicorns 220 Thought Leadership
Shopper Behavior
296 WPP Companies
Top 100
by Mark Chamberlain
106 Overview 298 WPP Company Contributors
Sector Managing Director by Jonathan Dodd
Kantar Millward Brown
114 Latin America Global Chief Strategy Officer 310 WPP Company Brand
Geometry Building Experts
14 Overview 78 Thought Leadership
116 China
Commoditization 224 Thought Leadership 312 BrandZ Global
17 BrandZ Strong 30 The BrandZ Global by Katerina Sudit 120 Thought Leadership E-commerce Top 100 Team
Brands Portfolio Top 100 ranking Managing Partner, Executive Director
China Survival Lesson by Hugh Fletcher
Mindshare Global Head of Consultancy & Innovation 314 BrandZ Valuation
by Aisling Ryan
18 Key Results BrandZ Analysis Salmon
82 Thought Leadership Chief Strategy Officer Global Clients Contact Details
34 Top 20 Risers Valenstein & Fatt
20 Top 10 Analysis Personalized Retail Financial
315 BrandZ Online
36 Newcomers by Ray Gaul 124 India 228 Banks Global
22 Cross-Category Trends Vice President Research & Analytics and Mobile
232 Banks Regional
38 Brand Contribution Kantar Retail 130 Thought Leadership
26 Takeaways 238 Insurance
40 Brand Importance Future of Brands Emerging Brands
by Hari Ramanathan 244 Thought Leadership
86 Overview Chief Strategy Officer, Asia
42 Difference Consumer Experience
Y&R
92 Thought Leadership by Tim Pritchard
44 Brand Power Managing Director, Customer Experience
DataAbove All Else 134 Russia Kantar TNS
by J. Walker Smith
46 Meaningful Difference 138 Thought Leadership
Executive Chairman
48 Thought Leadership Kantar Futures Russian Millennials The Consumer Voice
by Arina Khodyreva
Differentiation 96 Thought Leadership by Victoria Sakal
Director Technology+Digital
by Martin Guerrieria Senior Consultant
Global BrandZ Research Director
Evolution of Brands PBN Hill+Knowlton Strategies
Kantar Vermeer
by Wayne Pan
Senior Consultant 142 Southeast Asia Commodities
52 Thought Leadership Kantar Futures
254 Oil & Gas
The Purposeful Age 100 Thought Leadership
by Candace Kuss 262 Thought Leadership
Director of Social Media
Purpose
by Jane Ostler City-Centric Marketing
Hill+Knowlton Strategies by Claire Holden
Managing Director Media & Digital
Kantar Millward Brown Managing Director
Technology
266 Technology Consumer
271 Technology Business
276 Telecom Providers
Building Brand Value
by Doreen Wang
BrandZ Global Head
WELCOME
Each time I write a welcome column for our annual
Welcome
DAVID ROTH
BrandZ Global Top 100 Most Valuable Brands report,
the years highlights typically fall into logical order. Not
this time. In such an unusual year, where do you begin?
First, we Brits surprised the world Since these are topsy-turvy times, Ill
with Brexit. (Dont blame meI did begin with the bottom line:
not vote for it.) Then the Americans
Global Top 100

surprised themselves with Trump. The value of the Global Top 100
Meanwhile, Prime Minister Narendra increased 8 percent year-on-year.
Modi surprised Indians with Thats a big deal any year. But
demonetization, and soon after won especially in the year we had; and
a landslide election in Uttar Pradesh,
home to about 200 million people, Over the past 12 yearssince just
triple the population of the UK. before the global recession, and
value rises 8%,

during the economic climb since
David Roth
The political drama that roiled major thenthe value of the BrandZ
CEO, The Store WPP, EMEA and Asia
Latin American economies was less Global Top 100 increased 152
David.Roth@wpp.com
shocking, as was Chinas ongoing percent in value; also
Twitter: davidrothlondon
implementation of its One Belt,
Blog: www.davidroth.com
One Road vision for expanding The value of the BrandZ Strong
despite the years

economic presence abroad to balance Brands Portfolio increased
slower growth at home. But all these 124.9 percent over those 12
developments raised the temperature years, outperforming both the
for brand builders. S&P 500 and the MSCI World
Index, demonstrating that
valuable brands deliver superior
shareholders returns.
turbulence
All these results illustrate that
although market volatility is inevitable,
the impact on brands is not.
Thats why this report is so

important. We tell you what
happened, why it happened,
and how the lessons of this
disruptive year can help build
Ranking increases and sustain brand value.
152% over 12 years Think of this report as the definitive

brand yearbook. It examines both
consumer-facing and business-facing
brands across 14 product categories,
with the analysis of five geographic
regions, and additional details about
brands and consumer attitudes in
China, India, Russia, Latin America,
and Southeast Asia.
BrandZ Top 100 Most Valuable Global Brands 2017 8 9

WELCOME
HAVANA - CUBA
The report focuses primarily on the valuation methodologies. (Please the BrandZ Top 100 Most Valuable
worlds most valuable brands, but not see Methodology at the end of this Chinese Brands; the BrandZ Top
exclusively on those brands. Emerging report.) 50 Most Valuable Indian Brands; the
brands are disrupting categories, BrandZ Top 50 Most Valuable Latin
challenging established brands, And were just getting started. Since American Brands; the BrandZ
and enticing consumers in both the were producing a global report, this Top 50 Most Valuable Indonesian
worlds mature and fast-growing is where it is advantageous to be Brands; and the BrandZ Top 20 Most
markets. The report studies this WPP, with offices in 112 countries, Valuable Saudi Arabian Brands. In
phenomenon. and over 205,000 colleagues. We addition, I recommend these recently
convene WPP operating company published titles: Spotlight on Cuba,
Building strong brands brand experts for two weeks of focus
groups in London and New York,
Spotlight on Myanmar, Spotlight on
Mongolia, and Leaders in the Hot Seat:
You will not find this combination of with extensive video conferencing Behind the brands that shape lives and
market information, financial analysis, to connect with our brand experts build value.
and insight anywhere else. Not to worldwide.
bore you with process, but I want to I fervently believe we have the data,
share the lengths we go to create and They come from all communications knowledge, experience, insight,
assemble this information, and make disciplines: market research, media determination, and single-minded
it useful. management, futures, advertising, purpose to help you build valuable
digital, promotion, public relations, brands. To learn more about how to
We begin with data, our secret sauce, public affairs, shopper marketing, harness our passion to work for your
WPPs proprietary BrandZ database, content creation, and activation. Their brand, please contact any of the WPP
which includes information from analysis of the WPP proprietary data, companies that contributed expertise
over 3 million consumers about their in the context of diverse categories to this report. Turn to the resource
attitudes about (and relationships and country markets, leads to original section at the end of this report for
with) 120,000 brands in 414 insights that are only possible with summaries of each company and the
categories across 51 country markets. this level of cross-cultural and cross- contact details of key executives. Or
Using the BrandZ brand valuation discipline exchange. feel free to contact me directly.
methodology of Kantar Millward
Brown, this all produces 4.6 billion We call this leveraging of WPP brain Sincerely,
data points. power horizontality. I share these
details about our intense research
This data reveals the power of and analysis to pull back the curtain a
brand in the mind of the consumer bit on our passion for brands at WPP.
to create a disposition to buy
and, most importantly, validates Our passion knows no bounds. We David Roth
a positive correlation with sales have assembled an extensive library WPP
performance. We combine this data of brand reports and I invite you to David.Roth@wpp.com
with financial research to make access them with our compliments Twitter: davidrothlondon
BrandZ unique among brand at BrandZ.com. Here are just some Blog: www.davidroth.com
of the reports you will find there:

Introduction
1 Introduction Introduction/OVERVIEW
Overview
Brands act
decisively,
Twenty years after
its IPO, Amazon
grew 41 percent in
The fastest-rising value, and rose three
brand, Adidas,
despite year
ranks to enter the
increased 58 percent Global Top 5 at No.
in value, because 4, after Google, Apple, and Microsoft,
its retro sneakers and ahead of Facebook. Tencent, the
connected perfectly
of geopolitical
Chinese internet portal, also rose three
with the fashion moment and the ranks to enter the Top 10 at No. 8.
brand made operational and marketing
changes to strengthen its US business.
disruption The fastest-rising

category, retail,
rose 14 percent. But
beyond the numbers,
The North American
Top 10 brands led the
Top 10 of all regions
in value growth, with
Value of BrandZ Global Top 100 increases 8% the category faced a 12 percent increase,
new turbulence, as driven by technology.
What an unusual year. Some consumers, especially young Despite the disruption, the BrandZ both Amazon and Alibaba prepared to The Top 10 brands in most regions
Geopolitics, which typically people, expected brands to take a Top 100 brands performed well,
hums in the background of
stand. Although most brands avoided increasing 8 percent in brand value open extensive networks of physical improved, except for the UK, where
becoming directly embroiled in
daily life, became its loud controversy, the scrutiny prompted
to $3.6 trillion, following a 3 percent
rise a year ago. Seven categories
stores, and Walmart acquired an global bank performance slowed value
soundtrack. The surprises of discussion of Brand Purpose. Leading e-commerce startup.
Brexit and the US election technology brandsincluding Apple,
rose moderately in value, and five
categories declined or registered no
growth. Partly because of technology,
demonstrated the power of Google, Facebook, and Microsoft change in value. Two categories the US continued to dominate the
people to shape the destinies publicly opposed the Trump retail (driven by Amazon and Alibaba)
administrations immigration policy, and technologyincreased by Global Top 100, with 54 brands
of nationsand potentially saying it contradicted their values and
brands, which could not avoid their need for a diverse workforce.
double-digits. contributing 71 percent of the value.
the reverberations. Still, decisive Other brands, such as Coca-Cola,
brand-building activities took Starbucks, Nike, and Ford also spoke
place across categories. up for inclusion.

1 Introduction Introduction/OVERVIEW
Valuable brands
Year of action negotiated to acquire Yahoo!, having
purchased AOL two years ago, and
In perhaps a counterpoint to the
years unrest, the apparel brands
AT&T agreed to buy media giant Time stressed comfortable fit and retro
Besides being an unusual year, it was
Warner, following its earlier acquisition style. Fast food went back to basics.
also a year of decisive action. Across
deliver superior
of DirecTV. McDonalds and Burger King made
several categoriesincluding retail,
better burgers. KFC upgraded its
telecom providers and beer, brands
In the beer category, the much kitchens and returned to its original
launched transformative initiatives to
anticipated corporate marriage recipe for fried chicken. Luxury
cause or ameliorate disruption and to
between AB InBev and SAB Miller brands captured the spirit of the times
shareholder returns
accelerate growth.
created the worlds fifth-largest differently, as logos returned and
consumer products company (after designs became bolder. The major
In retail, massively disrupted because
Nestl, P&G, PepsiCo and Unilever, fashion shows embraced themes of
of e-commerce, brands for years
and ahead of Coca-Cola). It took diversity and inclusiveness.
have attempted to coordinate online
place as major brands contended
and offline (O2O) experiences.
with changing drinking habits and In the cars, and oil and gas categories,
Progress has been mostly
preferences in key markets, with brands embraced reality. Having BrandZ Portfolio outperforms the S&P 500 Index and the MSCI World Index
incrementaluntil now. Amazon
young people drinking less and focused much attention on preparing
planned to open a chain of physical
preferring craft beers with distinctive for a future with car sharing and other
grocery stores. And Amazon, being BRANDZ STRONG BRANDS PORTFOLIO VS. S&P 500 VS. MSCI WORLD INDEX
tastes. mobility solutions, the car brands
Amazon, expected to differentiate its BrandZ
balanced their future focus with The value of the BrandZ Strong Brands Portfolio increased 124.9 percent between April 2006
124.9%
stores with sophisticated technology.
Its app automatically keeps track Reaction to turmoil the need to sustain their businesses
today, and the category sold a record
and April 2017, outperforming both the S&P 500 and the MSCI World Index.
of purchases and handles payment,
All this activity took place in the number of cars worldwide. Similarly,
eliminating retails most dreaded
context of the years geopolitics. The oil and gas brands understood the S&P500
friction pointthe checkout.
82.1%
technology category especially was need to move away from fossil fuel
drawn into the turmoil because of over the next few decades, but also
With over 11,000 physical locations in
its vital role as data custodian and the imperative to drive business in the
28 countries, Walmart doubled down
its centrality in connectivity and meantime. The category rose slightly
on its online efforts to compete MSCI
digital communications. Social media in value as the price for crude oil
with Amazon by acquiring Jet.com,
a strong e-commerce challenger. brands were at the center of the stabilized.
34.9%
Walmart already collaborates public debate when postings inflamed
opinions about decency and free The oil and gas brands, which
with JD.com, the No. 2 Chinese
speech. typically focus more on their
e-commerce brand after Alibaba.
upstream exploration businesses,
To become more physical, Alibaba
Google advertisers complained also communicated with consumers
entered a partnership with the Bailian
that programmatic technology, about their Brand Purpose, which
Group, which operates almost 5,000
intended to align ads with relevant ExxonMobil summarized as,
grocery and specialty stores in China.
content, sometimes placed ads near Powering the World. The critical
controversial, even objectionable, actions taken by brands across
Like retail, the telecom providers 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
material. YouTube and Facebook also categories reflected the power of
category also has been moving
were affected. The brands adjusted strong brands to sustain businesses Source: Kantar Millward Brown / BrandZ
through a steady transformation,
their practices. With over 1.2 billion during geopolitical drama or other The BrandZ Strong Brands Portfolio is a subset of the BrandZ Top 100 Most Valuable Global Brands.
as brands attempt to escape their
daily active users, Facebook reaches disruptions. The BrandZ Global Top
commodity roles as voice and data
more viewers than any traditional 100 not only grew 8 percent in value
providers and become consumer- The value of the BrandZ Strong affirms that valuable brands deliver S&P 500 growth rate. But that $100
media outlet, and the torrent of news this year, but since 2006, through the
facing content and entertainment Brands Portfolio increased 124.9 superior returns over time, and invested in the BrandZ Strong Brand
surrounding the years geopolitical global recession, the value of the Top
brands. Major brands took significant percent between April 2006 and April regardless of market disruptions. Portfolio would have more than
events caused the brand to examine 100 ranking steadily increased, rising
initiatives to advance this goal and 2017, outperforming both the S&P It also demonstrates the positive doubled in value, to $225.
its publishing role and responsibilities. 152 percent.
to position themselves for leadership 500, which grew 82.1 percent, and the return on money invested to build
in the Internet of Things. Verizon MSCI World Index, which grew 34.9 meaningfully different and salient The key takeaways for brand owners
percent. (The MSCI World Index is a brands. and brand marketers are: companies
weighted index of global stocks.) that invest in building valuable brands
In concrete terms, $100 invested in grow their top line faster, and organic
The exceptional performance of the 2006 would be worth $135 today top-line growth is the greatest
BrandZ Strong Brands Portfolio based on the MSCI World Index determinant of total shareholder
relative to two well-regarded indexes growth rate, and $182 based on the return.

1 Introduction Introduction/KEY RESULTS
Key Results
Global Top 100

TECHNOLOGY DOMINATES BRANDS GET YOUNGER
Apple and Google remained the Technology brands in the Global The average age of a Newcomer
No. 1 and 2 brands in the Global Top 100 increased 16 percent is 20 (started in 1997).
Top 100, each valued at almost year-on-year, compared with a 4
rises 8%, 152%

$250 billion (combined, about percent increase for other brands. The average age of a Global Top
the GDP of Sweden). 100 brand is 67 (started in 1950).
The seven Newcomer brands in In 2006, the average age was 83
Amazon entered the Global Top this years Global Top 100 are (started in 1934).
10 at No. 4, with a 41 percent technology-related: YouTube,
increase in brand value, to $139 HPE, Salesforce, Netflix,
over 12 years
billion. Snapchat, and telecom providers
Xfinity and Sprint.
37 technology brands
comprised 54 percent of the
2017 BrandZ Global Top 100
value. In 2006, 30 technology
brands comprised 37 percent
Technology brands drive value growth of value. (Technology includes
technology, telecom providers,
and e-commerce brands.)
US LEADS AND
TOP-LINE, YEAR-ON-YEAR CHANGES CHINA RISES
The 2017 BrandZ Top 100 Most The BrandZ Business-to- 54 of the Global Top 100 brands GLOBAL TOP 100 RISES 152 PERCENT IN VALUE OVER 12 YEARS
2017
Valuable Global Brands increased Business Top 20 increased 11 are based in the US, and US
+8
The Global Top 100 grew at an 8 percent average annual growth
8 percent in brand value year-on- percent in value, led by Shell, brands now comprise 71 percent rate the since 2006. 2016 %
year, to $3.6 trillion, following a 3 which rose 23 percent, and DHL of the Global Top 100 value. 2015
+3% $3.6 Tri.
percent increase a year ago. and FedEx, each up 20 percent.
US brands rose 181 percent 2014 +14 % $3.4 Tri.
+12%
$3.3 Tri.
Retail led the ranking in category The value of the BrandZ Strong in brand value over 12 years,
2013
value growth, increasing 14 Brands Portfolio increased 124.9 compared with 102 percent for
+7
$2.9 Tri.
percent, driven by e-commerce, percent between April 2006 and brands from other countries.
$3TRIL. 2011 2012%
with Amazon and Alibaba up 41 April 2017, outperforming both
2008 2009 2010 +17% +0% $2.6 Tri.
+4
percent and 20 percent in value. the S&P 500 and the MSCI World US brands rose 12 percent in
% $2.4 Tri.
+1 $2.0 Tri.
$2.4 Tri.
%
Aguila, a Colombian beer brand,
Index. value year-on-year, and other
brands declined 1 percent, 2007
+21 $2.0
%
Tri.
$1.9 Tri.
Coca-Cola, and Pampers led in Adidas led the ranking in brand except Chinese brands, which
+11 %
$2 TRIL.
Brand Contribution, a BrandZ value growth, increasing 58 grew 1 percent. 2006 $1.6 Tri.
metric for the strength of brand percent on the strength of its on- $1.4 Tri. 12-YEAR GROWTH
alone without any other factors. trend fashion and its initiatives to
raise brand popularity in the US.
13 of the Global Top 100 brands
are based in China, up from only
+152%
1 brand 12 years ago. $1 TRIL.
Chinese brands rose 937 percent

in brand value over 12 years,
and now comprise 11 percent of
Global Top 100 value.
0%
Source: Kantar Millward Brown/ BrandZ

1 Introduction Introduction/TOP 10 ANALYSIS
Top 10 Analysis
Changes in Top
Finally, 12 years ago, a Global Top The North American Top 10 brands TOP 10 BRANDS
10 brand scored an average of 216 led the Top 10s of all regions in value GET YOUNGER
in Brand Power, compared with an growth, with a 12 percent increase,
The average age of a Top 10 brand in
average of 142 for a brand ranked driven by technology. The Top 10
2017 is 42 (started in 1975). That is less
below the Top 10. Today a Top 10 brands in most regions improved,
than half the average age of a Top 10
brand scores 266, on average, in except for the UK, where global bank
10 ranking reflect
brand in 2006, which was 88 (started
Brand Power, compared with 175 for performance slowed value growth.
in 1929).
other Top 100 brands. (An average Partly because of technology, the US
score in Brand Power, the BrandZ continued to dominate the Global Top
measurement of brand equity, is 100.) 100, with 54 brands contributing 71
percent of the value.
disruptive 12 years
TOP 10 RANKING CHANGES SIGNIFICANTLY
Only three brands that appeared in the BrandZ Global Top 10 in 2006 TOP 10 2017 TOP 10
88 42
2006Google, Microsoft, and IBMremain in the Top 10 in 2017.
Brand Brand YEARS YEARS

2006 Value 2017 Value
2006 $Mil. 2017 $Mil.
Started in 1929 Started in 1975
1 62,039 245,581 Source: Kantar Millward Brown / BrandZ
The strong get even stronger

2 55,834 234,671
AND THE STRONG GET
The evolution of the BrandZ categories and improved peoples Over the past 12 years, the value of 3 41,406 143,222
EVEN STRONGER
Global Top 10 over the past 12 lives worldwide. The presence of the the Top 10 increased 249 percent,
Chinese internet portal Tencent, and while the Top 100 increased a 4 39,168 139,286 In 2006, a BrandZ Global Top 10
years reflects the dominance of brand scored an average of 216 in
the disappearance of state-owned healthy 152 percent.
technology and the disruptive China Mobile, also indicates the power 5 38,510 129,800 Brand Power, compared with an
impact of the global financial of technology, along with Chinas Over the past 12 years, the value average of 142 for a brand ranked
below the Top 10 in the Global 100.
crisis, technological innovation, evolution to a more competition- of the Top 10 as a proportion of 6 37,567 115,112
driven economy. the total Global Top 100 value Today, a Top 10 brand scores 266, on
and changing consumer average, in Brand Power, compared
attitudes about health. increased from 28 percent to 39 7 37,445 110,999
AT&Ts rise reflects its scale and the percent. with 175 for other Top 100 brands.
Only three brands that appeared in transformation of telecom providers 8 36,084 108,292
the Global Top 10 in 2006Google, from voice and data transmitters to The Top 10 in 2017 are worth
content and entertainment brands. around the same as the entire Top Brand Power
Microsoft, and IBMremain in the 9 31,028 102,088
The strength of payments brands 100 12 years ago$1.4 trillion. 2017 TOP 10
Top 10 in 2017. These technology
leaders demonstrate the ability of
relatively young brands, like Google
relative to other financial services
sectors, along with the ability of
Visa to communicate its benefit to
The No. 1 and No. 2 brands
Google and Appleare worth
10 30,201
Source: Kantar Millward Brown / BrandZ (including data from Bloomberg)

97,723 300
266
and Microsoft, and heritage brands,
like IBM, to be relevant, each in its own consumers, explain that brands value more than the Top 10 combined 12
Brand Power
way: Google primarily with search and rise. years ago$480 billion vs. $409
2017 TOP 100
billion.
175
constant innovation; Microsoft with
the versatility of its Surface devices The presence of Amazon, and the
200
disappearance of Walmart (now No. Nine of the Global Top 10 are Brand Power
and its expanding cloud business; and
31), reflect the massive disruption of worth over $100 billion, compared 2006 TOP 10
IBM with its reinvention, cloud focus,
and cognitive computing. the retail category by e-commerce.
The financial crisis and the slower
value growth of the financial services
with six brands last year.
In 2017, the average age of a Top

216
Equally revealing is the presence of Brand Power
three brands in the Top 5 that were categories explain the value decline 10 brand was 42 (started in 1975).
100 2006 TOP 100
of Citi (now No. 59). Coca-Cola (No. That is less than half the average
142
not even in the Top 10 just 12 years
ago. The innovative technology 13) and Marlboro (No. 12) felt the age of a Top 10 brand 12 years ago,
of these brandsApple, Amazon, impact of consumer health concerns. which was 88 (started in 1929).
and Facebookhas disrupted In addition:
0
Source: Kantar Millward Brown / BrandZ

1 Introduction Introduction/CROSS-CATEGORY TRENDS
Cross-Category Trends
Until last year, most brands could avoid cultural discord. The
surprise outcomes of the UK Brexit vote and the US election
10 trends that
made avoidance more difficult. Because people in the UK,
US, and elsewhere were evenly split, brands potentially risked
pleasing half of their customers and alienating the other half.
Niche brands that shared the values of their customers had less
of a dilemma. Mass brands with clearly articulated purpose and
values had more permission to speak out. Even then, however,
it was safer to frame a point of view in a larger societal context,
impacted
rather than in divisive politics. Brands across categories could
not ignore the power of people to express
themselves in the voting boothor at the
cash register. Even oil and gas brands, which
typically communicate primarily to a narrow TAKING
A STAND
group of influencers, thought more about
category
their consumer-facing brands and the power
of consumers to influence public policy.
Geopolitical upheaval
leaves no place to hide
value change PURPOSE

Faster value growth Geopolitical discord, and the question
of whether brands needed to take a
depends on Purpose stand, made Purpose more important.
Consumers, especially young people,
expected brands to have a clear Purpose,
often a higher Purpose about not only improving consumers lives, but
even improving the worldor at least not harming it. Purpose needed
Car brands, which a year ago peered into a to be the foundation for future growth, not a retrofitted explanation
crystal ball in search of a future about mobility, for past growth. BrandZ Vital Signs, a new brand health assessment
RETURN TO looked closer to home and responded to

the immediate needs of consumers, many of
tool, found that Brand Purpose serves as the foundation for four other
Vital Signs: Innovation, Communication, Brand Experience, and Love.
REALITY
whom bought large, gas-consuming SUVs, Brand with a clear Brand Purpose (seen as making lives better) grew
even as they proclaimed their concern about three times faster in value, on average, over the past 12 years.
climate change. Similarly, the oil and gas
brands continued drilling, while shifting to
Planning for tomorrow gas and renewables. Both cars, and oil and
but making sales today gas brands operate in the same tension:
sustaining a business based on supplying
customer needs today, while anticipating, and
helping to create, the world that customers say they want
to live in tomorrow. And both industries require long- The emergence of
COLLABORATION
term strategic planning, heavy forward investment, and technologies such as
complicated bets that rely on consumer research, climate the Internet of Things Brands combine competencies
science, and unknowable geopolitical factors. and autonomous
cars accelerated
collaboration between business-to-business and business-to-consumer
technology brands. Car and technology brands linked to improve
connectivity, using smartphone data to personalize cars with adjustments
to seats, steering wheels, and entertainment systems. Sometimes category
disruption or brand ambition required more than collaboration, as when
e-commerce giant Alibaba partnered with Bailian Group, a Chinese retailer
that operates over 5,000 stores. After many collaborations to build up its
e-commerce strength, Walmart, with over 11,000 physical stores, took the
next step and acquired the e-commerce startup Jet.com.

1 Introduction Introduction/CROSS-CATEGORY TRENDS
Cross-Category Trends
At the same time young people sought the newest,

fastest app, they also expressed a need to slow things
CITY CENTRIC Global and local combined

down. As young people listened to digital music
with earbuds, they bought more vinyl records. While
taking photos with smartphones, millennials desired
in a new way. As evidenced
a cool vintage SLR camera. Craft beer and craft cola
Mutual interests define markets by the Brexit vote and the US
represented this retro style. Clothing from the 90s
national elections, political
opinions that divide nations was in. And high-top
also reveal cross-national affinities. Similarly, when sneakers were popular.
shopping for products or services in categories as diverse
as apparel, banks, beer, cars, and insurance, young
Adidas increased in
value 58 percent, more
than any other brand, in
NEW/OLD
people living in Brooklyn, Shanghai, or the Shoreditch
part because its classic
section of London share more in common with each other
sneakers were perfectly
Young pursue retro
than they do with people living in rural areas of their own
countries. These cross-national affinities represent large on-trend. as antidote to modern
potential brand opportunities. Brands looked at their
markets through this new demographic lens.
LOYALTY
Proliferation of choice, price
Brands seek promotion, and the entrance
CONSOLIDATION/ sellable moments of niche disruptor brands

are among the reasons
FRAGMENTATION
that loyalty was difficult to
Opposite market forces cultivate. In addition, loyalty was not always fashionable.
pulled on categories that For self-expression, apparel customers preferred to mix
consolidated at the same and match, curating a personal style rather than wearing
time they fragmented. Categories defy laws of physics the same brand or designer head to toe. Similarly, personal
In beer, AB InBev and care shoppers looking for the newest products chose from
SABMiller combined, while a wide selection of brands. Responding to this purchasing
more craft beers appeared. In insurance, Ace purchased Chubb at promiscuity, brands tried to reach consumers at the exact
the same time that new InsurTech brands proliferated. In oil and right moment to trigger a sale, increasingly on mobile.
gas, Shell digested recently acquired BG, but smaller operations
developed fracking technology to drive down the threshold for
profitability, which was critical with historically low oil prices.
E-commerce still rules. Retailers in mature markets continue to close

excess real estate. But stores are back. Physical storessmaller,
Brands shifted to the premiumeven luxuryend of the market convenient, interactive, and loaded
to avoid category commoditization and build margin. Beer and with technologybecame an important
personal care brands introduced premium products globally. Mass
brands in the car category featured safety and entertainment
expression of brand experience, especially
in categories like apparel and luxury. Adidas RETURN OF
launched a womens studio with fitness
THE STORE
technology that a few years ago would have been available only
in luxury models. In 2017, luxury brands comprise over half the classes in London. A Lululemon Lab store
BrandZ Car Top 10 ranking, compared with just opened in New York. The online eyeglass
over a third in 2006. During those 12 years, the brand Warby Parker opened more physical
PREMIUM/ proportion of luxury brands in the Personal Care

Top 15 shifted from around a third to almost half.
locations. Despite the rise in FinTech, bank
branches remained an important way to
personalize the consumer relationship and
Interactive and smaller,
stores are back in style
LUXURY
Even luxury became more luxurious. Herms, one
of the most exclusive luxury brands, increased build trust. Shell gas stations continued to
18 percent in value year-on-year, significantly become a place for shopping on the way home or for dropping off or
surpassing overall 4 percent category growth. picking up parcels. Even Herms experimented with pop-up stores.
Commoditization drives And the ultimate confirmation that physical stores are important came
brands to premiumization from their nemesis, Amazon, which opened a book store and prepared
to open Amazon Go, its chain of automatic-checkout grocery stores.

1 Introduction Introduction/TAKEAWAYS
Takeaways
5 actions for 3
Be elastic
Category is not destiny. Certain
brands, particularly technology
ecosystems, benefit from elasticity.
building valuable
It is easier for those brands to
extend across categories. Think
like a disruptor brand, and focus
on the needs of the consumer
rather than the boundaries of
brands today
the category. Categories help
5
organize and define markets, but
they are less useful when they Be prepared
become arbitrary definitions and
constraints on innovation. Brands have invested a lot of effort
to cultivate personalized customer
relationships, sometimes based
on shared values. To consumers,
that closer connection makes
1
some brands seem more like
Be purposeful friends than strangers. And people
4
have different expectations for
Purpose is not new for brands.
their friends. They expect friends
Be responsible
2
But it is now more important. In
to speak up when important
an uncertain and unsettling world,
people are looking for answers
Be different Words like authenticity and shared values are violated. Amid
transparency have been part the current geopolitical turmoil
and security. Purpose makes Difference gives the brands their of the brand lexicon for a while, around immigration, inclusion,
a difference to peopleand to competitive advantage. It is one almost long enough to lose their climate change, and other issues,
brands. Brands with a clear Purpose of three components (along meaning. However, they have consumers often expect brands
grew in value at three times the with Meaning and Salience) that become even more important. to take a stand. Taking a stand
rate of other brands, on average, comprise Brand Power, the BrandZ As major institutions continue to can be risky, especially for mass
over the past 12 years according to measurement of Brand Equity. Over disappoint the public, brands have market brands that reach a broad
BrandZ research. Purpose can be the past 12 years, the BrandZ Global an opportunity to face growing constituency. Niche brands and
completely utilitarian. Or it can be Top 100 brands viewed as most skepticism, even cynicism, with brands with clearly articulated
about helping improve the world in Different grew 258 percent in brand honesty, by doing what brands are values may have more permission
some way. Increasingly, consumers, value. Those viewed as least Different supposed to doprovide people to take a stand. Usually, it is better
especially young people, are grew only 21 percent. Consumers with good products and services to take a stand on principle, not
attracted to brands that, in an usually view technology brands as and by reminding people that the politics. But the decision to take a
authentic way, are about making Different. Achieving Difference is brand is there to help. standor notis not always left to
money, but are also about more more challenging for brands with the brand. In these agitated times
than making money. long heritage. But buried in every brands are called out all the time.
successful brand that has survived for Brands need to be prepared. Have
decades is the Difference that drove the earthquake kit ready.
its success initially. It is important to
rediscover that Difference and make
it relevant today.

The
Global
Top 100
2 The Global Top 100 The Global Top 100/TOP 100 CHART
BrandZ Top 100 Most BrandZ Top 100 Most

Valuable Global Brands 2017 Valuable Global Brands 2017
Brand Value Brand Value
Brand Value Brand Rank Brand Value Brand Rank
Brand Category % Change Brand Category % Change
2017 $Mil. Contribution Change 2017 $Mil. Contribution Change
2017 vs. 2016 2017 vs. 2016
1 Technology 245,581 4 7% 0 26 Apparel 34,185 4 -9% -2
2 Technology 234,671 4 3% 0 27 Telecom Providers 31,602 3 -14% -2
3 Technology 143,222 4 18% 0 28 Regional Banks 31,570 2 -6% -1
4 Retail 139,286 4 41% 3 29 Luxury 29,242 4 3% 1
5 Technology 129,800 4 27% 0 30 Cars 28,660 4 -3% -2
6 Telecom Providers 115,112 3 7% -2 31 Retail 27,934 2 2% 1
7 Payments 110,999 4 10% -1 32 Technology 27,243 3 19% 6
8 Technology 108,292 5 27% 3 33 Beer 27,037 4 -3% -2
9 Technology 102,088 4 18% 1 34 Apparel 25,135 3 0% 1
10 Fast Food 97,723 4 10% -1 35 Cars 24,559 4 -8% -2
11 Telecom Providers 89,279 3 -4% -3 36 Payments 24,150 4 -9% -2
12 Tobacco 87,519 3 4% 0 37 Technology 24,007 4 23% 11
13 Soft Drinks 78,142 5 -3% 0 38 Personal Care 23,899 4 2% -2
14 Retail 59,127 2 20% 4 39 Technology 23,559 5 -19% -10
15 Regional Banks 58,424 3 0% -1 40 Cars 23,513 4 4% -1
16 Logistics 58,275 4 17% 1 41 Luxury 23,416 5 18% 3
17 Telecom Providers 56,535 4 1% -2 42 Baby Care 22,312 5 -3% -5
18 Entertainment 52,040 4 6% 1 43 Telecom Providers 22,002 3 0% -3
19 Conglomerate 50,208 2 -7% -3 44 Technology 21,919 2 18% 7
20 Payments 49,928 4 8% 0 45 Fast Food 21,713 4 1% -4
21 Technology 45,194 3 16% 1 46 Technology 21,359 2 10% 3
22 Fast Food 44,230 4 2% -1 47 Regional Banks 21,145 4 8% -2
23 Telecom Providers 41,808 3 NEW ENTRY 48 Global Banks 20,536 3 1% -5
24 Retail 40,327 3 11% 2 49 Technology 20,388 3 9% 1
25 Telecom Providers 38,493 3 2% -2 50 Telecom Providers 20,197 2 3% -3
Source: Kantar Millward Brown / BrandZ (including data from Bloomberg) The Brand Value of Coca-Cola includes Lights, Diets and Zero
Brand contribution measures the influence of brand alone on financial value, on a scale of 1 to 5, 5 highest The Brand Value of Budweiser includes Bud Light

2 The Global Top 100 The Global Top 100/TOP 100 CHART
BrandZ Top 100 Most BrandZ Top 100 Most

Valuable Global Brands 2017 Valuable Global Brands 2017
Brand Value Brand Rank Brand Value Brand Rank
Brand Category % Change Brand Category % Change
2017 $Mil. Contribution Change 2017 $Mil. Contribution Change
2017 vs. 2016 2017 vs. 2016
51 Logistics 19,441 4 20% 12 76 Technology 14,018 3 NEW ENTRY
52 Payments 19,156 4 20% 13 77 Conglomerate 13,947 2 12% 4
53 Retail 18,944 3 5% 2 78 Insurance 13,910 3 -17% -19
54 Regional Banks 18,770 2 -4% -8 79 Technology 13,594 4 10% 6
55 Oil & Gas 18,727 1 11% 3 80 Luxury 13,548 5 8% 0
56 Regional Banks 18,551 3 12% 4 81 Fast Food 13,521 3 9% 1
57 Oil & Gas 18,346 1 23% 9 82 Retail 13,375 2 3% -6
58 Personal Care 17,740 4 -3% -4 83 Cars 13,065 3 0% -8
59 Global Banks 17,580 2 3% -3 84 Soft Drinks 12,730 4 4% 2
60 Regional Banks 17,437 3 7% 4 85 Oil & Gas 12,639 1 -4% -13
61 Insurance 17,260 3 2% -4 86 Retail 12,365 3 7% 5
62 Telecom Providers 17,180 3 -7% -9 87 Regional Banks 12,286 2 9% 8
63 Regional Banks 17,137 4 19% 6 88 Telecom Providers 12,273 4 -4% -10
64 Alcohol 16.983 4 48% 29 89 Retail 12,273 2 2% -2
65 Technology 16,785 4 NEW ENTRY 90 Technology 12,234 2 NEW ENTRY
66 Technology 16,725 2 15% 1 91 Cars 12,163 4 -8% -17
67 Personal Care 16,278 5 -1% -6 92 Technology 12,057 2 NEW ENTRY
68 Retail 16,257 2 12% 0 93 Snapchat Technology 12,026 4 NEW ENTRY
69 Telecom Providers 16,026 3 -14% -17 94 Regional Banks 12,013 2 -13% -23
70 Logistics 15,844 4 20% 3 95 Telecom Providers 11,964 2 5% -1
71 Regional Banks 15,202 3 8% -1 96 Telecom Providers 11,795 3 NEW ENTRY
72 Regional Banks 14,981 2 -8% -10 97 Insurance 11,691 3 11% 1
73 Regional Banks 14,289 3 16% 11 98 Technology 11,649 2 12% 2
74 Global Banks 14,129 3 18% 15 99 Soft Drinks 11,567 4 -1% -9
75 Regional Banks 14,044 3 9% 2 100 Cars 11,341 3 -1% -8
Source: Kantar Millward Brown / BrandZ (including data from Bloomberg) The Brand Value of Pepsi includes Diets
Brand contribution measures the influence of brand alone on financial value, on a scale of 1 to 5, 5 highest The Brand Value of Red Bull includes sugar-free and Cola

2 The Global Top 100 BrandZ Analysis/TOP RISERS
Top 20 Risers
of the strategies in place since their leadership in business-to-business Coronaare owned by AB InBev.
Value performance
acquisition by the Brazilian investment logistics and added capacity in the Constellation Brands distributes
firm 3G, the fast food brands Burger US and Asia to handle the growing Corona in the US. Each brand excelled
King and Tim Hortons focused on e-commerce volume. The three Latin at marketing communication that,
their core customers and added American beer brandsBrahma with variations, associated the brands
reflects dynamics
franchise locations. and Skol from Brazil, and Mexicos with joyful living.
Shell and Rosneft increased sharply

in value despite continuing pressures
of challenging year
on the oil and gas category. Shells
assimilation of BG Group, acquired TOP 20 RISERS
early in 2016, strengthened its position
in liquid natural gas, a fast-growing Brand Brand Brand Value
industry segment. Russias Rosneft Value Value % Change
grew in brand value despite sanctions 2017 2016 2017 vs.
that restricted activity with Western Rank Brand Category $ Mil. $ Mil. 2016
Brands disrupt, rebound, or sustain value companies. Rosneft sold just under 20
1 Adidas Apparel 8,296 5,257 58%
percent of the company to Glencore, a
Swiss commodities trader, and Qatar
2 Moutai Alcohol 16,983 11,465 48%
Adidas rose 58 percent in Disruptors with established brands like IBM
that worked hard to transition their
in a 50/50 joint venture, thereby
expanding its presence in the Middle
value year-on-year, more than 3 Amazon Retail 139,286 98,988 41%
legacy businesses into the cloud. East, signing agreements with Iraq,
any other brand in the 2017 Amazon, the brand that virtually
Libya, and other countries.
With the rising concern about online
BrandZ Top 100 Most Valuable invented e-commerce and disrupted 4 Burger King Fast Food 5,116 3,685 39%
security, PayPal benefited from its
retail, is aiming to disrupt other
Brands. The German-owned dominance as an online payment Morgan Stanley reported strong
categories, including cars and 5 Brahma Beer 4,385 3,269 34%
apparel brand was followed technologies associated with the
pioneer. Tencent, the internet portal profit gains based on its wealth
by Moutai, the Chinese white and Chinas most valuable brand, management services and other
cloud or the Internet of Things. The 6 Tesla Cars 5,876 4,436 32%
benefited from advertising growth businesses. The bank invested in
alcohol, which increased 48 41 percent brand value increase is
on its vast ecosystem, which includes 10 FinTech companies during 2016
percent, and e-commerce giant especially impressive because of 7 Netflix Technology 12,057 9,289 30%
almost 890 million MAUs on its social to better serve its high-wealth
Amazon, with a 41 percent rise. Amazons $139.3 billion brand value.
media apps, including WeChat. customers, expand its digital investing
Tencent also benefited from its online options, and raise margins. 8 Dominos Pizza Fast Food 6,289 4,869 29%
Although Tesla did not report profits,
gaming business and payment-related
Included among the Top 20 Risers it rose 32 percent in value, twice
and cloud services. 9 Rosneft Oil & Gas 4,937 3,833 29%
the brands with the greatest year- the rate of any other car brand, Sustainers
on-year value increaseare five as its combination of electric car
10 Tencent Technology 108,292 84,945 27%
brands that also appeared in the technology leadership and luxury Rebounders The 29 percent rise in value for
2016 Top Risers list: Amazon, Burger marketing continued to set the pace Dominos Pizza followed a 30 percent
11 Facebook Technology 129,800 102,551 27%
King, Dominos Pizza, Facebook, and for carmakers, who worried about The 58 percent brand value rise by increase a year ago. The brand
PayPal. This is the fourth consecutive the anticipated introduction of Teslas Adidas followed a 14 percent increase continued to do a lot of things right,
more mass market Model 3. Tesla 12 Tim Hortons Fast Food 5,893 4,673 26%
year Facebook has made the Top a year ago and a 36 percent decline starting with the product, having
Risers list, a considerable surpassed Ford and GM in market in 2015. The brand caught the fashion improved the taste of its pizza several
achievement. value. 13 Salesforce Technology 12,234 9,914 23%
wave exactly right, with its classic years ago. A fast food leader in digital
high-top sneakers becoming a favorite innovation, Dominos Pizza introduced
The 2017 Top 20 Risers, from 11 The 30 percent value rise for Netflix 14 Samsung Technology 24,007 19,490 23%
of millennials looking for a retro look. an app to simplify pizza ordering and
categories, reflect a key theme reflects the market strength of a Adidas improved its weakness in the improve customer experience, from
of the 2017 BrandZ Global Top brand that redefined how consumers ordering to delivery. Many Dominos 15 Shell Oil & Gas 18,346 14,940 23%
US with operational and marketing
100 report: This was a period of access film and other entertainment initiatives. Adidas opened a US Pizza delivery trucks now include
geopolitical, economic, and social content. Facebook appeared again warming ovens. 16 Corona Beer 8,119 6,626 23%
factory, raised its profile in basketball,
disruption that crossed all categories because it continued to grow and signed US celebrity brand
and spared few brands. steadily, ending 2016 with over 1.8 ambassadors. The Samsung brand proved 17 Morgan Stanley Global Banks 8,920 7,304 22%
billion monthly active users (MAUs), resilient after the recall of its Note
To comprehend the success of the and advancing its three priorities: Moutai continued to rebound from 7 smartphone. Its next smartphone 18 Skol Beer 8,146 6,743 21%
Top Risers, it is useful to divide them monetizing video, adding advertisers, the sales slowdown that followed iteration, Galaxy S8, received
roughly into three groups of brands: and making ads more relevant. the Chinese governments limits on positive initial reviews for its design, 19 PayPal Payments 19,156 15,910 20%
disruptors that fomented change; extravagant official entertainment especially the large curved screen.
rebounders that successfully Salesforce continued to drive its and gifting. Moutai adjusted pricing, And Samsungs finances remained 20 DHL Logistics 15,844 13,199 20%
responded to change; and sustainers leadership in cloud customer- expanded distribution, and cultivated strong because of its diverse Source: Kantar Millward Brown/ BrandZ (including data from Bloomberg)
that endured despite change. management tools, even collaborating export markets. Continuing some product portfolio. DHL continued its

2 The Global Top 100 BrandZ Analysis/NEWCOMERS
THE NEWCOMERS
Newcomers
Top 100 Rank Brand Value 2017
More technology
US $41,808 Mil.
#23 Telecom Providers
and telecom
US $16,785 Mil.
#65 Technology
brands enter Top 100 Rank
#76
Brand Value 2017
US $14,018 Mil.
the ranking
Technology
US $12,234 Mil.
Categories reflect Global 100 growth trend #90 Technology
Five of the newcomers to the Xfinity, the highest-value Newcomer, consultation, enabling it to better
BrandZ Global Top 100 are entered the BrandZ Global Top 100 confront the disruptive changes in
at No. 23. A brand of Comcast, the information technology.
technology brands, spanning Top 100 Rank Brand Value 2017
US telecommunications giant, Xfinity Soon after Snap Inc. completed its
both business-to-consumer US $12,057 Mil.
#92
provides TV, internet, and telephone IPO, it signed an agreement with
(B2C) and business-to-business service, and is about to introduce NBC Universal to have the Snapchat
(B2B) sectors, and two brands mobile. It expanded its X1 cloud-based photo-messaging app carry content Technology
are telecom providers. These video platform and drove viewership from the 2018 Winter Olympics. It also
categories drive the growth of during the Rio Olympics. began to redefine itself as a camera
company, introducing a product called
Global Top 100. YouTube expanded its offering of Spectacles, sunglasses with a camera.
original content for viewers as well as Netflix grew revenue as it expanded its Top 100 Rank Brand Value 2017
its advertising options for customers. audience of global viewers interested
US $12,026 Mil.
#93
It updated its TrueView ads, which in on-demand movies or TV, and
include videos of varying length with introduced more original content.
Technology
content designed specifically to appeal
to the targeted audiences. And while Salesforce appears on the list because
watching a video on mobile, the viewer the brand that challenged some of the
can also scroll through related product legacy business technology companies
offerings. is rising in brand value. Salesforce
continued to expand its cloud-based Top 100 Rank Brand Value 2017
HPE (Hewlett Packard Enterprise) customer relations platform, designed
US $11,795 Mil.
appeared in the Global Top 100 for
the first time, having completed its
first year as a corporate entity created
for collaborative working with up-
to-the-minute information. Sprint, a
challenger telecom providers brand,
#96 Telecom Providers
when HP split the company into two appealed to millennials with a price-
parts, spinning off HPE to focus on driven, contract-free proposition, and
servers, storage, networking, and irreverent messaging that pokes fun at Source: Kantar Millward Brown / BrandZ (including data from Bloomberg)
the category leaders.
2 The Global Top 100 BrandZ Analysis/BRAND CONTRIBUTION
Brand Contribution
High Brand
Contribution drives
BRAND CONTRIBUTION TOP 15
Brand Value
Brand Brand Value Brand Value % Change
Rank Brand Contribution Category 2017 $ Mil. 2016 $ Mil. 2017 vs. 2016
1 Aguila 5 Beer 3,843 3,270 18%
volume, premium
2 Coca-Cola 5 Soft Drinks 66,489 67,749 -2%
3 Pampers 5 Baby Care 22,312 22,911 -3%
4 Gucci 5 Luxury 13,548 12,592 8%
5 Skol 5 Beer 8,146 6,743 21%
6 Heineken 5 Beer 10,878 10,549 3%
And adds stability in disruptive markets 7 Este Lauder 5 Personal Care 4,215 4,190 1%
8 Brahma 5 Beer 4,385 3,269 34%

Brand Contribution is the High Brand Contribution can take time worlds second-highest scorer in Brand
to build, but it is a sustaining force. Contribution, after Aguila, a local 9 Herms 5 Luxury 23,416 19,821 18%
BrandZ metric that assesses
Of this years Brand Contribution Top Colombian beer.
the extent to which brand 10 Stella Artois 5 Beer 9,949 9,546 4%
15, all but two appeared in the Brand
alone, independent of financial Contribution ranking a year ago. The Similar circumstances surround the 11 Chanel 5 Luxury 11,019 10,316 7%
or market factors, drives newcomers are Stella Artois, a global third-highest Brand Contribution
purchasing volume and enables premium beer owned by AB InBev, and scorer, Pampers. In some of the brands 12 Corona 5 Beer 8,119 6,626 23%
a brand to command a price Tencent, the Chinese internet portal global markets, China, for example,
that is No.1 in the BrandZ Top 100 e-commerce is turning diapers into a 13 Tencent 5 Technology 108,292 84,945 27%
premium. Brands that score
Most Valuable Chinese Brands. commoditized, price-driven category.
well in Brand Contribution are The investment Pampers makes in 14 Baidu 5 Technology 23,559 29,030 -19%
viewed positively by consumers. Six of the Brand Contribution Top 15 differentiating the brand as a source of
15 Burberry 5 Luxury 4,285 4,594 -7%
are beer brands and four are luxury knowledge and consultation for young
(Please see the Methodology section at the
end of this report for more details.)
brands. These two categories would parents broadens its appeal, creates an Source: Kantar Millward Brown/ BrandZ (including data from Bloomberg) and Kantar Vermeer
seem quite differentbeer focused emotional connection with consumers, Brand contribution measures the influence of brand alone on financial value, on a scale of 1 to 5, 5 highest
more on a mass market and luxury and helps produce its high Brand
dependent on exclusivity. However, Contribution score.
brands in both categories rely heavily
on the consumers perception of value. Personal care brand Este Lauder also
And brands in both categories invest establishes a consultative relationship
heavily in brand building and brand with its customers, which helps
communication. sustain it against smaller disruptor
brands. Baidu and Tencent, the two
The return on investment can be Chinese technology brands in the
significant. The soft drinks category Brand Contribution Top 15, illustrate
has been under pressure for years a correlation between high Brand
because of consumer health concerns. Contribution and the ability to become
Consumption of carbonated soft important in the life of the customer,
drinks in the US declined for the 12th in these cases being constantly
consecutive year. The soft drinks available to fulfill needs for information,
category remained unchanged in shopping, and payment.
value. Yet Coca-Cola remains the

2 The Global Top 100 BrandZ Analysis/BRAND IMPORTANCE
Brand Importance
Consumers
say brand, not
BRANDS ARE IMPORTANT TO CONSUMERS
When making a purchase, brand was important to 86 percent of consumers.
BRAND IMPORTANT
Neither
price, is most
86 %
4%
important Brand NOT Price
56%
Brand AND Price
30%
Price NOT Brand
10%
buying factor
PRICE IMPORTANT

40%
Brands are important to To understand how brand and price The connection between the price ...AND PRICE IS IMPORTANT, BUT SUBSIDIARY
consumers. To find out how influence brand value growth, we of a brand and the consumers Brands that priced high, in line with consumer perceptions of their worth, led in brand value appreciation.
compared the 85 brands that appear perception of what it is worth is
important, we analyzed almost
both in the 2006 and 2017 BrandZ crucial. Brands that got it right
5,350 brands across 85 product Global Top 100 rankings. We divided increased 182 percent in brand value HIGH
+182
12-year brand value
+115%
categories in 32 countries. When
%
the brands into four quadrants based over the past 12 years. In comparison, growth (2006 to 2017)
making a purchase, brand was on whether consumers perceived the brands priced lower than the
important to 86 percent of brands to be high or low priced, and consumer perception of the brands 85 brands that appear in
consumers, according to our whether consumers believed that the worth increased only 128 percent in 2006 and 2017 rankings,
brand was worth more or less than brand value. divided into quadrants.
BrandZ research. they were paying for it.
Over half of all consumers56

PRICE
percentsaid that brand, not

price, is the most important
determinative factor when they BRAND IMPLICATIONS
make a purchase, and 30 percent
said that they consider both Price is important, but it is subsidiary to brand. Brands should not
+128%
underprice themselves. Brands that price below their perceived worth
brand and price.
+90%
sacrifice potential profit and value growth. Brands that price below
their perceived worth also signal that they may be low in quality.
HIGH
LOW
WORTH

2 The Global Top 100 BrandZ Analysis/DIFFERENCE
Difference
Perceived DIFFERENCE JUSTIFIES HIGHER PRICES

The brands that consumers see as both higher priced and worth their higher price
scored 145 in Difference.
Difference drives
HIGH
128 145
higher pricing,
PRICE
value growth 97 119 HIGH
LOW
WORTH
The connection between We found that the brands that We then took the same 85 brands
Difference scores for the 85 brands that appear in 2006 and 2017 rankings.
maximizing price potential consumers saw as both higher priced and divided them into three groups,
and worth their higher price scored according to their Difference scores,
and accelerating value growth Source: Kantar Millward Brown/ BrandZ
145 in Difference. In contrast, brands to measure the effect of Difference
raised an obvious question: that consumers saw as lower priced on brand value growth. We found
What causes consumers to view and not worth a higher price scored that over 12 years, the top third in ...AND DIFFERENT BRANDS GROW VALUE FASTER
a brand as being worth a higher only 97 in Difference. Difference is Difference grew 258 percent in brand Of the 85 brands analyzed, the top third in Difference grew 258
price? We again analyzed the 85 a component of Brand Power, the value, while the bottom third grew percent in brand value over 12 years, while the bottom third
brands that appeared in both BrandZ metric of brand equity. An only 21 percent. grew only 21 percent. Top Third
average score is 100.
the 2006 and 2017 rankings. DIFFERENT
+258%
300%
BRAND IMPLICATIONS
Difference makes the difference. The more Different a brand appears 200%
to the consumer, the more the brand can justify a price premium, and
the faster a brand will grow in value. Unlike the many uncertainties of
the marketplace that a company cannot control, marketers can build
brands to create a sense of difference that predisposes consumers to
Middle Third
choose them over the competition. DIFFERENT
100%
Bottom Third
DIFFERENT
+67%
+21%
0%
Brand value growth for the 85 brands that appear in 2006 Source: Kantar Millward Brown/ BrandZ
and 2017 rankings, based on their Difference scores.

2 The Global Top 100 BrandZ Analysis/BRAND POWER
Brand Power
Brand Power HIGH BRAND POWER DRIVES VALUE RISE

Brands with the highest Brand Power scores grew the most in brand
value171 percentover the past 12 years.
drives sales
Top Third AND THE NEW BRANDS
POWER ARE YOUNGER AND
200% Middle Third
POWER
+171% MORE EXCITING
Brands new to the Global Top 100
+125%
were generally much younger and
more exciting than the brands that
and brand
Bottom Third dropped out.
POWER Newcomer Brands
+59 %
100%
value growth
Creative Fun
113 106
0%
and 2017 rankings, based on their Brand Power scores
Brand Power is the BrandZ The group with the highest Brand When we tried to understand why SURVIVING AND NEW BRANDS SCORE HIGHER
equity metric that describes the Power scores grew 171 percent in some brands dropped from the IN BRAND POWER Adventurous Brave
predisposition of consumers to
brand value over the past 12 years.
The middle group increased 125
ranking and other brands joined it,
we found one striking distinction:
Compared with brands that dropped out of the Global Top 100, those that 106 102
choose a brand. It correlates percent, which was twice the rate of age. Brands new to the ranking, on
appeared in both the 2006 and 2017 ranking, as well as those that joined the
with both sales and brand value ranking in 2017, scored much higher in Brand Power.
the lowest group, which increased in average, started 20 years ago, in Dropout Brands
growth. To measure the impact value only 59 percent. 1997, while brands that dropped from
of Brand Power on brand value, the ranking started 64 years ago, in
Brands that appeared in the 2006 1953. Because of their relative youth, Top 100 Brand Top 100 Brand
we divided the 85 brands that Power 2006 Power 2017
Global Top 100 but dropped out the newcomer brands made an
appear in the 2006 and 2017 of subsequent rankings scored impression on consumers who viewed
BrandZ Global Top 100 ranking
into three equal-sized groups,
reasonably well in Brand Power, 133. them as much more Creative, Fun, 142 175 Creative Fun
according to their Brand Power

(An average score is 100.) However,
brands that appeared in both the
Adventurous, and Brave.
102 96
scores. 2006 and 2017 ranking scored much
higher (172), as did brands that joined
the ranking in 2017 (178).
Dropout Brands Surviving Brands Newcomer Brands

(2006 ONLY) (Both 2006 and 2017) (2017 ONLY) Adventurous Brave
BRAND IMPLICATIONS 133 172 178 97 94

Brand Power scores Source: Kantar Millward Brown/ BrandZ Source: Kantar Millward Brown/ BrandZ
The Brand Power score changes over 12 years confirm the importance
of brand. Brands that increased in Brand Powerthat created and
amplified Meaningful Differenceshould enjoy a large and ongoing
advantage in growing sales and value. Sustained high Brand Power is
necessary to remain in the BrandZ Global Top 100.

2 The Global Top 100
SYDNEY - AUSTRALIA
Meaningful Difference
Value of all Australian
Meaningful
brands in Global Top 100
$43.8 Billion
Difference is root
of Brand Power
Since Brand Power is important MEANINGFULLY DIFFERENT BRANDS GROW VALUE
as a driver of sales and brand Meaningful Difference drives Brand Power. It is a key to brand success.
value, the logical question is,
what drives Brand Power? The Top Third
answer is Meaningful Difference. MEANINGFUL
Brand Power is a composite DIFFERENCE
of three factors: Meaning,
Difference, and Salience.
+207%
200%
Brands need to be seen by their
relevant consumers as Meaningful
meeting the consumers functional
Middle Third
and emotional needs in ways that Bottom Third MEANINGFUL
are relevant and create affinity. DIFFERENCE
+74%
MEANINGFUL
Consumers are unlikely to consider 100% DIFFERENCE
+47%
a brand unless it is perceived as
Meaningful. Once they have positively
connected with consumers, brands
need to stand out from other brands
that also have built affinity.
0%
Brands need to create a sense of
Difference. They need to be seen by
and 2017 rankings, based on their Meaningful Difference
consumers as distinctive, even trend- scores
setting. Difference gives brands their
competitive edge. Finally, once brands
achieve Meaningful Difference, they
need to amplify itby advertising,
social media, retail shelf position, and
other tacticsto become top of mind,
or Salient.

Thought Leadership/DIFFERENTIATION
THOUGHT LEADERSHIP
Think different remains one of Apples most memorable
Differentiation
MARTIN GUERRIERIA
slogans and neatly distills the purpose of the brand simply
and brilliantly for consumers all over the world. Never has
this vision been delivered more emphatically than with the
launch of the iPhone in 2007. With the 10-year anniversary
in June this year, now is an opportune moment to assess
its impact and to examine the brands current and future
challenges as it moves into its second decade.
Can Apple repeat Apple has enjoyed unprecedented

financial success over this period,
and the contribution of the
first time, people had the internet
in the palms of their hands.
Think Different
Global BrandZ Research Director iPhone has been a major factor. The iPhone had an important
Kantar Millward Brown According to BrandZ, Apples weapon in its arsenal from the
Martin.Guerrieria@ global brand leapt in value by startthe Apple brand. Looking
kantarmillwardbrown.com
$210 billion during this time, to at global analysis combining
reach an eye-watering $234.7 several key markets (USA, UK,
on 10th iPhone
billion in 2017an increase of 850 Brazil, Mexico, Germany, France,
percent. Italy, Spain, China, India, Japan,
Korea) back in 2007, iPhone was
The iPhone delivered disruption already perceived as extremely
in the truest sense, establishing different, with an average
anniversary?
an entirely new category within Difference Index of 175 versus an
a categorythe smartphone average of 100. But the brand
and beginning a seismic shift in was not well known versus the
consumer expectations. For the competition; its average Salience
Index was only 60.
Clearly stated purpose sets high bar

for innovation and market disruption
Kantar Millward Brown is a leading

global research agency specializing
in advertising effectiveness,
strategic communication, media and
digital, and brand equity research.
www.millwardbrown.com
3 Thought Leadership Thought Leadership/DIFFERENTIATION
Over the next 10 years, the In contrast, the impact on The initial challenge was around Make way for China was the brands first attempt resistance when upgrading their
brand extended its lead on many competitors and Nokia the perceived price difference to deliver a budget offer in a devices. If I have an iPad, iMac
differentiation even further by in particular was devastating. between the two brands, with The challenge to the iPhone has smaller size (still at a comparative and iPhone, access my music
delivering on the promise of Nokias long-established Samsung perceived to offer not been limited to Samsung, premium, but available for 40 through iTunes, and store and
a game-changingeven life- global point of difference was a similar product at a more however. A new group of percent lower than the 6s for the access my photos via iCloud, am I
changingexperience for users. decimated; dropping from acceptable price for many. Chinese brands now offer similar same tariff). This allowed iPhone really likely to choose a Galaxy S8
Perceived difference grew by 40 a Difference Index of 145 in A strong offer has enabled functionality at a much lower to reach further down the budget over the iPhone 8 when I upgrade
percent to reach an index of 245. 2007 and spiraling to just 84 in Samsung to slowly premiumize, price. Brands like Huawei, Xiaomi, spectrum to prevent users my handset? Hardly, unless
The effect of this was twofold: 2016. Nokia suffered not only while iPhones perceived premium Vivo, and Oppo have entered the from being tempted to move there is a very good reason to
1
diminished demandPower fell is falling. market and quickly gained share. elsewhere for their next handset. do sothe next game-changing
60 percent, from a whopping According to BrandZ data in innovation, the next iPhone-level
374 in 2007 to 151 in 2016 (and in Taking the US as an example, 2016, the average perceived price The battle event (iLE).
the US from 248 to just 66), but there have been some clear across markets for these brands for the future
the brands ability to charge a changes in the perceived pricing ranged from 80 to 103, though An intensified focus on
price premium collapsed entirely. of the two brands over the demand remains relatively low The next six months are likely software will likely be the lead
Huge demand Nokias Premium index dropped decade. Between 2008 and 2016: outside of China. Within China, to be the most important and battleground, with artificial
iPhones global Power score from a global average of 133 to however, both Xiaomi and Huawei interesting in the smartphone intelligence the likely route to ever
only 102a decline of 23 percent. Samsungs Perceived Price are now very well established market for years. The recent greater and increasingly effortless
(consumer demand based
Index rose from 90 to 116 offerings at comparatively launch of the Samsung Galaxy S8 user interaction. Augmented
on strength of brand equity)
improved from a global index of
A Galaxy of challenge iPhones Perceived Price low price points. Huawei is in March is likely to be followed reality offers another tantalizing
just 69 in 2007 to 236 in 2016. Index fell from 185 to 145 also investing heavily in global by the iPhone 8 in September opportunity, as evidenced by the
However, as happens in any (though there are whispers of a
marketing, boosting the brands global hysteria surrounding the
2
category, challengers have The challenge for iPhone is to delay) and both releases come
presence and influence. success of Pokmon Go! last year.
emerged to threaten iPhones continue to deliver a clear point at a time when the market has a
dominance, the largest of these of difference in order to justify a general feeling of stagnation for
These relatively new players have Think Different? As we
being the Samsung Galaxy series. circa 30 percent premium over many. Incremental improvements
also impacted the price premium approach iPhones 10-year
Samsung. that both iPhone and Samsung to screen sizes and cameras anniversary, theres never been a
First launched in 2010, the
A justified premium can justify based on their existing just dont generate a high level better time for the brand to re-
Samsung Galaxy sparked huge Samsungs recent travails with of curiosity and certainly dont
equity in China. This has fallen apply that particular mantra and
iPhones global Premium Index growth in the global marketplace the recall of the Note 7 do not offer the same opportunity for
between 10 percent and 15 truly disrupt once more. The race
peaked at 130 globally in 2016 for Samsung, as evidenced by seem to have caused long-term differentiation that they once did.
percent for both brands since for the next iLE is on; the question
the brands equity was able to a global Power score increasing damage to the brands financial 2013. is, who will deliver it?
support a price point 30 percent from 155 to 300 over the decade. performance, suggesting a strong In an era where consumers are
above the average in a typical brand with a loyal following. becoming more embedded in a
Apples response was to launch
market. brands ecosystem, many are
the iPhone SE in early 2016; this
likely to take the path of least

Thought Leadership/THE PURPOSEFUL AGE
THOUGHT LEADERSHIP
We live in troubled times. Key stakeholders:
The Purposeful Age

CANDACE KUSS
Despite the tremendous Employees
advancements in
Smart companies know that their
technology, the world faces
own employees are especially
climate crisis, violence, attuned to what that brand
poverty, discrimination, and stands for in the public eye. Some
hatred. of the top ads that ran during the
2017 Super Bowllike the brilliant
Should brands
As activism goes
Budweiser immigrant story of
take a stand? founder Adolphus Buschwere
a way to signal to employees that
Multiple studies state that people the corporation they work for
expect corporations to contribute values the multicultural nature
mainstream,
Director of Social Media to society. A report by Unilever of their workforce. (In spite of
Hill+Knowlton Strategies shows a third of consumers the current US administrations
Candace.Kuss@hkstrategies.com
buying from brands based on regressive attitude, almost all
their social and environmental families in the US cherish their
impact. own immigrant stories. My
brands must take

grandmother went through Ellis
Brave stands by brands with Island on her own as a teenager
a clear purpose can produce from Poland and married a first-
favorable financial performance. generation Irish American; Im a
Unilever observed brands that direct result of this melting pot.)
have integrated sustainability
their place in
into both their purpose and Corporate social
products growing 30 percent lobbying
faster than the rest of the
business. Even before the recent election,
immigration issues were a
culture and society

Harvard Business Review major concern for tech giants
published The Business Case like Google and Facebook that
For Purpose, which showed that employ high-skilled foreign
companies with a strong sense workers. Indeed, some such as
of purpose are able to transform Google and Yahoo! were co-
and innovate better, while it founded by immigrants.
also helps to improve employee
satisfaction.
Purpose-led brands resonate with
their audiences, including employees Hill+Knowlton Strategies is a leading
global strategic communications
consultancy, providing services
to local and multinational clients
worldwide.
www.hkstrategies.com
3 Thought Leadership Thought Leadership/THE PURPOSEFUL AGE
People who think brands have Whats interesting is that What I especially like was the Fighting back
no place in anything political more established travel benefit to REI staff, who are
forget that for decades major brands are getting on board. outdoor enthusiasts themselves. There is no doubt we are in a
TAKES A
corporations have hired public Expedia launched an ad about For the first time, they got the cultural shift or course correction
affairs professionals to represent connecting across cultures day off. that seeks to end decades of tired
their interests. As part of our during CNNs coverage of the clichs and stereotypes about
STAND
specialist services, H+K has a US presidential inauguration, REIs CEO reports that after women.
bipartisan team of legislative and and Hyatt ran a message of #OptOutside we saw a 100%
regulatory strategists that help acceptance during the Oscars. increase in applications for jobs A personal favorite comes from
clients navigate this space. in Q4 and our retention is double ANZ Bank in Australia. Pocket
Being a part of a bigger our retail competitors. More Money, which shows girls getting
Whats different now is that community is a hallmark of proof that people want to work paid less for chores than their
brands driven by purpose are socially conscious brands, but for a company who respects brothers, is the most charming
following the same north star in it can be expressed in small them and acts on their values. argument against the wage I was never more proud to work for WPP than
their marketing communications everyday actions as well as pay gap Ive ever seen. And its when Sir Martin Sorrell went on stage at Cannes
as they do in public affairs. costly TV adverts. A team from Empathy and respect part of a bigger program called
Lions with the other major holding companies and
Activism has entered mainstream my agency worked with local #EqualFuture, designed to help
culture. Going beyond the mall client Westfield on an For 2017, REI launched a new
achieve financial gender equity. then-UN Secretary General Ban Ki-moon to launch
public effort called Force of Common Ground in support of the UN Sustainable
corporate social responsibility Easter weekend activation called
Nature, a program designed
(CSR) programs of the past, Revamp Camp: Customise your ANZ is a shining example of a Development Goals (SDGs). As Goal 17 states: A
to bring gender equality to the
purpose-led companies are Closet. In collaboration with the brand being active in an area
outdoors. successful sustainable development agenda requires
merging these efforts into the charity Save the Children, the where they have a clear right
spotlight of their advertising and workshops showed kids creative to play. This is a key factor in
partnerships between governments, the private
Sixty percent of women say sector and civil society.
PR programs. ways to dress up old clothes and successful brand activism.
that mens interests in outdoor
keep them out of the landfill.
Purpose as a creative activities are taken more seriously
To combat neo-Nazi graffiti WPP chose Goal 5: Gender Equality.
platform A higher purpose than womens, according to REIs
polluting Berlin neighborhoods, a
vs. the bottom line 2017 National Study on Women As the H+K liaison for Common Ground, this gave
paint store enlisted street artists
Airbnb didnt have to agonize and the Outdoors. So REI will
to #PaintBack by transforming me the privilege of meeting with UN Women, the
about taking a stand in their own Its not a principle until it costs focus their marketing efforts on United Nations Entity for Gender Equality and the
the swastikas into flowers,
Super Bowl ad, We Accept. you money, said Bill Bernbach women in 2017 to combat current
bunnies, and other happy images. Empowerment of Women.
Their stated mission of helping back in the day. male-dominated imagery of
They took a visible stand against
people belong anywhere people in the outdoors.
hate in a creative wayand won
naturally leads to creative Now in its second year, outdoor A first step to support UN Women is to sign on to
the 2016 Eurobest Design Grand
expressions of this commitment. recreation retailer REIs much- This empathy and respect for
Prix as a bonus. their Womens Empowerment Principles, which
And they prove this promise awarded #OptOutside program their female customers reminds
offer practical guidance to business and the private
via actions like fighting any is more of a movement than a me of the equally empowering Be bold for change sector on how to empower women in the workplace,
discrimination by hosts and marketing campaign. By closing This Girl Can movement from
providing donations and housing all its stores on Black Friday, Sport England, which encourages That was the theme for the most marketplace and community. Close to 1500 CEOs
for refugees. Americas biggest shopping all women to be active. recent International Womens have taken this stand for gender equality to date.
day of the year, REI proved Day. And it is great advice for any
its commitment to outdoor brand built around a purpose.
adventure was more than an ad We live in troubled times. Brands
slogan. can and should be part of the
solution.

Disruption
& Change
3 Disruption & Change Disruption & Change/BUSINESS-TO-BUSINESS
Business-to-Business
Brands continue
and 10 percent. Several factors
may account for this phenomenon, INSIGHT
including the disruptive nature of the
year, which touched all categories,
and the fact that the annual value
growth of some of the large B2C
technology brands slowed. However,
to blur border
the comparable value growth
rates may also reflect the increase
in crossover collaboration and
aggressive efforts by B2B brands to
adopt B2C skills in communications
INSIGHT and customer cultivation and
dividing B2B, B2C

management.
Adopting a B2C
mentality
Disruptors force
To narrow the gap, more B2B brands
may need to emulate the way in which
traditional B2Bs
B2C brands segment their markets to be more agile
Business brands adopt consumer brand-building skills and interact with customers. The
default B2B market segmentations B2B brands need to prove their
that group together small, medium, credentials in ways that consumer
and large companies are not always brands dont have to. In B2B, the
The distinction between The BrandZ B2B Top 20 ranking and its replenishment technology most effective, especially when B2B advertiser cannot portray a false
business-to-business (B2B) reflects this blurring. The ranking threatens fast-moving consumer- brands serve their small customers illusion, because the experience of
includes the highest-value brands product brands. with technology, their large customers the product makes the brand.
and business-to-consumer
(B2C) brands continues to
in the BrandZ Global Top 100 that Brands attempt with human interaction, and the
blur because of increased

generate over half their revenues from
business clients. Nine of the B2B Top
Catching up to develop B2B medium-sized customers with a B2B advertisers need to be
combined approach. more multidimensional. That
collaboration and disruption. 20 are technology brands, four are The B2B brands have some catching side of business poses a challenge to many of
The emergence of technologies banks, and seven are divided among up to do. Over the past 12 years, the Similarly, some large organizations the established brands that have
such as the Internet of Things these categories: logistics, oil and gas, BrandZ B2C Top 20 increased in Were seeing that a lot of brands with both consumer and commercial built their reputation around
and conglomerates. brand value 233 percent, more than that already straddle consumer businesses market the same products reliability or seriousness. They
and autonomous cars has
twice the rate of the BrandZ B2B and business are putting more one way to corporate clients and a now need to be more agile and
accelerated collaboration. Few brands are purely B2B. Microsoft emphasis on the business sector. different way to consumers. They
Top 20 brands, which increased 90 adapt to changes in the industry.
Cloud computing has and IBM, ranked first and second in percent. And the B2B brands lagged They see opportunity there and, emphasize the corporate name with Its becoming more and more
disrupted the IT structure of the B2B Top 20, are primarily business the B2C brands in each of the five because theyve focused on the commercial clients, as a service difficult to be credible. In contrast,
the workplace, decentralizing brands, but they also have consumer- BrandZ Vital Signs: Innovation, consumer market so far, theyre reassurance, while they promote a disruptor brand comes in and is
facing operations, particularly finding it more difficult to grow their individual brands to consumers. immediately, and believably, much
purchasing and introducing Communications, Brand Experience,
Microsoft, and they collaborate with Brand Purpose, and Love. High scores share just slugging it out with the Ultimately, brands need to cultivate more agile, which builds credibility.
more consumer devices. B2C brands. Conversely, the first- and competition. B2B is potentially
in these indicators mean that a brand communication and brand-building
second-ranked brands in the Global is perceived as Meaningfully Different an underdeveloped part of their skills to serve both business and Anna Gilmour
Top 100, Google and Apple, are and has a better chance of growing business. consumer customers. Account Director
primarily B2C brands, but they also market share and commanding a price Maxus
gain revenue from business clients. premium. Gareth Richards The logistics brands in the BrandZ Anna.Gilmour@maxusglobal.com
Group Partner B2B Top 20UPS, FedEx, and
Amazon, No. 4 after Microsoft in Recent results suggest that B2B OgilvyOne Business DHLhave adopted some B2C
the BrandZ Global Top 100, is the brands may be narrowing the gap Gareth.Richards@ogilvy.com lessons, perhaps because the rise of
paradigmatic disruptor. Its consumer- in the rate of value growth. Over e-commerce has placed them face to
facing e-commerce business has the past year, both the Top 20 B2B face with consumers. UPS added new
transformed retail, while its delivery and B2C brands increased in value dimensions to the brand with a richer
service challenges logistics brands at virtually the same rate, 11 percent story about being a problem solver,
especially for small businesses that
lack expertise and resources.

3 Disruption & Change Disruption & Change/BUSINESS-TO-BUSINESS
BrandZ B2B Top 20

Brand Value
Brand Category % Change
2017 $Mil. 2016 $Mil.
2017 vs. 2016
1 Technology 143,222 121,824 18%
2 Technology 102,088 86,206 18%
For some B2B brands, access to

consumers provides unrealized 3 Regional Banks 58,424 58,540 0%
growth potential. For example, with
the right marketing approach, a
financial services company could 4 Logistics 58,275 49,816 17%
become the bank of choice for the In addition, the decision-making
employees of its corporate clients. process in technology purchasing INSIGHT
Unlocking this potential requires a
5 Conglomerate 50,208 54,093 -7%
today is more decentralized. And
culture shift, and that depends largely rather than meet only with the IT
on hiring and retaining the right director, the B2B brand more likely 6 Technology 45,194 39,023 16%
people. will interact with potential decision
makers in diverse departments
Attracting talent throughout an organization. These 7 Technology 27,243 22,813 19%
decision makers often are millennials
B2B technology brands illustrate who have recently risen to positions of
the recruitment challenge. Since authority, and whose experience with 8 Technology 21,919 18,632 18%
the advent of cloud computing, technology brands is more with B2C
businesses now purchase technology brands than with the B2B heritage
differently. As a result, B2B brands.
9 Technology 21,359 19,489 10%
technology brands need to adapt
their recruiting strategies. It used to Consequently, B2B brands are looking 10 Global Banks 20,536 20,276 1%
be that decision-making authority for people who know how to navigate
was concentrated in the IT director, a corporate organizational chart and
who reviewed complicated specs and find the decision makers. And the B2B brands recruit 11 Technology 20,388 18,652 9%
made a rational choice from a small B2B brands are not just seeking sales talent from across
consideration set of B2B brands. That people with these qualitiesthey want
decision often resulted in a long-term knowledgeable and relatable people the sector divide 12 Logistics 19,441 16,236 20%
marriage between a client and a major at all levels, because the interface with
B2B technology brand; with products customers happens throughout the B2B brands are bringing more
and services integrated throughout organization. B2C talent across. The B2B brands 13 Oil & Gas 18,727 16,838 11%
the client company, the deep realize that they need that level
interdependence that was created As B2B brands do a better job of human understanding. As
made divorce unlikely. communicating their purpose, they their businesses change, they 14 Oil & Gas 18,346 14,940 23%
are attracting more young people need people who understand the
Because that decision was so who want to make money, but who individuals and relationships within
consequential, and potentially also want to spend their time doing organizations, and who know how 15 Global Banks 17,580 17,055 3%
impacted the career advancement something that feels more worthwhile to navigate within a customer
of the decision maker, the IT director than simply making money. To recruit organization and among the
decision makers.
16 Technology 16,725 14,508 15%
often made the safe choice, a large and retain more of these millennials,
legacy brand with an impeccable B2B brands need to become their
reputation. Today, with nimble destination of choice, rather than Karl Turley
17 Logistics 15,844 13,199 20%
cloud-computing brands promising the default safe school alternate to Business Director
lower costs and less risk, the safe Apple, Google, or Facebook. Geometry Global
choice for an IT director wanting to Karl.Turley@geometry.com 18 Global Banks 14,129 11,943 18%
demonstrate competence is to review
a wide consideration set that includes
startups. 19 Technology 14,018 NEW ENTRY
20 Conglomerate 13,947 12,485 12%

Source: Kantar Millward Brown / BrandZ (including data from Bloomberg)

3 Disruption & Change Disruption & Change/B2B BRANDS
B2C outpaces
B2B BRANDS LAG B2C BRANDS IN THE RATE ALTHOUGH B2B BRANDS LAG IN VITAL
OF VALUE GROWTH SIGNS SCORES
During the past 12 years, the BrandZ B2B Top 20 The average Vital Signs score, a composite of the individual
increased a healthy 90 percent in value, but the BrandZ indicator scores, is 100. B2B brands score 107. B2C brands
B2C Top 20 increased 233 percent. score 118.
B2B in value
VITAL SIGNS COMPOSITE SCORE
B2C
300% 12-YEAR B2B B2C
107 118
VALUE CHANGE
+233% 95 125
growth, but gap 200%
B2B
12-YEAR
VALUE CHANGE
BRAND PURPOSE
B2B
110 116
B2C
+90
narrowing
%
100% 95 125
INNOVATION
B2B B2C
One of the most striking Legacy B2B brands like IBM, The widest gaps are in
0% 106 117
95 125
differences between business- established in 1911 in New York, have Communications and Love.
grown substantially in value over the B2B brands score 105 in both
to-business (B2B) and business-
past 12 years, according to BrandZ indicators. B2C brands score 120 in
to-consumer (B2C) brands is BUT THE GAP IN GROWTH RATE IS COMMUNICATIONS
research. But they have lagged the Communications and 119 in Love. The
their average age. Business NARROWING
pace set by younger B2C brands disparity reflects the return on the
B2B B2C
brands are 83 years old, on like Apple, which was started in 1976 investment that B2C brands receive Both the B2B and B2C appreciated in value at virtually the
average, compared with 44 for
consumer brands.
in California. However, as industries
evolve and collaboration increases,
from brand building. It also suggests
the kinds of improvements that a
same pace last year, 11 percent and 10 percent.
105 120
the pace of brand value change may
become more even.
B2B brand could expect to achieve
by adopting B2C brand-building B2B B2C
95 125
20%
practices. 1-YEAR
VALUE CHANGE 1-YEAR BRAND EXPERIENCE
During the past 12 years, the BrandZ VALUE CHANGE
B2B Top 20 increased a healthy 90
percent in value, but the BrandZ
Significantly, the Vital Signs gap is
narrowest in Brand Purpose, where +11% +10% B2B B2C
B2C Top 20 increased 233 percent.
In contrast, both the B2B and B2C
B2B brands achieve their highest
score: 110, compared with 116 for 10% 108 118
95 125
appreciated in value at virtually the B2C brands. This score is significant
same pace last year, 11 percent and 10 because Brand Purpose usually is the
percent. foundation on which Communications
and the other indicators are built. LOVE
On the BrandZ Vital Signs Index, the 0%
gap between B2B and B2C remains High Vital Signs scores have B2B B2C
105 119
wide, however. The Vital Signs Index important practical consequences,
assesses brand health across five because strength in these five aspects
diagnostic indicatorsBrand Purpose, of brand health produces Meaningful
Innovation, Communications, Brand
Experience, and Love. The average
Difference. And a brand that is
perceived as meaningful (meeting
95 125
Vital Signs score, a composite of the needs in relevant ways) and different AVERAGE
individual scores, is 100. B2B brands (distinctive and trend-setting) is SCORE IS 100 Source: Kantar Millward Brown/ BrandZ
score 107. B2C brands score 118. better able to gain market share and
command a premium price.

Thought Leadership/COLLABORATION
THOUGHT LEADERSHIP
If we had a dollar for every time a new technology was
Collaboration
SARA GOURLAY
hailed as a game-changing, life-enhancing, swing-from-
the-moon breakthrough, then its safe to say wed be
writing this from a luxurious tax haven. The IT industry is
incredibly good at hyping itself to the point where terms
become commonplace well before any real impact is felt
by the masses.
More collaboration
For the past five years the trend the devices we have in our home
getting the most attention has together. And we are using the
been the Internet of Things. The term devices in the widest sense
Internet of Things is a much possibleyour refrigerator, your
coffeepot, your stove, and your
needed to realize
friendlier way of talking about
Global Practice Director, Technology machine-to-machine (M2M) washing machineany electronic
communications, a paradigm device you own can and will be
Sara.Gourlay@hkstrategies.com
where the car speaks to the linked to the Internet of Things in
garage door and the washing time.
machine has a daily chat with
Internet of Things
the weather service. At its most The scenario depicted by LG is
simplistic level, the Internet of one of ease, where devices ability
Things allows sensors within to automate lifes small decisions
devices to communicate makes for a relaxed and healthier
seamlessly with one another individual. You return from your
complete potential
without human interaction. morning run wearing your fitness
tracker, which communicates
This isnt a new concept. RFID with your hot water system and
was hailed as a transformative ensures the shower is ready for
solution for the logistics and you. Now hungry, you move to
CPG businesses, allowing fast the kitchen, which tells you what
and reliable tracking of goods as you have available for breakfast
they moved from warehouse to and suggests a recipe, steering
Marketers must be prepared store. In many ways that was the you towards the healthier choices
indicated by your health data.
for expected brand disruption starting point for the Internet of
Things as described today.
So what is the promise of the

Internet of Things? At the
Consumer Electronics Show this
Hill+Knowlton Strategies is a leading year, LG Electronics showcased
global strategic communications a smarthome concept that
brings it to life. Based around an
to local and multinational clients
worldwide. automated device or home hub
(in this case a robotic one), the
www.hkstrategies.com kitchen of the near future links all
3 Thought Leadership Thought Leadership/COLLABORATION
LONDON - UK
You put that sweaty running gear whether in the packaged foods can steal competitive advantage.
into the washing machine, and or the dishwasher business, are Given the need for collaboration
it calculates the best time to run going to have to collaborate. If at every level, it is perhaps
the load based on weather, the we look outside the home, the inevitable that the real drivers of
right amount of detergent based potential for really smart cars, the Internet of Things wont be
on water quality, and starts the even autonomous cars, shows the hardware manufacturers but Value of all UK brands
program while you go about your this reality perfectly. In April, the software and services people. in Global Top 100
day. When you come home, it Honda launched its Innovation
shows you recipes for dinner, and Group, a new company that Different thinking $86.5 Billion
once one is selected, turns on the aims to seek transformative
oven for you and adds the items collaborations. Nick Sugimoto, It also means that marketers
used to your next shopping list, all CEO, Honda Innovations believes will have to think differently and
while playing your favorite tracks. that we are in the middle of a collaboratively about how we
technology convergence, saying access their products. If we reach
Internet of Things that by looking broadly across a point where our refrigerator
technology areas and partnering is selecting what brand of beer
The Internet of Things is at with innovators across the globe, to buy, how do purveyors of
a tipping point. We have the we can create products and such products ensure that
infrastructure now, and with 5G services that enhance the lives we consumers continue to be
on its way, engaged
we will have enough to
unparalleled
amounts of Companies marketing to defy our
devices? When
consumers, whether in the

connectivity we willingly
to make this automate
packaged foods or the

work. The lifes smaller
second piece actions and
of the puzzle decisions, what
is the success dishwasher business, are will emerging
of vocal brands have
computing. going to have to collaborate. to do to break
Today vocal our default
recognition setting? Will
software is as close to parity with of our customers. It is estimated marketing messages reach us
human vocal recognition as it that 82 percent of cars will be through new channelsextending
could ever be. That means that connected to, and a part of the the reach of social media right
we no longer need screens or Internet of Things by 2021. to the dashboards of our cars,
keyboards to tell our devices what for example? Will the content of
to do. It means that Amazons Each deviceagain taking those messages have to change
Alexa and Googles Home, along device to its broadest to ensure we re-engage with
with the 5 million other home- meaningwill have to decisions that we have now
hub robots that will be deployed communicate with other devices, outsourced?
in the US by 2020, will play a regardless of manufacturer or
fundamental role in shaping how technology. This is where the Collaborating with new and
we live our lives in the future. home hub is so essential, and different partners is going to be
potentially where Amazon Alexa, essential. Contentmore than
However, it wont happen without with its 10,000+ established everwill be king. And Google
a change in attitude. Companies skills, and Google Home, with its and Amazon just got a whole lot
marketing to consumers, growing range of capabilities, more important for marketing
departments across the world.

3 Disruption & Change Disruption & Change/EMERGING BRANDS
Emerging Brands
New competitors
INSIGHT
Purpose-driven
characteristics
Purpose is fundamental for emerging
brands, which often are founder
led. And purpose can provide an
cause disruption
advantage relative to large established
brands. Some established brands
may enshrine purpose in a founders INSIGHT
vision from decades ago, but unless
that purpose is refreshed and made
relevant, it can sound inauthentic and
worldwide
seem retrofitted onto the business.
In contrast, emerging and disruptor

brands generally start with purpose
and connect it with a related social
Brands emerged issue or trend. They develop relevant
since the dawn products and services that fit into
an existing category (or into no
of the internet category). Uber introduced a different
Young and purpose driven, they reshape categories There is an age aspect to defining
approach for transporting peopleor
thingsfrom one place to another.
emerging brands that broadly The existence of Uberand brands
corresponds with two inflection such as Ola in India, and BlaBlaCar,
The BrandZ Top 100 Most True disruptor brands do not fit They are about making money, but points: the internet achieving a Paris-based global carpooling Purpose-led
Valuable Global Brands neatly in established categories. More they are also about more than making
typically, a category forms around a money. Some measure success not
scale in the late 90s, and the
launch of smartphones in 2007.
servicepersuaded car pioneer
brands, like Ford, to experiment with
brands build
examined in this report often
face fierce competition from
disruptor brand as it attracts followers by achievement of scale, but by These two milestones help define other mobility businesses. legacy + profits
and, inevitably, imitators. Amazon and fulfillment of brand purpose. Even emerging brands, especially
brands that do not appear the evolution of e-commerce is a clear with limited distribution, some gain those in technology. A 20-year- Purpose and passion can sometimes I firmly believe that brands need
in the ranking because they example. Disruptor brands are not fame and manage to punch above old brand, like Google, achieved attract a community around the to define their purpose, and they
are too small or not publically necessarily the first movers, but they their weight. Like luxury brands, scale as a large global business brand. For some brands, community need to build their marketing
traded. Characterized as are the best movers. Fortunately for they set market trends and inspire about 10 years ago. This is the is so basic that it empowers the and communications out from
established brands, disruptors do not imitation. For example, without selling stage smartphone-era brands are business model. Waze, the mapping that heart. Weve seen how new
disruptor or emerging brands, appear often. a lot of cars or making a profit, Tesla getting to and they are now the app, relies on its users for crowd generation founder-led brands,
these competitors exert demonstrated a future for electric ones to watch. They are bubbling sourcing real-time traffic information. like Airbnb, do this naturally. Many
increasing influence worldwide Emerging brands are a more common vehicles and recently surpassed Ford under and will start to break into Tesla knows who owns its cars, of these brands are profitable.
and across categories. phenomenon today. They share many and GM in market value. the BrandZ Global Top 100 in and Tesla owners can connect with They want to make money, but
characteristics with disruptor brands, the next few years, as their scale each other. Airbnb works because they want to do more than make
but they do fit into established Variations on emerging brands are matches their ambition. a community of owner and renters money. They want to solve an
categories. Emerging brands are appearing worldwide in categories as interact. issue and contribute to society.
relatively young, started during the diverse as technology and consumer Mark Chamberlain
explosive growth of the internet, and products. In fast-growing markets Sector Managing Director - UK These brands operate nimbly. Candace Kuss
even since the introduction of the like China, India, and Indonesia, Kantar Millward Brown Snapchat originated as an app for Director of Social Media
iPhone 10 years ago. entrepreneurs have paired marketing Mark.Chamberlain@millwardbrown.com images that disappeared quickly, Hill+Knowlton Strategies
expertise and higher quality standards enabling people to share information Candace.Kuss@hkstrategies.com
Less driven by usual business with deep local market knowledge and protect privacy. Following its @CandaceKuss
needs to report quarterly on rising and insight. This combination has IPO, Snap declared itself a camera
sales and profits, emerging brands enabled them to create products and company and released is first product,
typically begin with a different set communication that resonate with Spectacles (sunglasses that take
of priorities, asking: What does the authenticity and purpose. photos). To become more agile,
consumer need? How can the brand some established brands are creating
fill that need without causing harm to internal investment groups expected
individuals or the environment? They to act with greater speed. Some are
attempt to improve the consumers acquiring their disruptive competitors
life by removing friction. to preempt disruption.

INSIGHTS
Emerging and disruptor brands

usually have a positive attitude and a
high tolerance for risk. They accept
INSIGHT failure as a learning experience Similarly, Indian smartphone brands
rather than something to minimize like Micromax and Lava, or the
in a quarterly earnings report. The digital payment system Paytm,
brands also are talent magnets. Funds potentially can increase their presence
sometimes are available through internationally with a competitive
crowdsourcing. And many funders value proposition. Indias Patanjali,
want to be part of the startup scene. established just over a decade ago,
markets a wide range of fast-moving
The brands rely on data and, if they consumer goods that emphasize
are not actually in the technology their ayurvedic heritage and have
category, they often are technology- effectively challenged major
enabled, as exemplified by Blue multinational consumer products Purpose attracts
Apron, the online service that brands in India. Brands like these can
changed the way people think about emerge in the West. communities,
shopping and meal preparation. The which yield data
brand curates menus and delivers pre- The Indonesian cosmetic brand
portioned ingredients, a subscription- Wardh specializes in products with
Disruptive brands model Birchbox for the palate. a holistic view of inner and outer
Emerging brands attract
communities because of their
eliminate friction beauty. Asian brands with this notion Early-adopter purpose, but data enables
in a consumers life These characteristics describe a of beauty are increasingly appearing
on Western cosmetics shelves. The
millennials drive the brands to monetize the
wide assortment of brands that are community. For example, Warby
Chinese traditional medicine brand brand growth
Disruption begins with a just
in various stages in their life cycles.
Some have already achieved great Tong Ren Tang was established in Disruptive brands Parker attracts a community.
It can identify the members of
imagine mindset, as in just
scale and are brands that could 1669, during the early years of the Millennials are not the only market build success that community who purchase
imagine a world in which. Thats for emerging brands, but they
because for us, disruption is about
soon appear in the BrandZ Global
Top 100. Other less well-known
Qing Dynasty, which hardly defines
it as emerging. However, the brand is may be the early adopters. And beyond scale the most pairs of glasses, and it
can invite them to special events.
eliminating friction. Streaming aggressively opening stores outside the scaling of a brand may come
brands still lack significant scale but If Warby Parker attracted a
by Netflix removed the friction after millennials talk about it. That Many of the most disruptive
have abundant ambition. As these of China. community but sold its eyeglasses
of waiting three days for a movie may be the way these brands brands today are being built
brands achieve notoriety, building through another retailer, it would
you wanted to watch immediately. have managed to succeed in around expanded definitions
a brand becomes important for Emerging and disruptor brands will not be able to identify and reward
Rent the Runway ensured that creating a unique experience and of success. Instead of building
communicating the companys continue to appear across categories. its best customers.
a limited wallet didnt limit the adapting well to local markets. brands that can last 100 years,
differentiating advantages and Some will be unfamiliar, others not.
expansion or choice in your with a myopic focus on return on
building loyalty. Twenty years after its IPO, Amazon is Tom Kelshaw
wardrobe. Communities form Anda Tita investment and scale for scales
an enormous company with a market Director of Innovation
naturally around these brands Client Director sake, they are including things
and thats a necessity. Because if A global phenomenon capitalization of over $460 billion.
Having disrupted traditional retail with Kantar Millward Brown like their social or environmental Maxus
impact or community investment Tom.Kelshaw@maxusglobal.com
you dont have enough riders and e-commerce, business-to-business Anda.Tita@millwardbrown.com
drivers, Uber doesnt work. Its the In a global economy, disruption can as measures of success. In the
technology with cloud storage,
same for businesses like Airbnb or come from anywhere. Increasingly, process they are inventing new
and logistics with its own delivery
Waze. established brands in Asia are disruptive business models.
business, Amazon now is aiming to
becoming emerging brands in the
disrupt fast-moving consumer goods
Katerina Sudit West. Huawei, ranked No. 6 in the Wayne Pan
with automatic replenishment, and
Managing Director, 2017 BrandZ Top 100 Most Valuable Senior Consultant
grocery retail by eliminating its key
Communications Planning Chinese Brands, is well known Kantar Futures
pain point, checkout.
MindShare outside of China as a business- Wayne.Pan@thefuturescompany.com
Katerina.Sudit@mindshareworld.com to-business telecommunications
technology provider. However, it is
just becoming well known as a maker
of smartphones to rival those of Apple
and Samsung. Chinese smartphone
brands Xiaomi and Oppo are also
gaining attention outside of China.

They measure success
10 Characteristics 1 6
by the scale they
They often are founder- build, but also by the
led and purpose-driven. difference they make.
of Emerging
2 7
They attempt to They attract communities;
Brands
improve the consumers community is almost part
life by removing friction. of the business model.
3 8
Brands that are truly original and disruptive They may not be the
that cause a business model paradigm shiftare first movers, but they are They put customer
understandably rare. Such brands do not fit into usually the best movers. experience first.
traditional product categories. Instead, when
their success inspires imitators, categories form
4 9
around them. Examples of disruptor brands
They are about making
include: Amazon, Google, and Facebook.
a profit, but not only They punch above
Increasingly brands are emerging that meet
about making a profit. their weight.
most of the defining characteristics of disruptor
brands and have tremendous impact on the
categories in which they compete. Among the
characteristics defining emerging brands are: They are usually about
5 10
technology, but not
always. Many are They are magnets
technology-enabled. for talent.

Thought Leadership/UNICORNS
THOUGHT LEADERSHIP
Unicorns are privately owned business valued at $1 billion
Unicorns
MARK CHAMBERLAIN
or more. The billion-dollar tech startup, the stuff of which
myths were made, may now be more of a reality. A quick
look at the BrandZ Top 100 Most Valuable Global Brands
ranking tells the story of how Google, Facebook, Amazon,
Tencent, and Alibaba built successful brands and floated
them for billions of dollars in a period of two years or less.
Disruptive product
The billion-dollar tech startups Contrast BlaBlaCar to ChaCha,
are here to stay. Snap went public which was a free mobile answer
this year valued at $3 billion, and service for people on the go.
any one of Uber, Xiaomi, Airbnb It was a human-based search
ideas transform
or Pinterest could be next. So engine formed just before the
Sector Managing Director
Kantar Millward Brown how are these unicorn brands smartphone era, when internet
Mark.Chamberlain@ bornhow does one go from an search engines could match
millwardbrown.com embryonic idea to floating for keywords but were not so
billions of dollars to creating a good at answering questions.
into high-value
valuable brand? Advancements in technology
destroyed the consumer need
The most successful unicorns the service was meeting, and as
rarely begin life as money-making a result, ChaCha failed. So, the
machines. They often start as a first step on the road to being a
brilliant technology solution to an global and financially viable brand
global brands
unmet consumer need, or they is to ensure consumers think
purposefully or inadvertently tap your brilliant solution for meeting
into a changing consumer trend. an unmet need is different. This
Take BlaBlaCar as an example. creates potential for value share
Valued at $1.6 billion, BlaBlaCar is growth.
the worlds largest long-distance
carpooling community. It was
founded on the understanding
Sustaining scale over time that millennials value access
depends on brand building more than ownership, and it uses

technology to connect drivers
willing to take on passengers to
share the cost of the journey.

3 Thought Leadership Thought Leadership/UNICORNS
Rapid scaling This may be true to a point, Importance of brand The final challenge as a brand
Once a unique idea is proven

but it is not the entire truth.
First, overemphasizing salience Inevitably, an emerging brand
grows is to build understanding
of different consumer and market
BRAND BUILDING
to work, an emerging brand
with the right funding and
ignores the contribution that high
margins make to brand growth.
reaches a stage where growth
stalls, when technology moves on
contexts so that a brand can
subtly flex itself to local needs
ACTION POINTS
commercial strategy may BrandZ data shows that the or is copied as larger competitors that are critical growth barriers
1
begin to go through a period ability to command a premium with more resources figure out or facilitators. It may require a Build awareness smartly by maximizing
of rapid growth and scaling. price is driven not by Salience how they can respond to meeting fundamentally different business
advertising ROI.
This is the point where building but by Meaningful Difference. the same consumer need. It model, a tailored product
Salience is key, a tough task This can be an important route could also be that increasing offering, or more nuanced
when you need to do so against to growth for an emerging brand. scale brings new challenges advertising. For example,
competitors with bigger budgets.
An interesting example here is
Instagram. In a two-year period
from 2013 to 2015, Instagram
In the music-streaming business,
margins are very thin, requiring
a business to have high volume
to be viable. This is a race that
that a business struggles to
manage. Its at this stage that
building a brand becomes even
more important. An emerging
e-commerce retailers in India
have to adapt to cash-on-delivery
payment models driven by the
financial infrastructure in the
2 Balance Salience along with Meaningful
Difference, especially to sustain long-term margin.
3 Build meaning and drive conversion with great

significantly increased its level few can win, and the success business must make a transition country. A non-tech example is
of spontaneous awareness in of brands like Spotify is at the from being product and Salience the failure of Subway in Indonesia, product and service experiences.
both the UK and US. However, in expense of competitors such as focused to building a Meaningful, where the brand didnt recognize
both markets, its Salience Index, Rdio. consumer-driven brand that that any meal without rice is
4
which describes the intensity of appeals to more consumers. considered a snack. Subway was Do not wait too long to adopt a consumer-
awareness relative to competitors, Second, although Salience is In addition, building a brand unable to translate its bread-
centric, brand-building model.
was largely unchanged. This the biggest driver of growth improves staff engagement, based product proposition,
demonstrates that competitors in categories with short-term keeps a business focused and eventually closing. KFC did
were also increasing their purchase cycles, BrandZ data drives consistency. Aligning a recognize the expectations of
awareness levels. An emerging shows that being Meaningful business around serving a single- Indonesian consumers and offers
brand can and should maximize is a bigger driver of volume minded purpose, beyond making rice on its menu to this day. DISRUPTIVE BRANDS DIFFERENTIATE
marketing budgets by running growth in categories with money, can be a nice way of Disruptive brands are differentiating themselves and redefining traditional category
effective advertising so that longer-term purchase cycles. shifting to a more consumer- and Which unicorn businesses can models, creating potential for value share growth through smart utilization of
it builds Salience efficiently. A Being Meaningful is about brand-centric business model. navigate these challenges and technology.
good example is Bukalapak, an meeting consumer needs, either Of course, this has to be done enter the BrandZ Global Top
DIFFERENCE INDEX POTENTIAL FOR GROWTH
e-commerce brand in Indonesia functionally or emotionally. In credibly and would ideally link to 100 Most Valuable Global Brands
that managed to close the this respect, product or service the consumer need that drove list in the next five to ten years by China 258 78%
Google search gap on its more experience plays a crucial role. the business to begin with. building a brand worth billions?
established competitor Lazada in If done well, experience drives Airbnbs online marketplace France 192 53%
this way. conversion, turning Salience into and hospitality service has built Check the list out here and
sales. Amazon Prime is a fantastic rapidly around the purpose decide: https://techcrunch.com/ Indonesia 182 66%
The Ehrenberg Bass laws of example of the importance of of helping people belong and unicorn-leaderboard
growth suggest that success experience. Sixty-three percent of feel at home anywhere. The India 165 64%
from this point forward is Amazon Prime members convert challenge as Airbnb expands into
now purely dependent on on the site in the same session experiences and places is to UK 137 73%
continuing to drive physical five times the rate of non-Prime not lose sight of this purpose.
Saudi
availability (distribution) and members.
Arabia 132 69%
mental availability (Salience).
AVERAGE IS 100 AVERAGE IS 50

Thought Leadership/COMMODITIZATION
THOUGHT LEADERSHIP
Commoditization KATERINA SUDIT

One of the largest challenges impacting marketers today
is the fundamental commoditization of established brands.
Heritage brands are being surpassed by emerging brands,
affecting almost every category, from luxury to spirits to
auto and more. What consumers want, what they value,
and where they choose to spend their dollars have all
Across categories,
meaningfully evolved.
So how do brands and marketers similar functional benefits and

respond? First, you have to offers. Thus consumers have
understand how and why this is become a bit promiscuous across
emerging brands
happening. their big brand choices.
Managing Partner, Executive Director

While many major categories are Niche brands
Mindshare witnessing softening or declines capitalize
Katerina.Sudit@mindshareworld.com in sales, whats especially telling is
are challenging
the lower adoption rates of major Todays social media and
heritage brands by a younger commerce climate enables
generation of consumers who niche brands to capitalize on this
are seeking something quite consumer sentiment. These niche
different in terms of the brands brands are not handcuffed with
established
they purchase and associate the same rigor and protocols
themselves with. For example, for production, distribution,
youve got craft beer stealing or marketing. They typically
dollars away from the main enjoy lower production costs,
stalwarts, as well as gourmet an efficient direct-to-consumer
burger restaurants driving
brands
distribution model, and ease of
business away from fast food marketing awareness through
giants. social media channelswhich are
effective as a major discovery
What once were the most engine for millennials.
positive associations with big
brandsheritage, efficacy, Some larger brands have
and long-standing trust with attempted to buy into the niche
customershave evolved into
Young consumers seek brands more negative associations. Now
segment through dedicated
acquisition strategies. But the
that make them feel special Mindshare is a global media agency
big means commoditized, mass-
produced, faceless, and to some
volume contributions of these
network dedicated to forging smaller offerings wont replace
degree, less trusted. For many
competitive marketing advantage the eroding share of the core or
for businesses and their brands consumers, the big brands are foundational brands.
based on the values of speed, now highly interchangeable, all
teamwork and provocation. providing the same or at least
www.mindshareworld.com
3 Thought Leadership Thought Leadership/COMMODITIZATION
The special in the small Consumers today dont just want

bigger, smaller, better, faster What consumers want and what they expect
The trend toward niche and they want the intangibles, the
artisanal brands is not just about things brands never had to give
the power of newness. New has them before. They want to feel
1 2 3 4 5
been around foreverthink line heard, they want their lives to be
extensions, formulations, models, easier, and they want something
etc. Instead, the migration that made just for them.
marketers are seeing is less
about chasing the shiny object Most importantly, they want to
and more about walking away feel special.
from big brands that are
viewed as not for me. And this Niche brands feel small-batch, Humanization Frictionless Personalization Agility Value
phenomenon is driven by two curated, unique, careful, and, experience
Open-source your brand. Leverage data to Adapt and react to the Find your service
main consumer factors: importantly, special. These are all
Open a dialogue with Find the friction points understand your changing landscape, and purpose for
qualities consumers feel entitled
The heightened expectations your consumers, in social consumers experience in consumer at an culture, and consumer consumerswhat
tothey dont feel that they need
consumers have of brands, media and in person. the category and solve individual level, and sentiment. Dont fight can you do for them,
to go for mass when they can
Invite them to give their them. If consumers hate use that understanding the tideinstead, find not what you sell to
have special.
The values that consumers thoughts, wants, and the waiteliminate the to personalize your your place in the swell. them. Embrace a
wishes to you, and have line. If consumers want message and your And like many things, service mentality; help
want to be associated with. What brands can do your brand respond with content on demand offering. Consumers the mechanics of agility consumers curate,
Todays consumers are a time- humanity and personality. syndicate your offering. have given us all the can actually be planned. discover, navigate,
You dont have to be small to
starved, multi-tasking generation Consumers want to be Consider any potential data breadcrumbs to Put a process in place and balance their lives
win. Instead, consider what the
with high expectations for instant heard, and brands need frustration points and know their preferences, for how your brand can in a meaningful and
disruptor brands do that drives
gratification. They expect a to allow consumers to build solutions for habits, and purchasing react to and leverage impactful way, instead
success. Their ultimate goal is to
problem with an airline to be help shape who they are friction instead of better, patterns. Follow the moments in culture. of just serving up your
create a category of one: special
solved immediately through a and who they become. faster, smaller. Lastly, breadcrumbs and product or offer. In a
and unique. Brands like Netflix,
dialogue on social media. They ensure you can be ensure you serve them world of ad blocking
Uber, Spotifythese are brands
expect to be able to purchase found, experienced, and the right message, at and limited attention
that have broken the mould,
a brand when and where they purchased anywhere the right time, in the spans, the brands
and have essentially created
want to. They expect brands, and everywhere right moment. that earn consumers
their own categories based on
in exchange for the broad data possibledont create attention are the ones
contemporary principles that
exhaust they emit, to understand friction. that provide value to
map to what consumers want
them at a personal level and cater and what they expect. their lives.
to their personal needs.

Thought Leadership/PERSONALIZED RETAIL
THOUGHT LEADERSHIP
The grocery retail industry imagine Ford Motor Company
Personalized Retail
RAY GAUL
is facing a monumental surviving without partnerships
with tire manufacturers or motor
shift. This shift can best be
fuel stations?
described as a shift from
a self-service grocery From where we sit today, we
industry to a personalized know that the shift of the grocery
grocery industry. The age retail industry includes the use
of driving a car to a big of technology to help retailers
Grocery retail
supermarket, taking a and shoppers communicate in
real time. What does this look
shopping cart around acres
like? Instead of waving at a shelf-
of retail shelves, filling the
stocker to come help you, you
cart, and then filling the car can instant-message for help, like
business shifting
Vice President, Research & Analytics is fading. The early stages pressing the assistance button on
Kantar Retail of personalized retail are an airplane. We also know that
Ray.Gaul@kantarretail.com
emerging to replace it. some items will be available in
stores for browsing, while others
Whenever an industry emerges will only be made available if you
from self-service
quickly, satellite business ask for a chance to see them
channels grow alongside that before buying. In addition, we
industry. The companies that know that consumers will be less
are satellites often work in predictableone week they will
tandem or partnership with the visit the market, the next they will
to personalized
original industry. For example, shop from home, and the next
in the 20th century, when the theyll simply order meal solutions
consumer automobile industry in a delivery box. But this is
emerged, a variety of companies boring stuffeveryone is talking
changed their original direction about these things. So lets talk
model, spawning
to meet new opportunities. The about what very few people
range of industries that arrived are talking about: the satellite
to support the car industry business channels growing
ranged from manufacturing (tire rapidly to support this future.
companies), to retail (gas stations
new channels
and autoparts superstores). Very In the age of unicorn companies,
few people know that Michelins the number of startup companies
original tire business was emerging to support a
designed to service the bicycle personalized grocery industry
industry. A few more know that should not be underestimated.
Shell began as an import-export Dozens of companies get
trading business, specializing launched each month, specialized
in obtaining rare seashells for in working with personalized
interior home designs that were grocery giants to make the
Changes will affect how consumers popular at the time, and later consumer shopping experience
We are a leading retail and shopper
shop and interact with brands insight, consulting and analytics
switched to petroleum. Without
the emergence of satellite
frictionless. These companies
are emerging at four stages on
and technology business. We work
with leading brand manufacturers industries, the core industry never the path to grocery purchase.
and retailers to help them sell more can or will develop. Can you
effectively and profitably.
www.kantarretail.com
3 Thought Leadership Thought Leadership/PERSONALIZED RETAIL
STAGE
Product discovery
1 STAGE
Replenishment
2 STAGE
Payment
3 STAGE
Delivery
4
In the age of self-service grocery there were two The old way of buying groceries has been to Most people under the age of 40 can imagine a In the past, grocery shopping was linear. You
ways consumers would try new products. First, check the supplies at home, make a list, go to the cashless future. Canada may soon be the first would start at home or work, go to the store, and
they would see it or try it via a friend, family store, fill the basket, get home, and realize you country to officially stop printing cash. Kenya and then bring your items home. If you had frozen
member, or colleague. Second, they would see forgot two items. In a personalized grocery future, Thailand are not there yet but not due to lack of food, you would have to go home quickly or
it or try it at the supermarket, decide to buy a companies will lock you into a subscription and the trying. Only one in eight financial transactions borrow a neighbors freezer. The future will be
sample, and then try it at home. In the age of Internet of Things will begin to help you manage in Sweden involves cash. As we enter the age of the opposite of linear. You fancy ice cream for the
personalized-service grocery, we can imagine what is expiring soon and what is in short-supply, personalized grocery, we can imagine a day where weekend barbecue? Why not order it now, ask for
new ways emerging. The send samples in a and even how to save money on your next order. technology, product scanning, and payment it to be put in a locker, and then pick it up at your
box industry has already seen some widespread Solutions such as Amazon Dash, which allows merge. Amazon Go is the example that has gone kids sports game on Saturday morning? Would
success. Companies like Birchbox and Graze brands to supply reorder buttons to households, or viral, where, using a phone, you can scan and pay that ruin the surprise? Why not have the balloon
would not have existed prior to the age of Samsungs Family Hub Refrigerator, which allows for your goods. However, a number of companies artist you hired pick it up for you, using the unique
personalized grocery. Pop-up grocery stores, families to receive a spoilage update, are just some are launching digital wallets and blockchain code you provided with his pre-booked Uber ride?
sample vans, and other solutions are emerging. of the many solutions arriving. financial solutions. The banks and credit card Companies like DHL are already innovating in ways
companies are likely to lead the way in this area. that may surprise you, and they are working in
Alibabas investments in Alipay have in a short concert with leading retailers to bring the ideas to
time made it the No. 1 form of payment in China. market.
Surely more innovation is on the way.
As we think about the future of brands

and branding, one thing is sure: As the
grocery industry transforms, we are
bound to see a wide range of satellite
industries emerge, and the brands that
carry these industries are bound to
change from what they are today into
something potentially quite different.
This will only work in partnership.

3 Disruption & Change Disruption & Change/FUTURE OF BRANDS
Future of Brands
INSIGHT
Importance of INSIGHT
purpose rises in
a difficult year Taking a stand
reflects a brands
purpose and values
Taking a stand is critical. How
brands take a stand is another
But disintermediation sits on the horizon One name defines question. I would advise
companies to consider issues
the future facing that are connected to their
Divining the future of brands, Intense public scrutiny required After complaints of insensitivity, What is the purpose of a brand in
brands: Amazon core purpose. Taking a stand
doesnt mean you must jump
always an imprecise exercise, brands to change some of their Pepsi immediately withdrew a TV that world? The outcome depends on
The future of all brands looks on everything that might be
practices. In the UK, people pressured commercial intended to illustrate the how the Internet of Things evolves,
became especially challenging like Amazon. Amazon is an happening politically, but rather
brands to stop advertising in the Daily possibility of mutual understanding, and how many products come to be
this year, because breathless aggressive, well-capitalized let that north-star purpose define
Mail, objecting to some of the tabloids even at a protest demonstration. replenished automatically. In many
company, very profitable in the causes that connect with
political debate clouded the headlines about immigrants. Google cases, the brand consideration set
its own way. And it intends to your values. Outdoor companies
crystal ball. Incessant tweeting and YouTube modified ad placement These circumstances revived will disappear, challenging a brand
could take a stand about climate
policies after advertisers complained discussions about the meaning and to find a creative way to reenter the disintermediate every brand from
and posting around Brexit every consumer. Increasingly, the change or hospitality brands
and Trump forced brands about their messages appearing importance of brand purpose. mix. This prospect challenges brand
sort of technology dominance could assist with the refugee
adjacent to extremist content. Purpose was not intended to be an purpose and changes the purpose of
to examine their purpose. attractive shell added to unify and marketing. that Amazon hasone that is fast- crisis. Brands have the right and
Meanwhile, technology-enabled becoming the norm of success in the obligation to be active about
Most brands avoided political protect the brand. Rather, purpose
a digital erawill play out in ways issues that affect their audiences,
disintermediation portended comment, unless events directly was organic, the spine that gave Persuading the consumer to add
that make Amazon the only brand and they have the power to do this
an uncertain future, potentially impacted their businesses or the brand sturdiness and upright a brand to her consideration set
when they share their values. For
conflicted with their values. US- appeal. The question was, what else would not be useful, because the that matters to people. With all
altering brand relevance and that Amazon has going for it, example, WPP agencies support
based Google opposed the Trump will consumers expect, and how will consideration set no longer would be
purpose. including all the forms of Alexa, the UN Sustainable Development
administrations immigration those expectations change the role of relevant to the way she purchases. At
we should not underestimate its Goals through their work with
restrictions because the company purpose, and of brands themselves? some point, the consumer will need to
As the culture convulsed, many impact on brands. NGOs active in areas such as
relies on a diverse workforce. In one choose a brand, and that is where the
brands faced a choice: proactively health, education, equality and
voice an opinion on issues like
of its stores in Norway, the Swedish
brand IKEA constructed a small, grim
Technology and engagement with the consumer will
happen. It may be that the entry point J Walker Smith the environment. In addition, WPP
refugees and immigration, or
room with cement walls, replicating disintermediation will differ by category, and marketing Executive Chairman has launched its Common Ground
unwillingly be dragged into the Kantar Futures project which aims to encourage
the living space of a mother and four will adjust as required.
conversation. Avoidance no longer What will consumers expect JWalker.Smith@thefuturescompany.com and promote gender equality.
children in the Syrian war zone.
seemed an option. People had in a future where technology Regardless of the engagement point,
demonstrated power with their votes disintermediates them from brands Candace Kuss
Inevitably, some attempts to link with differentiating may come down to
and could do the same with their where consumers choose a detergent Director of Social Media
current events stirred controversy. service. The cost of entry for a brand
spending. brand once, and then depend on Hill+Knowlton Strategies
Coca-Cola received criticism in a production-driven economy was
technology to keep the laundry Candace.Kuss@hkstrategies.com
for a Super Bowl ad created to that the product needed to work.
room stocked? In that future, the @CandaceKuss
celebrate inclusion and diversity. In a knowledge economy, where
consumers primary relationship will technology makes it easy to replicate
be not with the detergent brand, the product, the cost of entry is to do
but rather with the e-commerce and good.
logistics provider.

INSIGHTS
Change and choice Brand purpose INSIGHT

In a future of automatic Responding to the expectations of
replenishment, the multinational millennials, more brands communicate
consumer products companies may their offering in the context of how
become more engaged in marketing it makes life better or benefits the
than the individual brands they world in some way. Emerging brands
own. This possibility goes back typically start with the premise that,
to the future, to a time before the while they are about making money,
proliferation of choice, when brand they are not only about making
selection was simpler and more money. This association with purpose
Purpose must limited. It is as if the ever-expanding put many brands in a difficult spot
brand universe will begin to contract during this period of overheated
be authentic into just a few brand-dense galaxies. geopolitics.
and consistent Global brands
need nuanced But even a future of automatic People expected brands to take a
Twenty years ago, brand purpose
view of purpose replenishment should not reverse stand. The question for brands was
was about publicly stating or the big bang that generated brand
proliferationhuman beings and our
what stand to take. The answer
for niche brands, with a narrow,
Not every brand
correcting your stanceon
child labor in Southeast Asia, for
Some Western brands are either
desire for choice. We like to shop. We somewhat homogenous customer needs a purpose
putting their heads in the sand
exampleand then publicizing it.
or being too analogue in their
usually want to make the purchasing base, was easier. For mass brands, to draw customers
Now purpose needs to be more decision. We also rely on brands however, the divisive nature of public
view of purpose. Brands need
authentic and meaningful, and to simplify choice and to help us debate meant that by taking any Recently, brands have become
a much more nuanced view, as
apply even further throughout make rational decisions, or to get an stand, a brand risked alienating half
the supply chain, including having Consumers want we see being demonstrated by
emotional lift from irrational decisions. its customers. The prudent approach
confused about purpose. They just
think, I must have one of those. I
some Chinese brands. Eighteen
an opinion about appropriate both authenticity months ago we might have seen,
Even with brand disintermediation,
was to remain true to purpose, but
to express the purpose in ways that
dont buy that every brand needs
places for ads to appear online,
for example. The brand needs a and immediacy or even advised, a client to focus
there is likely to be a balance between stayed clear of the partisan divide.
to have purpose. Some brands
give people a feeling of being
around a single issue globally, for
direct line of sight to every aspect how much choice people will want part of something. Brands are like
The theme of authenticity keeps example a UN goal; I now think
of its business. The better the to surrender and how much they will In the future, questions around brand gangs. In a production economy,
coming up. There is an interesting that can be culturally polarizing. If
brand knows itself, the easier it is want to retain. In the instances where purpose are likely to continue and you could create a brand and it
tension between the desire for you advocate for womens rights,
for a brand to determine its point the consumer makes a choice, brand become more fundamental, probing would appeal to a big group of
authenticity and peoples desire it will mean completely different
of view. purpose may be a more important the responsibilities of a company and people. In a knowledge economy,
for things immediately. There is things in London than it does in
determinant. its brands to society. For example, you need a far more refined thing
a sense of: I want it to be real, Shanghai. If youre a global brand,
Jane Ostler the robotics and artificial intelligence to stand for. And sometimes
but I want it now. For brands, you should take a nuanced view
Managing Director, Media & Digital The nature of purpose will depend on that enable automatic replenishment legacy matters. In fashion, now
reconciling the fundamental of purpose or you may alienate
Kantar Millward Brown the individual consumer, the product will likely increase joblessness. that people are not so overt about
tension between authenticity and half of your community.
Jane.Ostler@kantarmillwardbrown.com category, and the brand. Brands will Who is responsible for remediating wearing badges, history signifies
immediacy is an ongoing quest. need to ask what the brand means to that dislocation? The government?
Simon Shaw quality.
With technology, the tension the customer, to the employees, to The brands whose innovations
keeps shifting. Chief Creative Strategist
shareholders. Heritage brands may transformed society? The answer is David Gaines
need to return to the past, to the idea not clear. But an answer is necessary Chief Planning Officer, Americas
William Landell Mills Simon.Shaw@hkstrategies.com
or purpose that originally animated for the future of healthy societies Maxus Global
Group Director the brand. with growing economies and valuable David.Gaines@maxusglobal.com
Kantar TNS brands.
William.Landellmills@tnsglobal.com

INSIGHTS
BRAND BUILDING
ACTION POINTS
Purpose flows
Purpose aligns from how brands
1 4
with a brands help, not sell Follow the brands
Be responsible North Star
functional utility Two issues face brands today,
Authenticity. Transparency.
Purpose is sometimes misused.
across almost every category. The brand may be about curating
The first is the commoditization These words have been part
options and making choice simpler.
Its about aligning everything with
something beyond the functional
of the big brands. The second Purpose helps of the marketing lexicon for a
Or the brand may help the customer
utility of the brand. However, the
is the role of the brand. The key brands that lack while. The difference today is
with a laser-focus on one product or
question is: What does a brand urgency. Public statements need
utility of a brand is incredibly
do for a consumer? rather than rich stories to tell service. Pick an approach and stick
important, because the less the to match actions. Inconsistency
thing is in use, the less its making
what does it sell to a consumer? with it. It is better to be consistent
Brand purpose was originally When the idea of purpose or hypocrisy will be outed.
my life easier in some way. Brand than wishy-washy.
a retro justification for why originally gained currency, brands
purpose is built on that utility. Its would simply say they had a
advertisers were selling goods
possible that a more niche brand
2
purpose. Today, brands must
5
and services to consumers.
might have an opportunity to prove they have purpose through
Millennials see through that
take a more controversial stand
charade and demand that brands their actions. We believe that an Think forward Expect rising expectations
because the audience is narrower authentic purpose needs to be
put their money where their
and maybe more aligned with the aligned with future energies, not Think five or ten years out about Not long ago, consumers expected
mouth is and actually do things
values of the brand. what the brand will stand for, and
for people. just an extension of the past. Of a brand to produce a product or
course, not every brand needs a begin to build a road map for service that worked. Consumer
Chris Hunton purpose. Brands that lack a rich
Global Client Team Leader
Katerina Sudit getting there. When the brand is expectations have increased, and
Managing Director, story to tell should explore finding
WPP anchored in heritage, express it functionality is only a starting point.
Executive Director a purpose to create higher human
Chris.Hunton@wpp.com engagement. in ways that resonate today. There is no reason to believe the
MindShare
Katerina.Sudit@mindshareworld.com consumers will reduce expectations.
Craig McAnsh Rather, they will expect more.
Senior Vice President
3
Kantar Futures
Anticipate
6
Craig.Mcansh@kantarfutures.com
disintermediation Measure
Before technology disintermediates
Ask the right questions. Ask how the
the brand from the consumer, figure
brand can improve. Brand building
out the point where the consumer
entails risk. A good way to manage
will need to choose a brand, and
risk while growing a brand is to
engage there.
measure how people feel about it.

Thought Leadership/DATAABOVE ALL ELSE
THOUGHT LEADERSHIP
DataAbove All Else

Touchpoints are where In other words, the future of
J. WALKER SMITH
and how brands make an branding is about technology.
Of course, technologies have
impression on consumers.
In a world
always shaped brands and the
Touchpoints define what
relationships they forge with
brands mean to consumers consumers. But the nature of
because these are the ways whats happening nowadays is
in which consumers come different.
where Amazon
into contact with brands. So
the best way to anticipate In the past, technologies have
brought consumers and brands
what brands will mean in
closer together. Going forward,
the future is to understand
technologies will push consumers
the future of touchpoints.
dominates, brands
and brands further apart. This
Executive Chairman Looking ahead in this way, is not to say that consumers
Kantar Futures the future of branding can will have no relationships in
JWalker.Smith@kantarfutures.com
be characterized in one the marketplace of the future.
wordAmazon. Certainly Rather, it is to emphasize that
these relationships wont be with
must master data

the company itself, but
brands. Instead, technology-
more importantly, all of
based intermediariesAmazon
the new things for which chief among themwill be the
Amazon is leading the way. counter-party to consumers in
marketplace relationships.
or be irrelevant Digital shopping platforms

like Amazon not only want
to dominate transactional
touchpoints, they want to
dominate all touchpoints at every
step along the way. Amazon
wants to be more than a retailer.
Even more than the digital experience, control the It wants to become a seamlessly
integrated consumption
data to keep and control the customer relationship experience, and in doing so, it
wants to occupy a position in the
chain of consumer engagement
that would disintermediate
Kantar Futures is the leading global brands.
strategic insights and innovation
consultancy with unparalleled global
expertise in foresights, trends and
futures.
www.thefuturescompany.com
3 Thought Leadership Thought Leadership/DATAABOVE ALL ELSE
Amazon isnt just about selling to pricing. But manufacturers have Controlling with data
consumers. Its about completely had a lot of influence in all of
owning the relationship, to use these things. More importantly, Once consumers come into the
that bit of jargon. Every aspect manufacturers have had Amazon ecosphere, brands take
of the Amazon ecosystem is other channels, independent a back seat. Data is used on
fit to this purpose. Amazons of retailers, to connect with behalf of consumers, not brands.
operation is much more consumers and to build the Amazon systematically assesses
enveloping than that of traditional primacy of their brands. Whats every aspect of the customer
retailers. Amazon has built different with Amazon is a shift in experience, trimming things Avoiding irrelevance
an infrastructure that mimics the role of channels.
traditional retail but which also
that diminish it and including
only those things that improve
Whats worked in the past wont
With something like DSR, the
wraps in search, video, delivery,
unrestricted returns, AI, third-
Traditionally, brands have built
relationships through channels.
it. Brands matter only to the preserve value for brands in relationship is wholly with
extent that the data show brands Amazon. Because Amazon
party sellers, smart devices, email Brands wanted to dominate adding value for consumers. Only the future, which underlines the has control over the data, only
alerts and more. And Amazon is channels in order to funnel
just getting started. consumers to transactions
Amazon has the data needed to
make everything work together
kind of innovation that brands Amazon will see if consumers
are satisfied. Amazon will share
Owning the relationship

at retail. Amazon represents
a change in thinking about
for consumers, and even if brands must master to avoid irrelevance that data with brands only when
had these data, brands dont brands need to make a change.
where value lies in consumer control the panoply of things data, above all else. Otherwise, Amazon will keep
Competition for owning the relationships. Amazon wants necessary to act on what the consumers happy without ever
relationship is nothing new. to build relationships through data reveal. Only Amazon has consulting or using brands.
Retailers and manufacturers have the data unlocked by new command of all of these things,
long competed to be uppermost technologies. By using and along with it, the data that This Amazon approach to never have to think about brands For brands, disintermediation by
in the minds of consumers, with technologies to create a position make it possible for Amazon to managing customer relationships again. Theres no shopping at Amazon means getting a smaller
retailers pushing their brands and of dominance in data, Amazon exercise that control in the best is growing. As a result, brands the store required. Theres no piece of the value pie. Whoever
manufacturers pushing theirs. can create an integrated, way possible. are at significant risk of being selection from the shelf required. owns the relationship controls the
Retailers have always exercised frictionless customer experience completely cut off from Theres no in-store or point-of- experience. Consumers pay for
a lot of control over the ways that draws consumers towards consumers. Consider Amazons purchase engagement. Theres the experience, so thats where
in which consumers encounter it. Amazon doesnt need to new Dash Replenishment no consideration set or share value is created and realized.
brands, from shelf placement to dominate in channels as long as it Service (DSR). Consumers of requirements. Consumers
store brands to promotions to dominates in data. link their smart appliances to dont have to bother with ads The touchpoints on digital
Amazon so that supplies can or coupons. Consumers can platforms work against brands,
be reordered automatically simply put it out of mind without so the imperative going forward
whenever they run low. Whether worrying about getting what they is for brands to forge more
laundry detergent or printer need. powerful ways of mattering in
ink or water filters, consumers the digital shopping experience.
Whats worked in the past wont
preserve value for brands in the
future, which underlines the kind
of innovation that brands must
master to avoid irrelevancedata,
above all else.

Thought Leadership/EVOLUTION OF BRANDS
THOUGHT LEADERSHIP
Evolution of Brands
Companies must rethink the employees, investors, or partners.
WAYNE PAN
role and value of brands. Three converging trends have
Brand role and

brought us to this turning point
The age of being outwardly
today: consumption-based
focusedthat is, centered
activism, the rise of social
around marketingis over. networks and micro-influencers,
To succeed in the future, and the demand for authenticity.
purpose reach
companies must recognize
that how they operate will ACTIVISM
Companies are being dragged
be as important as what
into the political fray through
they communicate. We are boycotts and counter-boycotts
already seeing people being that train public attention and
a turning point,
less responsive to brands opinion on the actions and beliefs
Senior Consultant that are all marketing and of companies. When crises arise,
Kantar Futures no substance. many get caught flat-footed and
Wayne.Pan@thefuturescompany.com unprepared, a result of trying to
The emphasis on things stay quiet and out of the limelight.
as stakeholders
like narrative, novelty, local However, people are making it
connections, and experience clear that the era of corporate
highlights how people are neutrality is ending; they want
demanding more from their to know what companies stand
brands than just a product for and support. Data show
look for values

or a value proposition. In the that people todayespecially
future this shift in emphasis millennialsbelieve that their
will accelerate, as people turn consumption choices are one
to companies to help facilitate of the key ways that they can
meaning in their lives, and search make an impact on the world.
consistency
for companies that have values When every buying choice is a
they can proudly be connected statement, it is not surprising that
to, whether as consumers, people want to make sure they
are making statements they can
agree with.
Purpose will guide organizations,

with diversity fully expressed Kantar Futures is the leading global
strategic insights and innovation
consultancy with unparalleled global
expertise in foresights, trends and
futures.
www.thefuturescompany.com
3 Thought Leadership Thought Leadership/EVOLUTION OF BRANDS
Live the brand values Purpose and diversity that will allow them to be more harm than good. The price
competitive in all aspects of their paid for being insensitive or
It is important to look beyond Purpose must permeate as a business. offensive will increase, and the
these three trends though, and to guiding principle throughout an punishment that stakeholders
look toward the bigger coming organization. Purpose-driven Diversity needs to evolve mete out will be more severe.
changes that have the potential marketing will give way to values- beyond demographics to Truly diversifying the stakeholder
SOCIAL NETWORKS AUTHENTICITY to radically alter the business driven culture. Having a set of reflect the real diversity within base, from employees to partners
The rise of social networking Finally, in recent years people environment. Among the ones core values that all stakeholders groups. The importance of to shareholders, is necessary in
and micro-influencers has also have increasingly demanded we are exploring: the changing from consumers to employees to having diverse workforces order to embed diverse opinions
shifted interactions. Able to speak authenticity. Our Global nature of work and employment, shareholderscan recognize and will increase, especially as and viewpoints into every
directly with virtually anyone, MONITOR data shows that over algorithms and deep learning, see in action will be a prerequisite changing demographics in many decision, strategy, and tactic. The
companies now have greater 70 percent of people surveyed and the coming of fluid and for success. Just as today, these countries, and more globalized companies that do this will be
opportunities to engender deeper appreciate it when companies complex identities. How these values need not be political in customer bases, demand that best positioned to not only avoid
customer loyalty than ever make clear what they stand for deep shifts play out will influence nature; in fact, preaching or companies be more conscious stumbles, but to build broad-
before. This also brings potential and stay true to their values. They exactly what roles brands might parading values around will likely and representative. The way based, long-term brand equity.
pitfalls though. The speed at want to trade marketing-speak play in the future. However, be poorly received. that diversity is defined though,
which information, visual and and public relations for candor, it seems clear that no matter should changefrom being At a turning point
visceralthink United Airlines transparency, and consistency. what, brands and companies will While the purpose bandwagon about having representation
can be disseminated means While there is opportunity has been crowded in recent from different populations Brands are at a turning point,
increasingly be judged on not
that at any given moment, some here, the danger is that both years, much of the focus has to having representation facing a future in which an
just how they communicate their
big revelation or embarrassing consumers and employees are been on grand purposes that within different populations. expanded audience of diverse
values, but how well they live
mistake can go viral, damaging now much more willing (and can be promoted. This is a ploy Recognizing that there is a wide stakeholders expects companies
them throughout every aspect of
the brand as well as company able) to punish those who are less that people are increasingly array of perspectives, beliefs, and to live their values consistently.
their business.
morale. than sincerethink of the trouble rejecting. Instead, companies backgrounds in every group will Those that lead in reimagining
Uber and Thinx have gotten must be thoughtful about what be key; checking off boxes, for so how to embody purpose and
If companies want to build brands
into recently because of the values they truly wish to stand many an end point today, will be embed diversity throughout an
that resonate with people in the
disconnect between their images behindthese need not be just the beginning tomorrow. organizationlooking in just as
long term, they need to have a
and their practices. socially focusedand then stand much as broadcasting outwill
future-forward visionone that
behind them throughout all they As we have often seenPepsis build the brands that are best
leans into the changes on the
do. The emphasis will shift to how very public misstep being positioned for success, and they
horizon. Two major opportunities
companies operate, rather than just one of the most recent will shape the very role that
exist where old concepts can
what they say. Those that do examplesattempts to speak brands will play in the future.
be redefined in order to have
success with new audiences: this most successfully will build in culturally relevant ways, if
purpose and diversity. real brand-equity advantages poorly executed, can do more

Thought Leadership/PURPOSE
THOUGHT LEADERSHIP
Purpose
JANE OSTLER
Purpose used to be up to manage and oversee
the new contracts and write
about having a cause,
Brand purpose
reports. Brands began to define
and brands delivered that themselves not just on their
through corporate social intrinsic merits but also on their
responsibility (CSR) approach to broader global
matters such as carbon neutrality,
initiatives. But the world
moves from cause

local communities, child labor,
has moved on. Social diversity, and sustainability. CSR
media has made all is now actively woven into brand
brand activity more risky, marketing programs; for example,
Unilevers global sustainable living
so purpose isnt enough initiatives are firmly attached to
and CSR to stating

anymore; brands need to individual brands like Knorr and
Managing Director, Media & Digital have a clear and publicly Sunlight.
Jane.Ostler@ stated point of view on
We know from BrandZ that
kantarmillwardbrown.com
many things, including brands with purposethose
a POV about
media and marketing. that are trying to make peoples
lives betteroutperform those
As a result of worker welfare without. We measured brand
scandals around 20 years ago, value for the same 87 brands in
brands like Nike had to take 2006 and 2017, and the top third
many issues
defensive action to ensure that (high-purpose brands) grew
subcontractors in their supply nearly three times more over
chains were behaving honorably. that period than the bottom third
Corporate social responsibility (low-purpose brands).
(CSR) departments were set
Initiatives can be risky and controversial,

but social media leaves no place to hide

3 Thought Leadership Thought Leadership/PURPOSE
But a vague sense of purpose But more than that, they define POINT OF VIEW ON CONTEXT POINT OF VIEW POINT OF VIEW ON POINT OF VIEW ON
isnt enough anymore. It needs responsibility: not only do they With the rise of ad tech and ON AD FORMATS POLITICAL ASSOCIATIONS HOW TO TAKE CONTROL
to be specific, authentic, and use all natural ingredients, programmatic media, the Kantar Millward Browns Weve all seen those charts that You could argue that brands
intrinsic to every brand action and but they also encourage their digital media supply chain is AdReaction research shows that define Brexiters/Remainers have outsourced too much
behavior. There are so many more consumers to be kind. Their aim complex and unwieldy, with receptivity in all generations is by the supermarket where responsibility to agencies and
places where brands can take a is make the world kinder, one myriad creative options. The highly negative for ad formats they shop and the brands suppliers. If somethings not
wrong step. Social media enables snack and one act at a time, and recent furor about brand which irritate consumers. they buy. The Uber CEO explicitly stated in an agency
consumers to harness collective with their global expansion, this advertising appearing alongside The members of Gen Z are stepped down from Trumps contract, its not going to happen,
power, sign petitions, respond, purpose is spreading. inappropriate content on particularly sensitive to this; Economic Advisory Council so brand points of view on
publicly humiliate, and protest YouTube means that brands have they like control and interaction. after employees protested that viewability, brand safety, and
about almost any corporate Recently its become even to develop checks and balances Using formats that people dislike it was inappropriate in the light measuring the real effectiveness
activity. Public backlashes are more obvious that brands need for their programmatic activity, only serves to undermine the of the travel bans. Frankly, it of advertising will need to
becoming more frequent, and to take responsibility for their where context is completely industry long term. A great would be a bold brand that came become more prevalent. This
these grab social media attention actions in marketing and media. stripped away in favor of example of what brands can do out publicly on either side of a brand purpose is about making
and then spiral out of control. Its The withdrawal of advertising following the target audience. is to become part of the Coalition political debate. However, it may sure brands dont abdicate
clear that brands are taking more from YouTube by brands whose And media owners need to for Better Ads, which was set benefit some brands. This part of responsibilities which should be
risks than they should, particularly ads have appeared alongside develop algorithms and human up to discourage advertisers a brands purpose is about taking theirs to manage.
in media and marketing. This is a unacceptable content has intervention to prevent the and publishers from using highly care not to alienate its audience.
very delicate situation which can resulted in a big debate about content from appearing on the irritating ad formats like pop-ups.
destroy brand growth overnight. who is responsible. wrong platforms in the first place. This part of a brands purpose is
Brands should take ownership of This brand purpose is about about not annoying consumers.
all their actions by minimizing risk, And campaigns like protecting a brand from harm.
and, ideally, making it positive. #stopfundinghate mean that
brands are now obliged, more
Brands like KIND, the healthy than ever before, to have a view
We are beginning to see brands take leadership positions
snack food company founded on the contexts in which they
in 2004 by Daniel Lubetsky, appear. Brands need to have a
on complex media and marketing matters. Tesco and
have a purpose that is at the point of view, a policy; they cant Airbnb are now hiring their own media experts in-house,
very heart of their business, their just leave it to media agencies for example. We need to re-purpose purpose from its
products, and their marketing. and publishers to decide what current nebulous definition to be all-encompassing and
happens to their ads, or they credible: at heart, brands should take responsibility. In a
could damage or even contradict marketing and media environment thats fundamentally
their stated purpose.
entropic, with consumers not behaving as they used to,
marketers need to seize the opportunity to have a point
of view and take control if they want to minimize risk and
maximize their growth opportunities.
Regions &
Countries
4 Regions & Countries Regions and Countries/OVERVIEW
US drives value
US contribution rises US PROPORTION OF GLOBAL TOP 100 VALUE IS HIGH...
In 2006, 54 US brands in the BrandZ Global Top 100
In 2006, 54 US brands produced 63 produced 63 percent of the rankings value.
percent of the BrandZ Global Top NUMBER OF BRANDS IN THE BRANDZ GLOBAL TOP 100
100 value. In 2017, 54 US brands
54
2006
produced 71 percent of the BrandZ
increase of Global
Global Top 100 value. Over those 12 US
years, the value of US brands in the
Global Top 100 grew 181 percent.
Twelve years ago, only one Chinese

brandChina Mobile, the state- Chinese Continental European UK Rest of the World
Top 100 ranking

owned telecommunications brand
ranked in the BrandZ Global Top 1 29 6 10
100. Since then, the number of
Chinese brands ranked in the Global PERCENTAGE OF THE TOTAL VALUE OF THE BRANDZ GLOBAL TOP 100
2006
63
Top 100 has increased from 1 to 13,
%
and the value of Chinese brands has
rocketed up 937 percent. US
Other Chinese state-owned

New BrandZ Vital Signs Index diagnoses brand health enterprises (SOEs) subsequently
joined the ranking, including bank,
Chinese Continental European UK Rest of the World
insurance, and oil and gas brands.
North American brands Variations in regional value change ranks in the retail category with
With the shift to more open
competition in China, additional 3% 21% 5% 8%
primarily from the USdrove resulted from several factors, including Amazon, rose 20 percent. consumer-facing Chinese brands
geopolitical and economic issues and Technology also affected the value
the value growth of the joined the ranking, including Tencent,
the mix of categories in each region. increase in the Continental Europe the internet giant that this year ranks
BrandZ Global Top 100 Most In addition, regional value change Top 10, with a 16 percent rise in SAP, ...AND US PROPORTION OF VALUE GROWS EVEN HIGHER
No. 8 in the BrandZ Global Top 100.
Valuable Global Brands 2017, correlated with overall brand health, the German business-to-business In 2017, the 54 US brands in the BrandZ Global Top 100
continuing a long-term trend. according to BrandZ analysis using brand. Europes results were aided Along with technology category 2017 produced 71 percent of the rankings value.
The North American Top 10 a new brand diagnostic tool called the by the 18 percent rise of Herms, the performance, brand building plays an NUMBER OF BRANDS IN THE BRANDZ GLOBAL TOP 100
increased 12 percent, compared Vital Signs Index. French luxury brand. In contrast, the
54
important part in the value growth 2017
UK Top 10 includes no technology of the US and Chinese brands. The
with a 9 percent rise for the Five of the North American Top 10 brands, but several global banks 12-year change
brands in the US and China Top 10 are US
Asia Top 10, followed by the are technology category brands. and telecom providers, categories
0
relatively young, founded, on average,
Continental Europe Top 10, with Facebook, a business-to-consumer that have experienced limited value in 1976, compared with 1928 for those
an increase of 4 percent, and a brand, rose 27 percent in value. Two growth. in Continental Europe and 1935 for
decline of 4 percent for the UK business-to-business technology the UK. Most important, these brands
brands, Microsoft and IBM, rose 18 Only four Latin American brands are Chinese Continental European UK Rest of the World
Top 10. exhibit robust health.
percent. In addition, Amazon, which included in the BrandZ Top 100 Most
BrandZ ranks in the retail category,
increased 41 percent in value.
Valuable Global Brands 2017. They are
all beer brands. And although each
13 16 4 13
increased significantly in value, led 12-year change +12 -13 -2 +3
Similarly, technology brand by a 34 percent rise by Brahma, the
performance influenced the value Brazilian brand, Latam makes less
PERCENTAGE OF THE TOTAL VALUE OF THE BRANDZ GLOBAL TOP 100
rise of the Asia Top 10, led by the 27 of an impact on the BrandZ Global
71
2017
%
percent value increase of Tencent, Top 100 because of the relatively low
Chinas most valuable brand, and a 23 value of the individual Latam brands. 12-year change in value
US
percent increase by Samsung, a South
Korean brand. Alibaba, which BrandZ +181%
Chinese Continental European UK Rest of the World
11% 10% 2% 6%
12-year change in value +937% +18% +26% +83%
Meaningful Difference
The US far outscores all regions These aspects work together most
in brand health, according to the effectively on a foundation of
AND THE US LEADS IN ALL VITAL SIGNS COMPONENTS
new BrandZ Vital Signs Index. A Brand Purpose. Innovation, built
measurement of brand health, BrandZ on a foundation of Brand Purpose The US far outscores other regions in the five components of Vital Signs. It achieves an especially high score of 123 in Brand
Vital Signs assigns a composite score to and effectively communicated, can Purpose, Brand Experience, and Love.
brands based on their scores in these produce great Brand Experience
ASPECTS OF VITAL SIGNS
aspects: Brand Purpose, Innovation, and result in consumer Love of the
Communications, Brand Experience, brand. Most important, a high Vital
Asia
and Love. An average score is 100. Signs score also produces Meaningful Continental Rest of the
GLOBAL TOP 10 US China (Excluding UK
Difference, an important competitive Europe World
China)
The BrandZ US Top 10 score 122 in advantage.
BrandZ Vital Signs, compared with Brand Purpose 123 110 107 110 103 108
the Vital Signs scores for the BrandZ Brands viewed by consumers as
Top 10 in these countries and regions: Meaningful (filling rational and Innovation 121 110 104 110 101 105
China, 112; Asia (excluding China), 105; emotional needs in relevant ways)
Continental Europe, 109; and the UK, achieve greater market share, and Communications 120 111 107 109 104 110
103. The US outscores each of these brands perceived as Different (trend-
countries and regions in each of the setting and distinctive) can command
five aspects of the BrandZ Vital a higher price premium. The BrandZ
Brand Experience 123 113 103 110 102 106
Signs. US Top 10 score 146 in Meaningful
Difference.
Love 123 114 102 106 102 104
US LEADS IN VITAL SIGNS AND VALUE GROWTH THE HIGH US VITAL SIGNS SCORE LEADS TO COMPETITIVE ADVANTAGE
Across all regions, brands in the BrandZ Global Top 10 score above average in BrandZ Vital Signs, an indicator of brand Brands that score high in Vital Signs achieve Meaningful Difference, a competitive advantage. Brands viewed by consumers
health. But the US brands score exceptionally high. And a high Vital Signs score correlates with brand value growth. as Meaningful (filling rational and emotional needs in relevant ways) achieve greater market share, and brands perceived as
Different (trend-setting and distinctive) can command a higher price premium.
VITAL SIGNS
The large numbers show the Vital Signs scores for the BrandZ Global Top 10 in each region.
MEANINGFUL DIFFERENCE
1 = 1-Year Value Growth

2 = 12-Year Value Growth Continental China US Rest
112 122
UK Europe AVERAGE VITAL
of the
103 109
SIGNS SCORE IS 100
UK World China US
104 112 127 146
AVERAGE VITAL
SIGNS SCORE IS 100 8%1
12%1
-4%1 4%1
838 %2
90 150
58%2 60%2 255%2
95 125 Asia
(Excluding China)
Continental
Europe
4%1 6%1 107 126
27 %2
83 %2
Asia Rest of Source: Kantar Millward Brown / BrandZ

(Excluding China)
the World
105 110
Most Valuable Brands by Region
NORTH AMERICA Brand Brand Brand Value Brand Brand Brand Value UK TOP 10
TOP 10 Category
Value 2017
$ Million
Value 2016
$ Million
% Change
2017 vs. 2016 Category
Value 2017
$ Million
Value 2016
$ Million
% Change
2017 vs. 2016
Brand Value
1 Google Technology 245,581 229,198 7% 1 Vodafone Telecom Providers 31,602 36,750 -14% Year-on-Year Change
Brand Value
Year-on-Year Change
-4%
2 Apple Technology 234,671 228,460 3% 2 HSBC Global Banks 20,536 20,276 1%
+12%
3 Microsoft Technology 143,222 121,824 18%
3 Shell Oil & Gas 18,346 14,940 23%
4 Amazon Retail 139,286 98,988 41%
4 BT Telecom Providers 16,026 18,575 -14%
5 Facebook Technology 129,800 102,551 27% Total Brand Value
5 BP Oil & Gas 11,131 10,552 5%
Total Brand Value 6 AT&T Telecom Providers 115,112 107,387 7%
6 Tesco Retail 8,041 8,923 -10%
7 Visa Payments 110,999 100,800 10% $131.1 billion
$1.4 trillion 8 IBM Technology 102,088 86,206 18%
7 Lipton Soft Drinks 7,905 8,554 -8%
Because of continuing weakness
8 Barclays Global Banks 5,999 7,509 -20% in key UK categoriestelecom
Technology brands drove the 9 McDonald's Fast Food 97,723 88,654 10%
providers, global banks, and
North America Top 10 with a 12 9 Dove Personal Care 5,792 5,448 6%
10 Verizon Telecom Providers 89,279 93,220 -4% retailThe UK Top 10 declined
percent increase in value, which
10 O2 Telecom Providers 5,701 N/A N/A 4 percent, up from an 8 percent
followed last years 10 percent rise. Source: Kantar Millward Brown / BrandZ (including data from Bloomberg)
drop a year ago.
Source: Kantar Millward Brown/ BrandZ (including data from Bloomberg and Kantar Retail)
Brand Brand Brand Value CONTINENTAL

Category
Value 2017
$ Million
Value 2016
$ Million
% Change
2017 vs. 2016
EUROPE TOP 10
LATIN AMERICA 1 SAP Technology 45,194 39,023 16% Brand Value
TOP 4 Year-on-Year Change
2 Deutsche Telekom Telecom Providers 38,493 37,733 2%
+4%
Brand Value
Year-on-Year Change 3 Louis Vuitton Luxury 29,242 28,508 3%
+23%
4 Zara Apparel 25,135 25,221 0%
5 BMW Cars 24,559 26,837 -8% Total Brand Value
Brand Brand Brand Value
Total Brand Value Category

Value 2017
$ Million
Value 2016
$ Million
% Change
2017 vs. 2016
6 L'Oral Paris Personal Care 23,899 23,524 2%
$274.4 billion
1 Skol Beer 8,146 6,743 21% 7 Mercedes-Benz Cars 23,513 22,708 4%
Some strength in the
$24.5 billion 2 Corona Beer 8,119 6,626 23% 8 Herms Luxury 23,416 19,821 18%
technology and luxury
categories produced a
3 Brahma Beer 4,385 3,269 34% moderate 4 percent gain
Following a decline a year ago, 9 Movistar Telecom Providers 22,002 21,945 0%
the Latin America Top 4, all beer in value, over a 5 percent
4 Aguila Beer 3,843 3,270 18%
brands, rose 23 percent because increase a year ago, for the
10 IKEA Retail 18,944 18,082 5%
of the strength of the brands. Note: The Latam Top 4 consist of brands that appear in the Top 100 and the category rankings. Continental Europe Top 10.
Source: Kantar Millward Brown/ BrandZ (including data from Bloomberg) and Kantar Vermeer Source: Kantar Millward Brown/ BrandZ (including data from Bloomberg and Kantar Retail)
4 Regions & Countries Regions & Countries/OVERVIEW
Most Valuable Brands by Region

TOKYO - JAPAN
Value of all Japanese

$84.3 BILLION
Brand Brand Brand Value ASIA TOP 10

Value 2017 $ Value 2016 % Change
Category Million $ Million 2017 vs. 2016
Brand Value
1 Tencent Technology 108,292 84,945 27% Year-on-Year Change
+9%
2 Alibaba Retail 59,127 49,298 20%
3 China Mobile Telecom Providers 56,535 55,923 1%
4 ICBC Regional Banks 31,570 33,637 -6%
5 Toyota Cars 28,660 29,501 -3% Total Brand Value
6 Samsung Technology 24,007 19,490 23%

$391.1 billion
7 Baidu Technology 23,559 29,030 -19%
After declining 8 percent
8 Huawei Technology 20,388 18,652 9% in value a year ago, the
Asia Top 10 increased 9
9 NTT Telecom Providers 20,197 19,552 3%
percent because of the
China Construction strengthening performance
10 Regional Banks 18,770 19,617 -4%
Bank of Chinese brands, and
Source: Kantar Millward Brown/ BrandZ (including data from Bloomberg and Kantar Retail)
South Koreas Samsung.
4 Regions & Countries Regions & Countries/LATIN AMERICA
Latin America
Economic and 3
Brand Building Optimism
Several themes emerged for building valuable brands Even in some of the most difficult
despite this difficult economic context: economic circumstances, life
1
goes on. Consumers desire some
political forces
normality and consistency. They
Emotional connection
will buy their favorite brands, even
Consumers are shopping more often, but if they buy them less frequently.
4
spending less on each trip. Convincing
a cautious consumer to spend requires Mobile
a fair price and good value, for sure, but
hurt brand value

also an emotional connection beyond High mobile penetration in this region
the functional benefit. provides brands with an important
2
opportunity to reach consumers with
creative, personalized, data-driven
Transparency
communications.
Even in strong economies,
The Latam Top 50 brands do not control external events
Mexico increases contribution to Latam Top 50 consumers today expect honesty
and transparency from their brands.
that affect their valuations, including the local political
turmoil. Regional GDP growth spiked briefly after the global
These expectations are even greater financial crisis, but has declined since 2010. In an instance
The economic and political Mexicos Corona; the Brazilian beer largest economy, producing around among consumers experiencing where the BrandZ Latam Top 50 brands can control
Brahma; Aguila, from Colombia; one-third of regional GDP, Brazilian economic instability and uncertainty. results, they have performed well; Brand Contribution of
turbulence that has wracked
and Mexicos Modelo. The two brands contributed less than a quarter the Latam Top 50 has steadily risen over the past five years.
Latin America and produced an Brand Contribution is the BrandZ metric that assesses the
communications providers in the Top of the value to the BrandZ Latam
average 29 percent currency 10 were Telcel and Televisia, both Top 50 because of economic and extent to which brand alone drives purchasing volume and
devaluation impacted the Mexican brands. political instability, which produced enables a brand to command a price premium.
performance of the BrandZ unfavorable exchange rates and
Top 50 Most Valuable Latin The retail brands in the Latam Top falling stock prices.
American Brands 2017, which 10 included the Chilean-based BRANDZ LATAM TOP 10
department store Falabella and two Chile, the third-largest value
declined in value 22 percent to Mexican chains, Bodega Aurrora and contributor to Latam Top 50 value,
Six of the Latam Top 10 brands were Mexican, two were Brazilian, one Colombian, and one Chilean.
$103.4 billion. Liverpool. Both Bodega Aurrora, after Brazil, increased its contribution
Brand Value
a discount store chain owned by slightly, to 17 percent, on the strength Brand Value Brand
Brand Category % Change Country
Only six brands increased in value. Walmart, and Liverpool, a department of the beer, food and dairy, personal 2017 $Mil. Contribution
2017 vs. 2015
Eight brands appeared for the first store operation, increased in value, 16 care, and services categories.
time. And 36 brands lost value. percent and 28 percent, respectively. Colombia, the fourth-largest brand 1 Beer 7,782 5 -8% Brazil
The Latam Top 10 also declined, value contributor, reduced its value
but by a more modest 14 percent,
demonstrating the relative stability of
Mexico share dramatically to only 8 percent
because of weakness in the banks
2 Beer 7,647 4 -10% Mexico
strong brands even during periods of contributes value category. 3 Communication Providers 4,598 3 -26% Mexico
economic crisis.
Mexico again led the BrandZ Latam The weakness of Colombias banks, 4 Retail 4,257 5 -10% Chile
Six of the Latam Top 10 brands were Top 50 in contribution of brand down 76 percent in value, drove an
Mexican, two were Brazilian, with value, rising from 37 to 43 percent, overall 56 percent decline in the value 5 Communication Providers 4,035 2 -9% Mexico
one Colombian and one Chilean followed by Brazil, Chile, Colombia, of the banks category in the BrandZ
brand. Of the categories represented, Peru, and Argentina. Overall brand Latam Top 50, making it the rankings 6 Beer 3,772 5 -10% Brazil
beer brands comprised half of value declined in each country, with poorest performing category. Retail,
the Top 10, and three retailers and Chile down the least, 9 percent, and the only category that did not decline,
Colombia down the most, 59 percent. 7 Retail 3,593 2 16% Mexico
two communications providers recorded no change. Beer, food and
comprised the other half. dairy, and personal care declined only
Three sectors primarily drove the 8 Beer 3,486 5 -5% Colombia
5 percent. These sectors together
The beers in the Latam Top 10 growth of Mexicos brand value: beer, comprise the largest proportion of
food and dairy, and personal care. 9 Beer 3,316 4 -8% Mexico
included: the Brazilian beer Skol, value in the Latam Top 50, over a
No. 1 in the Latam Top 100 ranking; Although Brazil is Latin Americas third.
10 Retail 3,269 3 28% Mexico
Source: Kantar Millward Brown / BrandZ (including data from Bloomberg) Brand contribution measures the influence of brand alone on earnings,
on a 1-to-5 scale, 5 being highest.
4 Regions & Countries Regions & Countries/CHINA
China China increasingly

looks abroad,
brands find greater
acceptance
Government balances change with need for stability
Brands and consumers felt the There were exceptions. Alcohol products desired by the middle class
consequences of Chinas shifting and food and dairy, categories with experienced premiumization. Kantar
substantial SOE presence, increased in Worldpanel called this phenomenon
priorities. Having driven record
value, usually because of the marketing Two Speed China.
economic growth and lifted activities of individual brands. Several
hundreds of millions of people brands of Baijiu, Chinas traditional In addition to these factors, brands
from poverty, the Chinese white alcohol, continued to rebound in contended with media fragmentation,
government is now focused on value, for example, after repositioning which required insight about how
managing its success: guiding to grow despite the governments to effectively shift investment to
discouragement of extravagant official emerging digital options. No media
the transformation to a more entertainment. Moutai is the second- channel dominated. Individual
competitive economy, while fastest riser in the BrandZ Top 100 consumers relied on multiple media
carefully balancing the rate Most Valuable Global Brands 2017, with channels, especially in the cities. Plus,
of change with the need for brand value increasing 48 percent. the kind of information consumed
stability. is changing, with a rise in content
Economic rebalancing affected marketing that is more informational
consumers disproportionately, hurting than promotional.
Efforts to remove surplus and match
those dislocated from industries in
production with demand in the new
the production-driven economy while E-commerce and social media are
consumption-driven era impacted
helping others in the urban middle rapidly evolving and converging in
various categories, generally favoring
class associated with the service China, where digital ecosystems are
market-driven brands over state-
sector. This division affected diverse more comprehensive than in the West,
owned enterprises (SOEs). The banks,
product categories and brands, and more central to peoples lives.
insurance, and oil and gas categories,
and was especially evident in fast- Video is rising in importance, with
still dependent on the old economy,
moving consumer goods (FMCG). new niche platforms complementing
faced challenges.
While sales slowed for mass products the more traditional sites, and live
aimed at less affluent consumers, streaming and self-broadcasting rising
rapidly in popularity.
4 Regions & Countries Regions & Countries/CHINA
SHANGHAI - CHINA
Going global categories dominated by SOEs: alcohol

(including brands like Moutai), banks,
consumer view of Brand China. Recent
BrandZ global research, conducted in
Value of all Chinese
insurance, oil and gas, and telecom collaboration with Google, found that
Meanwhile, in a May 2017 international
providers like China Mobile. emerging entrepreneurial, internet-
conference held in Beijing, the Chinese
government committed an additional
driven Chinese brands are finding $406.0 BILLION
But as the Chinese economy acceptance overseas. These smaller,
$14.5 billion to fund One Belt, One
liberalizes, more entrepreneurial nimbler brands, with increasing access
Road, its strategic vision, articulated in
brands are represented in the to capital, are rapidly establishing
2014, to encourage global expansion
BrandZ Global Top 100, including overseas, in some cases before they
and cultivate overseas markets for
e-commerce giants Alibaba, which develop in China.
its excess industrial capacity.
ranks No. 2, after Amazon, in the
retail category, and JD.Com. More The change in perception is most
The presence of Chinese brands in the
technology brands have appeared in pronounced among young people.
BrandZ Global Top 100 has grown
the ranking, including Chinas most BrandZ research across 18 countries
steadily since the first brand, the SOE
valuable brand, Tencent, the internet in 2015 found that 40 percent of
China Mobile, appeared in 2006.
portal, and these other technology people aged 18 to 35, thought of
brands: Baidu, the search giant, and Chinese brands as creative, compared
Today, the 13 Chinese brands in the
Huawei, the telecommunications giant with only 31 percent of people aged
Global Top 100 comprise 11 percent
with a thriving consumer mobile device 51 to 65. The change in perception is
of the rankings value. And over the
business. likely to continue as Chinese brands
12 years since 2006, the brand value
increase the pace of overseas growth.
of Chinese brands in the Global Top
The concentration of technology
100 has increased 937 percent. The
brands illustrates a shift in the overseas
Chinese brands come mostly from
Emerging Chinese brands

impress overseas consumers
Chinese entrepreneurial brands are rapidly These findings are contained the BrandZ Top 30 Chinese
emerging. Although small, they are large enough to Global Brand Builders, a report produced by BrandZ and
make an impression on consumers, even overseas. Kantar Millward Brown in collaboration with Google. The
BrandZ examined overseas consumer attitudes report identifies and ranks Chinese brands based on the
toward both emerging and established Chinese strength of their BrandZ Brand Power outside of China.
brands. Brand Power is a BrandZ metric of brand equity that
describes consumers inclination to select a brand.
The research considered nine product categories
in seven developed markets, including three
continental European countries, the UK, the US,
Australia, and Japan. It compared how consumers
view Chinese brands with how they view non-
Chinese brandsboth global brands and local
country brands. The research concluded:
- Entrepreneurial, internet-driven Chinese brands

are finding acceptance overseas, and consumer
electronics brands dominate the ranks of
Chinese exporters; however,
- Consumers worldwide are still less likely to

choose a Chinese brand in most categories; and
- As Chinese companies continue to expand

beyond nearby Asian countries, export success
will require extensive market insight and brand (For full details, methodology, and to download the report
building. please visit www.brandz.com)
Thought Leadership/CHINA SURVIVAL LESSON
THOUGHT LEADERSHIP
China Survival Lesson

AISLING RYAN
It is not the strongest of the species
that survives, nor the most intelligent,
but the one most responsive to change.
Charles Darwin
Chinese brands We live in increasingly

challenging times.
Military strategists refer
China is surging ahead of the
West. It is a preview of the future
that our brands will face.
provide a model
to this climate as VUCA. We would be wise to absorb
Chief Strategy Officer Global Clients Volatile, Uncertain, Chinas lessons to give our
Valenstein & Fatt
Complex and Ambiguous. own brands the best chance of
Aisling.Ryan@greyeu.com
survival.
They use these axes to plot a
practical code for awareness Chinas phenomenal
for competing
and readiness. transformation from imitators
It seems the perfect acronym to innovators has been much
for the challenges we face as lauded. We are in awe of
marketers. the scale, popularity and
commerciality of BAT (Baidu,
in uncertain times
Markets are definitely volatile Alibaba, and Tencent). We
and uncertain, while consumers marvel at the transformation of
have never been more complex Lenovo into the worlds biggest
or ambiguous. PC maker by volume. What can
we learn from China and how can
How do we navigate our we absorb its innovation lessons?
brands through such hostile
and uncharted territory? Let us focus on three key themes:
Adaptation and innovation frees Are we ready to manage the cult of the new, cultural
risks, foster change, and leadership, and consumer
brands from old business models solve problems? complexity.
How will we win in this
hypercompetitive world?
Valenstein & Fatt is a creative company

on a mission to make a different shape
of work.
valensteinandfatt.com
3 Thought Leadership Thought Leadership/CHINA SURVIVAL LESSON
The cult of the new orders. The craze for Korean shows like The Voice. Famous INNOVATING FOR EXTREME for brands targeting the emerging competitors. The best of these
and Japanese beauty and hair KOLs have the reach of the gods. ENDS OF THE SOCIAL PYRAMID consumer class globally. People brands cleverly achieve cultural
China is one of the fastest products seems insatiable. The This makes word of mouth, in the In 2015, Chinese consumers do not want to pay for over- stickiness while delivering
adopting countries in the Korean face mask selfie craze right context from the right KOL, accounted for over one-third featured products and services. quality credentials. Huawei
world for new products and has now spread to Hollywood. priceless. of all global luxury spending. China is the leader in how to harnesses A-list celebrities
applications. It embraces Fuerdai (second-generation make innovation commercially such as Scarlett Johansson to
newness and novelty like no The Chinese mindset always TAKE A CULTURAL STANCE rich) millennials are driven by viable. We would be wise to learn promote its top smartphone,
other nation on earth. It takes the seeks newness, whether by Chinese consumers, like most ostentatious displays of wealth from Haier or Lenovo. the P9. It successfully projects
embryo of an idea, sometimes a inventing new products, services people, are full of beautiful and status. Infamously, one of the both aspiration and quality
pre-existing one, and iteratively or categories or disrupting contradictions. They are both richest men in China bought two BRAND EXPERIENCE IS THE on a local and global stage.
evolves it until it is transformed. existing ones. Brands and materialistic and idealistic. Great gold Apple watches for his dog NEW BATTLEGROUND Domestic brands have mastered
Chinas innovation philosophy is marketers need to manifest and brands capture this idealism by and took a picture of him wearing Although brands need an brand talkability and media
a brilliant blend of reiteration and behave in more unexpected harnessing an issue or challenging them for Instagram. e-commerce mindset to win in manipulation with concentrated
reinvention. It liberates itself from and agile ways. We need bolder a point of view that resonates China, they also need to creatively spend on branded content and
outdated business models. experimentation and rapid with their audience. P&Gs SK-II The growing middle class, bridge the gap between physical big show sponsorships. China
iteration. brand did this brilliantly when it with their love of luxury, has and virtual shopping across all has fully embraced a non-
THE GROWTH OF SUPER APPS took on the stigma of leftover led to the trend for extreme channels. Online retailers are traditional media model with big
This is Chinese innovation on China has taught us that it is women and the Chinese premiumization. The increasing now making big investments in blockbuster plays in culture that
steroids. WeChat is WhatsApp, better to experiment, fail fast, and marriage market with its rejection of mass or supermarket physical space. Retail experience build brand fame in an ocean of
Facebook, Twitter, PayPal, learn than to procrastinate and #changedestiny campaign. SK-IIs brands in favor of more niche has evolved way beyond competitive noise.
Amazon, Skype, Uber and risk extinction. sensitive and moving exploration or aspirational ones could prove sampling and discounting.
Facetime all rolled into one. It of the issue hit a nerve with the problematic for big global brands. Novelty plays, such as augmented SURVIVAL TACTICS
had 768 million daily users in Cultural Leadership over-25s. Competition is becoming fiercer reality displays, are now relatively China has thrown down the
2016. Thanks to WeChat, QR as more Chinese consumers commonplace. gauntlet. While the world has
Codes (which barely made a STICKINESS IS KEY Further afield, cultural leadership upgrade their choices. Brands watched, it has evolved at a
dent in the West) have become Brands that succeed in China are triumphed when 50 brands must prove that they are worth Brands will need to cultivate feverish pace, from iterative
essential to mobile commerce in culturally sticky. They understand took on Fox News and refused upgrading to. direct relationships with imitator to ingenious innovator.
China. It is now a CRM platform how to both leverage and lead to sponsor Bill OReillys The their consumers. Their brand
that controls the intermediation culture. They champion slow OReilly Factor, resulting in his At the other end of the social experiences will need to As Steve Jobs said, Innovation
between business and consumers culture, celebrating traditional dismissal for sexual misconduct. pyramid, lean value is required build their story, deliver more distinguishes between a leader
through owning and managing festivals such as Chinese New Companies understand that for lower tiers. Chinese brands targeted messaging and and a follower. In this volatile,
user profiles. Its big-brother Year, and they feed fast culture. consumers expect brands to have have creatively adapted to provide personalized shopping uncertain, complex, and
data capabilities are disquieting. Singles Day is an Alibaba-created shared values and to use their meet this need with a nuanced experiences. Nike and Under ambiguous environment, brands
It is light years ahead of any festival to celebrate singles on power for good. understanding of local culture. Armour are leading the charge on must lead by embracing faster
competitor in functionality and 11/11 every year. With sales on People want convenience, Direct-to-Consumer. experimentation and more
reach. Tmall and Taobao of US $17.8 It is not enough for brands to functionality, and an easy user disruptive business models.
billion in 2016, it is now the largest have their finger on the pulse of experience. Utility is key. Feature HOMEGROWN BRANDS ARE Brands need to find ways to
NOVELTY NEVER GROWS OLD online shopping day in the world. culture; they need to know how inflation is rejectedthey eschew TAKING ON THE WORLD creatively navigate consumer
Novelty can come from Great brands harness the hottest to influence and lead it. bells and whistles for streamlined, Chinese consumers are both complexity and rise above the
anywhere. In personal care, we key opinion leaders (KOLs) with simple, value-led products that nationalistic and international. fray to lead culture. Only then will
have seen the rapid adoption of powerfully placed endorsements Consumer Complexity target a specific need. George The aggressive growth of they survive and thrive.
personalization, such as Skin Incs and product demos in top shows Yip and Bruce McKern term this domestic brands is testament
bespoke blend of 10 different and online dramas. Cultural China is the worlds biggest phenomenon fit for purpose in to this. It is increasingly Chinas
serums. YSLs beauty engraving currency is so valued that brands economy, with an incredible their book, Chinas Next Strategic turn to become the breeding
service is so popular, it now have reportedly paid up to $50 spectrum of consumer needs. Advantage. It is a valuable lesson ground of world-beating
accounts for 80 percent of their million for sponsorship rights for Navigating this complexity is
crucial.
4 Regions & Countries Regions & Countries/INDIA
India Globalization,
localization impact
how Indians shop
Government vision jolts the economy INSIGHT
Two opposite forces banks that had limited supplies of the

globalization and localization new money. Some who chose not to
declare a stash of black-market cash
influenced how Indians shopped.
lost considerable wealth. Others found
To accelerate transition to a ways to redeem ill-gotten gains.
digital global economy, the
Indian government implemented Many complained about
demonetization, cutting off demonetization and criticized it for
the dependence on cash being poorly planned and widening
the digital divide between the poor
transactions. At the same time, and the middle class. But there was
Indian consumers continued limited public unrest. And just a few
gravitating toward local brands. months later, when Modis ruling BJP
party won an overwhelming election
Demonetization came abruptly. During victory in Uttar Pradesh, Indias largest Indians view the
the evening of November 8, 2016, the state, it seemed as if Indians had future with hope
same day Americans elected Donald accepted demonetization as foul-
Trump, Prime Minister Narendra Modi tasting medicine that could improve The long-term confidence of
informed Indians that the government their lives. Indian consumers does not seem
would immediately remove from to be affected by demonetization.
circulation key denominations of bank Young people adapted quickly. People worry about spend
notes, making them worthless unless Women initially changed their outpacing income, and feel that
exchanged for new currency. shopping patterns and moved from their current situation is not as
traditional stores to modern outlets good as it has been over the past
The goals of demonetization were to that accepted credit cards. The two years. However, they look
reduce corruption, increase taxable rapid rise in mobile payments, with towards the future with hope.
revenue, and shift India from reliance apps like Paytm, suggested that
on cash to a digital-payment society. India was rapidly transitioning to a Sunil Shetty
In the early days of demonetization, digital economy and fulfilling the Senior Vice President, Strategic Planning
people waited in long queues at governments vision of a financial Contract Advertising
revolution. Sunil.Shetty@contractindia.co.in
INSIGHTS
Brands and categories Consumers INSIGHT

and shopping
Financial services brands may be the
biggest winners. Now that consumers Among the local choices were more
have deposited their cash savings in ayurvedic-influenced brands, like
bank accounts, the financial services Pantanjali. The rise of ayurvedic-based
brands have an opportunity to educate brands reflects a desire for the familiar.
them about investments and other The Maggie noodle brand regained
financial products. Telecom providers popularity after experiencing a food
face a great opportunity, because safety episode a few years ago, for
better infrastructure is needed to make example. The brand appeals to Indians
Digital dawn brings the vision of digital India a reality. because it is familiar and seems Indian.
new opportunities FMCG in India is strongly impacted
In fact, it is a Hindustan Unilever brand.
Uncertainty for Indian brands by rural demand, which is driven by The interest in Indian brands
is a pain point Brand stories the agricultural economy, whether also may be related to the rise
farmers raise a healthy crop and sell
for consumers The predominant consumer
must connect of Hindu nationalism, a form of
sentiments have undergone a it to wholesalers. Demonetization populism that resembles Brexit and Millennials
The learning for brandswhether metamorphosis because of with aspirations happened between crop cycles, which
minimized the impact. Some disruption
President Trumps America First
look for value
Indian or multinational, value or changes in consumer life induced pronouncements, but is expressed
premiumis that there is a lot by government initiatives, such The brands that have had a
occurred among wholesalers whose with Indian particularity. For Indian in brand choice
as those regulating driving and ability to purchase crops was limited consumers, whether a brand is global
of uncertainty worldwide, and significant impact in the past few
waste recycling. However, only a by the reduction of cash in the supply or local usually is less important than The Gen X consumers are
especially in India. Who would years are those like Patanjali. They
few brands have expressed their chain. whether it delivers a true value. influencing the market. There
have talked about demonetization began in ayurvedics, developed
just a year ago? Uncertainty is a empathy towards the consumer a large consumer following, and used to be a sense of premium
challenges or even tried to connect Prior to demonetization, an official Typically, members of Indias urban associated with foreign brands.
pain point. Identifying and tapping have a narrative that extends
to consumers on these challenges. channel existed side-by-side with middle class buy premium products Young people have a different
into this uncertainty will help beyond the functional. The
The demonetization is perhaps an an underground cash-only channel, if justified by functionality and value, perspective. Having grown up
brands win the market. Giving brand narrative needs to look
exception with a few companies, where prices were lower because but not simply for the badge. In the since liberalization, they are not
the consumer a better wash for at the market through the lens
particularly the e-commerce transactions did not include tax smartphone category, for example, influenced by whether the brand is
clothing, or better mileage, is of changing India and connect
players, using it to help consumers payments. Categories that depended Apple and Samsung face formidable Indian or non-Indian. For them its
no longer enough. To win in any with the aspirations of people.
springboard from the cash more on the underground channel competition from Chinese brands, like all about value.
category, brands need to answer Consumers will experiment with
economy to a digital economy. may feel the impact of rising prices. Huawei, and the local Indian brands,
the consumers main questions: brands that have both a good
Traditional brands must reexamine The real estate market slowed after including Lava and Micromax. Ashish Karnad
How do you fit in my life? How do story and related functional
their proposition to meaningfully demonetization because of its Head of Media and Digital Solutions,
you help me solve this uncertainty benefits.
connect to consumers, as their dependence on cash. Auto sales Some suggest that demonetization South Asia
in my life? decreased initially, but soon began to
predominant sentiments have Puneet Avasthi will slow Indias robust annual GDP Kantar Millward Brown
undergone a clear metamorphosis, recover. growth to below 7 percent. With Ashish.Karnad@millwardbrown.com
Aditya Kilpady Senior Executive Director
Senior Vice President, Strategic and brand propositions have not. Kantar IMRB slower growth, brands would feel
A few months prior to demonetization, more pressured to develop disruptive
Planning Puneet.Avasthi@imrbint.com
Rajesh S Kurup on August 15, India celebrated its strategies and stimulate consumer
Contract Advertising 70th anniversary as an independent
Aditya.Kilpady@contractindia.co.in Executive Director, North spending with innovative offerings. The
Kantar Millward Brown state. Centuries of existing within the strong interest in local Indian brands
Rajesh.Kurup@millwardbrown.com strictures of the Mughal or British rule will likely continue, but for Indian
have produced a nation of smart and consumers the key determinant for
practical consumers, open to global choosing a brand will be that it meets
brands but increasingly receptive to an their needs at the right price.
expanding offering of local products
and services.
INSIGHTS
BRAND BUILDING
ACTION POINTS
1 3
Be authentic Be personal
Demonetization With the proliferation of fake news People increasingly rely on social
made most feel and alt facts, authenticity will media as their primary source of
news and other information. Brands
less wealthy distinguish brands and help ensure
must learn to communicate with
long-term success. Millennials are
especially sensitive to the need for individuals in a personalized way
Slower growth People felt less rich. Many sectors
that enables them to enter the daily
went through significant downturn honest information.
produces more Value tops
4
conversation.
2
in cash flow and in the number of
brand disruption people they employed. Therefore,
premium Be relevant Be prepared
there was a segment of people
Although the Indian economy who were unemployed or who perception Be prepared for disruption. The
moved to lower-paying jobs. They Make the brand relevant by
is still expanding at a faster rate
were not contributing as much to The perception of being premium connecting with consumer possibility of disruption is certain.
than most industrialized nations,
its facing head winds. Brands consumption as they would have is no longer a criterion for a brand sentiment, which post- Less certain is how disruption will
are coming up with disruptive otherwise. People who had large to be picked up from the shelf. demonetization includes a high level happen, in what categories, and to
strategies to introduce something stashes of money found ways to If the premium brands were the what brands. Now that consumers
of uncertainty. Offer products and
legitimize it. They were unlikely ones gaining market share, then
new and different, creating a services that create the perception are more sophisticated and exposed
value for the consumer and for to feel less rich. Salaried people we would not have seen the rise of
were not impacted because of a great value. to greater choice, they seek value
themselves. Consumers are open the Chinese smartphone brands
their earnings are transparent and Indian brands like Micromax and are most likely to respond to
to both Indian and non-Indian
brands, and will select the brand and taxed. Effectively, it was or Lava. The consumer is giving brands they perceive as best in class.
that helps improve their life and lower-wage people or those in a lot of attention to the features
offers the best value. unorganized sectors who were hit and value that these phone
Vishikh Talwar
hardest. Brands catering to these
people were hurt. In addition,
brands offer. They are not simply
choosing the premium associated BrandZ Focus on india...
MD South Asia some of the sectors that rely on with Apple or Samsung. Because
discretionary spending were hit by of the amount of choice in India,
demonetization, especially sectors
BrandZ Top 50 Most Valuable
Vishikh.Talwar@millwardbrown.com the selection of a brand is no
like jewelry or real estate that relied longer driven by a need alone. Indian Brands 2016
on cash transactions. Consumers can evaluate their
need and then make a choice. Indian entrepreneurism and innovation,
Parnika Mehta factors which produced the strongest Gross
Chief Solutions Officer South Asia Vikram Gupta Domestic Product (GDP) growth of any
Kantar Millward Brown Group Account Director major industrialized economy, also drove a
Parnika.Shrimali@millwardbrown.com Kantar Millward Brown value rise among local Indian brands.
Vikram.Gupta@millwardbrown.com
This in-depth study analyzes the success
of powerful and emerging Indian brands,
explores the Indian consumers shopping
habits, and offers insights for building
valuable brands.
(For full details and to download the

report, please visit www.brandz.com)
129
Thought Leadership/EMERGING BRANDS
THOUGHT LEADERSHIP
Emerging Brands HARI RAMANATHAN

Didi, Ola, Baidu, Birla,
Flipkart, Dalian Wanda...
the list is long and varied
of dollars, they have decided that
its much simpler to just use that
investment to acquire brands that
dont have these issues and get
of large and valuable
on with the job of selling product.
brands in China, India, and
other emerging markets This has led to brands like TCL
and yet they firmly remain acquiring Thomson and Alcatel
Chinese, Indian
homebound despite some in Europe, and Haier acquiring
efforts to become global the GE appliance division and
Fisher & Paykel. And real estate
brands.
brand Wanda has added a
diversification element to this
brands expand
The leap from East to West
by taking over AMC cinemas,
seems to be as implausible
Chief Strategy Officer, Asia Legendary Pictures and Dick
Y&R as its been for the past few
Clark Productions.
Hari.Ramanathan@yr.com decades. Why is it that brands
from the East are not able to
This behavior is not so much a
make that transition? Are they
with differing
business approach as one thats
not interested, or simply not
a cultural response. Whenever
doing it right? And will we see
you meet someone in China, they
any of them soon ranked in the
will tell you their name is Tom,
BrandZ Top 100 Most Valuable
or Kelvin, or Joeall made up
Global Brands? The answers to
global strategies
names for the easy consumption
these questions are as varied as
of foreigners. They view it as
what these brands represent.
misspent energy trying to teach
a hundred people that X is
Taking the shortcut pronounced as Ksh or that Q is
pronounced with a Sh sound.
Companies from China seem
Its simpler to present themselves
to have taken a different lesson
in your own syntax and cultural
from the journey of Japanese and
context and get down to
Their success is critical to drive more recently Korean brands.
business. The approach hasnt
Instead of trying to fight and
brand value and world vitality overcome the perception issue of
paid rich dividends yet, but its
too early to tell.
quality and reliability with millions
Y&R is one of the worlds most

iconic ad agencies. We operate as a
Global Boutique, connecting deep
insights from local business needs
and consumers with strategies and
objectives that travel across borders.
www.yr.com
3 Thought Leadership Thought Leadership/EMERGING BRANDS
GUILIN - CHINA

$406.0 BILLION
We are like this only a Chinese company. Tata has But its more nuanced. Its not
tried launching their pickups and a question of ego or indeed
A phrase made popular, ironically, trucks everywhere from Africa to even the size of the market; its
by MTV in India, it refers to the Thailand. But none of the brands important for brands to get to
eccentricities of Indians and their have made the same impact that the West because for the next
unchanging nature. While it was is par for Western brands in India. decade, and perhaps more, the
a satirical sketch, the underlying consumer spending money is still
cultural truth is very strong and Given Indian companies would be going to be in that part of the
again emerges in business. Indian hard-pressed to fund aggressive world. And when brands expand
brands, with the exception of expansion on the scale of Sony into markets with higher affluence
Tatas now famous acquisition or Samsung, it might be prudent and higher price elasticity, they
of Jaguar Land Rover, do not for them to consider the China increase their brand value and
favor being invisible and behind method of acquisition. But ultimately their enterprise value.
the scenes. Expansion to them Mahindra is trying a new route.
is a conquest and it needs to They have acquired the storied There may be no one answer on
be under their flag; this is more Italian design house Pininfarina, how to do it, but the interposable
reminiscent of the Japanese and and they are hoping to design nature of brands cant be only
Korean way. and originate products for the one way. While the attention
European market from scratch. today is toward emerging
A lot of success has been markets, because of the decline in
achieved in the sphere of IT Value Perspective growth in developed economies,
services by the likes of Infosys, that shouldnt distract brands
Wipro, TCS and many other Theres a school of thought from the fact that the opportunity
brands, but when it comes to that says that these moves at to turn Asian brands into real
consumer-centric brands its a expansion are nothing more than global powerhouses is real and
different story altogether. No ego-driven. After all, why hanker one that should be pursued. It
Indian brand has been able to to get into a market where you is critical for brand value and
make much of an impact. Auto have to navigate the differences also for a more balanced world
brands have been leading in of 28 countries to reach a where we dont end up being
attempting forays abroad, with combined market of only 743 homogenized to the point of
Mahindra launching tractors million when you have a market losing cultural differences.
in the US and even acquiring exceeding 1.2 billion at home.
4 Regions & Countries Regions & Countries/RUSSIA
Russia
Consumers adjust INSIGHT
The ultra-wealthy still had money to

spend. Although car sales sagged
for mass-market models, sales grew
shopping strategies
Russian brands found opportunities for Western (usually German) luxury
even at the premium level, where they brands. The weakened ruble made
served the needs of Tier 1 consumers. cars a less expensive purchase and
Two Russian meat brands, Miratorg a worthwhile investment. The ruble
and Primebeef, expanded over the also drew international shoppers to
last few years, replacing some of Moscow in search of luxury bargains.
the imported beef supplied mostly
by Germany and Poland prior to
Russian brands benefit from frugal behavior sanctions. INSIGHT
Imported beef from Brazil and Mexico

also entered the Russian market after
Russian consumers adjusted to also shopped for bargains online, both sanctions, but not enough to fully Discount chains
INSIGHT
the impact of low oil prices and on Russian sites and on AliExpress, the
business-to-consumer site that makes
satisfy demand. Similarly, Russian
brands now supply more fish, which
add more stores
Western sanctions with survival
Chinese products available abroad. prior to sanctions came mostly from to meet demand
strategies learned during prior Nordic and Mediterranean countries.
economic downturns. Many As consumers spent on fast-moving We saw a slight recovery with
managed their finances by consumer goods (FMCG) and other Food safety concerns about chemicals a small increase in consumer
limiting purchasing mostly to basic merchandise, Russian brands used in agriculture mitigated demand income. Still, consumers changed
necessities and shopping on continued to develop, serving for less expensive food imported from their behavior and are adjusting
customers at all income levels and China, including fruits and vegetables. by shopping at price discounters.
price. But the troubled economy even offering some premium brands. The Tier 1 and 2 consumers spent We see these Russian discounters,
did not affect consumers equally. Because consumers deferred major more time reading product ingredients Magnit and Pyaterochka, growing
While few were immune to the purchases, real estate prices declined to choose the best product and the quickly, opening many new
countrys economic difficulty, and car sales weakened. fairest prices. stores each week. Price drives Russian brands
consumers behavior depended sales in most categories. Loyalty able to grow
To stimulate spending, retailers priced programs have become more
on their income, aspirations, and
aggressively and devised various
The difficult economy also produced
opportunities for Russian brands in important to prevent customers
in slowdown
other socioeconomic factors. special offers, marking down certain non-food categories like apparel. from switching because of price.
merchandise for a limited time. Shoppers turn Middle-class consumers who wanted
Consumers have gotten used
to the pressure on the economy
In an extensive research survey,
Mediacom divided Russian consumers
The promiscuous price shopping to couponing to maintain their quality of life Eugeny Trebunsky
from Western sanctions, and
stimulated by these deals motivated while spending less money found Head of Strategy
into three classifications: Tier 1, retailers to strengthen their loyalty for savings the products of Russian designers Maxus
many viewed the Trump election
wealthier people, driven by the programs. as positive news. They budget
promoted on social media sites like Eugeny.Trebunsky@maxusglobal.com
need for self-realization, who can Our research shows that carefully, purchasing only what
Instagram.
consumers are using several they need to. Russian brands
afford premium products and even
overseas travel; Tier 2, solidly middle-
Russian brands benefit strategies to make their money continue to develop, particularly
class people, who spend money go further. Around 30 percent of Affordability and luxury in FinTech. Among the brands to
Some Russian brands benefited from mention in this regard is Tinkoff
pragmatically and can afford some consumers are using coupons or
the changes in consumer demand Affordable apparel was available online In Russias price-driven telecom Bank, online financial services
durable goods and an annual vacation special offers based on a previous
and other conditions that followed the at WildBerries, a large Russian multi- provider category, a challenger business, which has been showing
within Russia; and Tier 3, people with purchase. And almost half use
imposition of sanctions. As consumers, brand apparel e-commerce market, or brand, Tele2, disrupted the Moscow great results.
limited budgets, who spend frugally shopping lists when they go to
particularly in Tiers 2 and 3, limited at Lamoda, an online fashion retailer. In telecom provider market, adding
and worry about unforeseen expenses. a food store to focus on their
their shopping to basic products, they addition, major shopping malls created further pressure on the three majors Maria Kuzkina
needs and not spend on impulse
often found more Russian brands, temporary marketplaces where small MTS, Beeline, and MegaFonand Head of Moscow
Middle-class and less wealthy purchases.
because following the imposition vendors sold a variety of merchandise, instigating a price war. Compounding PBN Hill+Knowlton Strategies
consumers shopped more often at
of sanctions, grocery shelves were including clothing, accessories, and the pressure, a recent national security Maria.Kuzkina@hkstrategies.com
discount stores and were disciplined Tatiana Eliseeva
filled with Russian-branded food custom jewelry. The marketplaces law changed the rules about customer
in how they spent their money, often P&G Planning AOR EECAR Leader
commodities like sugar, bread, milk, provided the malls with additional rent data retention and government access
using coupons and making shopping MediaCom
cooking oil, tea, and coffee. and offered consumers less expensive to data, which increased expenses and
lists to limit impulse purchasing. They Tatiana.Eliseeva@mediacom.com
alternatives to multinational brands. squeezed profits.
4 Regions & Countries Regions & Countries/RUSSIA
MOSCOW - RUSSIA
BRAND BUILDING
INSIGHT
ACTION POINTS
1
Cultivate love
Especially in todays difficult economy, it is
important for brands to be in dialogue with
their customers. The brand offering must go
beyond the product to include services that
can help improve the customers life. When so
many purchase decisions are price-driven, this
More relaxed, kind of interaction can help build loyalty.
shoppers spend
2
on key items
Be online
People are used to challenging
economic conditions. The currency Being online is another way to build loyalty.
rates are stable now, more or But online presence requires more than
less, and people know what to selling products. All brands, regardless of size,
expect. They have relaxed a
need to be online, and the most successful
bit and feel comfortable with
everyday shopping for FMCG
will engage in conversation with consumers.
products or apparel. At the same
3
time, real estate prices and car
sales weakened because people
postponed expensive purchases. Share values
Natalia Koroleva
It is important to share the customers
Director of Corporate Communication values and to communicate about those
PBN Hill+Knowlton Strategies shared values. A personal care brand, for
Natalia.Koroleva@hkstrategies.com example, can provide beauty services
that improve quality of life and make the
customer feel closer to the brand.
4
Show insight
Communicate messages that resonate
locally. Create locally relevant events.
Russian brands understand the market
and can express themselves in ways that
demonstrate deep customer insight.
Thought Leadership/RUSSIAN MILLENNIALS
THOUGHT LEADERSHIP
Russian millennials are essentially the countrys first proper
Russian Millennials
ARINA KHODYREVA
consumers. Back in the USSR, there were no brands. But
when the Soviet Union collapsed, Russia was suddenly
exposed to full-blown capitalism. International brands
flooded the Russian market in the late 80s and 90s, right
around the time Russian millennials were born. While
they never experienced the deprivations of the Soviet era
themselves, Russian millennials are nevertheless influenced
Russian millennials
by an older generation that is very keen to consume after
years of empty shelves. As a result, the Russian millennials
are quite a unique species compared to their global peers,
and brands need to keep their history in mind.
behave differently
Director, Technology+Digital
PBN Hill+Knowlton Strategies
Arina.Khodyreva@hkstrategies.com
Attitudes TECH-SAVVY
LOVE INTERNATIONAL Hacker jokes aside, Russians

BRANDS, BUT HAPPY TO love their tech and really
than their peers

SWITCH know how to use it. Mobile is
everything in Russia, and not just
Russian consumers on the whole in the big cities. Apple/Samsung
adore international brands, as Pay, contactless technology,
they are associated with a level messengers, online services
in other countries
of quality domestic brands millennials have embraced
historically have been unable to and mastered it all. Russia has
provide. For a long time following produced some of the greatest
the collapse of the Soviet Union, tech leaders of todays online
foreign brands offered a way world, from Googles Sergey
for people to stand out from Brin through to Telegrams Pavel
the crowd and demonstrate Durov, and Russians take pride in
their social status. Nevertheless, their tech prowess.
Russian millennials love for
Brands must understand these foreign brands is not as strong as I WANT IT ALL AND I WANT
tech-savvy, eager consumers that of older generations, given IT NOW. AND I STILL KIND OF
that domestic brands offering WANT TO OWN IT.
similar levels of quality have
begun to appear, particularly Accustomed to economic
in sectors that appeal to uncertainty and volatility, many
younger people. On the whole, Russian millennials value short-
brand loyalty is not strong and term enjoyment, achievement,
millennials will happily switch and products over potential
between brandsas long as the gains down the line. Why work
quality is high and the price is half your life for something when
right. you dont know what will happen
PBN Hill+Knowlton Strategies
is the preeminent strategic tomorrow?
communications and public affairs
consultancy specializing in Russia,
Ukraine, Kazakhstan and the CIS.
www.pbn-hkstrategies.comc
3 Thought Leadership Thought Leadership/RUSSIAN MILLENNIALS
However, not all Russian could previously only dream of. TRUST ISSUES HOLDING BACK
millennials are convinced; material This is one reason behind the THE SHARING ECONOMY
possessions such as cars and tremendous success of Chinese
apartments still matter, as they online marketplace AliExpress, Trust is a key element in any
BRAND BUILDING
represent stability and social which offers a huge variety of sharing economy, but wary of
status. goods at cheap prices that can past experience in Russia from
be easily ordered online and from the days of communism and the
ACTION POINTS
PRAGMATIC, BUT mobile. volatility of the 1990s, Russians
PERSONALITY MATTERS are not fully willing to trust
INTERNET IS LOCAL, TV IS each other. This is holding back
Russians love brands but are not STILL STRONG, AND YOUTUBE the development and spread
convinced by brand missions IS GROWING LIKE CRAZY of innovative sharing services.
1
and promises and are not keen Individualism is still holding strong
While Facebook is the largest over the benefits of the sharing
to allow an emotional connection.
social network in many European
Think local
More down-to-earth brands experience.
might find it easier to earn trust. countries, its local rival VK.com Celebrate your brands international
A key factor in gaining that trust is much bigger in Russia. HEALTH AND COMMUNITY heritage and stress the quality of
is the personal touch. Millennials Nevertheless, for want of a ARE RISING TRENDS products and services, but dont forget
3
domestic alternative, Russians the local anglehow do you fit in?
like to see successful brands that
have inspiring leaders with strong love Instagram, which actually As in the rest of the world, Be bold and honest
millennials living in big cities When choosing the face of your brand,
personalities and human faces. has a bigger audience in Russia
opt for local influencers over global ones. Russian millennials appreciate
than its parent Facebook. As are overwhelmed by their
Just look at Oleg Tinkov, head honesty and are very tolerant of
for the other global giants: daily routines and stress at To win even more points, go hyperlocal;
of the highly successful Tinkoff even very provocative marketing.
Twitter is losing its audience, work, which disrupts work/life every region or city likes to feel unique
Bank, which works exclusively
and LinkedIn has been banned balance. Russian millennials have (and, especially, different from Moscow).
online, or Eugene Kaspersky, who
for not complying with Russian embraced the trends of healthy
started cybersecurity business
legislation. While millennials lifestyle and community building, For digital campaigns, do not rely on just
4
Kaspersky Lab.
consume more information online and they have started looking Twitter and Facebook. Embrace local
networks like VK and OK. And yes Sell the experience,
than their parents, TV still plays for activities that will help them
Behavior YouTube! not the product
a strong role, thanks to 20 free- stay healthy and connect them
E-COMMERCE IS KING to-air channels and cheap pay with like-minded people but Engage with your
Dont limit yourself to digital; TV is still a
TV. As for video, YouTube has which dont require too much consumers and let them be
big deal in Russia.
Russia is the biggest country in highlighted the size of the Russian effort. One of the most apparent part of something bigger.
the world (in land size), which market (the biggest in Europe), manifestations of this is the rise of
makes it hard for brands and and Russian millennials (backed running clubs in big cities, which
2
stores to maintain a physical up by the younger Generation have become an essential part
5
presence everywhere. Therefore Z) are watching more and more of many millennials sporting and Reward Loyalty
Think mobile
e-commerce is a godsend for content there every year. This social lives
Russian millennials tend to
many millennials, allowing access trend looks set to continue. Russians love mobile, and in
switch easily between brands,
to products and services they many areas of the country it
so reward any loyalty and work
is the only way to get online.
hard to retain clients.
4 Regions & Countries Regions & Countries/SOUTHEAST ASIA
Southeast Asia Proliferation of mobile

facilitates market entry
But local competition, media fragmentation add complexity
Marketers view Southeast Asia Opportunity for local and

as an enormous opportunity to multinational brands in Southeast INSIGHT
Asia exists in many categories.
build brands in a fast-growing
Cosmetics and fast-moving consumer
region where national GDP often goods (FMCG) brands especially are
exceeds 5 percent annually. finding a growing customer base.
Most countries in the region are Telecom providers also are expanding
members of the Association rapidly with the growth of mobile
of Southeast Asian Nations communication and internet use,
although carriers vary by country and
(ASEAN), a trade organization Singtel is the only brand with regional
established in 1967, prior to the presence.
European Union.
In certain categories, the urban
Member states include: Brunei, consumers of the major Southeast
Cambodia, Indonesia, Laos, Malaysia, Asian cities, like Bangkok or Saigon,
Myanmar, Singapore, Philippines, are comparable in their tastes and
Thailand, and Vietnam. While each interests to their peers in the West,
country is distinctive, they share sharing an interest in health and Messaging apps
certain characteristics that are useful
for marketers to anticipate:
wellness, for example. Cultural
differences apply in other categories,
popularity critical
such as cosmetics, where local for brand builders
practices, including greater attention
Mobile first to male grooming, influence Western Even in markets like Myanmar you
Many countries bypassed trends. find a lot of feature phones, where
stages of telecom development, the growth of messaging apps
and consumers rely on mobile E-commerce has facilitated market is quite substantial. Singapore,
devices, certainly in the cities and entry in Southeast Asia, but market Thailand, and Vietnam are all
increasingly in more rural areas. penetration has become more similar, with large increases in
competitive and complex, and media the use of WhatsApp, Facebook
more fragmented. Geographic Messenger, LINE and the like. This
E-commerce development is important for
location can be an important market-
Online purchasing is well
entry consideration. The politics and brands.
developed, but different in
economies of Myanmar, Laos, and
payment and delivery from
Cambodia differ, but the countries Andrew Robinson
Western models.
share some cultural commonalities Managing Partner, ASEAN
most inhabitants practice Buddhism, GTB
Competition for example. And shared national Andrew.Robinson@gtb.com
Local brands are strengthening borders facilitate marketing and
and China is the regions largest distribution.
trading partner and foreign
investor.
Mobile first
Brands already in Southeast Asia
continue to pursue urban consumers. INSIGHT
Consumer mindset
They also penetrate deeper into
some countries, like Indonesia, Reflecting these extremes, Southeast
their expansion facilitated by the Asia is home to some of the worlds
availability of advanced feature most advanced shopping centers Media and messaging
INSIGHT phones or cheaper smartphones and and sophisticated e-commerce
the development of e-commerce. operations, as well as to meandering Media use varies by market and
Mobile phoneseven smartphones shopping districts with mom-and-pop category, depending in part on
proliferate in places like Myanmar shops lining narrow streets. The move media ownership, as censorship and
that lacked fixed-wire infrastructure. to modern retail proceeds at varying INSIGHT regulation sometimes dictate what
Consumers are leapfrogging the speeds depending on the local can be doneor not. Understanding
desktop computer phase and going economy. Indonesia is transitioning how best to use media requires
directly to mobile. And brands rapidly into modern retail, while first mapping whether the media
are adept at creating messages Myanmar relies more on small shops. is government-owned or privately
specifically for the mobile medium. owned, consolidated or a monopoly,
Urban consumers, particularly the highly regulated or free. The presence
Mobile has also shaped entertainment young, resemble those in Western of government media control is one
and e-commerce. Lazadam, the As market entry capitals in many ways, but also retain
local characteristics. They are more
of the factors driving the popularity
e-commerce brand that serves of bloggers and the trust consumers
Southeast Asia, transacts a high gets easier, growth communal. A young person making invest in them.
percentage of its business on mobile. becomes complex a major purchase in Bangkok or
Saigon might be more interested in
Mobile-first strategies have helped As in most markets, media in
Social status drive the expansion of new brands Digital in these economies is
the opinion of his or her parents than Southeast Asia is experiencing a shift
a millennial in New York or London
vital to youth such as Grab, an Uber competitor fundamentally being driven by
would be. For a smaller purchase, an
to digital. However, TV is still relatively
expensive in places like the Philippines
based in Singapore that has had an the hyper-acceleration of mobile.
in Singapore impact in Singapore, Thailand, and E-commerce in Asia is ahead of
article of apparel, for example, more and Indonesia, and the growth in
Malaysia. An Indonesian brand, Go whats going on in other parts of
social shopping, with text and photo Chinese trade, digital is coming at the expense of
We have never had a bigger
mobile opportunity for brands
Jet, has developed both a pick-up and the world. These factors have a
messaging, might take place.
tourism impact other channels, including print and
delivery service. radio.
in Singapore. Gen Y track and
massive impact on how brands
approach marketing. Entering the
The communal mindset affects local economies
share every part of their lives Delivery is different from most purchasing motivation. A young And media consumption habits vary
Southeast Asian markets is easier
online, benchmarking their peers places in the West. It is faster and Asian woman might desire the latest Compared with the West, where a by country. For example, media in
than it ever has been because of
based on likes and followers. They often same-day for e-commerce smartphone as an expression of lot of the geopolitical conversation Thailand is screen-based and includes
e-commerce. But the market is
communicate daily for approval purchases. And the delivery service collective individualism, so that concerns the impact of the Trump both TV and digital. In contrast,
getting far more complex because
of purchases, not only for their takes payment in cash. Cash on everyone in her group of friends administration or Brexit, we tend Myanmar is print-based and outdoor
of media fragmentation and the
new trainers, but even for their Delivery solves the online payment has the same phone, and she is part to look more to China and how because the electricity supply in
difficulty of establishing a brand.
morning cup of coffee. We can problem in societies that lack a credit of the group that stands out. In the its economic growth and factors Myanmar still is erratic. Similarly, radio
Its easier to get in and a lot harder
capitalize on this behavior by infrastructure, where online shoppers Western expression of individuality, like tourism affect the rest of the has been declining in Thailand, where
to get recognized when youre
tracking, and encouraging user- cannot supply a form of credit for a young woman more likely would region. We are aware that global people use their mobile phones for
here.
generated content, giving them payment. want to stand out from the group. developments have impact, but entertainment, but radio is popular
the parameters for creativity Attitudes are changing, and members usually not a direct as what is in Myanmar because people use
Raj Gupta
with our products. Gone are the At the same time, mobile provides of Gen Y (the millennials), are more happening in China or neighboring battery-operated radios.
Chief Strategy Officer, APAC
days of brands broadcasting to wide access to brands and individualistic than their Gen X countries.
MEC
consumers. Brands need to work information from parts of the world to predecessors.
Raj.Gupta@mecglobal.com
much closer together with their which the people of Southeast Asia Pathamawan (Linda) Sathaporn
consumers across all categories are culturally receptive and adaptive. In some categories, like FMCG or Leader, Thailand
to stay relevant and create These influences shape the urban personal care, brands are more likely MindShare
meaningful experiences. middle class, which varies by market. to market across entire national Pathamawan.Sathaporn@
In Thailand, for example, the middle populations than target the urban mindshareworld.com
Klara Krok-Paszkowska class is shrinking as extremes of segment. To address the need for
Head of Strategy wealth and poverty are growing. affordability, some products are
Joule offered in small pack sizes at lower
Klara.Krok@jouleww.com prices. And in some markets the small
size of shops influences the need for
smaller pack sizes.
BrandZ Focus on Southeast Asia...
As Indonesia steps forward,

regional and global possiblities
BRAND BUILDING open for domestic brands
ACTION POINTS BrandZ Top 50 Most Valuable
Indonesian Brands 2016
Now in its second year, this
study analyzes the success
1
of Indonesian brands,
examining the dynamics
Acknowledge differences shaping this fast-emerging
Southeast Asia is a convenient market and offering insights
4
shorthand to describe a group for building valuable brands.
of countries that are relatively
Partner with
close geographically and share
e-commerce leaders The country has been transforming
some cultural similarities. But each its economy, liberalizing markets and
Local partners are set up to
country is distinct and requires stimulating growth in ways that have
conduct e-commerce Southeast
individual marketing attention. brought about extraordinary changes to
Asia-style, which is cash on
the lives of Indonesian people and the role
delivery. Because most consumers
of brands.
lack credit, they order online but
they cannot pay online. Prepare to
2
deal with this hybrid approach
Expect competition
clicking to order but paying COD.
Forget one-size-fits-all. Not only
is each market different, but most BrandZ
include strong local competitors.
Spotlight on Myanmar
5
And being Western, by itself, is not
a compelling brand story. Brands Modify mobile
The Leapfrog
need market-specific strategies,
particularly for social media. Modify mobile to meet local
expectations. Consumers are
price conscious. They pay for
mobile phone data as they use it, Nation
3
not on contract. Consequently,
Build relationships they are not going to watch long The story of Myanmar is one of huge
Do not rely only on existing videos on their phones. Rethink potential, as a new era of openness
relationships with global social video content. Short, front- signals strong growth opportunity.
media or messaging services. Build loaded messages best match the Now is the time for brands to make an
relationships with the local social consumers frugality and limited impression in this emergent economy.
media players, the media channels, attention span. Design videos to
and the telecom providers. be viewed vertically, saving time
(For full details and to download these report, please visit www.brandz.com)
by eliminating the need to turn the
phone to landscape orientation.
The
Categories
5 The Categories The Categories/OVERVIEW
Vital Signs
New Vital Signs Index As disruption
measures brand health spans categories,
some brands
BrandZ analyzes implications for categories
A new BrandZ Index called of this process, helps sustain the value. In contrast, the bottom third
Vital Signs assesses brand customer relationship. in Meaningful Difference increased
only 47 percent over those 12
health across five diagnostic
counter the trend

People see brands with strong years.
indicatorsBrand Purpose, Vital Signs as Meaningful (meeting
Innovation, Communications, needs in relevant ways) and Vital Signs and Meaningful
Brand Experience, and Love. Different (distinctive and trend- Difference scores reflect category
The average Vital Signs score, setting). Meaningful brands health. Of the 14 categories studied
a composite of the individual successfully grow market share, in this report, the Technology Top
and Different brands are more 10 scored highest in Vital Signs,
indicator scores, is 100. able to command a higher price 116, and increased 292 percent
The healthiest brands start

premium. in brand value over the past 12
years. The Global Banks Top 10
Retail and technology rise most in value
with a clear Brand Purpose and Most important, Meaningful scored average in Vital Signs, 100,
related Innovation, according to Difference is a key driver of brand and declined 16 percent over the
BrandZ research. Effective use value. Of the 86 brands valued past 12 years. The analysis that Each of the 14 categories percent in brand value to become the Banks and insurance brands acquired
of Communications to explain both in the 2006 BrandZ Global follows will expand on the presence analyzed in the BrandZ Global Global Top 100s fastest-rising brand. technology startups both to become
Brand Purpose and Innovation Top 100 and the current report, the of Vital Signs and Meaningful Similarly, Tesla was among the Global more customer-responsive and to
Top 100 report experienced
leads to positive Brand Experience, top third in Meaningful Difference Difference across categories and Top 100s fastest risers, increasing compete with smaller organizations
which helps solidify the customer disruption from geopolitical and 32 percent in value, while the cars aimed at attracting customers,
increased 207 percent in brand the implications for brands.
relationship. Love, an outcome economic forces, changes in category stayed flat. millennials in particular, to online sites
consumer attitudes and values, for services like mortgage lending and
and technology. Only two Even as technology disrupted most car insurance. Both global banks and
categories increased in double categories, retail led all categories in insurance brands declined 1 percent
Technology leads in the Vital Signs Index score value growth because of technology. in value, while the regional banks
Of the 14 categories studied in this report, the Technology Top 10 scored highest in Vital Signs, 116.
digits, retail and technology, Amazon, the colossus of disruption, increased 2 percent.
which rose 14 and 13 percent. increased 41 percent in value, as
120 it continued transforming life with The telecom providers disrupted
116 Seven categories improved modestly innovations such as checkout-free themselves with technology. Through
115 113 in value, from 1 to 7 percent. Soft physical stores. And Walmart acquired a series of major acquisitions, category
drinks and cars registered no change. an online start-up to complement leaders AT&T and Verizon continued
110 108 108 108 And three categories declined: its physical stores with stronger to transition from transmitters of voice
107
106 global banks, insurance, and apparel. e-commerce. and data to providers of rich content
105 105 Average = 100
104 Illustrating the turbulence, apparel and branded entertainment. Fast food
105 103
102 102 declined 7 percent, the most of any Car brands planned for a future brands, especially Dominos Pizza and
101
100
category, after leading the categories of mobility alternatives, including Starbucks, expanded use of digital
100
in value growth last year, with a rise of electronic and autonomous cars, but technology to speed online ordering
14 percent. focused immediate attention on driving and improve customer experience.
95
sales of SUVs, and lifting margins with
Ironically, apparel brand Adidas, from technology that improved safety and
90 the category with the greatest decline, added connectivity, personalizing
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5 The Categories The Categories/OVERVIEW
CATEGORY VALUE CHANGES
1 2 3 7 8 9 10
Regional Personal
Retail Technology Fast Food Luxury Banks Care Soft Drinks
Brand Value % Brand Value % Brand Value % Brand Value % Brand Value % Brand Value % Brand Value %
The fast food, soft drinks, and Change 2017 vs. 2016 Change 2017 vs. 2016 Change 2017 vs. 2016 Change 2017 vs. 2016 Change 2017 vs. 2016 Change 2017 vs. 2016 Change 2017 vs. 2016
personal care categories responded
+14% +13% +7% +4% +2% +1% 0%

to ongoing consumer concern about
healthy ingredients. In a strategic
shift to refocus on its core customers
instead of appealing to a more upscale
audience, McDonalds returned to Brand Value % Brand Value % Brand Value % Brand Value % Brand Value % Brand Value % Brand Value %
basicsthe burger, but a better burger Change 2016 vs. 2015 Change 2016 vs. 2015 Change 2016 vs. 2015 Change 2016 vs. 2015 Change 2016 vs. 2015 Change 2016 vs. 2015 Change 2016 vs. 2015
made with fresh, not frozen, beef.
+8% +6% +11% -5% -12% 0% +1%
Bottled water outsold colas in the
US for the first time, and sales of
carbonated soft drinks (CSDs), which
have historically defined the soft
drink category, declined for the 12th
consecutive year. Coca-Cola and
PepsiCo marketed alternative dairy 4 5 6 11 12 13 14
drinks, flavored seltzers, and other
sparkling options, which increased in
popularity.
Diet drinks performed poorly because

of consumer distrust of artificial
ingredients in food and drinks. Distrust
of artificial ingredients applied onto
the body affected the personal care
Telecom Global
category. More varied and inclusive
perceptions of beauty resulted in wider
Providers Beer Oil & Gas Cars Banks Insurance Apparel
selections of makeup skincare tones
and other products. Brand Value % Brand Value % Brand Value % Brand Value % Brand Value % Brand Value % Brand Value %
Change 2017 vs. 2016 Change 2017 vs. 2016 Change 2017 vs. 2016 Change 2017 vs. 2016 Change 2017 vs. 2016 Change 2017 vs. 2016 Change 2017 vs. 2016
The diversity of the US population and
+6% +5% +5% 0% -1% -1% -7%

the taste preferences of millennials
drove a proliferation of beer variants.
In a year when the corporate marriage
between AB InBev and SAB Miller
created the worlds fifth-largest Brand Value % Brand Value % Brand Value % Brand Value % Brand Value % Brand Value % Brand Value %
consumer products company, the beer Change 2016 vs. 2015 Change 2016 vs. 2015 Change 2016 vs. 2015 Change 2016 vs. 2015 Change 2016 vs. 2015 Change 2016 vs. 2015 Change 2016 vs. 2015
category also fragmented with more
craft brands. +9% -3% -20% -3% -11% +2% +14%
Source: Kantar Millward Brown / BrandZ (including data from Bloomberg and Kantar Retail)
5 The Categories Consumer and Retail/APPAREL
Apparel Competition,
The apparel category is comprised of mass-market
shopping changes
hinder growth
mens and womens fashion and sportswear brands.
Brands revise retail strategies and distribution models
Two category growth drivers, Having filled their closets with and vintage high-top sneakers
performance clothing and seasonal became the fashion counterpoint
sportswear and fast fashion,
designs over the past few years, to technological accessories like
struggled last year. The BrandZ consumers slowed their purchasing smartphones and earbuds.
Apparel Top 10 declined 7 and looked for items that were
percent in value, following a not only comfortable, but also Two other trendsglobalization
14 percent rise a year ago, as appropriate across occasionsfor and urbanizationalso influenced
shoppers purchased with more work days that might begin at the the category, as apparel marketers
gym and end with an evening out focused on a cross-national audience
discretion, looking for durability
with friends. of young people from Shanghai,
and value, and favoring brands New York, London and other world
that were on trend, such as Millennial shoppers fit their apparel capitals who share similar tastes,
Adidas, which rose 58 percent in purchases into limited budgets that values, and brand preferences.
value. included other priorities, such as And more options enabled women
travel and other experiences. They to dress modestly but with style,
selected items carefully, mixing and whether for religious reasons or their
matching them into personalized own comfort.
BrandZ Top 100 combinations. A retro trend emerged,
Most Valuable Global
Brands 2017
Category Brand Value

Year-on-Year Change APPAREL TOP 10
Brand Brand Value
-7%
Value 2017 Brand % Change
$ Million Contribution 2017 vs. 2016
1 Nike 34,185 4 -9%
2 Zara 25,135 3 0%
3 H&M 10,482 2 -17%

12-Year Change 4 Adidas 8,296 3 58%
5 Uniqlo 7,570 3 -12%
+154% 6
8
Under Armour
Victoria's Secret
Lululemon
5,875
5,028
3,570
3
4
-12%
-19%
17%
9 Ralph Lauren 2,992 4 -14%

Apparel Top 10
Total Brand Value 10 Massimo Dutti 2,831 3 N/A
Source: BrandZ / Kantar Millward Brown (including data from Bloomberg)
$105.9 billion
Brand Contribution measures the influence of brand alone on earnings,
on a scale of 1 (lowest) to 5 (highest).
Brands adjusted retail strategies Competition from Nike and others

because of competitive pressure hurt Under Armour sales and its share
and to better express the brand price. To widen its reach and drive US
experience. Zara closed some small sales, particularly to women, Under
stores and opened larger flagships Armour distributed the brand at H&M, which ended the year with
instead. The athletic performance Kohls, a discount department store. around 4,000 H&M stores (and 4,350
brandsNike, Adidas, and Under Looking for new opportunities, it also stores in 64 markets for the H&M
Armourexpanded fitness studios. took its wearables to a new place Group), experienced slower growth
INSIGHT Lululemon opened a new concept INSIGHT the bedroom. Having developed a and price markdowns in some of its
store called Lululemon Lab, in New technology story about compression larger markets, like the US and China.
York. And Amazon was expected to wear, Under Armour extended the It decided to slow the rate of store
develop a private label activewear brand into what it termed Athlete INSIGHT growth and shift some attention to
brand. Recovery Sleepwear. The brand e-commerce. The brand felt price
introduced these pajamas, made with pressure from discounters like UK-
Performance a specially engineered fabric, at the
Consumer Electronics Show.
based Primark.
underperforms H&M focused on supply chain

Lululemon sales increased as it improvements and developments of
Adidas was especially effective in attempted to expand its appeal to sub-brands, such as & Other Stories,
being on trend, with classic-styled men, and the brand commanded which are more protected from price
sneakers that met the fashion loyalty despite strong competition. competition. It planned to open its
moment. The brands popularity had However, the stock price dropped eighth brand, Arket, in the fall. And
lagged in the US, in part because the after shoppers reacted negatively H&M developed its Conscious line,
German-based company focused to the dark colors of its early spring which promises production that is
more on soccer than American collection. ethical and sustainable. Meanwhile,
Consumers expect football. Recently it increased its
association with basketball and
Young generation H&M continued to expand globally,
socially responsible entered partnerships with American tastes are eclectic Fast fashion slows opening its first stores in Vietnam.
brand points of view style leaders, like rapper Kanye West.

and fast-changing The fast-fashion brands experienced Life priorities Wearable technology remained a
trend. Uniqlo, with over 3,100 stores
Brands in all categories need to
Adidas celebrated diversity and
The younger generation is very
a challenging year for several reasons,
including heightened competition,
of millennials worldwide, stressed its Japanese
have a point of view on the world,
humanity with its Pharrell Williams
sneaker line alternatively called
eclectic and not afraid of mixing slower sales in parts of Europe and challenge brands provenance and its brand story as a
and, importantly, they need to act and matching. They are less the US, and exchange rate pressure. leader in wearable technology. The
Hu, or Human Race. It created
on it. That message is more urgent interested in brands that create Zara, with strong sales results, Having grown up during the Great brand continued to focus on apparel
its Parley shoe made from plastics
than ever in apparel. Peoples a full, somewhat monochromatic continued to expand worldwide, but Recession and witnessed their basics and emphasize color choice.
recycled from the ocean. Adidas
emotions are heightened and ensemble. They are more inclined changed its distribution strategy. parents struggling, many young A price promotion to drive sales hurt
also planned to open its first US
their personal values stronger. to say, Id love to wear that navy people would prefer to buy a shirt profits, however. Uniqlo also planned
factory, a location in Atlanta that it
Against todays political and social blue blazer, but Im going to pair it Zara will close smaller stores and open or sweater thats not designer to revise its distribution model and
is calling Speedfactory, as part of its
backdrop, companies are stepping with high-top sneakers and ripped flagship locations, while expanding branded and premium priced. expand the online portion of total
commitment to expand in the US,
forward to share in the causes of jeans. Its an urban influence, but its e-commerce presence. The They are happier with comparable sales from 5 percent to 30 percent.
be close to customers, and respond
their consumers, demonstrating people living in places outside arrangement coordinates online and quality at a lower price. Millennials
quickly to fashion trends.
they care about the things their of the fashion hubs are picking offline, with large stores better able to often prefer just the essentials. Meanwhile, competition and changing
customers care about. Adidas pieces from it. In the US, trends express the brand and display more They purchase carefully because tastes impacted Victorias Secret, as
Nike remained the most valuable
celebrates cultural diversity with that begin on the coasts might merchandise. The brand will facilitate they have limited funds and make foot traffic declined at shopping malls
brand in the BrandZ Apparel Top
its Pharrell Williams sneaker line, be over by the time they reach e-commerce with website launches decisions based on comfort and and Amazon challenged the brand
10. While retaining its authority in
Hu, and partners with Parley the Midwest, except that today, planned throughout Southeast Asia utility rather than brand prestige. online by introducing its own-label
performance, Nike faced stronger
to repurpose ocean waste as with social media, trends travel and in India. Rather than having a closet full of bras, branded as Iris & Lilly and priced
competition in fashion, particularly
innovative performance wear. H&M much faster. Trends can change stuff, they prefer to spend what at $10. Still, Victorias Secret featured
from brands targeting women
has expanded its H&M Conscious so quickly, even the brands Zara represents about two-thirds they have on other priorities like Lady Gaga at its Paris catwalk show,
customers. Reflecting a more
brand and is committed to in-store themselves are challenged to keep of the sales of its corporate parent travel or life experiences. which was a major social media event.
diverse and global view of apparel,
recycling. Much like we are seeing up. Inditex, the Spanish fashion group. Declining mall traffic also hurt Ralph
Nike introduced a lightweight hijab
with politicians, brands that have a Inditex operates around 7,300 stores Lisa Parente Lauren, which planned to close its
designed to be comfortable during
clear point of view are more likely Cindy Hoffmann globally under eight brands, including Vice President, flagship Fifth Avenue store as part
sports.
to connect with their customers Senior Vice President Massimo Dutti, which joined the Global Content Marketing of its effort to revive the brand and
and gain their loyalty. Kantar TNS BrandZ Apparel Top 10 this year. Kantar Millward Brown increase its online presence.
Cindy.Hoffmann@tnsglobal.com Massimo Dutti also entered India. Lisa.Parente@millwardbrown.com
Claire Holden
Managing Director, Retail and Leisure
Claire.Holden@hillandknowlton.com
ANALYSIS
Innovative sportswear
brands drive value rise
BRAND BUILDING
1.
ACTION POINTS
Sportswear brands drove BrandZ Apparel Top 10 value SPORTSWEAR BRANDS DRIVE CATEGORY
growth over the past 12 years. The sportswear brands GROWTH
increased 162 percent in value, while other brands rose
135 percent, netting an overall increase of 154 percent. Sportswear brands appreciated faster in value than other
Sportswear brand Nike, the Apparel Top 10 ranking brands: 162 percent compared with 135 percent. And they
leader, increased 217 percent during that period. And outscored other apparel brands on three BrandZ Vital
Adidas, another sportswear brand, and the top riser Signs: Brand Purpose, Innovation, and Brand Experience.
in the 2017 BrandZ Global Top 100, increased 259 APPAREL CATEGORY PERFORMANCE
1 3
Other Brands
percent.
Sportswear Brands
BRAND
Consumer interest in personal health and comfort
drove the growth of sportswear brands. Sportswear
PURPOSE
103 111 Have a clear purpose See beyond millennials
It is important to reach
brands responded to this interest by creating
Meaningful Difference with innovative products and
95 125 It does not need to be a higher
purpose, but the purpose should millennials worldwidebut
communications, both online and in physical stores. The INNOVATION not only millennials. The aging
104 113
express the brands contribution
apparel category scores 108 on the five BrandZ Vital populations of many countries
to the customers life, and
Signs. Nike and Adidas score 124 and 117, respectively. offer brands a major opportunity
explain what drives the brand
An average score is 100.
95 125 and distinguishes it. to market across age groups.
The sportswear brands significantly outscored other BRAND
apparel brands on three key BrandZ Vital Signs: Brand EXPERIENCE
107 114
2 4
Purpose, Innovation, and Brand Experience. Because
of sportswear brand strength, apparel category
brand value shifted significantly between 2006, when 95 125 Deliver experience Respect changing values
sportswear brands comprised just over one-third of 12-year value change Other Brands Sportswear Brands One size does not fit all.
BrandZ Apparel Top 10 value, to 2017, when they Do not neglect e-commerce and
Increasingly, women dress to
comprise almost half of Top 10 value.
+135% +162% the convenience and range it offers.
But coordinate and balance online please themselves, not men,
Source: BrandZ / Kantar Millward Brown
and offline, finding innovative ways usually because of self-confidence
to present the brand in physical and independence, and sometimes
AND CATEGORY VALUE COMPOSITION SHIFTS locations where the customer can for religious reasonsor both.
Category composition changed significantly between experience it directly.
BRAND IMPLICATIONS 2006, when sports brands comprised 36 percent of
5
BrandZ Apparel Top 10 value, to 2017, when they
The value rise of sportswear brands illustrates comprise almost half of Top 10 value. Be versatile
the impact of basing a brand around a relevant PROPORTION OF VALUE
brand purpose and expressing it with product Offer products that can be used for
and communications to produce a memorable Other Brands Sportswear Brands multiple occasions. People have more
brand experience. Brands need to do more of
the same. But it will become harder. Consumer 2006 64 %
36 % events packed into the day and less
time to change clothes between them.
purchasing priorities and shopping habits
are changing. Going forward, brands need to Other Brands Sportswear Brands They want items that justify spending
concentrate on how to make peoples lives better money and making room in the closet.
in different and necessary ways. 2017 51% 49%
5 The Categories Consumer and Retail/CARS
Cars Selling cars remains

The car category includes mass-market and luxury
cars but excludes trucks. Each car brand includes
priority, as brands
invest in change
all models marketed under the brand name.
Experiments include all aspects of future mobility
Carmakers faced reality. opened Ford Hub, a Worlds Fair-like percent, having outsold BMW for the
exhibition of the future of mobility, first time in a decade after BMWs US
Consumers preferred SUVs.
while in Detroit, the company sales slowed. Toyota remained No. 1.
The new US administration announced that it would resume
considered rolling back emission producing its popular off-road The value of the BrandZ Car Top
standards. In this context, car Bronco. Electric carmaker Tesla, 10 stayed flat overall, compared
brands continued to plan for founded a century after Ford, recently with a 3 percent decline a year
a vaguely defined future of surpassed Ford and GM in market ago, as sales increased globally
value. while margins remained thin. China
mobility, but they also invested
experienced another record year,
in sustaining their current Tesla led the BrandZ Car Top 10 with 22 million cars sold. The US also
combustion engine businesses. in value increase, rising 32 percent, reached a record, selling 17.6 million
followed by Land Rover, the iconic light vehicles. Sales rose for the third
Ford best illustrated this tension. In standard of off-road vehicles, with consecutive year in Continental
New York, the automotive pioneer an increase of 17 percent. Only two Europe, and UK sales hit a record of
other brands rose in value, Porsche by 2.7 million cars.
16 percent, and Mercedes-Benz by 4
BrandZ Top 100
Brands 2017

Year-on-Year Change CARS TOP 10
Brand Brand Value
0%
1 Toyota 28,660 4 -3%
2 BMW 24,559 4 -8%
3 Mercedes-Benz 23,513 4 4%
12-Year Change 4 Ford 13,065 3 0%
5 Honda 12,163 4 -8%
-6% 6
8
Nissan
Audi
Tesla
11,341
9,393
5,876
3
4
-1%
-1%
32%
9 Land Rover 5,534 3 17%

Cars Top 10
Total Brand Value 10 Porsche 5,141 4 16%
$139.2 billion
Financing arrangements improved

affordability and drove the UK sales. INSIGHT
Discounts squeezed margins in the US
and in China, where buyers rushed to
purchase energy-efficient cars before
the end of the year, anticipating the Competition and Other solutions
INSIGHT expiration of a government incentive
INSIGHT
collaboration The major car brands are also
program.
experimenting with new mobility
Many car brands already have made
solutions for when consumers desire
Meanwhile, carmakers invested in substantial investment in autonomous
access rather than ownership, or
the development of electric and cars and have significant capability,
a vehicle matched to an occasion.
autonomous cars, and in connectivity especially at the levels of hands-
Mercedes-Benz launched an Airbnb-
to integrate cars into the Internet of off or feet-off driving, with related
type network that enables members
Things. Technology brands entered features already available, including
to rent their Mercedes-Benz. Audi
the category both as competitors and lane-keeping technology. The brain-
is testing a rental program called
collaborators. Alphabet renamed its off driving level is more challenging.
Audi on Demand. Members choose
autonomous car enterprise Waymo,
the Audi model that matches the
and defined its mission as making it In theory, the automatic pilot
safe and easy for people and things to Car ownership function could put the driver in the
occasionshopping, schlepping, or
going to dinnerand a concierge
move around. Apple received a permit yields emotional passenger seat reading a magazine
delivers and picks up the vehicle.
enabling it to test autonomous cars in or otherwise engaged, but ready to
California. satisfaction beyond respond instantly if necessary. The
Ford purchased a rideshare shuttle
transportation first applications may happen with
service called Chariot. In Amsterdam,
Brands navigate Technology Brands must build commercial vehicles. And legislation,
car-share service companies are
rather than technological capability,
steep mobility changes mobility greater difference,
In the 15 years that Ive spent in
the automotive industry, working may determine when full autonomy
picking up people in Tesla cars. Dubai
has agreed to purchase Tesla cars
learning curve Technology challenged the very but it takes time for several brands, weve always enters the market.
to use as taxis. BYD, Chinas electric
debated whether a car is just car brand, is exporting electric buses
conception of mobility as a system of In the meantime, car brands are
The focus on the future of mobility A lot of the mass market brands, transportation or something worldwide. The Chinese internet
vehicles and infrastructure designed making strides in connectivity, with
hasnt turned into a race yet. I and even some of the premium more. We asked, are people company Baidu plans to open-source
to move people from place to systems to communicate smartphone
expect that the major car brands brands, have become quite connected to their cars like they its self-driving software.
place. With the rise of e-commerce, data and personalize cars with
are thinking there isnt any clarity interchangeable in the consumers are to their refrigerators, or are
people increasingly stay in place adjustments to seats, steering wheel,
today about how to turn new mind. The distinctiveness of the they emotionally connected as Teslas sharp increase in brand value
and receive the delivery of goods, and the entertainment system. And
mobility solutions into a workable luxury brands is limited. There they are to their favorite pet? This in part reflects the success of the
from clothing to ready-made meals. brands are forming partnerships to
economic model. The Ubers of are exceptions. Theres often a debate will continue. The mobility cars positioning as a stylish luxury
When people need to move, rising combine industrial manufacturing
this world are trying, but burning national hero brand. And there versus ownership conversation is brand offering the performance of a
global urbanization suggests that expertise and capacity with
cash. It seems to me that that a lot are degrees of loyalty. But most of about people as either passengers high-octane, carbon-burning engine
they will be more likely to use public technological wizardry.
of brands are looking at mobility the brands are doing just OK. Yet or drivers. Autonomy will include without the guilt. Although Tesla
transportation or a ride-sharing
businesses, but at the moment being distinctive is fundamental to both comfort and safety features, introduced a car without a dealer
option. Both BMW and Nissan have
there is massive uncertainty about effective branding. The customer which is what we see today. And network, placing its cars in high-end
how anyone is going to get there. people may select to turn the arrangements to integrate digital
Today, however, most consumers care experience provides a way malls and other high-traffic locations,
What is admirable is that these features on or off depending on assistant technology from Microsofts
in the developed parts of the world for brands to differentiate. The most brands still rely on dealerships.
are old industrial businesses - they the driving circumstances. The Connected Vehicle Platform. Toyota
reside in less dense areas, and are still brands are waking up to this
invented the machines that burn premium brands will continue to licensed patents from Microsoft for
dependent on networks of roads and opportunity with apps. And the Meanwhile, Amazon has talked about
oil. They dont necessarily have push for ownership and the fun its Azure cloud computing. BMW and
highways. For them, the fastest way to retail experience is another place selling cars. And cars are available
the answers today, but they are aspects of driving. Most people Ford are working with Amazon. Using
get from place to placewith family, to be different. But in the car on Alibaba, usually in flash sales. The
learning. They understand that would still prefer to own their Amazons Alexa, drivers of some
friends, shopping bundles, or vacation industry change takes a long time. Ford Hub retail outlet purposely does
they need to be in many of these house rather than spend every day BMW models can conduct certain
luggageis to climb behind the wheel The brands need to become a not sell cars but rather attempts to
new areas because one of them is of the week in an Airbnb rental engine checks using voice controls,
of a car, and probably one with some lot more agile in the way theyre reframe the Ford brand as different
going to be the way to the future. apartment. even from home. Ford plans to enable
cargo space, like an SUV. structured, think, and behave. from the expected experience, and
its Sync system to respond to voice
puts the manufacturer, rather than
Matt Woodhams Andreas Sigl commands from Amazons Echo on
Brands in the capital-intensive car Stephen Wallace the dealer, in direct contact with the
Director Managing Director, Geneva its Sync hands-free system, developed
business face this difficult challenge European Brand Planning Lead consumer.
Kantar Added Value Burson-Marsteller with Microsoft over 10 years ago.
of meeting the needs of todays GTB 163
Matt.Woodhams@kantaraddedvalue.com Stephen.Wallace@gtb.com Andreas.Sigl@bm.com
consumers, while placing big bets
on an uncertain future. The potential
return on investment is long term and
based on fluid assumptions around
rapidly changing customer needs and
societal trends.
INSIGHTS
ANALYSIS
Top 10 ranking
shifts to luxury
Over the past 12 years, the brand value of the BRAND VALUE PROPORTION SHIFTS TO LUXURY
BrandZ Cars Top 10 declined 6 percent. The brands
struggled with declining demand coming out of the During the past 12 years, the composition of the BrandZ
Four certainties shape recession. Margins weakened because of extensive Cars Top 10 shifted substantially. In 2017, luxury brands
category transformation price discounting to drive volume. During this period, comprise over half the brands in the ranking, compared
with just over a third in 2006.
the composition of the BrandZ Cars Top 10 shifted
The contrast between funding the present and substantially. PROPORTION OF VALUE
preparing for the mobility future will be the primary
tension of the automotive business for the next three All brands experimenting Six brands remain consistent, but the four newcomers all Mass Brands Luxury Brands
decades. Carmakers invest now for products they with autonomy, electric, are luxury brands: Audi, Tesla, Land Rover, and Porsche.
In 2017, luxury brands comprise over half the brands in 2006 64% 36%
will produce in five years. Historically, five years from
now was predictable. Its not anymore. There are and sharing possibilities the ranking, compared with just over a third in 2006.
four certainties shaping the tension between core Mass Brands Luxury Brands
automotive and a future that has some mobility in it. All the car brands are experimenting with electric But differentiation flattened, as the luxury brands added
One is electrification. It seems sure that power trains cars, autonomous cars, and car sharing, with
the focus varying by brand. The most balanced
more popularly priced models and the mass brands
added more technology and other luxury features.
2017 47% 53%
will shift, but when and where and the penetration is
less clear. As electrification grows, gas will become brand may be BMW. It has been in electric cars Consumers view both luxury and mass brands as Source: BrandZ / Kantar Millward Brown
cheaper. Second is what people are calling car sharing. for several years and has a car-sharing system in average in Creativity. Consumers continue to see luxury
Third is autonomous vehicles. Finally, its the definition place. BMW is not communicating much about brands as much sexier than mass brands, however.
AND TESLA SCORES HIGHER THAN LUXURY
of mobility. We think of mobility as transportation of autonomous cars, but the brand is heavily into
connected cars. BMW acquired a Microsoft The most differentiated brand is Tesla, which increased IN KEY METRICS
the human body. But what about Amazon? I dont
need to go to the shop for my groceries when Amazon platform company to integrate apps into the 32 percent year-on-year in value, while the car category The most differentiated brand is Tesla, which increased
delivers them to me. I havent moved. The object has car hardware to get unique selling propositions. remained unchanged. A disruptive brand that entered 32 percent in value year-on-year, while the category
moved. So, there is a fundamental reshaping of what One example: By having the apps only work in a the BrandZ Cars Top 10 for the first time a year ago, stayed flat.
we mean by mobility. And mobility is about efficiency BMW, they are seeking a competitive advantage. Tesla far outscores both luxury and mass brands on CARS CATEGORY PERFORMANCE
and price so farthe cheapest way of getting across By recognizing the drivers smartphone, the car Brand Purpose, Innovation, and being Creative.
town. How do you make money? Whats the premium could adjust the seat position and steering wheel
Luxury Mass
added value thats going to cause me to choose automatically. By reading the drivers calendar, the Tesla
Brands Brands
one mobility service over another? These are the car could recommend the best route to take to a
challenges in mapping the future. meeting.
117 104 104
BRAND IMPLICATIONS
Brand Purpose
Mike Bentley Juergen Korzer

Global Account Director, VW
Innovation 127 105 101
Executive Vice President, Global Chief Strategy Officer Tesla illustrates how the power of clear Brand
GTB Kantar Group Purpose drives brand value. Two other brands
Juergen.Korzer@kantar.com
Mike.Bentley@gtb.com that recorded this kind of excitement prior Creative 123 100 100
to entering the mass market were Apple and
Facebook, according to BrandZ research. Sexy 110 116 98
Tesla mostly threatens the luxury brands, but it
potentially impacts mass as it introduces more Friendly 80 83 101
popularly priced models. The mass brands need
to better differentiate and communicate their
Brand Purpose, and the steps they are taking to
keep up to date and improve peoples lives.
1-year
value change +32% +1% -3%
COLOGNE - GERMANY
Value of all German

$173.8 Billion
BRAND BUILDING
ACTION POINTS
1
Balance priorities
3
Balance the investment of time and
attention between the immediate
Be more agile
requirements of succeeding in
todays market and the visionary As technology companies enter
possibilities of business in the future. the car business, partnering can
be awkward. Tech brands dance
fast, while car brands typically
foxtrot. Carmakers need to work
2
on their moves and become
Express a point of view more agile in the way they are
structured, think, and behave.
Most brands say they are in mobility,
connectivity, and autonomy. But
4
me too does not work, even if it
is futuristic. A brand needs to have Reimagine the
a point of view, meaning it not only dealer role
will be present in the future, it will
also help shape it. The need to know the customer,
and the role of physical locations,
will change with the evolution of
mobility, including car sharing.
Reimagined dealer networks could
become important assets.
5 The Categories Consumer and Retail/LUXURY
Luxury Now bolder and

The luxury category includes brands that design,
brasher, brands seek
wider audience
craft, and market high-end clothing, leather goods,
fragrances, accessories and watches.
Messages communicate availability and inclusiveness
With the steady improvement Brands navigated the tension between Each brand that pursued millennials
widening their audiences, including faced a similar challenge. The
of the global economy following
the possibility of renting luxury items characteristics usually associated with
the financial crisis almost 10 for special occasions, with the need traditional luxury badgeswealth and
years ago, luxury continued to to protect exclusivity. Makeup and tastedo not always match values
become more assertive, and, in fragrance, often the on-ramps to millennials want to project, which,
some cases, brasher in design. luxury, presented the greatest risk. according to MindShare research,
The BrandZ Luxury Top 10 are: being friendly, social, and good
But even Herms, renowned for its citizens.
rose 4 percent in value, with the
exclusivity, expanded further into
same brands that appeared as fragrance marketing. It led the ranking Some brands adopted positions that
in last years ranking, when value in value growth with an increase have been called progressive luxury,
declined 5 percent. of 18 percent. In apparel, brands in which the characteristics usually
designed mix-and-match separates, associated with luxury, like craft and
and customers found cultural exclusivity, are expanded to include
currency in discovering quality contributing positively to the world.
items and assembling them in ways
BrandZ Top 100 that expressed personal taste and
Most Valuable Global individuality.
Brands 2017

Year-on-Year Change LUXURY TOP 10
Brand Brand Value
+4%
1 Louis Vuitton 29,242 4 3%
2 Herms 23,416 5 18%
3 Gucci 13,548 5 8%
12-Year Change 4 Chanel 11,019 5 7%
5 Rolex 8,053 5 -1%
+72% 6
8
Cartier
Burberry
Prada
5,843
4,285
3,950
4
4
-13%
-7%
-10%
9 Dior 2,352 3 14%

Luxury Top 10
Total Brand Value 10 Tiffany & Co 2,318 3 -6%
$104.0 billion
INSIGHTS
Themes of diversity and inclusiveness For Chanel, reinterpreting the brand

characterized the major fashion for new generations meant retaining
shows. As luxury is always sensitive the magic by not making the brand
to geopolitical events, London totally accessible.
benefited from the weakening pound
following Brexit. The threat of terror in Rolex resisted the trend to greater
Europe impacted tourism and luxury accessibility, even as the watch
spending. subcategory continued to be
impacted with the pressure on
INSIGHT
Expanding the extravagant gifting in China, as well a
decline in relevance with the ubiquity
audience of smartphones. Rolex continued
to capture the role of watches for
The luxury brands continued to signifying milestone life events, with
advertise conventionally, attempting the line, It doesnt just tell time. It tells
to expand their audience while history. Luxury message
retaining core customers. Under the
guidance of a new design director,
may disconnect
Gucci successfully revived a brand Telling stories from youth values
established in 1921 with an extensive in new ways Changing views
collection featuring bold color and of ownership open Amidst the broader challenges
confident, playful designs. Often on the cutting edge of that the luxury market faces,
messaging, Burberry took product access to luxury particularly with millennials, my
In an example of populist and placement in a different direction sense is that there is a disconnect,
attention-grabbing user-generated using a series of films that aired The sharing economy is well or an undercurrent of tension,
content, the brand produced the during the holiday period. In one established in the luxury sector, between the values important to Brands use data
Brands balance GucciGhost collection, incorporating example, Burberry produced a three- where highly affluent people
understand the costs and benefits
millennials and those of luxury
to personalize
into the brand the street designs of a minute biopic about founder Thomas brands.
scarcity with need Brooklyn artist. Gucci rose 8 percent Burberry, who rooted the brands of owning an asset vs. simply luxury experience
to reach millennials in brand value. origins in fabric functionality rather using one when they like. To add Luxury brands, as the original
than fashion. to the rational financial arguments, badge brand category, have Personalized experience is key for
The luxury market overall is Similarly, Louis Vuitton collaborated there are other reasons behind always connoted wealth, prestige, reaching consumers, especially
chasing millennials. Some suggest with Supreme, a New York streetwear The film opens with a young Thomas changing attitudes to ownership, and to some degree, materialism millennials. The data available to
that millennials are more likely brand, creating clothing, accessories, Burberry inventing gabardine, and such as the desire for luxury to their users. Our research luxury brands enables them to
to buy technology brands. and travel items crafted in Supremes goes on to demonstrate the materials experiences that are unique and shows that millennials want to be personalize. The message may
But to me, tech is functional; bold red color and featuring both the ruggedness in the trenches of World shareable, over possessions. For perceived as social, friendly, and not need to be personalized to
luxury is a necessity. We are in red and white Supreme logo and the War I, early aviation, and the Antarctic the luxury automotive sector, altruistic. What strikes me is that the customer as an individual,
danger of neglecting the Gen X Louis Vuitton logo. exploration of Ernest Shackleton. The leasing and financing offer if luxury brands are displaying the but it needs to be personalized
shoppers, those who can educate film featured acclaimed young British better flexibility than owning badges or traits that millennials to the customer as a mindset.
their children about luxury, Louis Vuitton also introduced a actors and directors. the vehicle and allow high-net- are trying to distance themselves And without personalization,
and get them on the road to new line of seven perfumes. Chanel worth individuals to invest capital from, it stands to reason there the experience wont resonate,
appreciating real quality. Scarcity introduced Leau fragrance, a variation Burberry typically experiments with elsewhere. Financing also expands would be a softening of adoption especially with millennials. Many
is a related topic. Even Herms, of the classic Chanel No. 5 that is clear digital communication. Burberry and access to luxury models, beyond of those types of brands with brands are entering travel, and
which has always been very and lighter, to attract millennials, who Dior are among the brands with their premium, and certain automotive millennial consumers. To combat personalizing the experience, in
exclusive, sometimes unavailable are less likely to wear fragrance. own smartTV channels. In association brands cover both segments this dissonance, luxury brands part to appeal to millennials.
and focused on high-level with Apple TV, Burberry broadcast its within the same model range with need to adapt to the changing
craftsmanship, recognizes the Along with making its fragrances more runway show live, and followed it with substantially different price points. value structure of the younger Rubi Pabani
need to reach new audiences. available at mass outlets, Herms shoppable moments. generation, and consider how Managing Partner
Herms seems to have gone opened pop-up shops in major cities, Frances Wain to present the brand in line with Mindshare
more into fragrance. How does including Tokyo and New York. And, Tiffany & Co. worked on redefining Account Director those values. Rubi.Pabani@mindshareworld.com
the scarcity model change if to celebrate the 80th anniversary of love and love moments, and expanding PRISM
brands like Herms become more its iconic silk scarves, Herms also gifting. Geopolitics intruded directly, FWain@prismteam.com Katerina Sudit
accessible? opened locations called Hermsmatic, as the New York Fifth Avenue Flagship US CEO
where people can have their vintage store, located next to Trump Tower, PLUS
Susannah Outfin scarves renewed free of charge, and was cordoned behind security barriers 171
Katerina.Sudit@mindshare.com
Partner buy new ones. during the holiday shopping season.
Mindshare When the Trumps arrived at the White
Susannah.Outfin@mindshareworld.com In fine jewelry, Chanel designed the House on Inauguration Day, however,
Coco Fresh collection to be more Melania Trump greeted Michelle
accessible. Chanel also announced Obama with a distinctive blue Tiffany
plans to launch a new perfume, called & Co. box. Gifting does not get much
Gabrielle, in homage to Gabrielle more high profile.
Coco Chanel, the brands founder.
ANALYSIS
Super-luxury brands
drive value increase
BRAND BUILDING
The BrandZ Luxury Top 10 increased 72 percent
in value over the past 12 years, which is a good
performance, but around half the growth rate of the
BrandZ Global Top 100. The category contains many
SUPER-LUXURY SCORES HIGHER IN KEY METRICS
The super-luxury brands and Louis Vuitton score virtually
the same in Difference, 123 and 122, while other luxury
brands score 103.
ACTION POINTS
strong traditional brands, but they are not all perceived
the same way. LUXURY CATEGORY PERFORMANCE
The most exclusive super-luxury brands increased Super-
1 4
Louis Other
161 percent in value between 2006 and 2017. Herms Luxury
Vuitton Brands
rose 385 percent. In comparison, Louis Vuitton, the Brands
Update thinking Think speed dating
No. 1 brand in the Luxury Top 10, rose 50 percent,
and the value of other luxury brands rose 29 percent. Different 123 122 103 The value exchange is evolving. Luxury purchasing traditions
As a proportion of Top 10 value, super-luxury brands imitate a courtship model of
Brands need to think about
increased from 27 percent in 2006 to 41 percent in 2017. inspiring and seducing the
Communications 109 108 104 what value they offer consumers
rather than what else they can customer. They require the right
Being perceived as Different (distinctive and trend-
setting) was the key to commanding a premium. The sell consumers. setting and perfect lighting. Life
Brand Experience 109 110 105 moves faster today, and some of
super-luxury brands and Louis Vuitton score virtually
those traditions will impede rather
2
the same in Difference, 123 and 122, while other luxury
brands score 103. A score of 100 is average. The
category scores well in the BrandZ Vital Signs, and is
12-year
value change +161% +50% +29% Leverage the story than generate sales.
strongest in Brand Experience, scoring 107.
Source: BrandZ / Kantar Millward Brown Tell the brands story, and make it
5
experiential. Embrace technology
to express the brand mythology in Stay ageless
AND SUPER LUXURY INCREASES IMPACT
ON TOP 10 new ways. Luxury brands live in a constant
As a proportion of Top 10 value, super-luxury brands tension of needing to represent the
BRAND IMPLICATIONS increased from 27 percent in 2006, to 41 percent in 2017. best of the past while simultaneously
connecting with todays concerns
3
PROPORTION OF VALUE
Luxury brands need to be clear about their and values. The challenge for luxury
identity within the category, whether they are Super-Luxury Be in the moment
Other Brands Brands brands is to remain ageless while also
super-luxury with well-guarded exclusivity, or
Every moment the consumer is being provocative.
luxury with a touch of mass. Deciding on this
designation will help brands regulate the balance
2006
73% 27 % engaged with a brands message is
between exclusivity to protect premium and a sales opportunity. The moment
accessibility to drive volume. Brands then need is fleeting and the consumer may
Super-Luxury
to communicate their brand story in ways that Other Brands
Brands go somewhere else. Brands that do
resonate with consumers today, which usually
involves a digital component. 59% 41%
not provide the Buy now button
are leaving money on the table.
2017
5 The Categories Consumer and Retail/PERSONAL CARE
Personal Care Brands personalize to

The personal care category includes brands in health
and wellness, beauty, and facial, skin, hair and oral care.
serve more diverse
ideas of beauty
Mobile ads push customers from shopping to buying
In a commoditized category The number of facial foundation SKUs Changing styles affected personal
filled with choices, brands increased, for example, not only to care regimes. Subcategories such as
aggrandize shelf space, but to match active beauty expanded to meet the
attempted to differentiate and
a wider variety of skin tones. Brands needs of time-constrained women
adjust to changing consumer created more personalized products who might shampoo less and look for
expectations. They responded that communicated respect for quick, practical solutions, such as dry
to need states and states of diversity and attempted to be both shampoos, sweatproof makeup, and
mind, and attempted to align aspirational and accessible. makeup and shampoos that feature
with customer values. To help pollution protection.
women feel and look their best,

brands promised to help bolster
health and inner beauty.
PERSONAL CARE TOP 15

Brand Brand Value
BrandZ Top 100 $ Million Contribution 2017 vs. 2016
1 L'Oral Paris 23,899 4 2%
Brands 2017
2 Colgate 17,740 4 -3%
3 Gillette 16,278 5 -1%
Year-on-Year Change
4 Lancme 9,401 4 10%
+1%
5 Nivea 6,799 3 1%
6 Garnier 6,461 3 1%
7 Clinique 5,969 5 -4%
8 Dove 5,792 3 6%
12-Year Change (Top 10) 9 Este Lauder 4,215 5 1%
10 Pantene Pro-V 4,090 3 5%
+84% 11
12
13
Olay
Crest
Shiseido
3,752
3,341
2,691
4
4
-4%
-8%
10%
14 Oral-B 2,670 4 -3%

Personal Care Top 15
Total Brand Value 15 Head & Shoulders 2,423 3 N/A
$115.5 billion
Brands experienced disruption from consumers and the brand. At the

new niche brands. Innovation in INSIGHT Golden Globe Awards, LOral Paris
cosmetics typically originated in the celebrated the diversity of beauty
US, and in fragrance, from Europe. with the launch of its True Match
Particularly in skin care, brands faced
innovative startups from Asia, based
range of 33 skincare variations
Disrupting a
on its cultural notion that beauty Breaking through crowded category
radiates from inside.
INSIGHT INSIGHT Garnier, the international haircare and
After years reacting to Dollar Shave
These pressures, along with currency skincare brand, introduced Garnier
Club, the online subscription razor
fluctuations, resulted in an increase Micellar Cleansing Water for makeup
blade brand, Gillette reverted to its
of only 1 percent in the value of the removal. Lancme, a classic brand
brand heritage in ads that stressed
BrandZ Personal Care Top 15, a generally preferred by an older
its leadership in mens grooming,
modest improvement from a year ago audience, introduced its Juicy Shaker
an implicit value-added message.
when the value remained unchanged, lip oil to appeal to younger women,
The brand reduced prices on
and down slightly from 2015, when the not their mothers.
some of its shaving products and
category increased 2 percent. developed products linked to a
Despite crowding in the personal
Ticking all the boxes Mobile enables growing demographic group, the
aging consumer. Meanwhile, Unilever
care category, there was room for
personalization purchased Dollar Shave Club, a five-
disruptor brands because consumers
were sometimes purposefully brand-
Brands attempted to tick all the right
boxes: value, innovation, technology,
at significant scale year-old startup, in a transaction that
followed by 11 years P&Gs acquisition
promiscuous. Shiseido benefited from
the inclination to look for something
performance, and social media. Faced of Gillette.
Personalization at scale is critical different, to be less brand-loyal, to
with short consumer attention spans
today. It requires being able to try new things. The Japanese brand
and consideration windows, brands Brands also explored different ways
Brands connect tried to reach the consumer at the
use consumer data to target
communications at particular
to present their products, especially Category responds also reflects the influence from Asia
on product ingredients and beauty
to the consumers exact right moment to trigger a sale,
needs or purchase habits. Its an
because the proliferation of products as people modify regimes. Both Lancme and Shiseido
increasingly on mobile. made it difficult to break through.
states of mind opportunity to drive growth and,
Rather than focus on an individual lives and values rose 10 percent, leading the BrandZ
more importantly, to increase Personal Care Top 15.
Couponing and price promotion product, Olay clustered its eye-care
loyalty. Its difficult to accomplish In a world where every product we
Brands are shifting from pressured margins. To generate products and combined its marketing
with traditional media, but the use is a reflection of Brand Me, Disruptor brands typically moved
responding to the consumers loyalty, brands used technology and resources to sell the brand, rather
proliferation of mobile makes we expect more of our personal more nimbly than major brands
need states to also understanding data to understand and respond to than individual products.
personalization more possible. care products; functional benefits because they sold through fewer
her mind states. What you put the customer. Mobile and changing
Instead of communicating a few just dont cut it. The category channelssometimes only online
on your skin or in your hair is a shopping habits also influenced how Similarly, Pantene Pro-V did an
broad messages in a traditional understands this and we are while for the multinational brands,
reflection of you. And you want personal care brands went to market. effective job of taking a stand and
campaign, personalization at scale seeing changes to reflect shifts adding a new SKU could require
the brand to come talk to you communicating the idea that Strong
would deliver 10 to 15 targeted in behaviors, such as creating removing an existing one. Some
in a personal way. Its a matter LOral Paris and Lancme, for is Beautiful with a campaign that
messages to specific groups products for an always-on, super- disruptor brands went beyond the
of brands talking to individuals. example, developed ways for included martial artist Ronda Rousey.
identified by behaviors, attitudes, busy lifestylethink the rise of dry functional message. The makeup
People want brands to talk about consumers to short-circuit the The spots, celebrating diversity, also
or demographics. The message shampoo. However, some of the brand Too Faced disrupted the
relevant topics and be meaningful shopping journey and purchase featured Selena Gomez, Indian actress
becomes more relevant. more interesting changes reflect mascara category by ignoring the
to them, and to be understood as directly from the mobile ad. Brands Priyanka Chopra, and several women
not just a consumer, but a human shifts in values; we see this in the usual benefitslonger lashes, more
personalized at scale by sending of African descent treating their hair
James Vancho rise of eco paper products (fem volume, and all-day wear.
being. consumers messages based on their as an expression of personal identity.
Senior Vice President care, diapers, etc.) and organic
behaviors, attitudes, or demography,
Kantar Millward Brown ingredients in beauty products. Instead, the brand emphasized the
Vicki Watson including ethnicity and life needs, Dove, which opened the category
James.Vancho@millwardbrown.com The question remains if these emotional benefits of the lasheshow
Business Director, Media Planning which, for example, could be a to a more inclusive view of beauty
Mindshare shifts will be enough to protect they can add fun to the wearers
working mom pressed for time or over a decade ago, promoted
Vicki.Watson@mindshareworld.com brands against the subscription life and open opportunities to be
someone in middle age concerned deodorant using irreverence to take
model that is severely disrupting flirtatious. The product is called
about aging skin. a stand aligned with the values of
the category. Better than Sex. Este Lauder
its customer. A campaign called
purchased Too Faced at the end of
In a shift to become more consumer- Alt Facts parodied US politics,
Avra Lorrimer 2016. Este Lauder is investing in
centric, LOral Paris teamed with five listing several alt facts about Dove
Managing Director, Consumer brands as part of its Leading Beauty
online beauty bloggers in the UK to deodorant, such as its ability to
Packaged Goods Forward initiative.
form the LOral Paris Beauty Squad, increase the users IQ or strengthen
which was intended to connect with her WiFi signal. Hilll+Knowlton Strategies
consumers in more ways than possible Avra.Lorrimer@hkstrategies.com
with an individual spokeswoman. The
squad was expected to both influence
INSIGHTS
ANALYSIS
Strong Brand Purpose
shapes personal care
Of the five BrandZ Vital Signs, the Personal Care LUXURY GAINS GROWING VALUE SHARE
Like appearance, feeling good Top 15 score highest on Brand Purpose and lowest on
Dividing the BrandZ Luxury Top 15 into luxury and mass
inside is part of beauty Innovation and Brand Experience. These results reflect
brands reveals a strong shift to luxury. The luxury group
both the strength of the categorythat it provides
comprises 46 percent of the Top 15 today, up from about a
The steady trend towards health and wellness is consumers with real functional benefits to make their
third in 2006.
significantly impacting personal care and beauty and lives betterand its weakness, which has been a
tendency to crowd shelves with iterative products. PROPORTION OF VALUE
hair care in particular. The belief that beauty comes
from the inside is gaining traction. This is manifesting
But the category is not static. Dividing the Top 15 into Mass Brands Luxury Brands
in a growth in tonics, superfood ingredients, friendly
66% 34%
bacteria and a focus on probiotic or hydration luxury and mass brands reveals a strong shift to luxury.
properties. Consumers are embracing healthier The luxury group comprises 46 percent of the Top 15 2006
and more active lifestyles. The rise of active beauty Multinationals seek today, up from about a third in 2006. The luxury group
and athleisure cosmetic brands such as Tarte increased 87 percent in brand value over the past 12
Cosmetics are fueling innovation in the no-makeup
to buy small brands years, while the mass brands increased only 17 percent.
Mass Brands Luxury Brands
makeup look. These brands solve rough edges for

active women such as sweatproof make up (Sweat
and fast-track them The shift to luxury reflects an effort to innovate and
avoid category commoditization. 2017 54% 46%
Cosmetics) or gym-proofing your hair. Products that The multinational companies are constantly Source: BrandZ / Kantar Millward Brown
save time or solve problems will always be valued. looking out for emerging brands to acquire. Varying brand characteristics drive luxury and mass
There are two sides to this phenomenon. First growth. Consumers view mass brands as more
Aisling Ryan is these big businesses buying up the smaller Meaningful (being brands they like and that meet their AND LUXURY SCORES HIGH IN BEING
Chief Strategy Officer - Global Clients needs), and higher in Brand Purpose. In contrast, they
brands and then being able to absolutely fast- DIFFERENT
Valenstein & Fatt track them. Second, and on the flip side, the view luxury brands as Different (distinctive and trend-
Aisling.Ryan@greyeu.com setting). Consistent with their Brand Purpose, mass Consumers view mass brands as more Meaningful and
challenge is that the big businesses have stricter
brands are viewed as Caring and Straightforward, and higher in Brand Purpose. In contrast, they view luxury
regulations about the products they market, so
the luxury brands as Sexy and Desirable. brands as Different.
some of the smaller brands will fly because of
this ownership opportunity, but others will fail. PERSONAL CARE CATEGORY PERFORMANCE
Anna Hickey
Luxury Brands Mass Brands
Managing Director
Maxus BRAND IMPLICATIONS Meaningful 95 120
Anna.Hickey@maxusglobal.com Different 121 111
In a category where brands work hard to
stand out from competing SKUs, it is not only Brand Purpose 103 111
important for brands to innovate, but also to
connect their innovations with Brand Purpose.
Brand Purpose may come more naturally to mass
Sexy 116 101
brands because they provide functional benefits Desirable 112 102
to improve peoples lives. But luxury brands can
achieve strong purpose in a different way, as a Caring 100 112
welcomed indulgence. Brand Purpose leads to
innovations rather than iterations that crowd the Straightforward 94 106
retail shelf.
12-year value change +87% +17%
INSIGHTS
BRAND BUILDING
Increase in variants
adds personalization
ACTION POINTS
and inclusiveness
There is a definite trend around the idea of brands
serving individuals. Technology and innovation
Brands shorten
3
enables the brands to be much more personalized.
journey from initial The number of variants is increasing. For example, a

brand may offer 50 different shades of foundation
Make loyalty the default
1
interest to purchase to make sure its catering to every type of skin tone.
Sharpen activation. Use data and
From a targeting point of view, brands can reach
Think mobile first technology to communicate the right
In personal care, the amount of time people women in a personalized way. Well see more of this
spend in active purchase consideration is quite inclusiveness, with brands attempting to be close message at the right time. Understand
Brands that think mobile first
short, sometimes less than a day. To that end, to me as an individual, rather than creating a brand the replenishment cycle, and contact
are more likely to succeed.
we often counsel clients to short-circuit the image that I aspire to become. consumers with incentives to come
traditional purchase journey. Mobile makes it Consumers, especially young
back at the time of need. Have the
possible to trigger people with a piece of relevant Louise Edwards people, are constantly connected
consumer default to the brand and
communication, allowing them to easily transact Director FMCG & Retail by smartphone or tablet. Content
and purchase directly from that communication. Kantar TNS replenish when the toothpaste tube is
needs to be specifically for mobile
For the beauty category in particular, its Louise.Edwards@tnsglobal.com squeezed to the end.
and enable the consumer to
important to make everything shoppable, so if a
customer is triggered by a mobile ad that sparks
transact anytime.
her interest, she can swipe and be diverted to the
brands websiteor to Sephora or Ulta, where she
may prefer to transact to gain loyalty points.
2
Mason Franklin Build the brand
Managing Partner, Executive Director
Strategic and Communications Planning Dont underestimate the power
MEC of branding. Create a proposition
Mason.Franklin@mecglobal.com that resonates. In this time of brand
proliferation and price shopping,
it is critical to create a distinct
proposition and deliver it in creative,
relevant ways.
5 The Categories Consumer and Retail/RETAIL
Retail New brand initiatives

The retail category includes physical and digital distribution channels
in grocery and department stores and specialists in drug, electrical,
disrupt the O2O divide
DIY and home furnishings. Amazon appears within retail because it
achieves approximately 90 percent of its sales from online retailing.
Major brands position to play hard across channels
It was the year of trading places. Amazon and Alibaba increased most on a checkout line, the sale transacted
As usual, Amazon devised more sharply, 41 percent and 20 percent, seamlessly on their smartphone.
respectively.
ways to disrupt retail. And,
Alibaba, Chinas e-commerce leader,
as usual, traditional retailers Amazon, the consummate disruptor, and No. 2 after Amazon in the BrandZ
fretted about the importance planned to open physical grocery Retail Top 20, entered a partnership
of coordinating online to offline stores that removed friction from with the Bailian Group, which operates
(O2O). The tension intensified, retails most abrasive experience almost 5,000 grocery and specialty
however, as Amazon and Alibaba checking out. In the first stores, a stores in China. The arrangement
convenience format called Amazon expands the Alibaba ecosystem,
prepared to move into brick- Go, all transactions will happen with an enabling Alibaba to link its Alipay
and-mortar stores and Walmart app. Shoppers will pick their items from payment function and its online
doubled down on e-commerce. shelves and walk out without waiting e-commerce platforms, Tmall and
Taobao, with Bailian.
With a value increase of 14 percent,
following an 8 percent rise a year ago,
retail led all the categories in value
appreciation in the BrandZ Top 100
RETAIL TOP 20
Most Valuable Global Brands 2017. Brand Brand Value
1 Amazon 139,286 4 41%

BrandZ Top 100 2 Alibaba 59,127 2 20%
3 The Home Depot 40,327 3 11%
Brands 2017
4 Walmart 27,934 2 2%
Category Brand Value 5 IKEA 18,944 3 5%
Year-on-Year Change 6 Costco 16,257 2 12%
7 Lowe's 13,375 2 3%
+14% 8
9
10
Ebay
ALDI
JD.com
12,365
12,273
10,768
3
2
3
7%
2%
3%
11 Walgreens 10,121 3 -2%
Category Brand Value 12 CVS 9,733 3 -19%
12-Year Change (Top 10) 13 7-eleven 9,144 4 -2%
14 Target 8,660 2 -7%
+162% 15
16
17
Tesco
Lidl
Carrefour
8,041
7,193
6,809
4
2
3
-10%
5%
-12%
18 Woolworths 6,549 3 -12%
Retail Top 20 19 Kroger 6,493 3 -18%
Total Brand Value 20 Coles 5,449 4 N/A
Source: BrandZ / Kantar Millward Brown (including data from Bloomberg and Kantar Retail)
$428.8 billion
In addition, Walmart is developing

drive-through locations. This
Mass merchants INSIGHT
convenience phenomenon, well- and grocery
developed in Europe, particularly in
France, enables shoppers to purchase E-commerce and changing shopping
without entering a physical store. They habits affected brands across retail.
buy online and pick up their orders at The German-based food deep
a drive-through location, often along discounters, ALDI and Lidl, felt pressure
their work commute. in their home market from rival Rewe,
Meanwhile, having primarily focused which offered a payback card that
INSIGHT on maximizing the productivity of over enabled members to spend loyalty
Amazon initiatives like Amazon Prime
11,000 physical locations in 28 countries, points flexibly at other retailers or
Pantry and Amazon Prime Now also
Walmart shifted attention to the virtual entertainment centers.
aimed to make shopping faster and
world, acquiring Jet.com, a strong
more convenient with easy online
e-commerce challenger to Amazon in In an unprecedented step, the
ordering and rapid delivery. Amazon
certain categories. The purchase builds ALDI brand, which operates as two
Dash replenished certain household
on Walmarts existing e-commerce autonomous companies, ALDI North
commodities automatically. Amazon
business, estimated at around $12 billion and ALDI South, conducted joint
also added benefits for members of
in annual sales, according to Kantar
Retail.
Amazon Prime, to strengthen loyalty marketing. Lidl planned to enter the US, Redefining
with 20 to 30 stores expected to open
and keep customers satisfied within
an ecosystem filled with products and this summer in the east coast states of customer service is
Because Jet.com shoppers are
services delivered seamlessly. Virginia and the Carolinas. key for retail brand
younger and more urban than the
average Walmart shopper, the Meanwhile, Costco, a membership
expression
One of the new benefits, Prime
acquisition potentially broadens warehouse with around 600 of its
Reading, provided free access to a A great tension is surfacing
Walmarts reach, according to Kantar approximately 720 stores in North
changing selection of 1,000 e-books for retailers. Brands cannot
Retail. Walmart also acquired several America, planned to open in its
Amazon, Alibaba invest in new small e-commerce niche apparel
and magazine articles. As the bundle
of Prime benefits enlarges, it seems first store in France. The chain also
be invisible, but the consumer
ways to engage shoppers retailers with urban appeal, and
more valuable, and the value of each expected to add more private label,
wants a seamless and efficient
interaction, which doesnt leave a
planned to integrate e-commerce expand its focus on organic food,
component becomes more difficult lot of space for the brand. Some
Retail has always been a capital-intensive business, dependent on real more closely into its operation. and open more business centers.
to compute. Almost one-third of of the best retail experiences are
estate investment, and slow to change. What were seeing with Alibaba Walmart rose slightly in brand value Regulations had slowed expansion in
American households were Prime when the retail brand is as thin a
and Amazon is that those rules no longer apply. These brands have the after a steep decline a year ago. Europe, but the chain continued to do
members as of December 2015, part of the interaction as possible.
momentum and are able to spend their capital on new ways to engage according to Kantar Retail. well in Asia, according to Kantar Retail.
Part of the reason weve seen
shoppers rather than on building stores. Agile partnerships are whats New initiatives The chain raised its membership fee to
great strides online is that its
important today. For Amazon, third-party marketplace transactions
have grown rapidly and now represent more than Fulfilled-by-Amazon
build loyalty Alibaba sustains loyalty with a boost profits.
removed some of the distractions
comprehensive ecosystem that moves of the shopping process. I see a lot
transactions (FBA). Amazon remains at its heart a technology customers through various shopping To stimulate its lagging like-for-like
Walmart also has a partnership with of retailers looking to improve the
company. Its people dont receive training for physical retail skills sites to transactions on Alipay. The store sales growth, Target implemented
JD.com, Chinas second-largest service component. The product
such as shelf management or selling from the pallet. What they want Ali Express site provides access to a store remodeling program. The
e-commerce brand and No. 10 on could eventually be the catalyst
to know is the algorithm that makes shopper personalization and products from China. It enables owners new store format provides two main
the BrandZ Retail Top 20. JD.com that gets the customer to service.
product filtering result in a sale. You could debate this idea, but once of certain businesses to source directly, entrances that correspond to the
owns its own logistics network In consumer electronics, for
Amazon develops the software for Amazon Go, the self-check-out lower costs, and increase profit. purpose of the shopping trip. One
and invests significantly in related example, movement toward the
physical locations its planning to open, Amazon can sell this software Alibaba is the leading automotive seller entrance is for a more extensive
technology, including drones. These Internet of Things has resulted in
and hardware to physical-world retail partners. That approach is likely in Russia, according to Kantar Retail, experience that the chain calls
acquisitions combine the mentalities smart products that dont always
to be faster and more profitable than building its own stores all over and it is investigating the establishment inspirational browsing. The other
and capabilities of technology start- talk to each other because they
the world. Amazon is focused on getting into your home. Alibaba is of a logistics center in Sophia, Bulgaria, entrance accommodates convenience
ups with those of a traditional big-box are made by different suppliers.
focused on helping small businesses access the world. and a distribution center in Zagar, trips, including grocery shopping and
retailer. The acquisition of Jet.com The retailer could become the
Croatia. order pick-up. The chain also added
also brings a level of gamification consultant that crosses these
Ray Gaul more own-label items to differentiate
of retail that should help Walmart walled gardens and helps the
Vice President, Research and Analysis and build margins.
appeal to younger shoppers. Jet.com consumer make all the smart
Kantar Retail
notifies shoppers of the savings they gadgets talk to each other.
Ray.Gaul@kantarretail.com
are accruing and the potential savings
that could be earned with additional EJ McNulty
purchases. Executive Creative Director
Wunderman
EJ.Mcnulty@wunderman.com
With over 6,300 stores worldwide, Tesco focused on its UK

home market. The chain simplified its product range and
ANALYSIS
attempted to make shopping easier, while deemphasizing
INSIGHT its loyalty card. Tesco also prepared for the acquisition of
Booker, a wholesaler that would add convenience locations
and entry into a new business for Tescofood service.
In the US, the grocery chain Kroger also emphasized its
own-label products, while adding new store elements, such
Despite technological disruption,

as medical clinics, that drive traffic and extend in-store
shopper time, according to Kantar Retail.
retail scores high in key metrics

Carrefour continued to implement a strategic shift, reducing
its presence in some international markets and deploying
a portfolio of smaller convenience stores to complement
its hypermarkets, which continued to feel pressure from
e-commerce competitors and price discounting, especially
in France, its home market. Competition and a slower
economy impacted Carrefour sales in China. Retail is the canary in the coal mine for categories, an indicator RETAIL RESTRUCTURES DRAMATICALLY
of the disruptive power of technology. The numbers tell the
Retail restructured dramatically over the past 12 years.
Reframe mobile Category specialists story. Over the past 12 years, the BrandZ Retail Top 20
E-commerce today represents 54 percent of the BrandZ Retail
increased 162 percent in value, a strong performance, except
Top 20 brand value, compared with only 14 percent in 2006.
shopping behaviors as The home improvement specialist The Home Depot when compared to the No. 1 brand in the category, Amazon,
which increased 2,228 percent in value over the same period.
in-store opportunities increased 11 percent in value following a 32 percent increase
a year ago. The company effectively invested in digital,
E-commerce Retailers
The shifting media consumption habits of millennials

leveraging the size and product range of its warehouse
stores to offer customers several shopping convenience
Of all the categories studied in this BrandZ report, retail
restructured most dramatically over the past 12 years.
PROPORTION OF VALUE 14%
are having a radical impact on the purchase journeys E-commerce today represents 54 percent of the BrandZ
options, including click and collect.
they undertake. No longer do retailers have complete Retail Top 20 brand value, compared with only 14 percent Specialist Traditional
control of the touchpoints influencing purchase once in 2006. Squeezed between e-commerce brands, which
For both The Home Depot and its rival Lowes, brand Retailers Retailers
a shopper has entered their store. With the mobile increased in value 388 percent, and retail specialists, which
proposition remained a key strength. The brands promised
26% 60%
phone established as an ever-present shopping increased modestly, are the traditional food merchants and
informative service to help customers complete home
assistant, consumers are increasingly likely to be hypermarkets, which declined 23 percent in value.
improvement projects, a proposition that produces big- 2006
researching products and comparison shopping
ticket sales and is difficult for product-focused retailers to
online while in a physical store. For some categories Still, retail was the second-highest scoring category, after
imitate. The Home Depot and Lowes also gained significant
it is now easy for retailers to lose sales to competitors technology, in the BrandZ Vital Signs of brand health: Brand Specialist Traditional E-commer
business-to-business revenue from sales to contractors.
through in-store mobile transactions. However, it is Purpose, Innovation, Communications, Brand Experience, Retailers Retailers Retailers
important to view these behaviors as opportunities and Love. The retail category scored 113. Amazon scored
In several stores, Lowes introduced a virtual reality
rather than threats: from competitive conquesting
through geo-fenced mobile ads to maximizing
capability called Holoroom How To. It takes do-it-
yourself training a step beyond books and videos, enabling
126. An average score is 100. Retail is about connecting with
consumers, and the Retail Top 20 set a high bar.
22% 24% 54%
conversion with push notifications. The retail brands 2017
customers to experience each step of a project while
that will succeed in the future will be those that The traditional retailers score above average in being Different
wearing an Oculus Rift visor. Lowes began using robots for Source: BrandZ / Kantar Millward Brown
integrate the mobile screen into the retail experience, (distinctive and trend-setting, Meaningful (meeting needs in
sales assistance in its stores several years ago.
utilizing technology like augmented reality to provide relevant ways), and providing a positive Brand Experience.
genuine utility and value, giving consumers reasons Specialists score high in being Meaningful, because a home
IKEA continued to open large out-of-town stores that
to stay in store, purchase and visit again. AND BRANDS SCORE HIGH IN KEY METRICS
perform well as destination locations where shoppers improvement or drug store brand meets well-defined needs.
often leave with their planned purchase plus impulse items. The e-commerce brands score exceptionally high in being Traditional, specialist, and e-commerce brands all score well
David White above average on being seen by consumers as Different and
Translating the unique IKEA physical store to an online Different, 147.
Partner, Director Strategy and Communications Planning Meaningful and providing a positive Brand Experience.
experience proved difficult, but the blue and yellow brand
MEC
colors remained distinctive assets, important for sustaining RETAIL CATEGORY PERFORMANCE
David.White@mecglobal.com
the brand.
US-based drug chains CVS and Walgreens were well

BRAND IMPLICATIONS Traditional
Retailers
Specialist
Retailers
E-commerce
Retailers
positioned to meet healthcare needs in the US. Walgreens Technology-related structural issues, including changing
continued to work through regulatory issues in its plan to
Different 111 118 147
consumer shopping habits and the need to adjust the
purchase Rite Aid, which would create a chain of about size and locations of physical stores, continue to impact Meaningful 122 129 117
13,000 drug stores in the US. Rival CVS operates around the retail category. As retailers confront these issues,
7,800 stores in the US. With over 60,000 stores worldwide, reimagining the physical store, it is important to sustain
Brand Experience 110 117 118
7-Eleven continued to fill the convenience store space,
and planned to acquire an additional 1,110 locations from
the Brand Experience. And as retailers struggle with the
financial implications of finding the right online and offline
12-year
value change -23% +7% +388%
Sunoco, the oil and gas brand. balance, they need to protect the brand, the intangible Year brand
asset that will help sustain them through a difficult founded 1944 1948 1989
transition and give them more time to get it right. Source: BrandZ / Kantar Millward Brown
KUALA LUMPUR
- MALAYSIA
Value of all
Asian brands
(excluding China)
in Global Top 100
BRAND BUILDING
$137.2 BILLION
ACTION POINTS
1
Leverage the store
3
The physical store can be a great Be consistent
competitive advantage. It is the
Sustain omni-channel consistency
brands best billboard. And it keeps
that supports and complements
retail brands dynamic. With every
the brand experience across
visit to the store, customers refresh
physical and virtual spaces without
their impression of the brand.
contradiction or disappointment.
2
Engage shoppers
4
Shoppers increasingly move through Decrease friction
physical stores while holding a mobile
device to check competitors or gain As the consumer journey becomes
more product information. Turn more convoluted, look for ways
this behavior into an advantage by to simplify and accelerate it. Be
providing product information and responsive to customers whose
other relevant content in a compelling journey will change with the
way that keeps the shopper in the occasion. It is not all about the
store, both physically and mentally. commercial calendar.
Thought Leadership/RETAIL
THOUGHT LEADERSHIP
Retail Despite the many changes Setting the context

FIONA GORDON happening in retail, you could
ask: Have the fundamentals The first thing to note is that
of shopping really changed? the context of retail impacts
As retail changes,
People still buy most of the the choices consumers make,
things they did five years
and when the context changes,
ago, they still go shopping
peoples choices change. What
frequentlyaveraging over 250
may seem great value in a sale
visits to supermarkets each year
in the UK, for exampleand at an upscale department store
consumers seek
the average FMCG basket size might be seen as wildly expensive
is much as it was five years at a discount store.
ago. So why are brands not
feeling comfortable? There are As discounters have taken hold
several changes in retail that are in the UK over the last four
impacting the way brands reach
more convenient
Group Transformation Director years, they have focused on
Ogilvy & Mather consumers and engage them. consumer perceptions of pricing
Fiona.Gordon@ogilvy.com Id summarize them in three and what constitutes value. The
Cs: context, convenience, and significant advertising budgets
calm.
of Aldi and Lidl have focused on
price messaging; Lidl has run an
and calm
advertising campaign in Ireland
stating full shop, half price with
a slogan beat the brands with
Lidl prices, in which it promotes
its own-label version. This puts
shopping
significant pressure on CPG
brands to consider how they
project value to consumers who
are shopping in a very savvy
shop context. Brands need to
create the bragging rights of a
smart buy for their consumers.
Brands need to consider better

store layout and packaging design
Ogilvy is one of the largest
marketing communications
companies in the world. It was
named the Cannes Lions Network of
the Year 2012- 2016 and the EFFIEs
Worlds Most Effective Agency
Network in 2012, 2013 and 2016.
www.ogilvy.com
3 Thought Leadership Thought Leadership/RETAIL
Ikea has leveraged contextual beauty salon brand, is using it to offer last-minute promotions, Retailers are also innovating Kantar Retail ShopperScape in out which pack was which. A
pricing in a different way to to allow people to test colors brands have to reach people their convenience offer with the 2015 noted that 43 percent of small gesture by a brandhaving
highlight its affordability in Saudi before they buy their nail varnish in other ways as they move growth of order and collect at US consumers describe a stress- clear packaging and coding
Arabia. They ran a campaign or hair dye. This virtual trying through the store. This could be their stores. This service allows free shop as one in which they can make all the difference to a
called Its that affordable, on removes one of the big through using technology, with the consumer to shop the whole are easily able to locate the harried shopper, and give that
which compared the cost of the concerns about buying online, as mobile couponing, active brand range of the online store, but items I need. While much of this brand a little more emotional
furniture to everyday items such consumers can check that it suits placement on the retailer app, have it delivered to their local ease can be enabled by retail credit in the bank.
as pizzas or coffee. Ikea used them before they buy. and brand rewards programs for store at a time that suits them to design, brands can also help by
framing, with contextual pricing, loyalty all coming more to the collect. Again, this forces brands having packaging that is easy to Ultimately consumers shopping
to help consumers see how Online drives fore. to have to be front-of-mind for identify and navigate. To an aging habits are going to continue to
affordable their items are. convenience the consumer as they go online. population, constant packaging evolve. The brands that best
While Amazon has changed the Brands must be really smart in changes can be disorienting. understand the context of
Other behavioral heuristics can The growth of online is of course way we shop, and when we shop, their use of programmatic buying, where their consumers are as
also help brands to stand out in in part driven by convenience, we see that most people still and must know their consumers My elderly father was a prime they shop, what convenience
the value equation. The Journal as you can increasingly browse go for a frequent quick shop previous shopping habits to example of this, as he recently means to them in that moment,
of Consumer Research highlights for anything from your sofa. to physical stores, and often predict their next purchases. arrived home with loose tea and uses that understanding to
how important it is for brands to Amazon has created a new then the nearest shop is what Increasingly, brands are spending instead of his favorite tea bags, reward shoppers with a stress-
create the endowment effect, type of shopping that has constitutes convenience. more of their marketing budgets and it was like a spot the free experience may continue to
which causes you to place more no checkout line, and where on programmatic advertising to difference competition to work thrive.
value on things you own. the power of the reviewer With growing urbanization, the reach their customer base.
purchaser or independentis number of mini supermarkets
In the context of a physical king. This is driving brands has increased, and with more Keep calm
shop, people expect to be to focus on increasing their single-person households, the and carry on Brands must be really smart in
able to touch and discover the specialist category reviews. In ranges these stores stock is also
products. Brands that enable this the smartphone world, the tech changing. Brands are having to The final C could of course their use of programmatic buying,
can smartly create the feeling reviewer is a now critical part of adjust, as they need to reach the be curation, and it is true that
of ownership pre-purchase. the communications mix, and urban single-dweller, who may personal curation enabled and must know their consumers
Just watch the excitement of
consumers in Apples Genius Bars
brands invite all of the reviewers
and bloggers to major preview
range in age from 18 to 80. These
shoppers often pop in most
by brands and retailers is
now becoming a consumer
previous shopping habits to
to see this engagement in action. events. days, and so the need for brands expectation. But instead, I have predict their next purchases.
to have a more varied range to chosen a different C. With the
This trend is now moving offline In physical retail there is also an stay relevant, while maintaining hectic environment people live in, Increasingly, brands are spending
increasing focus on convenience, and the sometimes overwhelming
too with the growth of virtual
sampling. This allows you to with self-checkout growing. As
constant availability and the right
portable pack size, all become amount of choice on display, one
more of their marketing budgets
virtually try on products before there is less human interaction at part of the brands convenience gift a brand can offer a consumer on programmatic advertising to
you buy, and Toni and Guy, the the checkout, and so less chance offer. is a moment of calm.
reach their customer base.
Thought Leadership/TENSION OF CHANGE
THOUGHT LEADERSHIP
Tension of Change
As the old adage goes, change is the only constant, but
STEPHEN WALLACE
change happens at different speeds, and technology is
making that speed faster and faster. So we have another
word for high-speed change: disruption. Perhaps the
Navigate
modern adage should be disruption is the only constant.
Disruption can strike fear into A Harvard Business Review article

businessesthink Kodak and titled Surviving Disruption
disruption by
Olivettithe fear that your declares that disruptors and
business model is rapidly legacy businesses should focus
undermined by discontinuous on defining new business models
innovation. This is especially by asking: What jobs do people
painful when you consider need done and how could they
focusing on brand
European Brand Planning Lead that Olivetti is credited with be done more easily, conveniently,
GTB
launching the first commercial or affordably? This seems to
Stephen.Wallace@gtb.com
programmable desktop personal me a pretty good business
computer in 1964, and Kodak model, equivalent to what brand
technologists created the managers should be asking
foundations of digital imaging. themselves: What purpose do
and developing
consumers really value my brand
So perhaps the way for for, and how can I express that in
businesses to navigate disruption a contemporary context?
is to spend as much time focused
on managing their brands as on My client, Ford Motor Company,
new products,
developing new products and is facing disruption in the form
new business models. of autonomous vehicles, on-
demand rides, and car-sharing
from some of the most fearsome
competitors on the planet:
businesses
Google, Apple, Uber, Tesla and
Zipcar.
Strong values can endure We were born different, founded

to create an entirely new model of
severe market change collaboration... The result? An agency
that truly works at the intersection of
business and everything imaginable.
Welcome to GTB.
www.gtb.com
3 Thought Leadership Thought Leadership/TENSION OF CHANGE
HAVANA - CUBA
I would go so far as to say that companies should

focus more effort on understanding and living
true to their brand purpose in order to safeguard
themselves from being disrupted out of business.
But Ford has asked itself this and marketplace services, such Great brands focus single-
question and remembered that as parking and ride-sharing. Ford mindedly on purpose. Ask
Henry Fords success was not has also opened a Ford Hub in anyone in Nike what their
just built on the invention of cost- New York City to display their purpose is and theyll tell you
efficient manufacturing through vision of a transportation future theyre out to make athletes
the production line and the beyond cars. It doesnt sell cars. perform better. They happen
division of labor. What Ford did Instead, large screens highlight to make profit from being in
for masses of people was to give different ways to reach New York businesses like sports shoes. So
them personal mobility at a time City landmarks by bike, subway my advice to businesses across
when motor cars were expensive etc. A giant marble run model product categories facing the
playthings for the wealthy. And illustrates the idea of traffic tension of change is to focus on
mobility for the masses meant congestion, plus other future- their brands and the purposes
getting produce to markets, of-transportation concepts, like consumers value those brands
people making connections with self-repairing roads. for.
distant people, and expanding
their horizons. It made people Focus on purpose Some categories face health
more productive; it allowed concerns and regulatory pressure
people to have holidays. Ford understands that what on sugar. But taking time to
consumers have always valued understand the value and the
The roots of the Ford brand are the brand for is being able symbolism of your brands will
in mobility, and in helping people to move freely, and Ford is help compensate for offering a
move freely. This is why, just building new technology and product with less sugar. Fossil
over a year ago, Ford created new business models to help fuel businesses are not just
Ford Smart Mobility LLC, a new consumers do that. energy providers, but owners
subsidiary to the company, of brands which are about
formed to design, build, grow, In fact, acknowledging my pioneering and exploration,
and invest in emerging mobility own bias as a brand manager, surety, conveniencesymbols of
services. I would go so far as to say that national pride and inventiveness.
companies should focus more
The first consumer-facing launch effort on understanding and STRONG VALUES CAN ENDURE
from Ford Smart Mobility was living true to their brand purpose CHANGE. YOU JUST NEED TO
the introduction of FordPass, an in order to safeguard themselves UNEARTH THEM.
app-based service built around from being disrupted out of
point-to-point journey planning business.
5 The Categories Food and Drink/BEER
Beer Merger of global leaders

The beer category includes global and regional
brands, which in an increasingly consolidated
forms 500-brand portfolio
industry are mostly owned by a few major brewers.
As the category consolidates, it

also fragments with craft brewers
It was the year of the much-

anticipated corporate marriage
between AB InBev and
SABMiller, creating the worlds The combined company matched Budweiser, Stella Artois, and Corona.
fifth-largest consumer products complementary geographic and Many country markets, including
business strengths. AB InBev brought China, are moving to premium. The
company after Nestl, P&G, market dominance in Brazil and other AB InBev brands in the BrandZ
PepsiCo and Unilever, and ahead financial and production expertise. Top 10 are Bud Light, Skol, Brahma,
of Coca-Cola. The blended SABMiller added dominance in and Aguila.
family owns seven of the Colombia and, based in South Africa,
BrandZ Beer Top 10 brands, provided strength on a continent with Budweiser remained No. 1 in the
a fast-growing beer market, as well ranking, based on its wide distribution
and all but one of them rose
as its marketing prowess for linking in the US, its global presence, and
in value, as the Top 10 rose 5 brands to drinking occasions. promotion that generated volume
percent in total value, following gains in the UK, where an introduction
a 3 percent decline a year ago. AB InBev, as the new entity is of Bud Light is planned. As the
called, faces the daunting task of official beer of the FIFA World Cup,
rationalizing and maximally leveraging Budweiser faces a major global
a portfolio of over 500 brands, with sponsorship opportunity with the
BrandZ Top 100 global, regional, or local reach. These 2018 Moscow games.
Most Valuable Global include its global premium group
Brands 2017

Year-on-Year Change BEER TOP 10
Brand Brand Value
+5%
1 Budweiser 15,093 4 2%
2 Bud Light 11,945 3 -9%
3 Heineken 10,878 5 3%
12-Year Change 4 Stella Artois 9,949 5 4%
5 Skol 8,146 5 21%
+188% 6
8
Corona
Brahma
Guinness
8,119
4,385
4,080
5
5
23%
34%
-11%
9 Aguila 3,843 5 18%

Beer Top 10
Total Brand Value 10 Coors Light 3,589 3 -1%
$80.0 billion
Four of the BrandZ Beer Top 10 are activity. Heineken announced plans With increasing competition from associated with the Rocky Mountains,
AB InBev Latin American brands: Skol to purchase the Brazilian holdings of craft, and an inclination of consumers launched a campaign called Climb
and Brahma are Brazilian, Corona Japans Kirin beer. Heineken, along to select from a repertoire of brands, On. Aimed at both men and women,
is Mexican (Constellation Brands with Guinness and Coors Light, are brands invested to differentiate the ads encourage people to climb
distributes Corona in the US.), and BrandZ Beer Top 10 brands not in both on-trade and off-trade, their personal mountains and
Aguila is from Colombia. Economic owned by AB InBev. SABMiller sold its attempting to create some clear celebrate reaching the peak with a
slowdown impacted financial results stake in MillerCoors in the merger. benefit around the brand, such as Coors Light.
from some Latin American markets. taste or thirst-quenching.
But the concentration prompted Majors acquire INSIGHT
Brands also added purpose to their
other competitive acquisition
craft brands Communication brands with campaigns devoted to
responsible drinking. Actor Helen
INSIGHT builds brands Mirren delivered a memorable rebuke
As the industry consolidated, it also to excess in a Budweiser Super Bowl
INSIGHT fragmented with the growth of craft Major brands have worked on-trade ad. Heineken launched a campaign in
brands. While craft beer was still a to create a premium impression, which millennial women sing about the
relatively small part of the market, it with glassware, for example, qualities they look for in the men they
continued to grow, especially in the but also at retail with packaging prefer. Sobriety was high on their list.
US, but also beyond, shaping the taste innovations. In certain markets,
expectations of consumers, especially Corona, a beer associated with fun,
young people. Influenced by the taste was merchandised with a free ice INSIGHT
preferences of Americas multicultural bucket. The brand launched a new
population and the nations young campaign called This is Living,
people, US beers evolved in opposite which associates the brand with
directions, becoming both stronger, experiencing life fully outdoors.
and more refreshing and sweeter.
Stella Artois, which has ritualized the
This move to taste extremes, Consumers build drinking experience with its chalice,
sometimes called the vodkafication
of beer, challenged brands to keep
brand repertoires Distinctive brand also entered partnerships such
as Wimbledon tennis to reinforce
up with the pace of change. The to match occasions positioning now its premium positioning. It added
Majors respond
as craft disrupts
extensive range, referred to as the
wineification of beer, increased Weve been looking at the growth
vitally important an element of corporate social
responsibility by advocating for access
selection, but weakened brand as a to clean water. In partnership with actor
premium sector determinant of choice. Consumers
of brand repertoires. Within a
repertoire, you might have 10 or
The craft movement, accelerating
Matt Damon, Stella Artois donated
product innovation, and a trend
developed repertoires of brands 12 brands. And the repertoire will money to the NGO Water.org for each
A few years ago, the big breweries towards premiumization, means
depending on the occasion. be divided into sub-repertoires for chalice purchased. The campaign,
werent paying very much it is harder than ever for brands
attention to craft beer. Now they
various occasions. A person might
to stand out and get consistently
called Buy a lady a drink, references As craft matures,
To compete with craft beers, have two or three beer brands the fact that, in developing regions
understand both the threat and Heineken launched a brand called for drinking every day, several
chosen over others. As a result,
of the world, women and young girls majors will drive
potential craft plays, so they are
giving the sector a lot of attention.
H41, which is made with a yeast from beers when premium is desired,
it is more important than ever
for brands to differentiate via
typically have the chore of collecting its consolidation
Patagonia. Heineken purchased a and a few brands for drinking with water, which often is contaminated.
Craft has disrupted premium a distinctive brand essence
major stake in Lagunitas, a US craft mates. The challenge for brands The major brewers have been
around taste, and its quite amplifying a clear positioning
beer producer, several years ago. is lack of distinctiveness, which is In initiatives that help with global quite smart about how theyve
dangerous from that point of view. that is unique and relevant to
Carlsberg also reinforced its position needed to get into the repertoire. marketing consistency and exposure, entered the craft business.
The big brewers are looking at consumers to get noticed and win.
in craft by expanding its distribution We may see more media Heineken renewed its sponsorship Theyve acquired craft brands,
how craft fits into their portfolios of Brooklyn Brewery beers to the of Championship League soccer and
investment going from above the but theyve left them to do what
and asking, what is the role of Chris Pick
UK. It already distributes in some of line to the point of sale, because entered a partnership with Formula they do. In the US, where craft
craft? How do we make the most continental Europe.
Client Director
One. With H41, the brewer told a
without a strong preference, the is maturing, were getting to the
of the craft opportunity? Well see Kantar Millward Brown
story around ingredients. In contrast,
purchasing decision is made at the point where we may see some
more companies acquiring craft AB InBev planned to open a chain of
Chris.Pick@kantarmillwardbrown.com
Budweiser focused on heritage,
moment of truth. consolidation. In five years,
brands rather than just innovating pubs worldwide named Goose Island, particularly in its Super Bowl ad, perhaps, the craft sector will still
themselves. after the renowned Chicago craft which celebrated the emigration
Chris Knibbs be sizable, but it could be largely
beer brewery and pub it acquired five Director, FMCG and Retail of founder Adolphus Busch from controlled by the majors.
Nigel Birch
years ago. Along with Las Vegas and Kantar TNS Germany to America.
Senior Client Director
Philadelphia, other cities named in the Chris.Knibbs@tnsglobal.com Ian Elmer
expansion include Seoul, Shanghai, Skol, which ranks No. 1 in the BrandZ Global Account Director
Nigel.Birch@millwardbrown.com
Toronto, and London. And to satisfy Top 50 Most Valuable Latin American Kantar
young drinkers who desire the social Brands, sponsored concerts and Ian.Elmer@kantar.com
experience of beer drinking, but not emphasized enjoyment. Brahma
the effect of alcohol, Budweiser test connected the brand with Carnival,
marketed an alcohol-free beer called soccer, and sex appeal. Coors Light,
Prohibition in Canada.
INSIGHTS
ANALYSIS
Communications drive
brand value increase
The BrandZ Beer Top 10 grew 188 percent in value COMMUNICATIONS DRIVE VALUE GROWTH
Packaging changes over the past 12 years. The ability of the brewers to
The Beer Top 10 score 105 in Communications, but receive
will signal brand Wineification of beer
communicate about their brands helped drive that growth.
average scores in the four other BrandZ Vital Signs: Purpose,
The Beer Top 10 score well in Communications, but receive
moves to premium presents challenges average scores in the four other BrandZ Vital Signs: Brand
Innovation, Brand Experience, and Love.
Purpose, Innovation, Brand Experience, and Love. BEER TOP 10 BRANDZ VITAL SIGNS
Large brewers have focused on for major brands 110
delivering a great brand experience Over the past 12 years, The BrandZ No. 1 beer, Budweiser,
in the on-trade, with impactful, We have heard a lot about grew 118 percent in value, a significant increase, but much COMMUNICATIONS
Extensive choice
105
premium glasses as just one the vodkafication and the less than the 669 percent increase by the Latin American
example. We will start to see more
and more brands putting greater makes Salience wineification of beer. With
vodkafication we see all the
brand Skol, which experienced the greatest value rise of BRAND
the Beer Top 10 during that period.
critical for brands
EXPERIENCE LOVE
102 101 102

focus on their packaging to improve different flavor trends, which INNOVATION PURPOSE
101
brand experience off-trade, which can cycle in and out quickly. The The disparity illustrates the possibility of achieving sharper
represents a major source of growth. Go into a bar or bodega in most flavor inspiration comes from value growth, and competing more effectively against a
These are among the initiatives mature beer markets now and many sources. Particularly in the key category disruptor, craft brands. The consolidation of
brands need to take on the journey youll be confronted with an US, it reflects the increasingly the major global brewers, AB InBev and SABMiller, creates
to becoming more premium in the 100
ever-expanding choice of beers. multicultural and polycultural a portfolio of 500 brands, adds financial power and reach, AVERAGE SCORE
eyes of consumers. Choice can be good for us, but nature of the society, which is but it does not remove the threat of craft. Source: Kantar Millward Brown/ BrandZ
it does pose some challenges. changing the American palate
David Graham More choice demands additional and shifting preference for beer to Part of the solution may be found in Latin America, home
Kantar Millward Brown time and effort from the human something with a bit more spice to four of the BrandZ Beer Top 10: Skol, Corona, Brahma,
Senior Client Director decision-making process, and dimension. Wineification and Aguila, which are also Latin Americas most valuable
BUT THE IMPACT OF COMMUNICATIONS
David.Graham@kantarmillwardbrown.com with many beer drinkers likely suggests that consumers look brands. Consumers view Latin American beers as Fun, VARIES BY REGION
finding themselves in a state of for a type of beer, not a brand. Sexy, and Trustworthy, while European and US beers score Brand personality and characteristics vary by region. Latin
choice paralysis. In this context, Both these phenomena challenge only average on those characteristics. American brands score well in being seen by consumers as
Saliencebeing top of mind at brands. fun, sexy, and trustworthy, while European and US brands
the moment of purchasecould score only average.
become even more critical for Lindsay Kunkle
BEER CATEGORY PERFORMANCE
brands. Senior Consultant
Kantar Futures BRAND IMPLICATIONS
Daniel Brown Lindsay.Kunkle@thefuturescompany.com LatAm Europe US
Partner, Global Strategy Director In the US and Europe, the beers viewed by
MediaCom consumers as Fun and Sexy tend to come from Fun 116 100 100
Daniel.Brown@mediacom.com the craft brewers. The major brewers need to
increase their Innovation scores, and continue
Sexy 109 106 102
to communicate effectively, but with refreshed Trustworthy 104 99 97
stories. AB InBev, and other majors, have an
opportunity to build exciting, differentiated
brand portfolios as they continue to expand
1-year
value change +23% +1% -3%
in both mature markets and the fast-growing Source: BrandZ / Kantar Millward Brown
markets of Africa and Asia.
BEIJING - CHINA

$406.0 BILLION
BRAND BUILDING
ACTION POINTS
1
Command leadership
4
Rather than reacting to craft, set the Beware of potential
pace, improving taste and the on- disruptors
trade and off-trade experience.
These include alcoholic sodas and,
in the US, even legalized marijuana.
2
Be consistent
5
It is fine to have several marketing Grow the category
initiatives at the same time, as is
Success will depend not only on
often the case, but not coordinating
the appeal of individual brands but
them leads to confusion.
also on the health of the category.
Develop innovations and strategies
to grow the market.
3
Reach millennials,
but not only millennials
Brands know best how to reach
young to middle-aged male
drinkers, but reaching those drinkers
alone leaves a lot of opportunity on
the table. Potential consumers also
include older drinkers who have
more time and money, and curiosity
about new experiences.
5 The Categories Food and Drink/FAST FOOD
Fast Food Return to basics

The fast food category includes Quick Service Restaurants
focuses on pleasing
core customers
(QSR) and casual dining brands, which vary in customer and
menu focus, but mostly compete for the same dayparts.
But digital innovation powers new initiatives
Fast food brands returned to

basics, improving taste and
experience. In a shift in focus,
For McDonalds and Burger King, ingredients. KFC joined other fast
brands aimed to please their
the return to basics meant making food brands, including McDonalds
core customers rather than try a better burger to meet growing and Subway, in eliminating the
to attract consumers from the competition from smaller burger use of chickens raised with certain
more upmarket casual dining chains and changing consumer antibiotics.
segment. Fast food companies expectations. KFC upgraded its
kitchens and returned to its original Burger King revised its franchise
also initiated brand-building
recipe for fried chicken. Starbucks system, remodeled locations,
and digital innovations and went back to basics in a different way, expanded internationally, and devoted
expanded franchise networks. taking its core product, coffee, to more attention to advertising and
another levelpremium. marketing. The changes reflect the
influence of 3G Capital, the Brazilian
McDonalds first back-to-basics investment company that acquired
step, switching from frozen to fresh the chain in 2010 and later merged it
BrandZ Top 100 meat for its Quarter Pounders, with Tim Hortons to create Restaurant
Most Valuable Global also reflected the larger trend of Brands International.
Brands 2017 upgrading to fresher and healthier

Year-on-Year Change FAST FOOD TOP 10
Brand Brand Value
+7%
1 McDonald's 97,723 4 10%
2 Starbucks 44,230 4 2%
3 Subway 21,713 4 1%
12-Year Change 4 KFC 13,521 3 9%
5 Pizza Hut 8,133 3 -2%
+319% 6
8
Domino's Pizza
Tim Hortons
Chipotle
6,289
5,893
5,722
3
3
29%
26%
-29%
9 Taco Bell 5,388 3 N/A

Fast Food Top 10
Total Brand Value 10 Burger King 5,116 2 39%
$213.7 billion
INSIGHT
INSIGHT
Burger King rose 39 percent in value,

more than any other brand in the
known actors. Upon entering inside
a giant foil-wrapped burrito, each
Brand experience Dominos Pizza has transformed its
business with digital. In fast food, as
BrandZ Fast Food Top 10. Tim character sits on a sofa in a piano and digital in most businesses, success starts
Hortons rose 26 percent. McDonalds lounge and engages with a sonorous with the product. After Dominos
improved 10 percent. Dominos disembodied voice that encourages To expand its food business, Pizza improved the taste of its pizza
Pizza increased 29 percent, as it them to get real. Starbucks experimented with an several years ago, the brand began
implemented and communicated expanded lunch offering of fresh implementing digital innovations to
digital innovations. Taco Bell appeared Subway, the categorys largest salads and sandwiches. Called improve customer experience. Same-
in the ranking for the first time. chain in number of outlets (44,000 Mercato, the experiment began stores sales have improved steadily
worldwide), attempted to reset and in around 100 Chicago locations. since 2009.
Along with KFC and Pizza Hut, Taco improve all aspects of the brand Starbucks is also developing a more
Bell is owned by Yum! Brands, which experience. It also established a digital premium experience. After overseeing Today, most customers order
the 25-year growth of Starbucks,
Competition last year spun off its China business. team. And it introduced a new store
founder Howard Shultz assumed
from Dominos Pizza using an app,
With the China business separated, format and logo, and an ad campaign sometimes with a voice command, or
sends brands Yum! Brands intends to accelerate the that continued to promote price and the post of executive chairman and even by sending a pizza emoji. And
Brands flex to meet
back to basics international franchising of its three items, but also noted food quality planned to expand the Starbucks Dominos Pizza continues to innovate. the expectations of
Reserve Roastery, initially opening in
fast food brands. improvements, including the lack of
artificial ingredients. New York, Shanghai, and Tokyo.
Because pizza comes with so many
topping variations, digital ordering
millennial customers
Theres been a return to basics.
McDonalds is the bellwether. Its Ironically, as many traditional fast food can be complicated. Dominos Pizza
The Starbucks Reserve Roastery Brands in the category have
competition is coming from chains brands improved food freshness and In a program called Experience of introduced Easy Order to simplify
prototype in Seattle is an experiential worked to flex their offerings
like In-N-Out, Smash Burger, Five increased in value, Chipotle, the chain the Future, McDonalds planned to and speed the ordering process. With
center, a kind of coffee museum around millennial customers. They
Guys, or Shake Shack that offer a that became the fast food symbol include self-order kiosks and table one click, customers can reorder their
and gift shop, where customers can are assessing all dimensions of
superior product without going to of fresh and healthy ingredients, service in about 2,500 locations favorite menu items.
become immersed in details of coffee the experience, including the look
the level of family dining. At the declined in value. Consumer trust by the end of 2017. It also planned
harvesting and production and buy and feel of their sites, while also
same time, Starbucks is evolving still lagged, despite many safeguards to introduce mobile ordering and Dominos Pizza communicates its
Starbucks branded merchandise. addressing millennials different
and focusing on its premium implemented since supply chain payment to 20,000 of its 36,000 digital leadership to differentiate the
Starbucks also plans to open smaller expectations about the quality of
Roasters cafes. Also, like Amazon, problems caused a food poisoning locations. To address peoples desire brand. A recent commercial parodies
premium locations called Starbucks ingredients. They need to know
the fast food brands are trying outbreak in 2015. The BrandZ Fast to order in rather than eat out, the movie Ferris Buellers Day Off,
Reserve. not only that ingredients are safe
to remove friction from the order Food Top 10 rose 7 percent in value, McDonalds partnered with Uber in with a young man racing through
and healthy, fresh and organic,
and delivery process. Amazon has compared with an 11 percent rise a the US to offer delivery, a service suburban backyards, tracking his
A pioneer in retail digital applications, but even their provenanceto
set the bar for delivery. Clearing year ago. already available in some of its pizza delivery on his smartwatch, and
Starbucks expanded its mobile order understand where they come
the bar will be a greater challenge restaurants in Asia. reaching his front door just as the
and payment platform, integrating it from!
for chains with menus that offer Healthy and fresh The McDonalds initiatives followed with Amazon Alexa and Ford vehicles.
Dominos Pizza delivery car pulls into
the driveway. Although not obvious
combinations of ingredients. Fraser Riddell
the CEO change made two years It also began rolling out a voice- in the ad, the delivery car is also an
Chipotle continued to make changes Chief Client Officer
ago, and began with simplifying the ordering function for its mobile app. innovation; it contains a warming
Philip Herr in its operations to protect food MediaCom
menu to make fast food faster and In China, Starbucks partnered with oven.
Senior Vice President, Client Service security. It reduced the number of Fraser.Riddell@mediacom.com
bring the chain closer to its roots and Tencent, the giant internet platform,
Kantar Millward Brown ingredients, removed preservatives,
core customers. Along with retaining on a social gifting initiative that
Philip.Herr@millwardbrown.com and even altered its kitchen ventilation
existing customers and regaining lost enables users of the WeChat/Weixin
systems to keep food fresh. To
customers, the chain hoped to attract messaging service to easily gift a
communicate its menu and operations
new customers with its offerings of Starbucks beverage or gift card.
overhaul, Chipotle introduced an ad
campaign called As Real as it Gets, coffee and snacks.
which features a variety of well-
ANALYSIS
.1
Despite health concerns,
Purpose and Love drive growth
BRAND BUILDING
ACTION POINTS
The fast food category has been under pressure from CATEGORY COMPOSITION CHANGES
consumer concerns about healthy ingredients. However,
In 2006, the burger segment comprised 62 percent of
the category scores above average on all five of the
category value. Today, the burger segment comprises just
BrandZ Vital Signs, and is especially high on Love. These
under half of the value, while the coffee/sandwich segment
results are in sharp contrast to the soft drinks category,
has gone from less than a quarter in 2006 to more than a third.
which also is pressured by consumer health concerns, but
scores only average on Vital Signs, and below average on PROPORTION OF VALUE
the fundamental Vital Sign, Brand Purpose.
Coffee/
2
Burger Other
The fast food categorys clear purpose, serving food Sandwich
Brands Brands
quickly and affordably, helps explain why the BrandZ Brands Update the basics
Fast Food Top 10 rose 319 percent in brand value over the
past 12 years. In addition, McDonalds, the No. 1 brand in
2006
62 %
23% 15
%
Reclaiming the basics will not be
the BrandZ Fast Food ranking, drove significant growth. enough. The business has become
McDonalds scores extremely high on Communications more complicated. And brands
and Brand Love. Changes in category composition also
1
Burger Coffee/Sandwich Other need to address overlapping
helped drive growth.
Brands Brands Brands issues. Sustained brand success
Get the basics right
In 2006, the burger segment comprised 62 percent of requires outstanding systems that
category value. Today, the burger segment comprises
2017
48 %
34 %
18 %
When brands expand rapidly consistently deliver tasty food that
just under half of the value, while the coffee/sandwich to reach new customer groups, is healthy and fresh, whether the
segment has gone from less than a quarter of value in Source: BrandZ / Kantar Millward Brown it is easy to forget the essential customer is in the restaurant, at
2006 to more than a third. The coffee/sandwich segment,
which includes Starbucks, Tim Hortons, and Subway, ingredients of the brands initial home, at work, or somewhere else.
scores 116 in Brand Purpose, compared with 108 for the success. Going back to basics
burger segment. Trust has also increased more for the AND THE COFFEE/SANDWICH SEGMENT can help revitalize the brand and
coffee/sandwich brands. And the segment grew in value HELPS DRIVE GROWTH propel it forward.
3
at the fastest rate over the past 12 years, 521 percent.
The coffee/sandwich segment, which includes Starbucks,
Tim Hortons, and Subway, scores 116 in Brand Purpose, Examine expansion
compared with 108 for the burger segment.
FAST FOOD CATEGORY PERFORMANCE
In saturated markets, growth
through penetration may shift
Coffee/
Burger Other
to a contest for share, which
BRAND IMPLICATIONS Sandwich
Brands
Brands Brands could require building dayparts,
focusing on positioning or, when
Fast food brands returned to basics this year. The Brand Purpose 116 108 97 possible, moving to premium.
burger chains are serving better burgers and the Communications 110 113 100
sandwich chains are improving and expanding
their menus. As the fast food brands continue to Love 112 111 103
meet changing consumer expectations for food 12-year
quality, safety, and speed, they need to match trust change +15% +4% -1%
their investments in operational improvements
12-year
with investments in communications.
value change +521% +227% +391%
5 The Categories Food and Drink/SOFT DRINKS
Soft Drinks Brands create and acquire

The soft drink category includes these non-alcoholic ready-to-
drink beverages: carbonated soft drinks, juice, bottled water,
healthier soft drink options
functional drinks (sport and energy), coffee and tea (hot and iced).
Bottled water outsells colas for the first time
For the first time, bottled The diet segment was especially year ago. The coffee brands Nescaf
water outsold colas in the US, impacted. Consumer caution about and Nespresso rose modestly in value,
product ingredients that they ingest and Folgers joined the ranking for the
and sales of carbonated soft
or put on their bodies impacted the first time. Consumers also turned to
drinks (CSDs), which have soft drink, fast food, and personal tea brands, like Lipton.
historically defined the soft care categories. But the consumer
drink category, declined for reaction was complicated, particularly In response to pressure on the
the 12th consecutive year in the among millennials, who wanted drinks category, the major soft drink brands
US. Alternative dairy drinks, with fewer ingredients but more acquired or developed healthier
benefits. beverages and added changes to
flavored seltzers, and other packaging and communications. To
sparking options increased in Energy drinks performed well, with build, or rebuild, emotional connection
popularity. Colas still dominated Monster rising 15 percent in value, with the brands, they associated cola
the category in volume, despite leading the BrandZ Soft Drinks Top drinking with special occasions and
their steady decline, which 15, which registered no change in explored ways to increase at-home
value following a gain of 1 percent a consumption.
slowed a bit, according to
industry publication Beverage
Digest.
SOFT DRINKS TOP 15
Brand Brand Value
BrandZ Top 100 $ Million Contribution 2017 vs. 2016
1 Coca-Cola 66,489 5 -2%
Brands 2017
2 Diet Coke 11,653 4 -7%
Category Brand Value 3 Red Bull 11,567 4 -1%
Year-on-Year Change
4 Pepsi 10,638 4 6%
0%
5 Lipton 7,905 4 -8%
6 Nescaf 6,303 4 3%
7 Fanta 6,032 3 7%
8 Nespresso 5,861 4 5%
Category Brand Value 9 Tropicana 5,651 4 2%
12-Year Change (Top 10)
10 Sprite 5,518 3 5%
+105%
11 Gatorade 4,669 4 1%
12 Monster 4,502 4 15%
13 Dr. Pepper 2,904 4 8%
14 Folgers 2,797 4 N/A
Soft Drinks Top 15 15 Mountain Dew 2,737 4 6%

Total Brand Value Source: BrandZ / Kantar Millward Brown (including data from Bloomberg)
$155.2 billion
Diet Coke includes Diet Coke, Coca-Cola Light and Coca-Cola Zero
Lipton includes the businesses of both hot beverages and ready-to-drink iced tea
Brands also promoted smaller portion Pepsi created Pepsi 1893,

sizes to both reduce calories and INSIGHT commemorating the brands birth
lift margins. Although the leading year. Called a bold spin on an original
brands were not assaulted by craft cola, the craft cola is made with
alternatives, as in the beer category, real sugar and is positioned to be The Break out a Pepsi campaign
many startup craft brands attempted consumed as a mixer or on other emphasized drinking occasions
to fulfill the desire of millennials for occasions that call for a cola. Pepsi and featured vignettes of small
soft drinks with taste and health also added new flavors, Citrus and life triumphs, like fixing an office
credentials. The major brands Black Currant. Coke reintroduced copy machine, that call for modest
INSIGHT countered with their own offerings. two craft brands formerly owned by celebration. Illustrating the risk brands
Monster: Blue Sky and Hansens. INSIGHT face when they take a stand on
Getting healthier sensitive social issues, Pepsi released,
Rekindling love and then immediately retracted, an
As part of what the company calls ad intended to celebrate diversity. In
its commitment to Performance To better understand the factors the ad, the mood of demonstrators
with Purpose, PepsiCo purchased driving consumer love for the Coca- turns from protest to celebration
a line of sparkling probiotic drinks Cola brand, the company conducted when Kendall Jenner hands a Pepsi to
a police officer. Critics argued that the
called KeVita. It also distributed
IZZE Fusions, a variation of juice
Consumers love extensive market-by-market analysis
to explore how love was influenced ad mirrored, and trivialized, the Black
and sparkling water that it acquired the brands, not by each of three dimensions: the Lives Matter movement.
several years ago. These more natural
the health effects consumer perception of the brand;
low-calorie drinks, aimed at younger the dynamics of the category; and the High energy
consumers, were intended to meet reputation of the corporation.
The category remains under
their objections to diet beverages and Several of the brands with fruit
pressure, certainly in developed
artificial ingredients. Early in the year, Coke launched its flavoring, like Sprite and Fanta, owned
markets. Marketers continue to
One Brand marketing strategy, by Coca-Cola, increased in value,
Under pressure, Tropicana, a PepsiCo brand, launched
balance the impact of category
unifying four variantsClassic, Diet,
category still sells Tropicana Essentials Probiotics, a line
health concerns and erosion
Life, and Zerounder the Coca- Many factors shape despite health concerns. Consumption
of both brands increased in the
of brand affinity in younger
enormous volume
of juices with probiotics. PepsiCo also
generations. The food category
Cola brand and adopting a global consumer choices US, according to Beverage Digest.
launched LIFEWTR, a bottled water campaign focused around the
that will depend on artistic packaging
(e.g. Dolmio) has started to directly
experience of drinking a Coke, called
and brand responses Similarly, the energy drinks remained
strong. Pepsi continued to position
In understanding the category, acknowledge health concerns with
to earn a premium price and compete Taste the feeling. Gatorade as the brand for serious
marketers are looking at colas, moderation messaging, and soft The soft drinks people choose
with Smartwater, Cokes premium athletes, and it launched an organic
then CSDs, then the overall drinks manufacturers are paying are influenced by lots of different
water entry. The Coca-Cola Super Bowl ad version of the drink.
category, which includes other close attention, as finding the factors, some of which brand
attempted to strengthen emotional
drinks such as juices. Were right balance between addressing owners can controllike the
Cokes Venturing and Emerging connection by pairing the brand Celebrating its 30th anniversary,
seeing consumers continue to concerns and brand building is the brand. Other factors they have
Brands (VEB) group continued to with eating occasions. Flashing the and available in 171 countries, Red
fall out of love with colas and key to managing future growth. As some control over, like the
identify disruptive brands and help headlines Coke and Food and A Bull continued to build the leading
with other sparkling drinks, but in many other categories, there is corporate reputation. And some
them achieve scale. The VEB group classic love story, the 30-second energy drink brand with strategic
having said that, we need to be also a degree of fragmentation as they have little control over, like
includes brands such as Honest Tea, spot showed people preparing and sponsorships and relevant content.
clearthe brands are still selling the range of functional beverages attitudes toward the category. All
Peace Tea, and Zico Coconut Water. sharing food and enjoying friendship. It broadcast, on its own TV channel,
a lot of soda. Its a big job to and niche offerings proliferate the brands face these challenges.
Coke acquired some of the brands It featured Coke Classic, Life, and Zero programs featuring extreme sports
change peoples perceptions of so a challenge for the category Pepsi, and perhaps some of the
from Monster in 2015, when Coke available in small cans, glass bottles, and feats of daring aimed at a
these categories and change the giants is to get the relationship other brands, are more suited
transferred its energy brands to and logo glasses. community drawn to adventure.
messaging to bring people back in between their masterbrands and for this competitive environment
Monster and Monster shifted its non-
love with the product. Soft drink their expanding portfolios right. because of a history as a
energy drinks to Coke. Consistent with its association with The energy drink Monster entered
manufacturers are additionally pop music, Pepsi sponsored the Super challenger brand. And PepsiCo
Rob Vance China and planned to enter India, with
looking where else to innovate to Dr. Pepper Snapple Group purchased Bowl halftime show featuring Lady has a more balanced portfolio and
Vice President aggressive international expansion
make sure they are winning overall Bai Brands, a natural drink startup. It Gaga. And reflecting its emphasis is in numerous categories at scale.
Penn Schoen Berland plans hinged on its distribution
in the category. marketed a sparkling flavored water on digital rather than traditional
RVance@ps-b.com arrangement with Coca-Cola. That
Graham Staplehurst
call Bai Bai, made from the fruit that advertising, it ran no Pepsi spots, relationship may help Monster also
Nigel Birch Global Content Director
surrounds coffee beans. The drink and instead aired a commercial, with expand its shelf presence in the
Senior Client Director Kantar
is marketed as healthy because it music by John Legend, to launch Life US, where it competes with brands
Kantar Millward Brown Graham.Staplehurst@kantar.com
contains antioxidants, and socially Water, its new premium water. like the PepsiCo-owned Mountain
Nigel.Birch@millwardbrown.com responsible because it supports Dew, which does a good job of
the livelihoods of Indonesian coffee communicating with its core audience
farmers. A Super Bowl commercial of high-energy male millennials.
featured Justin Timberlake, an original
Bai investor, and Christopher Walken.
INSIGHTS
ANALYSIS
Health concerns weaken
categorys Vital Signs
The BrandZ Vital Signs of the soft drinks category are On the strength of the Coca-Cola and Pepsi-Cola brands
New natural drinks weak. The category scores average in Innovation and Brand and their communications, the cola segment of the
become popular, Experience, slightly above average in Communications and category grew 124 percent in brand value over 12 years,
Love, and below average in Brand Purpose. Brand Purpose while other CSDs increased only 28 percent. Because of
as artificial declines is the foundation for Innovation and other Vital Signs, and changing consumption habits, non-carbonates increased
weak Brand Purpose makes brand building more difficult. 117 percent in value.
We talk about the end of artificial. Were seeing
alternatives gradually becoming the norm. Young reject diet These results are not surprising, since carbonated Brands across the category segments have mostly
Alternative dairy is booming. Its small but
growing. Sparkling, apart from soda, is doing
options, but accept soft drinks (CSDs) consumption declined for the 12th sustained Meaningful Difference over time, but they have
well. People are moving away from soda, but energy drinks consecutive year in the US. Over that period, however,
category leader Coca-Cola increased 103 percent in value
not improved it. Coca-Cola still scores 136, but that is down
from 146 10 years ago. Nespresso scores 114, about the
they still want some kind of interesting beverage.
and its Vital Signs average 123 compared with 101 for the same as 10 years ago. Red Bull has declined to 101, about
Iced teas are doing well. They have a health halo, The diet drinks are the least acceptable,
BrandZ Soft Drinks Top 15. Coca-Cola also scored 121 on average, probably because it faces more competition.
so were seeing a lot more tea brands emerge. especially to young people, because
Love. An average score is 100.
Were talking about healthier beverages, better of the artificial ingredients. Millennials
options. Although plant-based beverages can be are much more interested in craft
Twelve years ago, CSDs (colas and other carbonated soft
quite fatty, theyre natural. Its similar to the way alternatives, and even energy drinks
drinks) comprised 95 percent of category value. Today,
people see avocado as healthy, even though it is
fatty. Millennials are a tough crowd. They want
are interesting. While some energy
drinks have artificial ingredients the
CSDs comprise just over two-thirds of value, as the
category addresses consumer health concerns and shifts
BRAND IMPLICATIONS
fewer ingredients, but they want more from their functional benefits they provide seem
to non-carbonated beverages like coffee and tea. However, Despite a structural shift in the soft drinks category,
beverage. They want to know what the beverage to offset concerns, and people see
reflecting a tension within the category, the healthier as health concerns reduce consumption of
is going to do for them. them as perfectly appropriate for
options increased more slowly as a proportion of Top 10 carbonated soft drinks, the brand strength of the
certain occasions. The largest growth
value than did energy drinks, which provide a functional leadersCoke and Pepsidrove significant value
Harriet Taylor opportunities are in water and tea.
benefit to an audience less concerned with ingredients. growth. The structural shift in the category will
Consumer Insight Director To grow, brands need to understand
how best to communicate effectively continue because the transition to healthier options
Kantar Worldpanel
to younger consumers and get them is inexorable. But it takes time to build these new
Harriet.Taylor@kantarworldpanel.com
excited about the products. businesses and brands. Brand strength buys time,
and is a sustaining force in the face of a considerable
Michele McDonald
threat.
Vice President, Client Management
Michele.Mcdonald@millwardbrown.com
ANALYSIS
CSDs PRODUCE DECLINING PROPORTION OF TOP 10 VALUE BRAND BUILDING
ACTION POINTS
Twelve years ago, CSDs (colas and other carbonated soft drinks) comprised 95
percent of category value. Today, CSDs comprise just over two thirds of value.
Other Carbonates Coffee/Tea
PROPORTION OF VALUE 16% 5%

Colas
3
79%
1
2006
Rekindle love
Be clear about purpose
Colas Energy In a world of turmoil, there is
Help consumers be clear about strength in a heritage brand
2017 57% 17% the role of the brand, its functional that can be progressive,
purpose. From that clarity, the unpretentious, and universal.
Other Carbonates Coffee/Tea
brand can build a strategy. Then This is an authentic place for the
Source: BrandZ / Kantar Millward Brown 11% 5% ask, where are the opportunities
beyond the next three to six
brand to be. The purpose is in
the brands roots, which is why
months? Look out at trends over people initially fell in love with it.
BUT STRONG COMMUNICATIONS SUSTAIN COLAS the next three to five years.
The cola segment of the category grew 124 percent in brand value, while
2 4
other CSDs increased only 28 percent. Reflecting changing consumption
habits, non-carbonates increased 117 percent in value.
Target carefully Communicate
SOFT DRINKS CATEGORY PERFORMANCE well and often
Target to insight. Have strategies
Other Having a communication
Colas Energy Coffee/Tea to deliver against the top two or
Carbonates strategy is vitally important. The
three target audiences. It is not
brands need to understand how
Brand Purpose 104 94 96 101 just about young people.
to communicate effectively to
Communications 114 98 100 97 younger consumers and get
Rebellious 105 110 139 95 them excited about the products.
12-year
value change +124% +28% N/A 117%
Thought Leadership/SHOPPER BEHAVIOR
THOUGHT LEADERSHIP
How we shop has changed dramatically. Online shopping
Shopper Behavior
JONATHAN DODD
is now an established global practice and the likes of
Alibaba and Amazon are reaping the rewards. (Amazons
market cap of almost $440 billion is more than US
retailers Walmart, Target, Costco, Kohls, and Macys
combined.) The omni-channel shopper is an everyday
reality, with BOPIS (Buy Online, Pick up In Store), BORIS
(Buy Online Return In Store) and ROPO (Research Offline
Purchase Online) behaviors commonplace. Remarkable
Shopper options
as this change has been, all the signs are that, far from
abating, the rate of change is set to accelerate.
Global Chief Strategy Officer Greater acceptance among of choice, allowing the shopper
multiply, with retailer

Geometry shoppers, combined with to be always on and connected
Jonathan.Dodd@geometry.com ongoing retailer and brand-owner along their journey. Facilitating
innovation, is driving e-commerce the drive to ever-greater
sales across all categories, convenience, mobile payments
including those where growth are set to multiply dramatically
and brand innovation

has been slower to date, such as in the next five years across the
grocery. In fact, grocery sales are seven major EU economies.
expected to be the biggest driver
of growth in e-commerce over Personalization, through greater
the next five years. understanding of shoppers
enhancing
and application of technology,
Options for shoppers are is enhancing the shopper
multiplying, making it easier for experience, providing more
them to try and ultimately adopt relevant solutions, whether that is
online shopping. Shoppers no based upon convenience, tailored
experience
longer go online. They live online, products and pricing, coaching
and mobile is the online device on how to use the product, time
of day, weather or location.
Changing landscape requires Geometry Global is an award-
harnessing data, technology winning brand activation agency that

changes peoples behavior and drives
conversion in 56 markets around the
world.
www.geometry.com
3 Thought Leadership Thought Leadership/SHOPPER BEHAVIOR
Amazon and Alibaba physical stores, incorporating Bricks and And as is the case in all times of lease space and receive shopper
drive change digital engagement (including mortar react change, smaller innovators are data to improve future selling.
the Internet of Things, artificial exploring and exploiting new New technology has the ability
These developments are set to intelligence, virtual reality, and In the battle for the omni- opportunities; goPuff in North to make a dramatic, immediate,
further reshape our shopping payment via its Alipay system). shopper, traditional brick-and- America offers the impulse and widespread impact on
experience as a new retailer But the partnership goes mortar retailers are no longer shopper a convenience store how people shop. The way that
landscape emerges, driven by beyond the immediate shopper standing idly by. Walmarts $3 proposition online, with an shoppers move seamlessly across
innovative and sometimes unlikely experience; by monitoring billion acquisition of e-commerce average delivery time of under 30 channels, and the blurring of the
partnerships. Amazon is often transactions in real time, data operator Jet.com has similar minutes, all for a flat fee of $1.95 line between living and shopping,
cited as the primary indicator will influence the supply chain, ambitions as Alibabas Bailian (free for orders over $49). with triggers occurring anywhere,
of e-commerce growth, but its fulfillment and more, partnership, seeking to leverage anytime, requires a more holistic
China where we can see growth technology to develop innovative The central role that social view of those behaviors and a
on an unprecedented scale: Sales According to Alibaba CEO Daniel new offerings to help shoppers media and the smartphone more frequent reassessment than
are expected to exceed $900 Zhang, Our partnership with save time and money. play in our lives is evidenced by ever before.
billion this year, representing Bailian is an important milestone BongoBoxs staff-free store in
almost half of all such sales in the evolution of Chinese retail, To make things even more China, facilitated by the countrys
worldwide, and it is Chinas local where the distinction between interesting, as the borders biggest messaging platform,
operators that are the major physical and virtual commerce
is becoming obsolete. This
between on- and offline dissolve, WeChat, through which shoppers
can gain access to the store and
Large or small, the most successful
disruptors, as evidenced by brand manufacturers are
Alibabas partnership with Bailian partnership sees Alibaba move breaking down the boundaries pay from their WeChat mobile retailers will be those who innovate
Group, one of Chinas leading from e-commerce player to true between making and selling, as wallet.
retail groups. retail solutions provider, a move is evidenced by Unilevers billion- most effectively to understand
Alibabas ambition goes way
that is mirrored by Amazon
with initiatives such as Amazon
dollar acquisition of the direct-
to-consumer male grooming
B8ta sells consumer electronics,
but owns no inventory,
and meet shoppers needs while
beyond having a significant Go: physical stores that replace business, Dollar Shave Club, and showcasing products in an harnessing data and technology.
presence in on- and offline the checkout queue with the Whirlpools incorporation of enhanced customer-service
channels, to a complete smartphone, introducing just Amazons Dash technology into space. In a physical manifestation
reinvention of retailutilizing walk out shopping. its washing machines to enable of the third-party online
its technical, data, and logistics detergent auto-replenishment. marketplace model, vendors
knowledge to impact the entire
shopper journey, redesigning
Thought Leadership/E-COMMERCE
THOUGHT LEADERSHIP
E-commerce HUGH FLETCHER

Up until now, your average
brand manager has had his
Brands are at risk because, while
brands have been pontificating
about their e-commerce futures,
or her hands full thinking
the retail innovators, tech giants,
about brand equity, reach,
and startups have been getting
and awareness. But brand
Brands face threat

on with building the new retail
managers beware; there futurea future that is pushing
has never been a greater the brands further and further
threat to brands than away from customers and their
that currently posed by data.
from e-commerce
e-commerce and the retail
These businesses have innovated
revolutionaries like Amazon.
with customer experience,
Brands that react may just technology, data, and logistics,
Global Head of Consultancy &
Innovation have enough time to save and they have done what many
their relationships with their
sites controlling
Salmon brands have not done: put the
HFletcher@salmon.com
customers. Those that do customer at the heart of the
not react face the dilution experience and their decision
making. This has resulted in a
of decades worth of brand
world where just a small number
equity, the loss of data, and
of organizations are defining the
the important
even the demise of their direction of e-commerce.
brands altogether.
And if you control e-commerce,
you control future commerce.
According to some estimates,
data
95 percent of purchases will be
facilitated by e-commerce by
2040. Ignoring e-commerce is no
longer an option if you want your
brand to survive in the future.
Brand managers must act like retailers

and own the customer relationship
Salmon is a global digital commerce
consultancy that defines and delivers
market-changing ecommerce solutions
and customer journeys for the worlds
leading brands.
www.salmon.com
3 Thought Leadership Thought Leadership/E-COMMERCE
Age of the interface who owns the customer owns Brands that can think like this will So customers are loyal to Brands must think Brands need to
imperialists the data. And he who owns increase their chances of survival; Amazon out of love for the like retailers understand the core
the data owns the future. This those that cannot will lose out to service. Amazon probably doesnt
service of their offering
The landscape of commerce is the mantra of the interface the interface imperialists and put it like this, but they arent Brands need to think like retailers.
in order to identify
has changed. And with this new imperialists like Amazon, Apple their aggressive expansion. after customer loyalty, theyre They now need to invest in
landscape comes a redefinition and Facebook. after customer ownership. owning their customers, their
horizontal expansion
of competitors. Competition Owning the data, and the customer-brand opportunities.
for brands is coming from At every touchpoint, these customer Jeff Bezos himself famously relationship, and not allow this
every angle, as this new breed organizations are looking at the said When people ask me if interaction to be diluted by a third Brands need to take
products and services that they This new commerce landscape is our customers are loyal, I say
of hungry competitor looks to party like Amazon. This could be long-term strategic
could and should be providing, also changing traditional views of Absolutely, right up to the point
aggressively expand into new accomplished through direct-to- decisions to prepare
not just what they are providing loyalty, which are too emotional that somebody else offers them a
products and service categories. consumer sales, loyalty schemes,
and too fragile. Loyalty is no themselves for the
Being an online retailer or a social now. This constant reassessment better service. With this type of or more simply by making their
media site is not enough for of their offering allows them to longer the holy grail. Rather, mentality, brand loyalty is dead, existing data work harder for
future, not just think
them. These new competitors critically judge their current offer what is required is customer and service loyalty is king. them through digital intelligence. about their equity and
and identify new products and ownership. Most customers sales results of this year.
have instigated a land grab,
services that their customers arent loyal to Amazon. But most This is an interesting challenge
one whose aim is to own the Brands need to increase the
want. shop through Amazon. Why? for brands. The equity in the
interfaces with the customer. The number of customer touchpoints Brands need to wrestle
Its a no-brainer. The shoppable brand and the product itself has
age of the interface imperialist to maximize the amount of time, back control of the
This constant reassessment is products in one place are almost been and will continue to be
is now. energy, and share of wallet spent
endless. The traditional friction customer interface.
not something that happens eroded by interface imperialists with them. They need to do
This aggressive horizontal enough in brands. This thinking is points have been addressed offering better service and an this by creating an ecosystem
After all, he who owns
expansion strategy is what is freshtake Netflix founder Reed with advances like one-click ecosystem providing more wide- of complementary products the interface owns the
Hastings assessment of Netflixs purchasing. And the service, ranging services and benefits. customer. He who owns
pushing the acquisition and and services that will keep their
through Amazon Prime, is second
expansion growth strategies competition. He said that Netflixs How can brands look to own the customers close and grow a the customer owns the
competition wasnt other content to none. customer?
of the likes of Amazon and mutually beneficial relationship. In data. He who owns the
Facebook. This expansion has providers, but sleep itself. Such addition: data owns the future.
as its aim the ownership of the out-of-the-box thinking enables
customer: He who owns the an organization to redefine its The future of brands will be
interface owns the customer. He offer and approach, and define its defined by those that take
expansion. This new commerce landscape is on the challenges of the new
also changing traditional views of commerce landscape. For those
that pretend it isnt happening,
loyalty, which are too emotional the future is bleak
and too fragile. Loyalty is no

longer the holy grail. Rather, what
is required is customer ownership.
5 The Categories Financial/BANKS GLOBAL
Global Banks
Banks Geopolitical change

The banks category, which includes both retail and investment
institutions, is split into two segments, with the brands classified as
either global or regional. Global banks are defined as deriving at least
40 percent of revenue from business outside their home market.
influences improved
bank performance
FinTech competition, consumer
expectations will shape the future
Strong stock market The BrandZ Global Top 10 declined 1 could retain lessons learned and act
performance and rising percent in value, compared with an 11 with restraint, protect consumers,
percent decline a year ago. However, continue social responsibility
investment returns lifted trust
it was not certain if banks could programs, and cultivate trust. Several
in global banks, at least among sustain this positive direction, almost factors suggest that banks will
high-wealth individuals and a decade past the global financial continue to behave better.
those feeling confident about crisis that threatened bank survival,
their financial futures. A lot resulted in complex regulations, and First, banks have changed. Many
of people felt left behind, decimated consumer trust. have trimmed businesses, learned
to make money in a low-interest-
however, as revealed by the US The strengthened US economy, rising rate environment, focused internal
election, Brexit, and the populist interest rates, and plans to roll back structures on improving customer
sentiment in continental Europe. the Dodd-Frank post-crisis financial service, and digitized their
regulations could tempt banks to operations to increase efficiency and
resume their riskier behavior. Or banks competitiveness.
BrandZ Top 100
Brands 2017

Year-on-Year Change GLOBAL BANKS TOP 10
Brand Brand Value
-1%
1 HSBC 20,536 3 1%
2 Citi 17,580 2 3%
3 J.P. Morgan 14,129 3 18%

12-Year Change 4 ING Bank 9,374 3 -9%
5 Morgan Stanley 8,920 2 22%
-16% 6
8
Santander
BBVA
Goldman Sachs
8,756
7,897
7,299
3
3
-11%
-14%
-2%
9 UBS 6,142 3 -12%

Global Banks Top 10
Total Brand Value 10 Barclays 5,999 2 -20%
$106.6 billion
5 The Categories Financial/BANKS GLOBAL
Consumers expect banks to act with

the speed, efficiency, and convenience
they find in other categories. Banks
INSIGHT responded with pop-up locations to
service limited needs, nano branches
Second, the industry has changed.
with reduced staff, and the next
Relaxed regulations may make it
generation of ATM locations, where Communication INSIGHT
easier for banks to grant home
mortgages and other consumer loans,
a camera and screen enable face-to- programs
face contact. Increasingly, the bank
INSIGHT but consumer choice has increased
branch is the hand-held smart device. As the banks category changed, the
dramatically with the explosion
global bank brands took a variety of
of financial technology (FinTech)
companies. People who have lost Partnering approaches to expressing purpose,
building trust, and communicating
trust in traditional banking brands with FinTechs increased customer-centricity. In a
have a wide range of options, many of
campaign called Make it Here, Citi
them easily accessed online. Partnerships between major financial invoked a phrase made famous by
brands and financial technology Frank Sinatra to affirm its New York
Third, consumers have changed. (FinTech) companies increased, roots and position the bank as a
They are more skeptical of large matching big bank capabilities, partner helping people succeed. Its
institutions, more willing to assert such as risk management, with the Citibike program also linked the bank
control of their lives and finances,
and conditioned as shoppers to Communications speed and innovation supplied by to New York, a financial capital.
the FinTechs. By expanding into
seek the best value. Empowered by need to be more FinTech, banks not only improved Santander expressed a similar
technology, consumers are more likely
to look beyond traditional brands for
engaging, inclusive service to existing customers, they purpose but took a different As governments
also differentiated and expanded their
savings and investment products.
While many UK banks continue reach to new customers.
approach, using user-generated
content that mixed humor and
step back from
Build loyalty to try to use communications to emotion to explain that the bank social action, bank
through a new form Increased accessibility build stronger emotional ties with To increase loans to small business, helps customers prosper, whether
brands can step in
consumers through trust and the venerable JP Morgan Chase & their definition of prosperity is about
of personalization These characteristics apply especially reassurance, others are trying to Co. partnered with OnDeck Capital, increasing wealth or finding time to
to millennials. Now moving into their less than a decade old. Smaller and At a time when some governments
differentiate through positioning enjoy life.
Younger, more digitally engaged household formation years, millennials nimbler than a major bank, OnDeck are seen by many to be pulling
themselves as partners in exciting
customers are more likely than represent an expanding market for Capital can review loan applications back from supporting social
personal financial growth. In a purpose-oriented campaign
others to be advocates for their mortgages and other loans. But their more expeditiously than a large bank. causes, is now a time for brands
The danger here is that many called Lets go forward, a series of
banks. In a world where banks relationships usually are not with Morgan Stanley invested in 10 FinTech to step up and play that role? Will
consumers often do not relate to Barclays ads illustrated how the bank
are under increased pressure traditional banks, but with technology companies during 2016, to better consumers be expecting more of
this as a reality of their current helps people achieve their life goals.
to reduce costs and strip out companies that are moving into serve its high-wealth customers, brands, especially banking brands,
circumstances. They struggle to Some of the ads featured the Barclays
personal touchpoints, there is financial products. expand its digital investing options, with their economic and political
see themselves reflected in an LifeSkills program, a corporate social
an untapped opportunity to and raise margins. muscle? ANZs ongoing support
advertising montage that shows responsibility initiative that provides
substitute personal relationship Many of the global banks have of the Sydney Mardi Gras stands
the excitement of buying a first coaching to prepare young people
moments (once the bedrock of taken steps to be more accessible As part of its Citi FinTech initiative, out as a genuinely insightful and
car or new homeparticularly with the skills they need to succeed in
the consumers connection with to millennials and other consumer Citi introduced an integrated financial authentic example of this in action.
in consumer segments that are the workforce.
their banks) with a more digital groups by expanding their online app for its Citigold customers, It feels like the time is ripe for
struggling economically. Banks
approach. Banks must learn technology capabilities, either combining functions for banking, banking brands to stand up and be
need to continue to differentiate in Communication effectiveness, along
from brands like Amazon that organically or through acquisition, wealth management services, and counted.
how they speak to consumers but with competitive pressures and
authentically deliver value based and by transforming the availability, be careful to do this in the most transferring money. In a commercial geopolitical factors, influenced year-
on the data they capture. appearance, and service mission of application of FinTech, Citi partnered Dan Cameron
inclusive way possible. on-year valuation changes. HSBC,
their physical branch locations. with major technology companies, Senior Strategist
with offices in 70 countries, retained
Alex Wright such as IBM, Microsoft, and Facebook, J. Walter Thompson
Mark Webster its No. 1 rank in the BrandZ Global
Group Director, Bank brands traditionally expressed in an initiative aimed at helping Dan.Cameron@jwt.com
Banks Top 10. US-based Morgan
Financial Services & Technology their core characteristicssecurity Client Director governments increase accountability Stanley and JP Morgan rose 22
Kantar TNS and reliabilitywith mausoleum-like Kantar Millward Brown and transparency worldwide. percent and 18 percent, respectively,
Alex.Wright@tns.global.com flagship locations featuring soaring while Santander and BBVA, Spanish
Mark.Webster@millwardbrown.com
coffered ceilings and marble walls HSBC formed a partnership with banks more dependent on slower
lined with teller cages. But for gaining Tradeshift, a FinTech company that growing markets in South America,
the trust and patronage of todays can help the bank burnish its brand declined in value. Brexit impacted the
consumer, imposing architecture does as a leader in global commercial value of Barclays.
not substitute for good behavior. banking. Tradeshift is a cloud platform
that helps companies manage
complicated supply chain networks.
The companies served are potential
HSBC loan customers. Santander also
invested in Tradeshift.
5 The Categories Financial/BANKS REGIONAL
Regional Banks
Brand value rebounds INSIGHT
as economies strengthen
Marketing and technology initiatives aim at millennials
from Canada, 22 percent from the US Bank, based in Minneapolis,
US, and 16 percent from the rest of continued its shift to a consumer-
In a strong comeback, the With a 19 percent increase, the commercial accounts at a time when
private-sector Indian bank HDFC led some state-owned banks struggled the world. Its US operation focused centric business, and partnered with
BrandZ Regional Banks Top 10 on corporate, institutional, and organizations to build its FinTech
the Regional Banks Top 10 in value with underperforming loan portfolios.
increased 2 percent, compared high-wealth clients. City National, a capabilities. Customers conducted
growth. No. 1 in the BrandZ Top 50 The brand extended to the Indian
with a 12 percent decline a Most Valuable Indian Brands ranking, countryside with products like HDFC recently acquired Los Angeles bank, about 60 percent of their banking
year ago. The variations of HDFC was well positioned to serve Reach and Rural Housing Finance. contributed to the growth of RBCs transactions digitally. Although the
local market economies drove Indias rising middle class, primarily It also offered loans to facilitate wealth management business. The
bank continued to develop its digital
Cultivate emotional bank continued to operate over 3,200
branches, the locations were smaller
some of the change, with all focusing on loans to individuals,
especially home mortgages. The
opportunities for women.
capabilities, performing 60 percent of trust to attract than in the past.
the Chinese banks declining in
value, but none of the North
bank benefited from strong demand, Canadian banks produced strong financial transactions on digital and more millennials
favorable interest rates, and earnings partly because of the mobile. Wells Fargo became the cautionary
American, although Wells Fargo government home-buying incentives. strength of the countrys economy. Our research suggests that tale. Known for the stagecoach logo
remained flat. HDFC also expanded its loans to RBC gained 62 percent of its revenue Based in Toronto, TD Bank derived banks rely on two types of referencing its long history, the bank
60 percent of its net income from its trust. Functional trust is linked lost customer trust after revelations
Canadian retail business, although it to everyday banking. When of aggressive sales practices that
BrandZ Top 100 continued to expand rapidly in the US incentivized some of its workforce to
REGIONAL BANKS TOP 10 where it operated 1,300 locations. The
were moving money around
our accounts, making payments open fraudulent accounts using the
Brand Brand Value strengthening US economy helped names of bank customers. The bank
Brands 2017 Value 2017 Brand % Change
or being paid, all we care about
drive results. Among initiatives to is that it works, and works so received heavy fines, and brand value
position TD Bank as Americas Most brilliantly it almost isnt there. remained unchanged in a year when
1 Wells Fargo 58,424 3 0% Convenient Bank, it made banking the value of other North American
Year-on-Year Change The emotional trust piece is very
available on Facebook Messenger. different. If youre making big bank brands appreciated.
2 ICBC 31,570 2 -6%
+2%
financial decisionsmortgages,
3 RBC 21,145 4 8% Chase, the retail brand of JP investments, retirement, anything Slower economic growth left
Morgan Chase, operated almost long-termthats where the Chinese banks with too many under-
4 China Construction Bank 18,770 2 -4%
5,260 branches, and continued emotional trust comes in. If youre performing loans. And government
5 TD 18,551 3 12% to grow its market share to 60 a millennial moving into a new attempts to stimulate growth lowered
million US households. By offering a phase of life, and youre not sure interest rates and reduced fees,
Commonwealth Bank
6 17,437 3 7% 100,000-point bonus for accepting about what youre doing, youre impacting bank profitability. Chinese
Category Brand Value of Australia
its Chase Sapphire Reserve card, the probably not confident to do the banks focused on new priorities, such
11-Year Change
7 HDFC 17,137 4 19% bank caught the wave of millennial whole thing online. You want to as building retail businesses, offering
interest in earning reward points to wealth management services, and
+67%
8 US Bank 15,202 3 8% talk with someone.
fund vacations and other adventures. expanding online.
9 Agricultural Bank of China 14,981 2 -8% The card accomplished the important Rosi McMurray
strategic goal of introducing Chase to Strategic Lead /
10 Chase 14,289 3 16%
millennials, a large demographic with Planning Director - Finance
Source: BrandZ / Kantar Millward Brown (including data from Bloomberg) expanding banking needs. Kantar TNS
Regional Banks Top 10 on a scale of 1 (lowest) to 5 (highest). Rosi.Mcmurray@tnsglobal.com
Total Brand Value
$227.5 billion
5 The Categories Financial/BANKS
INSIGHTS
ANALYSIS
Financial services disruptions
alter distribution of value
Changes to the financial services ways. The credit cards communicate they score somewhat higher, which
Corporate reputation industry over the past 12 years that message in their advertising. may indicate their relative closeness to
critical, as rules relax dramatically altered the proportion PayPal helps remove a pain point from the geographic markets they serve.
of brand value contributed by the online transactions.
and competition grows various financial sectors analyzed in the For regional banks, the scores on
BrandZ Global Top 100 ranking. Regional banks score 112 in being Brand Purpose, Brand Experience,
The proposed rollback of regulations by the Trump Meaningfully Different, which is and Love are highest outside of North
administration, along with increased competition for In 2006, global banks dominated, relatively high and indicative of their America and China. They are driven by
the wallets of American consumers, will place pressure comprising 61 percent of the financial closer association with consumers Commonwealth Bank of Australia and
on traditional financial institutions to cultivate their services brand value in the BrandZ compared with global banks, which HDFC, the Indian bank with a stated
brand and tightly manage reputational risk to a degree Global Top 100. Twelve years later, score 103. Like the global banks, the purpose of extending home mortgages
that we have not seen before. Weve all witnessed
how easily minor issues can escalate to become the To build trust, the proportion of value from global regional banks also score average to members of Indias middle class and
banks has declined to only 9 percent. on the BrandZ Vital Signs, with the providing financial products to help
catalyst for long-term reputational damage. Consider resist tempting During that period, the regional banks exception of Brand Purpose, on which people in rural India.
that against the backdrop of choicethe vast array
of options available to consumers today from FinTech
gains, act smart proportion of value rose from less
than a quarter to almost a half. The
alternativesand its clear that banks will have to proportion of value driven by payments FINANCIAL SERVICES SHUFFLES VALUE PROPORTIONS
Banks need to act smart as regulations ease and
hold themselves and their services to a much higher brands increased from 8 percent to
the possibility of charging more fees increases. Changes to the financial services industry over the past 12 years dramatically
standard just to remain status quo. 36 percent. The insurance sector
Thats where consumers will react immediately. altered the proportion of brand value contributed by the various financial sectors.
The consumer attitude is: If youre keeping my proportion remained even at 8 percent.
Lisa Cradit PROPORTION OF VALUE
money safe, I dont love you, but I dont hate
Senior Vice President / Head of New York Corporate These changes resulted in part from
you, and Ill stay with you. If you start hitting my Payments Insurance
Advisory Practice external forces, including the global
pocketbook, like you did back in the dayfive
8% 8%
Hill+Knowlton Strategies financial crisis and category disruption
dollars here, ten dollars therethen I will start
Lisa.Cradit@hkstrategies.com by FinTech companies. But brand
looking for alternatives. And with the rise of
FinTech, there are many more alternatives. In factors also played an important role. Regional Banks Global Banks
addition, consumers are now more inclined to take The global banks score only average
control of their money and look beyond traditional on the five BrandZ Vital Signs. They
score below average in Innovation
2006 23% 61%
savings and investment products.
and Brand Love, reflecting slowness
to adopt new technology and trust Payments Regional Banks
Eric Peerless
36% 47%
Senior Vice President erosion after the economic crisis.
Kantar Millward Brown Regional banks and insurance brands 2017
Eric.Peerless@kantarmillwardbrown.com score somewhat better in these

metrics, and the payments brands are Global Banks Insurance
distinctively higher.
9% 8%
The payments brands score 119 on
Love and 115 on Meaningful Difference. Regional Global
Payments Insurance
(An average score is 100.) These high Banks Banks
scores indicate that consumers see 12-year
payments brands as helping to improve value change +988% +408% -62% +133%
their lives in relevant and distinctive
5 The Categories Financial/BANKS
ANALYSIS
INSIGHT
GLOBAL BANKS SCORE LOW ON KEY METRICS
Global banks score below average on Innovation and Love, reflecting
slowness to adopt new technology and trust erosion after the
economic crisis.
BRAND BUILDING
FINANCIAL SERVICES PERFORMANCE
Regional Global
Payments Insurance
Banks Banks
ACTION POINTS
Meaningfully
Different 115 112 103 110
Innovation 107 100 94 102
Love 119 102 98 100
Having improved
1 4
... REGIONAL SCORES VARY BY REGION behavior, banks Sustain trust
The regional bank Brand Purpose, Brand Experience, and Love scores face a crossroads Do the basics well
are highest outside of North America and China. Even as regulations relax,
Help people grow and protect
FINANCIAL SERVICES PERFORMANCE Banks have been trying to particularly in the US, internalize
their money, and provide useful
keep up with the many new
guidance as they take risky the lessons of past mistakes.
North Australia/ competitors that are entering
America
China
India the market with better, quicker, financial steps. Getting the Behave in ways that grow profits
easier, and cheaper solutions. basics right is fundamental to while meeting customer needs.
Brand Purpose 101 103 111 And due in part to banks recent rebuilding trust.
Brand Experience 98 103 110 efforts to reset reputations and
enhance the overall experience,
96 106 109
2 5
Love consumer sentiment toward these
11-year
+74% +60% +170%
institutions is becoming more
positive. But banks now have an
Deliver positive Serve the underbanked
value change
opportunity to raise interest rates
customer experience
Source: BrandZ / Kantar Millward Brown Many banks have focused on wealth
and retreat from some of their
customer-focused improvements.
In a world where consumers expect management businesses. But,
Will banks revert to bad practices to be treated impersonally in as revealed by Brexit and the US
and remind consumers of the person, diverted into a long queue election, many people feel left behind
reasons to distrust them? Or will when engaging on the phone, by the global economy. Banks have
banks continue to improve? Those exceeding customer expectations an opportunity to speak to these
are the important questions.
should not be difficult, and it will be consumers and meet their needs.
memorable.
BRAND IMPLICATIONS Victoria Sakal
6
Senior Consultant
Kantar Vermeer
3
The regional banks score better than global banks on BrandZ Victoria.Sakal@kantarvermeer.com Take a stand
Vital Signs, but both sectors are rebuilding trust almost a decade
Act with restraint
after the global financial crisis. The high Meaningfully Different Own an issue that is relevant to the
scores by the payments brands correlate with their brand value Unless banks act too aggressively bank, improves a community or the
increase of almost 1,000 percent over the past 12 years, compared
with fees, the consumer attitude world, and resonates with customers
with a 62 percent decline by global banks. The clear implication for
global banks, and regional banks, is that it is possible to be seen may remain: We dont love you we without alienating them.
by consumers as Meaningfully Different in the financial sector. But dont hate you; well stay with you.
banks have more work to do in rebuilding trust, strengthening Brand That tolerance could change with
Purpose, harnessing technology, and communicating these changes the addition of fees.
to consumers. However, the payoff of strong Brand Purpose, Brand
Experience, and Love can be substantial.
5 The Categories Financial/INSURANCE
Insurance Societal changes create

The insurance category includes brands in both the
business-to consumer (life, property, and casualty), and
business-to-business sectors. Health insurance is excluded.
opportunity, disruption
Brands seek new ways to build consumer trust
Insurance brands attempted to to consider insurance and investment based sales because they potentially
become trusted advisors in a products. And many Gen-Xers, now in incentivize agents to serve their own
the sandwich generation and paying interests rather than consumers
category known for providing
for kids college while caring for needs. Many insurance companies
products that consumers know elderly parents, looked for income- favored a proposed fee-based
they need but resist buying producing products like annuities. approach, because it supported their
and dread using. Demographic attempts to become more customer-
changes, societal trends, and The growth of the sharing economy centric, while it eliminated agent sales
geopolitical uncertainty created created a need for car and home commissions, thus lowering costs and
insurance products based on access improving profits.
opportunities for brands rather than ownership. Cyberthreats,
to expand in life insurance, which dominated news around the It was also a year of consolidation
property and casualty, and US presidential election, generated and disruption, with Ace acquiring
emerging insurance businesses. opportunities, especially for large Chubb, as more insurance technology
commercial brands, like Allianz or (InsurTech) brands entered the
Now entering their family formation Zurich, to insure against data hacking market. At the same time, a potential
years, millennials presented the and business disruption. disruptor disappeared when Google
greatest opportunity, as they began decided to end its online auto
Geopolitical changes created insurance comparison site.
uncertainties, including the fate
of pending rule changes in the US
BrandZ Top 100 that would prohibit commission-
Brands 2017

INSURANCE TOP 10
Brand Brand Value
Year-on-Year Change Value 2017 Brand % Change
-1%
1 Ping An 17,260 3 2%
2 China Life 13,910 3 -17%
3 AIA 11,691 3 11%
4 State Farm 9,251 3 2%

9-Year Change 5 Allianz 6,356 3 -1%
6 AXA 6,208 2 -3%
+174%
7 Geico 5,584 2 16%
8 CPIC 4,247 2 -9%
9 Zurich 3,256 2 N/A
10 MetLife 3,240 2 0%
Insurance Top 10
Total Brand Value Source: BrandZ / Kantar Millward Brown (including data from Bloomberg)
$81.0 billion
In this context of brand opportunities

and challenges, the value of the
Big data refinements INSIGHT
comparison site, thus removing one
of the biggest potential industry
Of the European-based brands,
Germany-based Allianz and France-
BrandZ Insurance Top 10 declined 1 disruptors. At the same time, the based AXA declined slightly in brand
Insurance brands continued to
percent, following a 2 percent gain a peer-to-peer sector continued value, impacted by low interest
improve their use of big data to
year ago. The performance of Chinese developing with the launch of the rates and geopolitical uncertainty,
anticipate customer insurance
insurance brands contributed most INSIGHT Lemonade brand, operated by a team including Brexit. And Zurich, based in
needs and to respond with
to the decrease. A couple of brands that includes former executives from Switzerland, returned to the BrandZ
relevant and timely messages. The
based in Europe fell slightly in value, AIG and ACE. Other startup disruptor Insurance Top 10, as operating profits
connection between customer and
while the US-based brands improved. brands include Friendsurance in rose, in part because of an aggressive
brand remained relatively weak,
Germany and Brolly in the UK. effort to streamline the business.
however, as data and digitization
also commoditized the category.
INSIGHT The effort to connect with consumers
Online aggregators continued to
and strengthen relationships took INSIGHT
disintermediate brands and focus on
many forms. Geico, which sells
price, particularly in the UK.
direct, continued to advertise
extensively with the Geico gecko, its
Big data also enabled brands to
well-recognized and cheeky brand
personalize pricing, but not without
representative. The brand focused on
actuarial complications. Using
telematics (the black box that
Regulation puts price with the tagline, Geico could
records driving habits), some insurers customer first save you 15 percent or more. The
brand led the BrandZ Insurance
priced policies according to actual
driving history, rather than age,
in life insurance Top 10 in value appreciation with an
gender, and other demographics. Brand building increase of 16 percent.

The playing field is getting more
But offering safer drivers lower
level for life insurers in the US strategies vary MetLife dropped the Peanuts cartoon
rates threatened to undermine the
fundamentals of insurance pricing by
because of regulations inhibiting among insurers characters that helped make the
companies from rewarding sales brand feel warmer and friendlier
limiting a companys ability to spread
agents with high commissions. Unlike many categories, where during an association lasting over 30
risk across a wide pool of drivers.
Societal disruptions Because of regulatory pressures, brands tell similar stories, there years. The decision came as MetLife
create opportunities A UK insurer used telematics data not

pricing is increasingly transparent,
allowing consumers to choose
are a variety of ways for insurance prepared to spin off its consumer life
insurance business to focus instead on
Data can help form
companies to create Brand
for insurance brands
only for pricing, but also as a brand-
a brand based on a better Power, which is the BrandZ its corporate business. emotional bonds
building tool, analyzing the data to
position the brand as a safe-driving
understanding not only of the measurement of brand equity. Its with customers
Businesses and individuals face advocate and consultant. The need
product features but also of the
sales fees. The wild card, however,
possible to have a transactional Asian influence
many new threats, life events, and offer around price, a differentiated Many motor insurers now use
for safer driving became apparent as
disruptions that are creating new is the changing regulatory climate brand image created via credible telematics, the black box
payouts for US insurers rose. Although Activity in Asia largely shaped the
opportunities for insurance brands in Washington, but insurers and persuasive advertising, or to technology that records driving
sophisticated electronics make cars value fluctuation of the BrandZ
to consider. These include the are not uniformly opposed to build trust in the brand over the habits. Insurers generally use the
safer, they also increase repair costs. Insurance Top 10. AIA, which began in
need for greater cybersecurity, regulation. Not having to pay long term. Meanwhile, insurance data to calculate motor insurance
In addition, lower gas prices resulted Shanghai in 1919, benefited from the
for example. In addition, the high commissions to sales people may be a category where local premiums based on actual driving
in increased driving, and digital economic growth of the Asia-Pacific
emergence of new entrepreneurial allows for better profit margins brands can build strong Brand habits, rather than demographics
devices contributed to more driver region where it serves 18 markets. AIA
ventures expands the need for without necessarily giving up Power in an individual market. In and other information, especially
distraction. also increased its stake in an Indian
small business insurance. Societal volumeespecially on a playing the UK, for example, NFU Mutual for young drivers. Some insurers
joint venture with Tata.
and technological trends like field that remains level with all (National Farmers Union) has in the UK are now looking to use
the sharing economy, smart
Reaching consumers players subject to the same used TV advertising to support In China, the insurers generated the telematics data to create a
homes, and the Internet of Things regulations regarding fees and an offer built on the premise that more emotional connection with
interest among millennials, according
State Farm, which markets through disclosures. Regardless of whether consumers can trust a brand that
also produce new insurance to BrandZ research, but the the customer. By interpreting the
a network of agents that work regulations are formally tightened, has been insuring farmers for
possibilities. Insurance brands insurance category declined in value telematics data for the driver, they
exclusively for State Farm, took its brands already are abandoning over 100 years. Who wouldnt
should also consider peer-to-peer in the BrandZ Top 100 Most Valuable can serve as a consultant and
ongoing advocacy of safe driving the agent commission model trust an organization thats been
insurance and on-demand options Chinese Brands report, as government help them to drive more safely.
in a new direction. As a partner and taking the opportunity to offering insurance to the farming
rather than buying an annual regulations cooled market growth that Helping people become safer
in the University of Michigans communicate that they are doing community for over a century?
policy, consumers are looking had been driven in part by products drivers, sends a powerful message
Mobility Transformation Center, the so as part of a commitment to put
for ways to buy insurance on an that, to the regulators, resembled about the insurers concern for its
insurer derived insights about the the customers best interests first. Allan Hyde
as-needed basis or for a specific gambling more than insurance. Ping customers and its commitment to
development of autonomous vehicles, Senior Account Director
occasion. An increased modestly in value avoiding injury and saving lives.
which are expected to improve driving Chris Winans Kantar Millward Brown because of its size, its enormous
safety and reduce demand for auto Executive Vice President, Allan.Hyde@millwardbrown.com
Victoria Sakal network of agents, and its extensive Claire Salkeld
insurance. US Financial Services Communications
Senior Consultant product offering of financial services. Director, Qualitative
Kantar Vermeer Hill+Knowlton Strategies Kantar TNS
Sales through agents remained Chris.Winans@hkstrategies.com
Victoria.Sakal@kantarvermeer.com Claire.Salkeld@tnsglobal.com
stronger in the US compared with
some other markets, and that may
be one reason that Google decided
to end its online auto insurance
ANALYSIS
Purposeful brands grow
category value in Asia BRAND BUILDING
BrandZ Vital Signs clearly diagnose the health of the
Insurance Top 10. These brands score only average in Love,
Communications score of 115. The Asia brands are much
younger. They were established only around 20 years ago,
ACTION POINTS
which is unsurprising in a category that sells products on average, while the European brands started a century
that consumers prefer not to buy or use. However, the ago and the US brands, about 70 years ago.
3
Insurance Top 10 scores above average in Brand Purpose
and Communications. With variations by market, insurance
brands have convinced consumers that having insurance VALUE SHIFTS TO ASIA Be positive
makes their lives better.
The Asian brand proportion of value in the BrandZ Insurance Too often consumers think of insurers
Top 10 has increased from only 11 percent to 58 percent. At the
1
The Asian brands have done an especially effective job as the phone call they make when
same time, the proportion of value produced by both US and
communicating Brand Purpose in markets where insurance things go wrong. Turn that expectation
is relatively new to many consumers, and the growing
European brands declined by half. Meet the future around to help the customer live a
middle class is acquiring assets that need protection and PROPORTION OF VALUE
Build awareness with prospective healthier life or become a safer driver.
wealth that needs investment. In just 12 years, the Asian
Europe US Asia customers now entering the In this renewed relationship, the brand
brand proportion of value in the BrandZ Insurance Top
insurance market or expected to will be in more regular contact with
45% 44% 11%
10 has increased from only 11 percent to 58 percent. The
proportion of value produced by both US and European 2008 enter the market within the next the customer, better able to anticipate
brands declined by half, in part because a focus on price few years. Millennials are reaching and respond to the customers needs,
has eroded Meaningful Difference. Europe US Asia and more sharply differentiated from
their household formation years.
the competition.
The value of the Asian brands increased 676 percent over
10 years, while the US and European brand value declined
20%
2017
22% 58% Consider how your core offer relates
to their needs and how it can be best
communicated.
4
27 percent and 38 percent, respectively. The Asian brands
outscored the US and European brands in Brand Purpose
and Innovation. They tied the US brands with a high Anticipate change
ASIAN BRANDS OUTSCORE US AND Autonomous cars and the Internet of
2
EUROPEAN BRANDS
Things will both disrupt the demand
BRAND IMPLICATIONS The Asian brands outscored the US and European brands Brand-build your way for insurance and insurance pricing,
in Brand Purpose, and Innovation. They tied the US brands while also expanding the need for
Insurance brands have done a good job in with a high Communications score of 115.
There are many brand-building
options in the insurance category. protecting personal data.
communicating Brand Purpose. In Asia, brands are INSURANCE CATEGORY PERFORMANCE
successfully introducing insurance to new groups of Select the approach that best fits the
consumers. Reaching new customers is key to future
5
Asia US Europe brand and consumer expectations.
category success in most regions, as millennials
reach their family formation years and enter Brand Purpose 112 100 100 Preempt disruption
the market for insurance products. Establishing
relationships with millennials challenges brands to
Innovation 108 99 98 The InsurTech start-ups will nibble
create relevant communications and offer products Communications 115 115 99 at the insurance business the way
with the insurance technology they expect.
10-year FinTech businesses have found
Competing beyond price, for millennials and other
value change +676% -27% -38% profitable niches in banking. Develop
customers, will require improving Innovation and
Brand Experience, two BrandZ Vital Signs in which or acquire the necessary technical
the insurance brands score just above average.
Year brand founded 1998 1946 1916 expertise to preempt disruption.
Thought Leadership/CONSUMER EXPERIENCE
THOUGHT LEADERSHIP
Consumer Experience TIM PRITCHARD

It should be easy, right? The truth is that many companies
1. Win a customer do things right most of the time.
They know it makes commercial
2. Start on the right foot
sensebetter to retain profitable
3. Keep your promises
customers than to constantly
4. Create lasting memories
With consumer
chase new ones.
The customers come back They invest heavily and often

for more; they tell their intelligently, empowering
colleagues, friends and everyone from the front line
expectations high,
through to the CEO to ensure
families to do likewise.
that customers are treated well.
In turn, they all come
They have the right people, the
your way to buy your right technology and the right
Managing Director, products or services. And processes to achieve great
Customer Experience so to the perfect business things. And with everyone
more challenger
Kantar TNS
Tim.Pritchard@tnsglobal.com ecosystem, with happy aligned to their North Star
customers and a thriving brand promise to deliver
an authentic experience for
company. Customer
customers, what could possibly
satisfaction 101, job done!
go wrong?
brands raise
So why in practice is it never this
straightforward? Why do many Undoubtedly, part of the trouble
companies fail to deliver, even is that customers are more
those who pride themselves on demanding. They expect more
being customer-centric? and theyre increasingly hard to
service bar
please. Theyre more powerful
and savvy, less willing to stay
loyal in the face of shoddy
treatment. And with the rise
of social media and, with it, an
added confidence to amplify
their feelings, many argue that
its the customer who is now in
Brands must shift from customer- control rather than the companies
they buy from.
centricity to customer obsession
Kantar TNS helps our clients identify,

optimise and activate the moments
that matter to drive growth for their
business.
www.tnsglobal.com
3 Thought Leadership Thought Leadership/CONSUMER EXPERIENCE
Welcome to buy from to pivot to their needs A speedy tactical fix to appease
Generation CX! quickly. Otherwise they will simply a disgruntled customer can still
move on. fail to hit the right chord among
They pay less attention but with Generation CX. Theyre typically
a sharper and hyper-informed But for many businesses, its more interested in how you made
eye. They are constantly hard to keep up. The faster them feel during an interaction Exploding While every customer interaction Alas, too many companies fall into
they paddle to stay ahead of than they are in your ability to the trap of listening to customer
connected yet only partially brand choice should matter, the reality is that
attentive. Opinionated and customer expectations, the more resolve their query. some moments matter more feedback but failing to either
digitally influential, theyre expert water they take on board. And As if rising expectations werent than otherscarrying more learn from it, or act on it. And
messaging filterers, looking for when leaks appear, theyre so Every touch matters. Which enough, brand choice has also weight, both in terms of the thats a cardinal sin. Activation is
great experiences with mutual busy applying short-term fixes is why, as anyone involved exploded. New challenger impact they have on CX, but kingthe ability of a company to
rewards. They are savvy cynics to stay afloat that they miss the in delivering great customer brands are often the aggressors. also the companys likely ROI. operationalize and institutionalize
who trust their peers more broader customer sentiment experience will attest, CX is an Set up to succeed (born out When allocating investment CX learnings and best practices
than marketers, who wont pay that demands a more strategic, exhausting business. Akin to of initial customer angst with and deciding which moments to drive change. Done well, it
more for ownership if they can enduring remedy. painting Scotlands Forth Road existing category players), to respond to first, these are the generates enhanced customer
pay less for access. They move Bridgeits a job thats never theyve identified an opportunity moments to prioritize. experiences and ensures ROI for
fluidly between the digital and Responding in the moment to actually done! And while very to compete on CX rather than the company.
physical worlds without making resolve sub-optimal customer few employees go to work intent products or services alone. Identifying such moments is no
a conscious distinction between experiences is non-negotiable. on delivering a lousy experience Theyre customer obsessed. As longer about a reliance on ratings So whether youre part of the
them. But doing so with the right tone is for their hard-won customers, such, theyre adept at delivering or scores. Instead the focus has C-Suite, the CX Director, Head
increasingly important. delivering near-perfect right first time and, in so doing, swung towards unstructured of Customer Service, Contact
While some argue that the interactions on a consistent basis, raising the bar of expectation to dataunlocking the golden Centre boss, Insights lead,
expectation level of Generation across all channels and customer new peaks. nuggets of insight that reside Complaints Manager or Social
CX (Customer Experience) has segments, is far from easy. (often undetected) in verbatim Media response lead, now, more
grown unrealisticgiven the Anticipating those peaks of responses to open questions, than ever, its time to identify,
amount paid for the products expectation and re-aligning a or in the content provided optimize and activate the
or services acquiredit is a
necessary evil that cannot be
Activation is kingthe ability of business to deliver has become by customers via unsolicited
feedback in emails, social media
moments that matter most to
your customers.
table-stakes. As ice hockey
ignored. a company to operationalize and legend Wayne Gretzky famously dialogue, web chat, etc. We need
said, A good hockey player plays to become more adept at making
Todays customers are more institutionalize CX learnings and where the puck is. A great hockey sense of dirty data, be that
open than ever to give feedback.
But, in return, they expect short,
best practices to drive change. player plays where the puck is
going to be.
voice/speech, pictures, video
even emoji!
snappy, and effective resolution. Done well, it generates enhanced
Its a fast-paced world of instant
gratificationcustomers are customer experiences and ensures
quick to make decisions and
expect the organizations they ROI for the company.
Thought Leadership/THE CONSUMER VOICE
THOUGHT LEADERSHIP
The Consumer Voice VICTORIA SAKAL

In a world of proliferating role too. The increasingly wide
technologies, platforms, range of channels and product
choices available means todays
automated solutions,
consumers not only have to
artificial intelligence, the
more adeptly and efficiently
Knowing consumer
Internet of Things, and navigate a complex and cluttered
machine learning, todays environment, but also have an
brands risk drowning out opportunity to vote with their
the voice of the human wallets. Their consumption
the ultimate consumer. If choices translate to supporting
concerns, challenges,
those brands and offers that best
the one thing companies
meet their needs, align with their
cannot lose if they want to
points of view on broader issues,
stay economically relevant and conduct business in a fair,
Senior Consultant is consumers, then the one respectable manner.
and causes will help

Kantar Vermeer thing brands cannot lose
Victoria.Sakal@kantarvermeer.com
sight of is the voice of those In the last year alone, weve
consumers. seen countless examples of
populations around the world
Marketing continues to evolve realizing their voiceand
elevate marketing
at an exponential pace: new raising it on issues that matter
solutions are constantly emerging to them. From Brexit to the US
as technologies develop, brands presidential election and even
responsibilities are expanding as humanitarian causes, people are
consumers demand a point of harnessing the power of their
prowess
view on todays biggest cultural voice to express new desires and
and societal issues, and distinct expectations of the institutions
generations are challenging influencing society, and brands
marketers to meet different are no exception. A portion of
needs and expectations for consumers will always remain
engagement. Yet consumers are motivated by the more traditional
feeling the pressure of an evolved factors (e.g. price), but the 2017
consumer is more discerning than
Todays consumers vote their mind ever on more complex measures.
with politics, society, and brands

Kantar Vermeer is the only global
marketing consultancy focused on
unleashing purpose-led growth
through the development and
embedding of consumer insight-led
marketing strategy, structure and
capability.
www.kantarvermeer.com
3 Thought Leadership Thought Leadership/THE CONSUMER VOICE
Understand everyday lives equips brands insight. However, with big Listen closely knowing what to listen for and A combination of art and science
consumers concerns to take a stand and add value data and emerging smart which parts of your business is essential: when it comes to
where it matterssocially, technologies transforming the Yet just as this new universe these voices are most likely consumers, more behavioral
Because this phenomenon is culturally, and even politically. insight we have on consumers of data is welcomed by to affect, you can equip your data is undeniably creating new
happening across categories Since its onset, big data comes an interesting dynamic. practitioners, consumers are teams to listen closelyand your opportunities for brands and
and geographies, brands has offered the potential to While many consumers find fully aware of the information technologies to listen smartly businesses, but the ultimate
have no choice but to pay leverage the myriad sources of their voice through activism, theyre sharing about themselves to make magic out of all the success of all these solutions
attention to this voice. As were information available to not only communicating directly with and consequently have adapted madness. lies in their effectiveness with
already seeing in many leading grasp a better understanding brands digitally, or voting via heightened expectations of the actual consumer. Brands
companies, this imperative is of consumers, but also to wallets, other voices are not immediacy and personalization. Combine art need to remain focused on the
transforming the role of internal better deliver on their needs. expressed quite so loudly. This And, although still in the and science key insights within this sea of
marketing teams and external From the Internet of Things makes these novel solutions and early stages of delivering all- information to keep the end
partners, agencies included. to artificial intelligence and the indirect information they encompassing information, As emerging technologies consumer and their experience
From a business perspective, machine learning, powerful collect especially integral to the immense potential of these become smarter and more in full view. Understanding
ROI and effectiveness of technologies are now eclipsing insights functions. technologies to quantify every seamless in the coming years, the most pivotal parts of the
decisions stand to benefit traditional sources of customer action an individual takes creates they will transform marketing brand-consumer relationship
significantly from a greater sense equally immense potential for and revolutionize the way to the consumer not only
of who the customer is, where misstep. Aside from (warranted) brands engage with consumers. contextualizes the what of
they spend their time, what concerns around privacy, flawed They are closing gaps in this behavioral data with the
they need (or dont need!) and execution of predictive behaviors understanding and magnifying why, but also reveals those
how they want to be engaged or inaccurate attempts at consumer data available. how areas most sensitive to
and communicated with. From By remaining in touch with the personalization pose significant However, disputed research potential damage from awkward
integration of new solutions.
a relevance perspective, this
information informs business
human side of these increasingly risk of permanently damaging
customer relationships and
results, inaccurate polling,
and ineffective advertising
strategy as companies orient savvy decision-makers, brands destroying precious trust. have demonstrated that the By remaining in touch with the
human side of these increasingly
around meeting an actual need. technologies available to todays
Andperhaps most importantly gain not only a much clearer sense So, if the voice of the consumer marketers are not a fault- savvy decision-makers, brands
is essential and todays proof solution to longstanding gain not only a much clearer
given the dialogues weve seen
in the last year alonefrom a
of where to focus their efforts, but technologies offer only part challenges. The risks that come sense of where to focus their
cultural perspective, this insight also more confidence in decisions, of the solution, how can with overzealous adoption of
any new solution cannot be
efforts, but also more confidence
in decisions, better execution, and
can guide bringing purpose to brands be successful with truly
life. Understanding the causes better execution, and elevated understanding consumers? By ignored. elevated marketing effectiveness.
consumers care about and the
concerns complicating their marketing effectiveness.
3 Thought Leadership Thought Leadership/THE CONSUMER VOICE
3 4
Add to the conversation Listen for dissatisfaction
BRAND BUILDING
Pursue a genuine understanding of Consumers are savvythey know
the consumer and follow ongoing what they want, and they are more
conversations (cultural, social, willing than ever to exchange your
ACTION POINTS
etc.) to inform more meaningful brand for another better able
communications that offer concrete to do the job. Listen for signs of
benefits: entertainment, knowledge, dissatisfaction, opportunities for
or otherwise. How is your content innovation, and even points of
adding value to consumers lives? Are delight with other in- and cross-
your communications sales-focused or category players to ensure your
relationship-focused? What consumer offer is delivering on relevant needs.
1
need is your content meeting to help
Orient your offer ensure that its not purely transactional,
but adding to the conversation in a
6
Whether directly related to your
relevant, constructive way?
businesss offer or to the broader Identify useful content
2
space youre playing in, look for
Content is king of the free
where the consumer need really Evaluate the experience
5
lies. What pain points persist today? market. Numerous channels for
How is your offer distinctly meeting Assess the audiences reaction to the Keeping it real engagement, with both brands
a stated need? How are others consumer experience you deliver and users contributing, mean that
especially where formerly human The utopian seamlessness and consumers are inundated with
both within your category and cross-
interactions have been replaced perfect personalization promised by content. For greater relevance, and
categorypushing the thinking on
with tech-forward alternatives these new solutions does not always relationships that are more than
delivering meaningful products or
to diagnose disconnects and translate to the real-life experience purely transactional, determine
services to meet these needs?
opportunities for refinement. How for end users. Consumers will surely what content consumers consider
can the decision journey and overall be assessing your ability to balance useful. As opposed to blatantly
experience be simplified? Where are the efficiency of new solutions pitching a product or prioritizing
inconsistencies occurring? What can with the authenticity of meaningful quantity over quality, offering truly
you learn from other players delivering interactions and experiences. effective content builds long-term
seamless, well-received experiences? brand affinity by delivering tangible
value to the consumer, fostering
two-way conversation and even a
sense of personability and trust.
5 The Categories Commodities/OIL & GAS
Oil & Gas Geopolitical

The oil and gas category includes both private International Oil
Companies (IOCs) and state-owned National Oil Companies (NOCs).
developments add to
category complexity
Brands engineer some profits, despite low oil prices
Even in normal times, oil and The year began soon after over would help exports, appointed a
gas is the most geopolitically 140 countries adopted the Paris climate-change skeptic to head the
Agreement creating a blueprint for Environmental Protection Agency, and
sensitive of all the categories
addressing climate change, and the named ExxonMobil CEO Rex Tillerson
examined in the BrandZ Obama administration had rejected secretary of state.
Top 100 Most Valuable both the Keystone and the Dakota
Global Brands. The brands Access pipelines to move oil from The Tillerson appointment
manage long-term investment Canada to ports on the Gulf of coincided with early speculation
risk, technical expertise, Mexico. The year ended with the that the US would ease sanctions
unexpected election of Donald Trump against Russia, potentially making
international diplomacy, and the as US president. it easier for Western oil and gas
tension between commercial companies to partner with their
and environmental imperatives. The new president threatened US Russian counterparts. Meanwhile,
In this years report, the withdrawal from the Paris Agreement, Saudi Arabia, the worlds largest
calculus is even more complex. signed executive orders to permit oil producer, planned an IPO for 5
construction of the two pipelines and percent of Aramco, the national oil
ease coal mining rules, considered company as well as the worlds largest
BrandZ Top 100 a border adjustment tax that commercial enterprise.
Brands 2017

Year-on-Year Change
OIL & GAS TOP 10
+5%
Brand Brand Value
1 ExxonMobil 18,727 1 11%
2 Shell 18,346 1 23%
Category Brand Value 3 Sinopec 12,639 1 -4%

8-Year Change 4 BP 11,131 1 5%
-5%
5 Petrochina 10,412 1 -16%
6 Chevron 8,414 1 19%
7 Total 4,973 1 4%
8 Rosneft 4,937 1 29%
Oil & Gas Top 10 9 Gazprom 3,857 1 13%

Total Brand Value
10 Lukoil 3,224 1 N/A
$96.7 billion Brand Contribution measures the influence of brand alone on earnings,
INSIGHT
INSIGHT Reframing the State-owned

conversation initiatives
The oil and gas brands moderated In a letter to President Trump,
their public reaction to the years ExxonMobil urged the US to stay in Oil and gas brands remained Even Saudi Arabia acknowledged
geopolitical developments and the Paris Agreement to help ensure cautious, despite the initial Trump the need to shift away from oil. The
focused instead on streamlining their open market competition. Fracking administration signals about relaxing planned Aramco IPO, which could
businesses to meet immediate needs makes the US well positioned as a environmental controls and Russian create the worlds largest publicly
and develop long-term strategies, supplier of natural gas, which emits sanctions. Although such changes traded oil and gas company, will
which included investment in natural less carbon than oil. Having built its might drive business and lift stock provide access to capital markets and
gas. The historically low crude prices
forced companies, particularly
reputation on complicated and risky
deepwater drilling with long-term
prices, at least for the short term,
they also could animate NGOs and
funding as the country attempts to
transition its economy and society
Brands must
ExxonMobil, to remove uneconomical returns, ExxonMobil announced plans consumers concerned with climate away from oil dependence. engage with new
oil reserves from their balance sheets. to invest significantly in US fracking
operations that can potentially
change. Brands balanced pressure to consumers about
produce strong quarterly results for Despite sanctions imposed by the
By adding efficiencies, cutting costs, produce profits faster and at a lower stockholders with the need for longer- West on Russia after its invasion transition plans
and digitizing operations, many price threshold. Shell, Chevron, and term strategies to sustain brand of Ukraine in 2014, the Russian
of the major oil and gas brands Total also adjusted their businesses equity and shift away from fossil fuels. state-owned brands Rosneft and The energy transition continues
operated profitably at a lower oil to move more nimbly and accelerate Brands have a Gazprom increased in value, and apace. Yes, hydrocarbons will
price threshold. Stock prices rose,
and even the Russian brands, limited
profitability. chance to influence Because of these concerns, and another Russian brand, Lukoil, joined continue to have a crucial role for
the global economy for decades to
the rising influence of the public, the BrandZ Oil and Gas Top 10.
by sanctions, found ways to develop And companies shifted attention the changing energy in part because of social media, Rosneft sold just under 20 percent come, but oil and gas companies
their businesses. Except for the two to liquid natural gas (LNG), which, conversation brands reexamined communications of the company to Glencore, a Swiss make decisions about their
Chinese brands, every brand in the because it can be shipped long strategies to reach a wider audience commodities trader, and expanded its investments over a 20-to-30 year
BrandZ Oil and Gas Top 10 rose in distances, changes gas from a local In many ways, this is a great time beyond academics, analysts, presence in the Middle East, signing horizon, and they are having to
value, and the value of the Top 10 to a global market. Shells assimilation for energy brands that have been journalists, legislators, and other agreements with Iraq, Libya, and consider what investments they
increased 5 percent compared with a of BG Group, acquired early in 2016, investing in new technology and influencers and decision makers. other countries. will make now to see them survive
20 percent decline a year ago. strengthened its position in LNG. rebalancing their businesses to be Brands attempted to reach millennials, through that transition. The brand
Reflecting the companys shift to profitable at lower crude prices, who are inclined to select brands In addition, Russia and Turkey challenge is that many of these
Shifting to gas LNG and deepwater exploration,
the company also raised its stake in
and who have been developing aligned with their values. agreed to cooperate on construction brands have either no relevance
to consumers, because they have
gas and other energy alternatives. of pipelines under the Black Sea.
Brazilian offshore operations and sold Rising demand and the transition The brands reframed the climate- Operated by Gazprom, the pipelines no fuel retail business, or they
With the growing volume of oil
its interest in Canadian tar sands, to a new administration in change conversation and centered would supply gas to Turkey and are synonymous with oil and gas.
produced by hydraulic fracturing in
Washington have rekindled a the disagreement on timing, asserting parts of Europe while circumventing As replacement technologies
the US, the congress removed export
Seven years after the Deepwater global conversation about energy, that the move to new energy sources existing routes through Ukraine. Lukoil grow and develop new brands,
restrictions imposed in the 1970s,
Horizon disaster in the Gulf of and those brands that hold true is inevitable but will take decades. profits improved and its stock price the oil and gas companies need
when America was oil dependent
Mexico, BP collaborated with GE to their vision and values have an An ExxonMobil ad explained that the increased with the rise in oil prices and to consider how their business
and faced shortages. These changed
to develop a diagnostic system opportunity to be on the forefront companys investment in Gulf Coast a weak ruble that favored exports. will respond and their brands
circumstances, along with the lower
of sensors that monitor offshore of these discussions and help natural gas facilities will help both are going to need to develop a
price of crude oil, contributed to
platform performance and safety, advance new energy solutions. produce jobs and reduce emissions. Primarily because of Chinas slower relevance to new generations of
decisions by ExxonMobil and Chevron
making all the data instantly available economic growth and the low global consumers. The competition for
to invest significantly in refineries and
on a dashboard, and signaling any Malia Supe Public opinion could accelerate the price for crude oil, the valuations of mind space will be with Google
petrochemical facilities located along
need for replacement or repair. This Senior Partner, introduction of new metrics, other Sinopec and PetroChina declined. and Tesla, so brands are going to
the Gulf coast.
technology, a fitness tracker for Global Managing Director than annual production and reserves, Because of Chinas slowing economy, have to take on new talent and
offshore rigs, enables preventative Ogilvy & Mather for valuing oil and gas companies. the state oil companies pursued new thinking, and boards are going
maintenance to improve safety, Malia.Supe@ogilvy.com Such metrics might include a overseas growth opportunities, to have to consider investment in
reduce downtime, and avoid disasters. companys investments in low- or including Sinopecs purchase of brand in a way that they havent
zero-carbon fuels or other activities Chevrons South African refinery and had to before.
that advance the transition to new retail businesses.
energy sources. Chris Pratt
Strategy Director
Chris.Pratt@hkstrategies.com
INSIGHTS
ANALYSIS
Multinationals drive value,
but nationals inspire Love
The oil and gas brands score well on all five aspects of NATIONAL OIL COMPANIES ARE LOVED
BrandZ Vital Signs, especially Love, with a score of 111.
The national oil companies are state-owned and loved as
A score of 100 is average. Who would have thought? The
Brands are helping high Love score reflects the division of the category into
country brands that drive local economies.
millennials appreciate the two groups: the multinational oil companies, which live in OIL & GAS CATEGORY PERFORMANCE
the tension between supplying the earths energy needs
span of energy transition and justifying the resulting impact on the earth, and the Multinationals Nationals
national oil companies, which are state-owned and loved as
Oil and gas companies have begun to focus on country brands that drive local wealth.
Brand Purpose 101 115
the millennial generation much more cleverly and Digital investments Love 102 121
rigorously. They are learning about the millennial
voice and appreciating it will only get stronger
position brands The multinationals produce just over three-quarters of
Meaningful Difference 100 124
the BrandZ Oil and Gas Top 10 value, a proportion that
as millennials get older. These brands are for price rebound rose slightly since 2010 because of the scale of these
communicating with millennials now so that in 15
8-year value change* -8% -1%
companies, their technical expertise, and their diplomatic
to 20 years time they will be acknowledged as The smartest oil and gas companies made prowess in being able to partner with national companies
having played their part in the energy transition. effective use of the period of price decline to
Year brand founded 1960 1994
that often have access to oil reservoirs. They score only
The issue is that millennials want change more examine things that they did not address during average in Brand Purpose, Love, and Meaningful Difference *Oil & Gas first valued in 2010
the go-go days of $100-a-barrel oil. As prices Source: BrandZ / Kantar Millward Brown
quicklyin fact, they want it today. But to their compared to the national companies. The scores do not
dismay, more carbon-free technologies like solar began to rebound, these oil and gas brands fluctuate much over time.
do not yet have the scale and capacity to deliver were the first to reach a level where production
the immediate change required. Oil and gas became profitable. Theyd cut costs and looked BUT MULTINATIONALS DRIVE VALUE
brands urgently need to persuade millennials at innovations that enabled them to compete at a The multinationals produce just over three-quarters of the
that they are changing in a responsible and swift much lower price threshold and get the last drop BrandZ Oil and Gas Top 10 value, a proportion that rose
way. The fact is that many of these brands are
changing, and changing quickly. Its just that
of value up and down the supply chain. These
improvements included digitization of the oil fields,
BRAND IMPLICATIONS slightly since 2010.
quick change is still seen as glacial change by the better predictive maintenance, better imaging PROPORTION OF VALUE
Until now, most multinationals focused on
millennial generationand therein lies the rub. of the subsurface, and better technologies for
burnishing brand reputation with heads of Multinationals Nationals
getting the most out of reservoirs. The way top
state, legislators, analysts, journalists, and other
operators function now is a step change better
71% 29%
Simon Whitehead
influencers and decision makers who could help
Managing Director in the use of technology than it was before the 2010
secure government contracts and shape key
Hill+Knowlton Strategies downturn. These are no longer wildcatters; theyre
legislation. The multinationals paid less attention
Simon.Whitehead@hkstrategies.com the cheetahs of the oil field. Multinationals Nationals
to the consumer-facing brand, but that may
change now that consumers have loudly asserted
Michael Kehs
EVP, Global Energy Practice Leader &
their voice with Brexit, populism across Europe,
and the election of Donald Trump.
2017 77% 23%
General Manager
Michael.Kehs@hkstrategies.com
MUMBAI - INDIA
Value of all Indian brands

in Global Top 100
BRAND BUILDING
$17.1 Billion
ACTION POINTS
1
Stay the course
2
Speak up
3
Shape the story
For the major brands that have It became obvious that a wide Double down on
shifted their long-term strategies gap separates elite opinion communications about the
to lower carbon impact, it would shapers and decision makers progress in new technologies
be a mistake to read the potential from less well-connected and innovations that are good for
rollback of regulations in the people who nevertheless have the environment. The relaxation
US as a free pass to pollute, strong opinions and can effect of regulations by the Trump
although it may result in some change. Oil and gas brands administration may animate
relief from the level of paperwork historically have directed the segment of environmental
required for compliance. Being their messages mostly to the activists that wants to portray
responsible will deliver greater legislators, lobbyists, journalists, the industry as inherently bad
shareholder value. and others who influence for the health of people and the
regulations and contracts planet. Brands need to advance
and help shape corporate the counternarrative, that people
reputation. Today, it is important cannot live without the products
to reach a wider audience. of this industry.
Thought Leadership/CITY-CENTRIC MARKETING
THOUGHT LEADERSHIP
City-Centric Marketing CLAIRE HOLDEN

Within the apparel sector, and where the ambition remains
on securing the attention of the millennial mass or the
increasingly powerful Gen Z, it has never been more
important to have a city-focused business strategy.
As a comms agency, we continue marketing and retail experiences

to receive briefs that cite the US, with the goal of maximizing
Key audiences
Germany, France, and China as brand experiences. And its
focus markets, lumping together been a decision that so far has
people that could be residing proven a good one. The year 2016
up to 3,000 miles apart. We are became an exceptional year for
asked to provide a local rollout, the company financially, with it
share common
and consider how to adapt the reporting a significant increase
Managing Director global creative and story for the in revenues and a record net
Hill+Knowlton Strategies UK, Brazil, or Russia. However, to income. Adidas led the BrandZ
Claire.Holden@hkstrategies.com
consider key markets through the Global Top 100 in annual rate of
lens of countries feels increasingly brand value increase with its 58
outdated. Instead we need to percent gain.
beliefs, trends
relocate our outlook to critical
cities. There are a number of reasons
why a critical-city focus makes
Back in 2015, Adidas declared a strategic sense. First, the
key city focus as part of its 2020 disproportionate influence larger
across cities
business plan, citing the fate of or capital cities have over global
global brands is decided in global trends; second, the increasing
cities. If we want to be successful disconnect between these cities
in the future, we need to win in and the rest of their countries, as
key cities. They said: Across proven repeatedly through the
these cities, the adidas Group recent political agenda; and third,
will disproportionately invest in that members of this younger
audience view themselves as
Countries seem like a broad, global, not national, citizens. They
care about a better world, not a
outdated marketing lens better country, and they live in
an international society online.
A laser focus on the city can
quickly become globally relevant
Hill+Knowlton Strategies is a leading and drive global success, thanks
global strategic communications
to the power and connectivity
to local and multinational clients of this cross-national urban
worldwide. audience.
www.hkstrategies.com
3 Thought Leadership Thought Leadership/CITY-CENTRIC MARKETING
For example, someone from New There are many roles a brand community for runners, yogis, H&M-owned & Other Stories has
York is likely to have far more
in common with someone from
can play within a community.
An increasingly powerful
and fitness fans. It connects
them to both experts and each
committed to three city design
hubsits ateliersin Paris,
As well as adding value to a
Shanghai than with someone option is educator, helping other, giving them company and Stockholm, and Los Angeles. community, transparency and
from Idaho, both in outlook and quench this ever-ambitious encouragement for their weekly Every season, stores will include
motivation, as well as clothes audiences thirst for information training. collections by each atelier, all openness are important for
lusted after. There are tribes in and self-improvement. Apple inspired by that city and its
Brooklyn connecting with crews was probably the champion of As well as adding value to a residents. At the recent launch
building a connection with the
in Botafogo, together creating this, with its in-store lectures in community, transparency and of the Los Angeles Atelier, the urban audience. Consequently,
the new trends that will hit high purpose-built mini-auditoriums, openness are important for brands MD commented: Thats
streets across the globe. but weve since seen other building a connection with the why were living in the city we are brands are looking at ways
brands adopt this role in their urban audience. Consequently, designing for. Were not trying
Authentic to the city quest to build loyal relationships brands are looking at ways to design for Europe. Were they can invite people in and
As part of a city-centered
with customers and future
employees. Levis developed a
they can invite people in and
collaborate with the city.
designing for LA. The designs for
LA quickly then flew off shelves
collaborate with the city.
business and marketing strategy, series of educational programs around the world. City-driven,
brands need to increasingly in the UK and US to support the City collaboration globally relevant.
consider how they can become brands association with music. hip-hop artists Kaaris and Kalash addition, Im also mindful that for
a part of the fabric of these It offered courses in sound One way to achieve this is Brands are also increasingly Criminel bringing their own sound other sectors and audiences the
cities and an authentic part of engineering, song writing, and through a more open, flexible collaborating with the citys to the brands Paris street football value of the more rural audience
their habitants daily lives. This audio-visual production. retail environment, letting the freshest creative talent to tournament, or fitness coach is extremely important, and
audience is seeking long-term city curate its own experience or help tell their stories. They are Robin NYC creating content to in fact the opportunity from
(and hence valuable) relationships Another valuable role a city brand products. Levis and Gap are both looking for ways to invite these showcase the new collection, connecting with them and their
with brands, but only with those can take is connector, helping brands that have encouraged influential voices in and bring each partner helps bring the values is arguably greater than
brands that share their belief build communities and uniting customers to tailor their products their relevance to the brand. global brand further into the ever. However, as proven by this
systems and that meet their people with similar mindsets in-store, adding their personal Adidas partners with a diverse fabric of the city. report, and indeed stock markets,
increasingly high expectations. or ambitions. Earlier this year, flair and identity to otherwise collection of city creators to for global brands looking to
They are demanding both Adidas launched its womens standard silhouettes. Topshop deliver an authentic local edge As I write this Im hugely aware attract a younger audience, a
transparency from companies, studio in Brick Lane, London, a handed the reigns over to city to the global brand. Whether that I am sitting in my central city strategy is needed: to rethink
and for companies to add notable space dedicated to fitness and influencers, inviting them to its Londons sneaker-obsessed London office before heading marketing teams, approach,
value to their communities and well-being that people could curate sections of the store in a graphic designer KickPosters back to my Zone 2 flat, and and creative through the lens of
lives. The pressure is on to be a be a part of for free. The studio way they believed was fit for their creating Snapchat geo-filters we often wonder if in agency- cities, and to consider how to
civic brand. has quickly become a hub and urban neighbors. for new store openings, French land were in a city bubble. In collaborate with the city.
5 The Categories Technology/TECHNOLOGY - CONSUMER
Consumer
Technology Ad revenue, incremental

The technology category includes business-to-consumer and business-to-
business providers of hardware, software, portals, consultation and social media
platforms. The diversity of the technology category reflects the convergence
changes drive value rise
occurring as brands develop integrated systems of products and services.
B2C and B2B brands collaborate to deliver the future
A 13 percent rise in value made And both B2C and business- Of the 20 brands included in the
technology the second-fastest to-business (B2B) brands ranking, only one brand declined in
value, and several were among the
growing category, after retail, made incremental progress
fastest value risers in the BrandZ
in the BrandZ Top 100 Most in preparing for a future of Top 100 Most Valuable Global Brands
Valuable Global Brands 2017. artificial intelligence (AI), virtual 2017, including Netflix, which rose 30
No single brand or product reality (VR) augmented reality percent in value, and Facebook and
breakthrough drove this (AR), the Internet of Things Tencent, which each increased 27
increase. Business-to-consumer (IoT), voice recognition, and percent. Both Salesforce and Samsung
rose 23 percent.
(B2C) brands improved how autonomous vehicles.
they monetized their content.
BrandZ Top 100

TECHNOLOGY TOP 20
Brand Brand Value
Brands 2017 Value 2017 Brand % Change
Category Brand Value 1 Google 245,581 4 7%
Year-on-Year Change
2 Apple 234,671 4 3%
+13%
3 Microsoft 143,222 4 18%
4 Facebook 129,800 4 27%
5 Tencent 108,292 5 27%
6 IBM 102,088 4 18%
7 SAP 45,194 3 16%
Category Brand Value 8 Accenture 27,243 3 19%
12-Year Change (Top 10)
9 Samsung 24,007 4 23%
+292%
10 Baidu 23,559 5 -19%
11 Intel 21,919 2 18%
12 Oracle 21,359 2 10%
13 Huawei 20,388 3 9%
14 YouTube 16,785 4 N/A
Technology Top 20 15 Cisco 16,725 2 15%
Total Brand Value
16 HPE 14,018 3 N/A
17 LinkedIn 13,594 4 10%
$1,244.8 billion 18 Salesforce 12,234 2 23%
19 Netflix 12,057 2 30%
20 Snapchat 12,026 4 N/A
5 The Categories Technology/TECHNOLOGY - CONSUMER
In addition, Microsoft, IBM, and Google accelerated its use of machine

INSIGHT Intel each appreciated 18 percent. learning to improve core products,
Three brands entered the BrandZ such as Google Search, Google
Technology Top 20 for the first Maps, and Google Translation. The
time: YouTube, HPE (formerly part brand introduced Google Home, a
of Hewlett-Packard), and Snapchat. voice-controlled, home automation In a development related to defining Microsoft, another company primarily
Google and Apple retained category assistant capable of playing music the Apple brand, the latest prototype focused on B2B business, also
leadership with modest value growth. and executing certain tasks, such as of its physical store, located in San challenged Apple, Samsung, and other
(Amazon, listed in the retail category providing calendar reminders, news Francisco, is no longer called the Apple device makers with the versatility of
of this BrandZ Global Top 100 report, and weather updates, controlling Store. Instead, it is called Apple Union its Surface devices, which can be used
rose 41 percent.) lighting, and adjusting Nest Square, as these locations now will as tablets or laptops. Designed for
thermostats. take the name of their surrounding business users, Surface devices also
The sharp value rises for the B2B communities. The stores are intended appealed to consumers. Their flexibility INSIGHT
brands indicated that years of Google also advanced work on its to be local gathering places, and at seemed an apt metaphor for Microsoft,
investment to transform legacy brands cloud capability and grew its G Suite, least some will include conference as it moved through its third year of
into contemporary cloud-based which it developed as a collaboration rooms for meetings. new leadership and evolving culture,
operations began to pay off. The even tool, especially for enterprise clients. attempting to develop products with
distribution of value growth between Google revenues, including YouTube,
Disruptors bring the B2C and B2B brands reflected in grew 20 percent to $89.5 billion,
Brand importance greater customer-centricity while
still enjoying an annuity from legacy
affordable tech, part how brands increasingly compete providing virtually all the $90.3 billion
The strength of the Apple brand products like Microsoft Office.
and collaborate across the consumer- reported by Alphabet.
while leaders business boundary.
helped sustain Apple as it faced
humanize their The years geopolitical turmoil

competitors producing quality, well- Social media
In fact, few brands stayed in their lane. threatened Google financially
designed devices, but at lower prices. and content
communications Even Facebook, a primarily consumer- when advertisers complained
Facing a similar challenge, Samsung
stumbled with the introduction of its The technology brands involved
facing brand, noted that 65 million that programmatic technology,
Ease of use has been a strong Note 7 smartphone, which it quickly in social media or entertainment
businesses use its Facebook Pages, intended to align ads with relevant
competitive advantage for recalled because of problems with increased significantly in value last
and many also use Instagram Business content, sometimes placed ads near
Apple that is now challenged by exploding batteries. year; these included Facebook,
profiles and Workplace, a business controversial, even objectionable,
disruptor brands that offer strong
functionality and design, but at a
collaboration tool. With its expanding material. The problem affected
The Samsung brand proved resilient,
Tencent, YouTube, and Netflix. Retro countertrend
influence, Facebook was one of several other technology brands, including And Snapchat joined the BrandZ
much lower price. These disruptors, brands examining its responsibility YouTube and Facebook. To address
and its next smartphone iteration, Global Top 100. The reasons for the balances movement
like Huawei, may not come with
an Apple-like ecosystem, but that
to monitor content and protect the the problem, YouTube modified its
Galaxy S8, received positive initial
reviews for its design, especially the
value increases varied by brand, but to Internet of Things
privacy of users. advertising policy and accepted ads overall the phenomenon indicated
is less of an issue for younger large curved screen. And Samsungs growing industry sophistication in
only for sites with audiences of over In the past year, as weve heard a
tech-savvy consumers who select finances remained strong, primarily understanding audiences and being
Because of its vital role as data 10,000 viewers. lot about the Internet of Things,
devices on their individual merits, because of strong performances in able to provideand monetize
custodian and its centrality Ive also noticed a retro movement.
regardless of operating system and other parts of its diverse product relevant content.
in connectivity and digital Apple stock appreciated based on I did a project for a client about
switch between them seamlessly. portfolio.
communications, the technology anticipation of the 10th anniversary vinyl records, and people still really
At the same time, leading brands category was drawn into the whirlwind edition of its iPhone, expected in Celebrating its fifth year as a public love vinyl. My birthday present
have got better at simpler, more Challenges to Apple and Samsung company, Facebook continued to
of geopolitical drama. Social media autumn of 2017, and recent device from my parents 10 years ago
human communication. Leading came from Google, which makes grow its influence, ending 2016 with
brands especially were at the center introductions, including the next was an iPod, but this year it was a
brands talk less about features, the Android operating system that over 1.2 billion daily active users
of the public debate when postings generation MacBook Pro laptop and record player. One influence is a
but instead focus on user benefits runs Samsung phones, and which (DAUs). Monthly active users (MAUs)
inflamed opinions about decency and cordless earbuds. Both products younger generation pushing back
in a more human way. Apple just introduced its own smartphone, surpassed 1.8 billion, and most daily
free speech. reinforced compatibility within the against the older generation, but
shows beautiful photographs named Pixel. In addition, Chinese or monthly users accessed Facebook
Apple ecosystem. To make the the trend also reveals an attitude
taken with an iPhone; it doesnt talk smartphone brands, especially Huawei,
about megapixels or autofocus. Maintaining the lead MacBook Pro thinner than earlier
editions, Apple substituted a smaller
found enthusiastic customers outside
on their mobile devices. The company
articulated three priorities: monetizing
of people saying they dont
want their houses saturated with
Similarly, Samsung used a more of China. Primarily a B2B technology video, adding advertisers, and making
Google and Apple retained the USB port. To encourage use of the technology.
human tone in its Olympics and leader in telecom infrastructure, ads more relevant.
BrandZ technology ranking cordless earbuds, recent iPhone
Paralympics sponsorship. And Huawei made smartphones that
leadership with brand values of almost models lacked a headphone port. Ed Nash
when it encountered problems sold well in many parts of the world, Facebook focused on making it easier
a quarter trillion dollars. Googles Managing Consultant
with the Galaxy Note 7 phone, it including Europe, although consumer for people to load and access video
search business and related advertising Kantar TNS
apologized in an open, humble, and trust lagged relative to Apple and and on developing its own video
placement continued to drive revenue Ed.Nash@tnsglobal.com
human way. Samsung, according to BrandZ content. The brand gained $26.9
and fund long-term ventures, like research. billion in advertising revenue in 2016,
Alastair Bannerman autonomous cars, included in the
and by early 2017 it announced that it
Global Director / Client Lead finances of Alphabet (the holding
had reached a total of 5 million active
MediaCom company established in 2015).
advertisers, mostly small and medium-
Alastair.Bannerman@mediacom.com sized businesses.
5 The Categories Technology/TECHNOLOGY - BUSINESS
Business
Recognizing that how people interact
Cloud transition progresses

on Facebook depends on their age INSIGHT
and other demographic factors, the
brand continued to add improvements
to Instagram, Messenger, and Whats
and brand values increase

Appin effect, developing sub-
INSIGHT communities within Facebook. It
also increased its use of VR and AI.
And it introduced new functions, like
Marketplace, that facilitated buying
and selling items on Facebook.
Tencent, Chinas leading internet
portal, remained Chinas most valuable
brand, based on the strength of its
Acquisition and collaboration pools expertise
social media apps, including QQ
(aimed at younger users), and WeChat
(Weixin in Chinese). The social media
Business-to-Business (B2B) The change positions HPE to better
confront the disruptive changes in
Acquisitions and
brands contended for leadership
apps combined reached almost 890 collaborations
million MAUs, a year-on-year increase Social media must in the cloud, artificial intelligence
information technology.
of 27.6 percent. These platforms address new ethics (AI), and the Internet of Things. Brands attempted to expand their In an example of collaboration, IBM
helped drive advertising revenue with Making iterative advances, they and Salesforce planned to share
options including WeChat Moments, and credibility risks reach or expertise though acquisition
their AI technologies, increasing the
competed (and increasingly and collaboration. In the largest
which connected ad content with effectiveness of both companies by
collaborated) with business-to- acquisition in its 42-year history,
Internet of Things relevant users and occasions. Because of the rising risk of fake
Microsoft bought LinkedIn, the joining the learning abilities of IBMs
news, derogatory comments, consumer (B2C) technology
may draw brands The payment functions of these unregulated access to personal brands. Lessons learned
business networking brand. Its Watson with the cloud customer-
management tools of Salesforce.
into collaboration platforms increased in popularity. data and unscrupulous or even from these encounters with
acquisition of LinkedIn strengthens
both brands in B2B, enabling
The number of MAUs of Tencent illegal content, social networks IBM also formed a partnership with
need a greater degree of self-
consumer-driven brands may Microsoft to include LinkedIn social
We hear a lot of talk about the mobile payments exceeded 600 Cisco to create workplace tools that
governance. Theres so much have helped B2B brands network features in some of its
Internet of Things, but consumers million, demonstrating the strength combine the cognitive computing
digital conversation taking place, sharpen their marketing agility. products, such as Microsoft Outlook
dont really understand ithow of the brands ecosystem. Starbucks of Watson with Ciscos cloud-based
social networks face a challenge and Office.
its going to benefit them or how announced plans to accept Weixin workplace tools like WebEx. Cisco,
it can help them in their everyday Pay in its 2,500 China stores as part mediating it. This issue is not Although the B2B technology the brand best known for supplying
simply about the risk to privacy Under its new management, Microsoft
lives. But IoT is so much bigger of a partnership with Tencent based brands have not completed their all the routers and switches that make
as brands push for greater has improved its technology with
than just consumers. Its a global around social gifting. Although the transformation to cloud-based the internet work, is investing heavily
personalization, its also about a versatile group of devices like
infrastructurefrom autonomous insular nature of Chinas internet operations, and the large legacy on the Internet of Things, purchasing
whats being said in a public its Surface Pro, a laptop with a
driving to city planning, from limited Tencents global expansion brands continue to be challenged by Jasper Technologies, a company
forum and what content is shown touchscreen that detaches to become
health to day-to-day living. Until as a communication platform, the nimble, narrowly focused startups, that creates software for managing
alongside or before paid ads. a freestanding tablet. The device
now IoT devices have tended to brand successfully exported its games years of strategic redirection and connected devices.
Facebook, Twitter, and Google/ includes a stylus for taking notes or
work separatelyacross lots of worldwide. major investment began to pay off. In
YouTube are starting to get a sketching.
incompatible platforms. From contrast to last year, every B2B brand Although Intel still depended on
a consumer perspective, they YouTube expanded its original sense of the danger that exists, ranked in the BrandZ Technology its traditional chip business for
should work togethergiving content and the advertising options. but they must get a handle on it Top 20 increased in value, some of much of its revenue, the brand also
real human benefits. This year its It expanded TrueView ads, videos of quickly. Because of the scale of them substantially. focused attention on four other
likely well see an unprecedented varying length with content designed the threat theres understandable growth areas: 5G, AI, driverless cars,
collaboration between the major to attract targeted audiences. YouTube eagerness to use automated HPE (Hewlett Packard Enterprise) and VR, specifically in sports and
brands to work cooperatively also introduced the possibility of solutions, but at least in the short appears in the ranking for the first entertainment. Intel bet heavily on
or perhaps to allow more scrolling through related product term, there will be a limit about time, having completed its first year driverless cars with the purchase of
interoperability between devices. offerings while watching the video on a how much AI will be able address as a corporate entity created when Mobileye, an Israeli maker of sensors
mobile device. these problems. Hewlett-Packard split the company and cameras used for navigating
Charlie Morgan into two parts, with HP Inc. set up to driverless cars. Intel also has a
Managing Director, Soon after Snap Inc. completed its Nick Snowdon handle the legacy businesses of PCs relationship with BMW.
UK Technology Practice IPO, it signed an agreement with Director, Financial Services and and printers, while HPE was spun off
Hill+Knowlton Strategies NBC Universal to have the Snapchat Technology to focus more narrowly on servers,
Charlie.Morgan@hkstrategies.com photo-messaging app carry content Kantar TNS storage, networking, and consultation.
from the 2018 Winter Olympics. It also Nick.Snowdon@tnsglobal.com
began to redefine itself as a camera
company, introducing a product called
Spectacles, eyeglasses with a camera.
Netflix grew revenue as it expanded
the number of global viewers
interested in on-demand movies or TV,
and introduced more original content.
5 The Categories Technology/TECHNOLOGY
INSIGHTS
ANALYSIS
Technology leads every
category in Vital Signs
Intels focus on IoT is helping create a
connected and secure environment for
consumers and businesses across many
segments including Transportation, Medical, The BrandZ Vital Signs results should settle any argument the future may unfold differently, because the next phase
Energy, Industrial and Retail. Intels Retail about the relative health of the technology category, at of technology, including the Internet of Things (IoT),
Solutions division launched its new Responsive least until now. The BrandZ Technology Top 20 achieves autonomous cars, smart homes and smart cities, will require
Retail Platform bringing together hardware, As innovation slows, a phenomenal average score of 116 across all five Vital more collaboration between B2B and B2C brands.
software APIs and sensors in a standardized service becomes key Signs, scoring highest in Brand Purpose and Innovation. (An
way. It is investing some $100 million in this
underlining that technology will continue to brand differentiator average score is 100.)
redefine the consumer shopping experience. Business-to-consumer (B2C) brands like Google, which B2C BRANDS RESHAPE CATEGORY
A lot of the new products were seeing are not driven
increased 556 percent in brand value over the past 12 years, In 2006, the BrandZ Top Technology Top 20 was evenly
Having been dominant in PCs, Intel raised its by innovation, but rather by brands looking for the
reshaped the category. In 2006, the BrandZ Technology split between B2C and B2B brands. Today, the split is two-
voice in other technology sectors, for example next dollar. Providers like Facebook and Google have
Top 20 was evenly split between B2C and Business-to- thirds B2C and one-third B2B.
by providing the technical wizardry behind a grown very rapidly. But the pace of growth is slowing.
business (B2B) brands. Today, the split is two-thirds B2C
memorable Super Bowl halftime performance. New consumers arent coming in. And Moores Law is PROPORTION OF VALUE
and one-third B2B. The average B2C brand value increased
In that instance, Intel demonstrated its drone history now; we no longer have the regular doubling of
408 percent in the past 12 years, while B2B brands B2C B2B
technology with a glittering image of an computing power against price. In its place, we have a
increased an average of 84 percent.
lot of large companies with high growth expectations
49% 51%
American flag hovering in the sky as Lady
Gaga arrived on stage. and, in some cases, impatient shareholders. We think 2006
Although the B2B brands score above average on key
there are parallels with the history of the aviation
BrandZ metrics, they are no match for the B2C brands
With the acquisition of NetSuite, Oracle, a business with where the smartphone is at the moment.
with these average scores: Meaningful Difference, 140; B2C B2B
leader in financial databases, strengthened In the late 60s, when Boeing developed the 747, the
Innovation,119; Brand Experience, 118; and Love, 120. With
its cloud computing offer. NetSuite primarily
focuses on small business and is expected
team that built it was actually the second team. The A
team was working on supersonic planes to compete
some fluctuations, Apple, Google, and Microsoft have
sustained their Meaningful Difference over the past 12 years.
2010 66% 34%
to provide Oracle with greater access to on speed. But the airlines we fly on today are not
that market, where it faces rival Salesforce. much different than the 747s built in the 70s. The
There is also this metric Excited by what they might
NetSuite should benefit from Oracles scale. airline business has stopped competing on technology
do nextwhere B2C scores 122 compared with 108 for
and speed. Instead, theyre competing on service.
And I think were at that point with the smartphone
B2B. All these numbers measure past performance, and AND OUTSCORE B2B IN KEY METRICS
SAP aligned with Microsoft. The arrangement
enables the SAP HANA databases to run on business. Even Apple, which is most likely to innovate The B2B brands score above average on key BrandZ
Microsofts Azure cloud and SAP software to in this space, seems to be moving into service. metrics, but they are no match for the B2C brands.
BRAND IMPLICATIONS
incorporate Microsoft Office 365. The SAP TECHNOLOGY CATEGORY PERFORMANCE
HANA databases use in-memory computing Andrew Curry
that enables users to access data more quickly Director
B2C B2B
than on relational databases. Kantar Futures The BrandZ metrics for the technology
Andrew.Curry@thefuturescompany.com category are strong, especially for B2C brands. Meaningful Difference 140 106
But the data measures history. It is possible that
technology, the category that has disrupted Innovation 119 108
every other category, will itself be disrupted as Brand Experience 118 105
brands work separately and in collaboration on
the IoT and other society-altering projects. As Love 120 103
technology companies move into new areas, with
Excited by what they
the B2B players developing cloud businesses,
might do next 122 108
for example, brands need to keep the Vital Signs
strong. They especially need to maintain clear
Brand Purpose and link it to Innovation.
5 The Categories Technology/TECHNOLOGY
VENICE - ITALY
Value of all Italian brands

in Global Top 100
BRAND BUILDING $13.5 Billion
ACTION POINTS
1 3
Make it simpler Own the conversation
Progress means that each Many brands are competing in

generation of a device or software the development of the Internet
needs to be simpler to use than of Things (IoT), but none has
the earlier version. assumed the role of category
captainthat is, setting the
2
standards of IoT and being
its public face. It is a large
Sound human
opportunity.
Consumers expect technology
4
brands to communicate in the
language of engineers. That
Make media immersive
professional tone may build
confidence, but it also confuses. TV advertising is changing
Surprise people. Sound human. because people are watching TV
Talk less about the technology and in different ways. Move beyond
more about the benefits. That is feature-driven advertising. Be
what Apple has done and what more immersive. Virtual reality
consumers now expect. will help.
5
Take a stand
Consumers are politicized today,
and technology brands, in
particularly, are often part of the
conversation. It is risky for brands
to insert themselves into the public
debate. But sometimes, when
brand core values are threatened,
silence can be deafening.
5 The Categories Technology/TELECOM PROVIDERS
Telecom Providers Major acquisitions

The telecom providers category includes brands that provide
mobile or fixed line telephone or internet services as stand-alone
speed transition
to entertainment
or bundled packages (along with other services, like television).
Challenger brands shift the conversation to price
It was a year of action. With These dynamics were especially companies to establish IoT leadership,
mergers and acquisitions, major evident in the US. Verizon negotiated to with an emphasis on security.
acquire Yahoo!, having purchased AOL
brands took steps to build
a year ago, and AT&T agreed to buy And in a legislative move that endorsed
consumer-facing entertainment media giant Time Warner, following its the changing status of telecoms as
businesses and position earlier acquisition of Direct TV. These content providers rather than voice
themselves for leadership in acquisitions transform Verizon and and data conduits, the US congress
the Internet of Things, while AT&T into entertainment providers, and rescinded the Obama administrations
challenger brands attempted fortify them against the over-the-top privacy restrictions. This enabled
(OTT) options favored by millennials. telecom providers to collect and share
to disrupt the category, usually customer data, treating the telecoms
with price. The BrandZ Telecom Verizon also acquired technology more like Google or Facebook than
Provider Top 10 increased 6 companies, particularly in telematics, like utilities. Similarly, US regulators
percent in value, following a 9 to prepare itself for leadership in considered changing Obama-era net
percent increase a year ago. the Internet of Things (IoT). AT&T neutrality rules that require treating all
actions to expand in IoT included internet traffic equally.
a partnership with IBM. Spains
BrandZ Top 100 Telefnica, which owns Movistar, also
Most Valuable Global sought partnerships with technology
Brands 2017

Year-on-Year Change TELECOM PROVIDERS TOP 10
Brand Brand Value
+6%
1 AT&T 115,112 3 7%
2 Verizon 89,279 3 -4%
3 China Mobile 56,535 4 1%

12-Year Change 4 Xfinity 41,808 3 N/A
5 Deutsche Telekom 38,493 3 2%
+173% 6
8
Vodafone
Movistar
NTT
31,602
22,002
20,197
3
2
-14%
0%
3%
9 Orange 17,180 3 -7%

Telecom Providers Top 10
Total Brand Value 10 BT 16,026 3 -14%
$448.2 billion
INSIGHT
INSIGHT Global branding INSIGHT
Vodafone, which operates in 26

countries, more than any other telecom
provider, completed its Project Spring
UK-based Vodafone, which sold its T-mobile, owned by Deutsche Telecom, initiative, investing in infrastructure
stake in Verizon several years ago, aggressively attacked on price, offering with the proceeds from the 2014 sale
announced plans to merge its India contract-free options that appealed of its stake in Verizon. The brand
operation with Idea Cellular. Combining to the practical, value-conscious, also focused on building consumer
Indias second- and third-largest nomadic spirit of millennials. Sprint relationships, strengthening loyalty, and
telecom providers would create a ads humorously mocked Verizons expanding ease of access.
brand surpassing Bharti Airtel as the coverage claims. Because the coverage
countrys leading telecom provider, of all networks has greatly improved Vodafone focused on four key
with around 400 million wireless since Verizon first claimed network performance indicators: strengthening
subscribers. superiority, a Sprint ad advised, Dont connectivity, helping customers
Middle Eastern let a 1 percent difference cost you twice manage their budgets, building loyalty,
Even in China, where the category
IoT represents is dominated by three state-owned brands attempt to as much. and providing ease of access. In several
markets, including the UK and Italy, US brands invest
a major opportunity enterprises, brands were not immune strengthen margins The Verizon brand also faced Vodafone promoted this orientation heavily in media to
for many brands
from competitive pressures. China
Telecom and China Unicom, the
with innovation challengers to its fixed-line business with an offering that allowed
fight pricing wars
that in certain markets includes FiOS dissatisfied customers to drop their
nations Nos. 2 and 3 carriers, agreed (fiber optic wiring). While the wireless contract after 30 days.
Telcos are talking about digital life Ten years ago the world was a In the US, telecom marketing
to share resources to match the business includes only three other
style. They are all working in this simpler place. There was lots tactics change quickly, consumer
4G capability of China Mobile, the national players, the fixed-line business Movistars positioning and offering
space and believe theyve got the of copper. And telco brands communication spending is higher
category leader, which served 849 is organized regionally and includes varied somewhat by country. The
differentiator, but it is clear that provided a connection. Then than most categories, and the
million customers, including 535 million cable providers and competitors such brand is a quad-play provider in Spain,
their offers arent differentiated suddenly the world got smart tone is combative. Even as brands
on 4G, at the end of 2016. as Xfinity, which joined the BrandZ offering fixed line, wireless, broadband,
enough. Telefnica is trying to be and all these content and app try to elevate their messages
providers appeared. In the Middle Telecom Providers Top 10. Xfinity and TV services. The mix varies in
more specific. It operates with In addition, the Chinese government recently introduced mobile service. and become more emotional in
East, until recently, the category Latin America, where the brand may
three commercial brands: Movistar issued a new telecommunications their communication, they are
was about a race to the bottom, be a leader or a challenger, depending
in Spain and parts of Latin license to the China Broadcasting In India, a new telecom challenger still playing the price game. And
giving data away. This year, as on the country. Movistar is owned by
America; Vivo in Brazil; and O2 in Network (CBN). The new challenger called Jio entered the market with thats what consumers hear. Its a
margins decline, theres been Telefnica, which is branded Movistar
Germany and the UK. Telefnica could accelerate the expansion of a promotion offering limited data fast-moving category for a slow-
a realization that thats not a in Spain and many other markets, but
has a focus on the Internet of triple play service, including phone, at a low price. It was not clear how moving service. Promotions of new
sustainable business model. also operates as Vivo in Brazil, and O2
Things. As a telco, Telefnica can internet, and TV. And, as in all markets, loyal the customers will be when the contracts or plans can happen
Suddenly, lifestyle groups are in Germany and the UK.
connect everybody. Its looking the Chinese telecom providers faced introductory pricing ends, since Indian within a week. For example, only
at partnerships with technology appearing within the major telcos, about four days after Verizon
fierce competition from the OTT mobile users often switch their SIM In the UK, BT incorporated a recent
companies. One of Telefnicas wondering what they can invest introduced an unlimited data plan,
entities that provide free voice and cards, depending on which telecom acquisition, along with an earlier one,
strongest areas of focus is security, in. Its almost like a venture capital AT&T followed by expanding its
data communication over the internet. Airtel, Vodafone, or Ideahas the best into a portfolio of three brandsBT, EE,
a critical IoT issue. Having gone play, hoping that something is unlimited plan. There is probably
going to work. They are looking at deal. and PlusNet. BT focused on creating
from full pelt around content and
entertainment and owning the
More challengers being leaders in smart cities and clear and complementary brand
more brand loyalty than in FMCG
categories, not out of emotional
the Internet of Things. Once they Similarly, a challenger, Tele2, entered positions, and coordinating the lines
home, Telefnica has moved on to the Russian market, pressuring the connection, but because switching
The AT&T and Verizon transactions define who they are and where of business, which include fixed line,
managing and owning the space three majorsMTS, Beeline, and can be difficult.
potentially add new revenue streams they want to go, customers are broadband, sports, and other content.
of IoT. MegaFon. Compounding the pressure,
and increase brand differentiation. going to need confidence in the Alexandra Dziuma
They also expand the competitive set brand to join them on the journey. a recent national security law changed Major Middle Eastern telecom
Nicky Nicolls Vice President
to include media and entertainment No one knows the destination. the rules about customer data providers also attempted to move
President of Spain and Latin America Kantar Millward Brown
businesses like Netflix, or even Now its jump on the bus and join retention and government access to beyond the low-margin voice and data
Lambie-Nairn Alexandra.Dziuma@milllwardbrown.com
Amazon. With its ownership of AOL, the Magical Mystery Tour. data, which increased expenses and business. They investigated diverse
N.Nicolls@lambie-nairn.com squeezed profits. possibilities under the broad rubric of
and potentially Yahoo!, Verizon gains
expertise in managing consumer data Andrew Bone digital lifestyle, and invested in startups
and creating targeted advertising. Chief Strategy Officer - MENA to assert leadership in smart cities
Meanwhile, challengers Sprint and Hill+Knowlton Strategies infrastructure and IoT.
Andrew.Bone@hkstrategies.com
INSIGHTS
ANALYSIS
Size matters in transition
from pipe to content brand
Size matters in the telecom provider category. AT&T, the The decline in being viewed as Meaningfully Different
Category searches for ways No. 1 brand in the BrandZ telecom providers ranking, has leveled, however, suggesting that the strategic shift
to use its rich data troves increased 1,623 percent in value over 12 years, compared of telecom providers from voice-and-data pipes to
with a 173 percent rise for the Telecom Providers Top 10. entertainment and content brands may be gaining traction.
The telco category is massively in search of Both AT&T and the Top 10 declined in being viewed as
meaning. This has been the case for a long time. Brands need to talk Meaningful (meeting needs in relevant ways) during that
period, when gaining scale required building infrastructure
They continue to try to redefine the business that
theyre in. Most brands are exploring banking about consumer needs to expand networks and promoting multi-year contracts to TOP 5 COMPRISE TWO-THIRDS OF VALUE
and entertainment, with modest success, but beyond functionality gain customers. The Telecom Providers Top 5 comprise around two-thirds
of the Top 10 brand value, much the same as 12 years ago.
strong, focused brands already occupy those
spaces with great credibility. Further industry The Telecom Providers Top 5 comprise around three-
Telecom providers have had a tendency to PROPORTION OF VALUE
consolidation is inevitable as margins get quarters of the Top 10 brand value, much the same as 12
focus on communicating their functional claims,
squeezed. Most of the players have a lot of years ago. And because of their scale, the larger telecom Top 5 Bottom 5
whether its core claims like network coverage/
customer and other data but find it difficult to providers have the resources to invest in transforming from
speed or add-on services like money transfer. But
organize, curate, and use. They tend to focus on
customer acquisition rather than retention. There
its a technological treadmill with all providers
voice-and-data conduits to entertainment and content
providers. The Top 5 telecom providers exceed the Bottom
2006 72% 28%
competing on the same functional territories
is an obvious opportunity for brands to develop 5 in the key BrandZ metrics of Brand Purpose, Brand
and consequently not a source of lasting Top 5 Bottom 5
greater customer-centricity as this is mostly Experience, and Meaningful Difference.
differentiation, and as brands aim to take a lead in
lacking. The brands need to seriously reconsider
their value propositions to consumers and decide
a world of connected devices, there is potential for
this focus on functionality to increase even further
But the focus on building functionality had other 2017 76% 24%
where they can be unique. This will also ensure consequences. Although consumers see the three most
and grow more complex. Few communication
a stronger customer focus. With this as base, valuable Telecom ProvidersAT&T, Verizon, and China Source: BrandZ / Kantar Millward Brown
brands succeed in accessing the emotional
there are opportunities for expanded ecosystems Mobileas Meaningfully Different, they declined in
consumer benefit, beyond pure functionality, to
(including other brands, products, and services) that metric over the past 12 years, probably because of
create a brand experience that truly connects with
that offer the consumer a wider and more consumers. As the world of technology becomes
increased competition, including challenger brands that AND TOP 5 LEAD IN KEY METRICS
integrated brand experience and that enables appealed to young consumers using price-driven, pay-as-
ever more sophisticated, there is growing space The Top 5 telecom providers exceed the Bottom 5 in the
telcos better commercializing opportunities for you-go options and more edgy communications.
for brands to resolve how new functionalities key BrandZ metrics of Brand Purpose, Brand Experience
their customers and their data. This relies upon deliver benefits for consumers. But keep it simple; and Meaningful Difference.
having the consumer at the center, enabled focus on one angle that holds real consumer
through connected data and technology.
BRAND IMPLICATIONS
meaning. Once you have the consumers attention, TELECOM PROVIDERS CATEGORY PERFORMANCE
you can expand the conversation and reveal more.

Thomas Oosthuizen Top 5 Bottom 5
Global Consulting Director Laura MacFarlane The major telecom providers have made
Acceleration significant acquisitions to transition into
Brand Purpose 109 103
Senior Client Director, Retail and Services
TOosthuizen@acceleration.biz Kantar Millward Brown content and entertainment. This transition Brand Experience 111 104
Laura.Macfarlane@millwardbrown.com widens the competitive set. The consumer
is being asked to make a more complicated Meaningful Difference 125 101
choice that requires more than deciding which
carrier has the most reliable network for the
best price. Being Meaningfully Different will be Source: BrandZ / Kantar Millward Brown
especially important, because the consumer
also is considering Amazon, Netflix, and other
entertainment and content providers.
CHICAGO - US
Value of all US brands

in Global Top 100
BRAND BUILDING $2.6 Trillion
ACTION POINTS
1
Reposition for the future
The mismatch between the term
telecom and actual telecom
3
brand offerings crystalizes the
category challenge. Define the Protect data
business based on how it is likely
to evolve over the next 5 or 10 Make the security of the
years, and organize strategies customers data a priority. That
around that future. requires a cultural commitment to
implementing all the technology
innovations needed to secure
data, and communicating, in a
2
straightforward and honest way, to
Articulate the benefit make the promise believable.
Every telecom provider wants to be
different. Many would say that their
4
shiftfrom pipe transmitting data
to digital lifestyle providermakes Simplify
them different. But what does that
Telecommunications is a
mean, and how is it differentiating?
complicated business at a time
Give customers a reason why they
when consumers seek simplicity.
should be with you. Articulate the
Create propositions that are
benefit. It probably is not technical.
easily understood, not confusing.
Thought Leadership/BUILDING BRAND VALUE
THOUGHT LEADERSHIP
Building Brand Value DOREEN WANG

Brand is the most powerful intangible asset. Understanding
a brands worth to the business in financial terms is
therefore an essential part of managing, protecting and
measuring it. Identifying exactly how the brand contributes
to revenues means it can be strengthened and improved
to keep the business relevant and competitive. Kantar
Leverage digital
Millward Brown research shows that more than 30 percent
of shareholder value is driven by brands.
A valuable brand helps a business strengthening engagement by

command a price premium, making a brand more present
to accelerate
survive a crisis, and grow and active in consumers lives.
faster than its competitors. A Fully leveraged, digital channels
Global Head of BrandZ measurement of the strongest can be used to develop and
Doreen.Wang@
brands from the BrandZ Global amplify brand attributes through
kantarmillwardbrown.com Top 100 as a stock portfolio a consistent, relevant, and
growth of brand
over the last 12 years shows their compelling 360-degree customer
share price has risen over three experience. This will create the
and one-half times more than the associations and perceptions in
Modern Index Strategy Indexes consumers minds that predispose
(MSCI) World Index, and two- them to choose a brand. The
equity and value

thirds more than the S&P 500. opportunity is enormous, but it
must be pursued correctly.
Some 60 percent of the financial
value of a brand is made up of Integrate all strategies
its equityin other words, the
consumers predisposition to Multiple digital touchpoints and
select it. Strong earnings and interactions offer opportunities to
financial management by the capture data on how consumers
parent company are key, of interact with and perceive the
Getting it right requires course, but the opinions of the brand. This allows marketing
integrated strategy, people who buy the brand are the
most important driver of value.
activities to be optimized at
exactly the right points in the
research, and measurement customer journey to build
New and emerging digital relationships in the short term,
technologies, channels, and and loyalty for the long term.
formats offer opportunities to Immediate feedback can be
boost equity. Digital channels used to personalize the customer
global research agency specialising
in advertising effectiveness, have a huge role to play in experience and communications.
3 Thought Leadership Thought Leadership/BUILDING BRAND VALUE
Integrate
Consumers expect a seamless Improve research Dont treat digital
experience across all channels, and measurement like a free ride
and every interaction should
reflect the brands values and Theres a growing need for quality There is a general misperception
work towards a collective
security
insight to inform strategic brand that digital channels are free
purpose. First, the digital management decisionsboth and some businesses have cut
strategy needs to be aligned around the role each digital their marketing and branding
across all channels. This may channel plays in achieving budgets accordingly. Investment
sound obvious, but nearly one- objectives, and on consumer is still necessary to establish
third of marketers arent setting behavior, which is constantly brand equity in the digital space.
with digital
integrated digital strategies shifting. Only 45 percent of
across desktops, laptops, mobile marketers feel confident their A brand proposition that
devices, and social platforms organization understands the consumers see as distinctive and
(Kantar Millward Browns Getting consumer journey (Getting Digital unique has the potential to drive
Digital Right, 2016). Right), indicating that more value, but this proposition needs
strategy
than half of businesses are not to be amplified with advertising
Digital channels must also be reaching and influencing people and marketing. Those brands in
aligned with traditional channels, at the right time, in the right way, the BrandZ Global Top 100 that
so that brand experiences can with the right content. have both a strong proposition
be connected. Most importantly, and excellent advertising
everything must be linked to the According to Getting Digital Right, which include IBM, FedEx, Ikea,
brand proposition. The brand, 59 percent of marketers are still Nike, BMW, Colgate, Google,
marketing, and digital strategies not confident in their use of big Samsung, Chanel, McDonalds,
also need to interlock with data. All the information a brand and Coca-Colahave grown Its also imperative that the being linked up, and data is
the overall business strategy, needs to grow its value is already their value three times faster in security strategy is integrated flowing through cloud-based
so all activities feed a core available; it is the marketing and the last decade than those with
set of objectives and serve with the digital strategy. For applications and mobile
brand departments responsibility a strong proposition but weaker
the overarching vision. Data the sake of effective data devices. Loss of confidential
to challenge their agency and advertising.
from multiple sources can be media partners to help them protection and information customer details at any
combined to reveal rich insights derive actionable insights. Brands are valuable, and management, security controls weak point in a businesss
into consumers behavior and they drive revenues. Business need to evolve as the business infrastructure or processes can
preferences. Measuring the ROI of digital should be unafraid to embrace adopts new technologies damage a brands reputation
marketing and branding activities digital formats to build their and ways of working, and as overnight to an extent that
Another challenge created by the along the customer journey brands presence and engage
proliferation of digital channels customer journeys develop. may never be completely
against KPIs is also essential, as is consumers. By being the first to
is building a brand experience As a business becomes more repaired. The transparency of
evaluation of the effectiveness of try something new, and investing
that is completely consistent advertising, to link brand activity to keep up with dramatic customer-centric, data should digital business makes it easy
across all touchpoints. If data is directly to sales. developments in technology, be sufficiently protected at for a customer to see if a brand
not joined up, or one part of the companies can increase the every point it is collected, has misused its data or has not
experience jars with the rest contribution the brand makes shared, used, and stored. followed the rules. There is no
for instance, great advertising to the bottom line. Most of Silos are being broken down, hiding place.
drives customers to the website, all, the digital strategy should
but the items appearing in the ad systems and databases are
not be considered simply as a
are not in stockthis can have a roadmap for leveraging digital
negative impact on perceptions formats. Digital is a way of life
and, therefore, brand value. for consumers, and it should be
the same for the businesses that
serve them.
Resources
6 Resources Resources/BRANDZ VALUATION METHODOLOGY
Methodology
BrandZ Brand Valuation

Methodology The Valuation Process
INTRODUCTION
The brands that appear in this competitors that rely only on a panel
of experts, or purely on financial
Meaningful Step 1: Calculating earnings. We call this component
the Brand Multiple. Its similar to the
way to consumers), and being Salient
(coming to mind quickly and easily
report are the most valuable in In any category, these brands appeal
and market desktop research. more, generate greater love and Financial Value calculation used by financial analysts when people are making category
the world. They were selected
meet the individuals expectations and to determine the market value of purchases).
for inclusion in the BrandZ Before reviewing the details of this needs. Part A stocks (Example: 6x earnings or 12x
Top 100 Most Valuable Global methodology, consider these three We start with the corporation. In earnings). Information supplied by We identify the purchase volume and
Brands 2017 based on the fundamental questions: why is brand
Different some cases, a corporation owns only Bloomberg data helps us calculate a any extra price premium delivered
unique and objective BrandZ important; why is brand valuation one brand. All Corporate Earnings Brand Multiple. We take the Branded by these brand associations. We call
These brands are unique in a positive
brand valuation methodology important; and what makes BrandZ come from that brand. In other Earnings and multiply that number by this unique role played by brand, the
way and set the trends, staying
the definitive brand valuation tool? cases, a corporation owns many the Brand Multiple to arrive at what Brand Contribution.
that combines extensive and ahead of the curve for the benefit of
we call Financial Value.
the consumer. brands, and we need to apportion
ongoing consumer insights
with rigorous financial analysis.
Importance of brand the earnings of the corporation Heres what makes BrandZ so
Salient
across a portfolio of brands. Step 2: Calculating unique and important. BrandZ is the
only brand valuation methodology
The BrandZ valuation methodology
Brands embody a core promise of
They come spontaneously to mind as To make sure we attribute the
Brand Contribution that obtains this customer viewpoint
values and benefits consistently
can be uniquely distinguished from the brand of choice for key needs. correct portion of Corporate by conducting worldwide ongoing,
delivered. Brands provide clarity So now we have got from the total
its competitors by the way we obtain Earnings to each brand, we in-depth, and consistent quantitative
and guidance for choices made by
consumer viewpoints. We conduct
companies, consumers, investors and Importance of analyze financial information from
value of the corporation to the part
that is the branded value of the
consumer research, online and face-
worldwide, ongoing, in-depth
quantitative consumer research, and
others stakeholders. Brands provide brand valuation annual reports and other sources,
such as Kantar Retail and Kantar
business. But this branded business
to-face, building up a global picture
of brands on a category-by-category
the signposts we need to navigate value is still not quite the core that we
build up a global picture of brands Worldpanel. This analysis yields a and market-by-market basis. Our
the consumer and B2B landscapes. Brand valuation produces a metric are after. To arrive at Brand Value, we
on a category-by-category and metric we call the Attribution Rate. research now covers over three
At the heart of a brands value that quantifies the worth of these need to peel away a few more layers,
market-by-market basis. million consumers and more than
is its ability to appeal to relevant powerful but intangible corporate such as the in-market and logistical
customers and potential customers. We multiply Corporate Earnings 100,000 different brands in over 50
Globally, our research covers three assets. It enables brand owners, the factors that influence the value of the
BrandZ uniquely measures this by the Attribution Rate to arrive at markets since we first introduced the
million consumers and more than investment community and others branded business, for example: price,
appeal and validates it against actual Branded Earnings, the amount of BrandZ ranking in 2006.
100,000 different brands in over 50 to evaluate and compare brands and availability and distribution.
sales performance. Brands that Corporate Earnings attributed to a
make faster and better-informed
markets. This intensive, in-market
consumer research differentiates
succeed in creating the greatest decisions.
particular brand. If the Attribution
What we are after is the value of the Step 3: Calculating
Rate of a brand is 50 percent, for
the BrandZ methodology from
attraction power are those that are:
example, then half the Corporate
brand itselfthat intangible asset that Brand Value
Brand valuation also enables exists in the minds of consumers. To
Earnings are identified as coming
marketing professionals to quantify determine this, we have to assess Now we take the Financial Value and
from that brand.
their achievements in driving business the ability of brand associations in multiply it by Brand Contribution,
growth with brands, and to celebrate consumers minds to deliver sales by which is expressed as a percentage
these achievements in the boardroom. Part B predisposing consumers to choose of Financial Value. The result is
What happened in the pastor even the brand or pay more for it. Brand Value. Brand Value is the
Distinction of BrandZ whats happening todayis less
important than prospects for future
dollar amount a brand contributes
We focus on the three aspects of to the overall value of a corporation.
earnings. Predicting future earnings brands that we know make people Isolating and measuring this
BrandZ is the only brand valuation
requires adding another component buy more and pay more for brands: intangible asset reveals an additional
tool that peels away all of the
to our BrandZ formula. This being Meaningful (a combination of source of shareholder value that
financial, logistical, and in-market
component assesses future earnings emotional and rational affinity), being otherwise would not exist.
components of brand value and
prospects as a multiple of current Different (or at least seeming that
gets to the corehow much brand
alone contributes to corporate
value. This core, which we call Brand
Contribution, differentiates BrandZ.
6 Resources Resources/ BRANDZ REPORTS AND APPS
Methodology Reports and Apps powered by BrandZ
Why BrandZ is
the definitive Brand
Going
valuation methodology Global? BRANDZ TOP 100 MOST
VALUABLE CHINESE
BRANDS 2017
The report profiles Chinese
brands, outlines major trends
driving brand growth, and
BRANDZ TOP 50 MOST
VALUABLE INDIAN
BRANDS 2016
This in-depth study analyzes
the success of powerful and
emerging Indian brands,
All brand valuation How does the Whats the BrandZ includes commentary on the
growing influence of Chinese
explores the Indian consumers
shopping habits, and offers
methodologies are similarup
competition determine benefit? brands at home and abroad. insights for building valuable
to a point.
the consumer view? We wrote the book. wppbaz.com/report/china/2017 brands.
The BrandZ methodology produces wppbaz.com/report/india/2016
All methodologies use financial Interbrand derives the consumer important benefits for two broad
research and sophisticated point of view from different sources audiences: BRANDZ COUNTRY REPORTS:
mathematical formulas to like primary research and panels of ESSENTIAL TRAVEL GUIDES
calculate current and future experts who contribute their opinions. Members of the financial
earnings that can be attributed community, including
FOR GLOBAL BRAND BUILDING
directly to a brand rather Why is the BrandZ analysts, shareholders,
than to the corporation. This methodology investors and C-suite, who Our BrandZ country reports contain unparalleled
exercise produces an important superior? depend on BrandZ for the
market knowledge, insights, and thought leadership
but incomplete picture. about the worlds most exciting markets.
most reliable and accurate BRANDZ TOP 50 MOST BRANDZ TOP 50
BrandZ goes much further and VALUABLE INDONESIAN MOST VALUABLE LATIN
is more relevant and consistent. brand value information Youll find, in one place, the wisdom of WPP brand
Whats missing? The picture BRANDS 2016 AMERICAN BRANDS 2017
Once we have the important, but building experts from all regions, plus the unique
of the brand at this point lacks available. consumer insights derived from our proprietary
Now in its second year, this The report profiles the most
incomplete, financial picture of study analyzes the success of valuable brands of Argentina,
input from the people whose the brand, we communicate with BrandZ database. Indonesian brands, examining Brazil, Chile, Colombia, Mexico,
opinions are most important: consumerspeople who are actually Brand owners, who turn to the dynamics shaping this fast- and Peru and explores the
paying for brands every day, regularly If youre planning to expand internationally, BrandZ emerging market and offering socioeconomic context for
consumers. This is where the BrandZ to more deeply
and consistently. Our ongoing, country reports are as essential as a passport. insights for building valuable brand growth in the region.
BrandZ methodology and brands.
in-depth quantitative research understand the causal links wppbaz.com/report/latin-america/2017
the methodologies of our wppbaz.com/report/indonesian/2016
includes three million consumers between brand strength,
competitors part company. and more than 100,000 brands in
over 50 markets worldwide. We have sales, and profits, and to
been using the same framework to translate those insights into
evaluate consumer insights since strategies for building brand
we first introduced the ranking in
2006; this provides us with historical equity.
understanding of the change in brand
equity. We have used this framework to
measure these insights for many
years, which enables us to make
BRANDZ TOP 20 SPOTLIGHT ON CUBA SPOTLIGHT ON SPOTLIGHT ON
historical and cross-category
MOST VALUABLE SAUDI Cuba is a market unparalleled MYANMAR MONGOLIA
comparisons. ARABIAN BRANDS 2017 both in the Caribbean region The story of Myanmar is one Mongolias GDP has grown
As Saudi Arabia embarks and the world. Brand awareness of huge potential, as a new at rates as high as 17 percent
on an ambitious program of among Cubans is high, but era of openness signals strong in recent years, encouraging
transformation, this ranking gaining access to them is growth opportunities. Now is a growing number of
explores the countrys most uniquely challenging. Now is the the time for brands to make international brands to gravitate
accomplished brands, analyzes time to plan your Cuba strategy. an impression in this emergent toward this fast-growth market
their success, and identifies wppbaz.com/article/spotlight-on-cuba economy. and make a beeline for one of
the key forces that are driving wppbaz.com/article/spotlight-on- Asias hidden gems.
growth in this market. myanmar-report wppbaz.com/article/spotlight-on-
wppbaz.com/report/saudi-arabia/2017 mongolia-report
6 Resources Resources/BRANDZ REPORTS AND APPS
Reports and Apps powered by BrandZ
The BRANDZ
BRANDZ
China Insights Reports BRAND
TRUSTR
ENGAGING CONSUMERS IN
THE POST-RECESSION WORLD
REPZ
MAXIMIZING BRAND AND
CORPORATE INTEGRITY
In-depth brand-building intelligence about todays China

BUILDING
Trust is no longer enough. Strong brands Major brands are especially vulnerable
inspire both Trust (belief in a brands to unforeseen events that can quickly
promise developed over time) and threaten the equity cultivated over a long
TOOLS
Recommendation (current confirmation of period of time. But those brands with a
THE OPPORTUNITY TO BUILD BRANDS that promise). This combination of Trust better reputation are much more resilient.
and Recommendation results in a new Four key factors drive Reputation: Success,
IN CHINA IS GREATER THAN EVER. BUT metric called TrustR. Fairness, Responsibility and Trust. Find out
how your brand performs.
SO ARE THE CHALLENGES. www.wpp.com/wpp/marketing/brandz/trustr
The fastest growth is happening deep in the country, in

less well-known cities and towns. Consumers are more
sophisticated and expect brands to deliver high-quality
products and services that show real understanding of UNMASKING THE THE POWER AND WebZ
local market needs. INDIVIDUAL CHINESE POTENTIAL OF THE USA | Banking/Financial
Transactions | 2016
INVESTOR CHINESE DREAM

Prepared May 2017
WPP has been in China for over 40 years. We know the This exclusive new report The Power and Potential of
Chinese market in all its diversity and complexity. This provides the first detailed the Chinese Dream is rich with
examination of Chinese knowledge and insight, and
experience has gone into our series of BrandZ China CHARACTERZ INNOVATIONZ WEBZ
investors: what they think about forms part of a growing library
reports. They will help you avoid mistakes and benefit risk, reward, and the brands of WPP reports about China. BRAND PERSONALITY ANALYSIS DEEPENS DISCOVER INNOVATIONZ, A DYNAMIC YOUR WEB TRAFFIC
from the examples of successful brand builders. they buy and sell. This will It explores the meaning and BRAND UNDERSTANDING NEW TOOL FROM BRANDZ STORY FOR YOUR BRAND
help brand owners worldwide significance of the Chinese Need an interesting and stimulating way to Discover innovation ideas from around WebZ helps you understand your brands
understand market dynamics Dream for Chinese consumers, engage with your clients? Want to impress the world, personalized to your clients digital journey! Through analyzing how
and help build sustainable value. as well as its potential impact on them with your understanding of their category. traffic is driven to your brands website,
wppbaz.com/article/unmasking-the- brands. brand? A new and improved CharacterZ wppbaz.com/wpp-resources-and-companies it will help you understand your audience
individual-chinese-investor-report wppbaz.com/article/chinese-dream- can help! It is a fun visual analysis, demographics and gain insights into
report underpinned by the power of BrandZ, viewer trends.
which allows detailed understanding of
your brands personality.
wppbaz.com/wpp-resources-and-companies
BRANDZ TOP 30 8 RETAIL TRENDS IN THE CHINESE GOLDEN THE CHINESE NEW YEAR
CHINESE GLOBAL BRAND CHINA FOR THE YEAR OF WEEKS IN FAST-GROWTH IN NEXT-GROWTH CITIES
BUILDERS 2017 THE ROOSTER CITIES The report explores how
This groundbreaking study With the continued rebalancing Using research and case Chinese families celebrate this
aims its radar at the edge of of the Chinese economy, 2017, studies, the report examines ancient festival and describes
the Chinese brand universe, The Year of the Rooster, could the shopping attitudes how the holiday unlocks year-
exploring developed country be characterized as another and habits of Chinas rising round opportunities for brands
markets where only a few
SocialZ is the new social media data
year of change for China. middle class and explores and retailers, especially in
Chinese brands have dared to visualization product from BrandZ that
The retail sector is at the opportunities for brands in Chinas lower-tier cities.
goso far. enables you to easily track, visualize,
intersection of much of this many categories. wppbaz.com/article/chinese-new-
wppbaz.com/article/just-launched- transformation, and with the year-report
and present a real-time view of the
wppbaz.com/article/chinese-golden-
brandz--chinese-global-brand- rapid growth of e-commerce, weeks-report social landscape surrounding any brand.
builders-download-the-full-report-now
Chinese retail is changing and
adapting fast.
wppbaz.com/article/china-retail-
trends-report-2017
Only available via your WPP Agency

296 297
6 Resources Resources/WPP COMPANY CONTRIBUTORS
WPP Company Contributors
These companies contributed

knowledge, expertise, and
perspective to the report
ACCELERATION BURSON-MARSTELLER COLEY PORTER BELL CONTRACT DKSH GEOMETRY GLOBAL GREY GROUP XP
Acceleration crafts modern Burson-Marsteller, established Coley Porter Bell creates Setting a scorching pace since DKSH is the leading Market Geometry Global, the worlds Grey ranks among the worlds Group XP is a unique
marketing capability for in 1953, is a leading strategic extraordinary brands, its inception in 1986, Contract Expansion Services Group largest and most international top advertising and marketing consulting model formed
global brands and industry communications and global packaging, experiences Advertising in the last 30 with a focus on Asia. We brand activation agency, organizations. Grey operates through the partnership
leaders. Early on Acceleration public relations firm. It and communications. years has built a reputation for help companies to grow their drives conversion, action and in 96 countries and serves between Brand Union,
understood the radical impact provides clients with strategic Extraordinary because they igniting the flames of passion business in new and existing purchase through award- one-fifth of the FORTUNE FITCH, SET & SET Live. We
that technology would have thinking and program are intuitive, beautiful and that have created trailblazing markets. winning programs that change 500. Its parent company is believe that great customer
on the future of brands. A execution across a full range effective. brands across industries. behavior and inspire people WPP. Under the banner of experience is the key driver of
rare breed of individuals with of public relations, public A passion for insights, an For this, we offer a to buy well. With teams in 56 Grey Famously Effective business growth today.
comprehensive experience in affairs, reputation and crisis Too often brands make logical obsession with out-of-the- comprehensive package markets, Geometry Global has Since 1917, the agency serves Together, we are over 1000
building marketing capability, management, advertising and sense but fail to intuitively box ideas, strategic thinking of services that includes expertise in shopper, digital, a blue-chip client roster of strategic and creative thinkers
driving best practice and digital strategies. The firms connect. To address that we that breaks the traditional organizing and running the experiential, relationship, many of the worlds best located across 40 studios
implementing marketing seamless worldwide network combine System 2 strategic mould, a fanatical pursuit of entire value chain for any promotional and trade known companies: Procter worldwide. By connecting
technology. consists of 77 offices and rigour with design flair, creativity and a commitment product: from sourcing, marketing. Geometry Global is & Gamble, GlaxoSmithKline, diverse perspectives and skills
85 affiliate offices, together building in intuitive System to driving business results; market analysis, research and a WPP company. Darden Restaurants, Pfizer, in our network, we bring a
Operating at the intersection operating in 110 countries 1 thinking to unlock the these resolves sum up the analysis, marketing and sales Canon, NFL, Boehringer- holistic view of experience
of technology and strategy, across six continents. extraordinary in your brand. Contract difference and have to distribution and logistics www.geometry.com Ingelheim, Marriott Hotels & to create transformative
consumer engagement Burson-Marsteller is a unit We call this Visual Planning. made us Indias firebrand and after-sales services. Resorts, Eli Lilly, Walgreens interactions between brands
and insights to build the of WPP, the worlds leading Its agile and collaborative, agency. Besides mass media Headquartered in Zurich, Steve Harding Boots, Ally Financial and and people.
specific programs needed communications services blending intuitive and advertising, Contract offers we blend Swiss reliability, Global CEO Kelloggs. Grey was recently
to grow market share and network. projective techniques truly integrated marketing professionalism and Steve.Harding@geometry.com named Adweeks Global www.group-xp.com
expand global reach. Since with visual storytelling, and communication solutions best practice corporate Agency of the Year and Ad
our inception we have www.burson-marsteller.com revealing a compelling brand through its specialist divisions governance with 150 years Ages Agency of the Year. Simon Bolton
established a reputation in purpose and personality, the namely iContract (Digital), of uninterrupted business Group CEO
accelerating value-delivery Donald A Baer foundation for extraordinary Designsutra (Design) and presence in Asia. www.grey.com Simon.Bolton@group-xp.com
for brands on the road to Worldwide Chair and CEO design. Core (Consulting). We provide our business
digital transformation. Part of Don.Baer@bm.com partners with sound expertise, James R. Heekin
Wunderman Data, we employ The result is visual, verbal www.contractindia.co.in on-the-ground logistics and Chairman and CEO
over 150 strategic marketing and sensory identities, tailor-made services based on James.Heekin@grey.com
technologists. instantly recognisable, highly Rana Barua a comprehensive network of
stimulating; identities which Chief Executive Officer unique size and depth.
www.acceleration.biz seduce the subconscious and Rana.Barua@contractindia.
convince the conscious, and co.in www.dksh.com
Richard Mullins deliver real-world success.
Managing Director of MEA Stefan Butz
Richard@acceleration.biz www.coleyporterbell.com Chief Executive Officer
Michael.Juste@dksh.com
Vicky Bullen
Chief Executive Officer
Vicky.Bullen@cpb.co.uk

GROUPM GTB HILL+KNOWLTON JOULE J. WALTER THOMPSON KANTAR KANTAR ADDED VALUE KANTAR FUTURES
STRATEGIES
GroupM is the leading Introducing GTB! You Joule is WPPs mobile-first J. Walter Thompson Kantar is the data investment Kantar Added Value is As the leading global strategic
global media investment probably remember us as Hill+Knowlton Strategies, marketing agency. Providing Worldwide, the worlds management arm of WPP a creative marketing insights and innovation
management group, serving either Team Detroit, Retail Inc. is an international an end to end service that best-known marketing and one of the worlds leading consultancy. We are one of consultancy, with unparalleled
as the parent to WPP media First or Blue Hive. But communications consultancy, cuts through media and communications brand, has data, insight and consultancy the founding partners of global expertise in foresights,
agencies including Mindshare, those names are not really providing services to creative silos, Joule works with been pioneering brands that companies. Working together Kantar Consulting, the sales trends and futures, Kantar
MEC, MediaCom, Maxus, representative of who we are. local, multinational and brands and partner agencies connect people, change across the whole spectrum and marketing consultancy Futures offers a complete
Essence, and m/SIX, as well Today, were like no other. We global clients. The firm to ensure excellent mobile first culture, and drive commerce of research and consulting at the heart of WPP. We range of subscription services
as the programmatic digital combine everything under is headquartered in New connected experiences. With for more than 150 years. disciplines, its specialist challenge our clients to build and consulting solutions
media platform Xaxiseach one global roof to create York, with 87 offices in 49 a team consisting of friendly Headquartered in New York, brands, employing 30,000 brands that shift categories to help clients profit from
global operations in their own some of the most memorable countries, as well as an mobile strategists, creatives, J. Walter Thompson is a true people, provide inspirational and shape culture because change by understanding
right with leading market and effective advertising extensive associate network. designers and media planners, global network with more insights and business we recognise that at a time and anticipating change and
positions. GroupMs primary anywhere. The agency is part of WPP, Joule use some of the most than 200 offices in over strategies for clients in 100 when people are way more shaping future strategies
purpose is to maximize the one of the worlds largest sophisticated proprietary 90 countries, employing countries. Kantar is part of interested in their lives than accordingly. Kantar Futures
performance of WPPs media We were born different, communications services tools to deliver campaigns nearly 12,000 marketing WPP and its services are in the brands we are charged was formed through the
agencies by operating as founded to create an entirely groups. across multiple screens that professionals. The agency employed by over half of the with marketing, we need to integration of The Henley
leader and collaborator in new model of collaboration resonate and perform. Joule consistently ranks among the Fortune Top 500 companies. develop brands that deliver Centre, HeadlightVision,
trading, content creation, and give marketers access to www.hkstrategies.com is a global agency, and counts top networks in the world experiences and champion Yankelovich and TRU. Kantar
sports, digital, finance, and the breadth of WPPs talent, some of the worlds most and continues a dominant www.kantar.com issues that people genuinely Futures is a company within
proprietary tool development. ideas and tools. The result? Sam Lythgoe eminent brands amongst presence in the industry by want to engage with. Its WPP, with offices located in
GroupMs focus is to deliver An agency that truly works at Global Head, our client base, including staying on the leading edge Eric Salama how we add value. Today Europe, North America, Latin
unrivaled marketplace the intersection of business Business Development Unilevers global mobile from hiring the industrys CEO we operate globally from 10 America and Asia-Pacific.
advantage to its clients, and everything imaginable. Sam.Lythgoe@ strategy across the 15 of their first female copywriter to Eric.Salama@kantar.com locations in 9 countries.
stakeholders, and people, and Welcome to GTB. hkstrategies.com one billion dollar brands. developing award-winning www.thefuturescompany
is increasingly working closely branded content. For more www.added-value.com .com
for the benefit of clients www.gtb.com www.jouleww.com information, follow us
with WPPs data investment @JWT_Worldwide. Bart Michels Lloyd Burdett
management group, Kantar. Kim Brink Francesca Bateman Global Chief Executive Officer Head of Global Clients
Together GroupM and Kantar Chief Operating Officer Global CEO www.jwt.com Bart.Michels@kantar.com and Strategy
account for over 50% of Kim.Brink@gtb.com Francesca.Bateman@ Lloyd.Burdett@
WPPs group revenues of jouleww.com Tamara Ingram thefuturescompany.com
more than $20 billion. CEO
Tamara.Ingram@jwt.com
www.groupm.com
Irwin Gotlieb
Chairman
Irwin.Gotlieb@groupm.com

KANTAR IMRB KANTAR MILLWARD KANTAR RETAIL KANTAR TNS KANTAR VERMEER KANTAR WORLDPANEL LAMBIE-NAIRN LANDOR
BROWN
Kantar IMRB is a pioneer of We are the retail and shopper Kantar TNS is one of the Kantar Vermeer is the only Kantar Worldpanel is the Lambie-Nairn has been A global leader in brand
market research services Kantar Millward Brown is specialists. We are a leading worlds largest research global marketing consultancy global expert in shoppers creating Dynamic Brands for consulting and design,
in Asia. With over 40 years a leading global research retail and shopper insight, agencies with experts in over focused on unleashing behavior. Through continuous over 40 yearsbrands built Landor helps clients
of expertise in emerging agency specialising in consulting and analytics and 90 countries. With expertise purpose-led growth through monitoring, advanced for a multi-screen, digital create agile brands that
markets, Kantar IMRB builds advertising effectiveness, technology business, part in innovation, brand and the development and analytics and tailored world with the ability to thrive in todays dynamic,
customised solutions to create strategic communication, of Kantar Group, the data communication, shopper embedding of consumer solutions, Kantar Worldpanel coherently evolve in real time disruptive marketplace.
powerful growth paths for its media and digital, and investment management activation and customer insight-led marketing strategy, inspires successful decisions and reshape categories. Landors services include
clients. Kantar IMRB offers brand equity research. division of WPP. We work with relationships, we help our structure and capability. They by brand owners, retailers, Beginning with our pioneering strategy and positioning,
unparalleled depth and width The company helps clients leading brand manufacturers clients identify, optimise and provide solutions to strategic market analysts and work in broadcast identity; identity and design,
of services across sectors and grow great brands through and retailers to help them activate the moments that marketing challenges, rooting government organisations our unique approach to motion graphics, brand
categories. The company also comprehensive research- sell more effectively and matter to drive growth for their approach in consumer globally. brand building today extends architecture, prototyping,
has rich data assets in its large based qualitative and profitably. At Kantar Retail we their business. We are part research, stakeholder With over 60 years to industry leading brand innovation, naming and
array of syndicated studies quantitative solutions. Kantar track and forecast over 1000 of Kantar, one of the worlds understanding and financial experience, a team of 3,500, management known as Brand verbal identity, research and
and data alliance partnerships. Millward Brown operates in retailers globally and have leading data, insight and analysis. Kantar Vermeers and services covering 60 Optimisation. analytics, environments and
With its multidisciplinary more than 55 countries and is purchase data on over 200 consultancy companies. whole-brain thinking brings countries directly or through As part of WPP we serve experiences, engagement
and multi-cultural workforce, part of WPPs Kantar group, million shoppers. Amongst an intrinsically multi-lens and partners, Kantar Worldpanel clients across the globe and and activation, interactive
Kantar IMRB is at the cutting one of the worlds leading our market leading reports www.tnsglobal.com practical approach to their turns purchase behaviour manage 9 offices in Europe, and media design. Landor
edge of market research data, insight and consultancy are the annual PoweRanking work. into competitive advantage in the Middle East and Latin has 25 offices in 19 countries,
and consulting services. It companies. survey and the Digital Power Rosie Hawkins markets as diverse as FMCG, America. working with a broad
operates in 49 offices and 67 Study. Kantar Retail works Global Director of Client Beyond their cutting-edge impulse products, fashion, spectrum of world-famous
countries across the world. www.millwardbrown.com with over 400 clients and Solutions client work, they deliver baby, telecommunications www.lambie-nairn.com brands, including Alitalia,
has 26 offices in 15 markets Rosie.Hawkins@tnsglobal.com thought leadership to change and entertainment, among Barclays, Bayer, BBC, BMW,
www.imrbint.com Doreen Wang around the globe. the conversation in business: many others. Jim Prior BP, FedEx, GE, Kraft Heinz,
Global Head of BrandZ Their Marketing2020 study CEO Huawei Technologies, Marriott
Preeti Reddy Doreen.Wang@ www.kantarretail.com is the most global and www.kantarworldpanel.com J.Prior@lambie-nairn.com International, Nike, Pernod
CEO kantarmillwardbrown.com comprehensive CMO research Ricard, Procter & Gamble, S&P
Preeti.Reddy@imrbint.com Philip Smiley program in the market and Josep Montserrat Global, Samsung, Sony, and
CEO was featured as the cover Global CEO Taj Group.
Philip.Smiley@ story of Harvard Business Josep.Montserrat@
kantarretail.com Reviews 2014 summer issue. kantarworldpanel.com www.landor.com
kantarvermeer.com Trevor Wade

Global Marketing Director
Beth Ann Kaminkow Trevor.Wade@landor.com
CEO
BethAnn.Kaminkow@
kantarvermeer.com

MAXUS MEC MEDIACOM MINDSHARE MIRUM NEO@OGILVY OGILVY & MATHER OGILVYONE BUSINESS
Maxus Global is a global We unashamedly set out to MediaCom is The Content + Mindshare is a global media Mirum is a global digital Neo@Ogilvy is Ogilvy & Ogilvy is one of the largest OgilvyOne Business: B2B
network of local media support our clients Make The Connections Agency. agency network with billings agency that creates Mathers global media marketing communications Agency of the Year
agencies that embraces Future; bringing together It works on behalf of its in excess of US$34.5 billion experiences that people agency and performance companies in the world. It
technology and innovation data, creativity and rigour clients to leverage their entire (source: RECMA). The want and businesses need. marketing network. It is was named the Cannes Lions We are the largest global B2B
to deliver tangible business to help the best brands in systems of communications network consists of more Named a Visionary in the our mission to never get Network of the Year for five agency in the UK and 100%
benefits for clients. Maxus the world make the futures across paid, owned and than 7,000 employees, in 116 2016 Gartner Magic Quadrant, distracted from helping our consecutive years, 2012, 2013, dedicated to the B2B sector.
has a clear vision: to lead they want. All of our people, earned channels and deliver a offices across 86 countries Mirum helps guide brands clients leverage the latest 2014, 2015 and 2016; the Our work spans sectors from
clients into change and the processes and technologies step change in their business spread throughout North in business transformation, digital and performance EFFIEs Worlds Most Effective technology, to consulting and
brilliant opportunity that are united through our focus outcomes. America, Latin America, experience development, and media techniques to connect Agency Network in 2012, finance, from manufacturing
change creates. Maxus on understanding, improving, Europe, Middle East, Africa commerce and activation. with their customers and 2013 and 2016; and Adweeks to property and logistics.
delivers meaningful business accelerating and optimizing MediaCom is one of the and Asia Pacific. Each office The agency operates in grow their businesses. Our Global Agency of the Year
results through a mix of marketing purchase journeys; worlds leading media is dedicated to forging 22 countries, with more team consists of more than in 2016. The company is In our experience, B2B
smart organic growth and by making them more satisfying communications specialists, competitive marketing than 46 offices and 2,400 1000 employees across comprised of industry marketing challenges nearly
strengthening and expanding for consumers and more with billings exceeding US$33 advantage for businesses professionals. Mirum is part 40 worldwide offices leading units in the following always revolve around the
its specialist services. Clients effective for our clients. With billion (Source: RECMA June and their brands based of the J. Walter Thompson working to put innovation disciplines: advertising; business rather than the
include NBCU, LOral, Church 5,400 experts collaborating 2016). It employs 7,000 on the values of speed, Company and WPP Network. and accountability at the public relations and public brand. We therefore start with
& Dwight, BT, Huawei and Aldi. globally every day, we people in 125 offices across teamwork and provocation. heart of every engagement. affairs; branding and identity; the clients business problem
connect every ounce of 100 countries and works with Mindshare is part of GroupM, www.mirumagency.com With a mandate to drive shopper and retail marketing; and then set about creating
Maxus is part of GroupM, our skill, tech and creativity global brands, including Dell, which oversees the media measurable results, Neo health care communications; real Customer Engagement,
the worlds largest media to ensure clients get the P&G, Shell and Universal. investment management Daniel Khabie applies a data-driven strategic direct, digital, promotion at both an organisational and
investment management maximum effectiveness from MediaCom was named Global sector for WPP, the worlds Global & North America CEO approach and cutting edge and relationship marketing; an individual level.
group, responsible for their marketing spend. MEC Agency Network of the Year leading communications Daniel.Khabie@ technologies across digital consulting, research and
nearly one-third of all media works with category leading at the 2017 Festival of Media services group. mirumagency.com disciplines (including paid and analytics; branded content We offer a broad range of
investment worldwide and advertisers in 90 countries Global Awards, and Global organic search, display, video, and entertainment; and skills including: Strategy and
serving as parent company and we are a founding partner Agency of the Year at the www.mindshareworld.com mobile, social media, affiliate specialist communications. planning, branding, dynamic
for all of WPPs media of GroupM. 2016 M&M Awards. marketing) and traditional content creation, campaign
agencies. Founded in 2008, Greg Brooks channels. www.ogilvy.com management and marketing
Maxus employs around 3,000 www.mecglobal.com www.mediacom.com Global Marketing Director automation.
people across 55 countries in Greg.Brooks@ www.neoogilvy.com Lauren Crampsie
70 offices and has been the Timothy Castree Toby Jenner mindshareworld.com Worldwide Chief www.ogilvyonebusiness
worlds fastest growing media Global CEO Worldwide Chief Nasreen Madhany Marketing Officer .com
network for six consecutive Tim.Castree@mecglobal.com Operations Officer Global CEO Lauren.Crampsie@ogilvy.com
years, according to RECMA. Toby.Jenner@mediacom.com Nasreen.Madhany@ Sam Williams-Thomas
ogilvy.com CEO
www.maxusglobal.com Anna-Stone@ogilvy.com
Lindsay Pattison
Worldwide CEO
Lindsay.Pattison@
maxusglobal.com

OGILVYRED PBN HILL+KNOWLTON PLUS PSB PRISM ROCKFISH DIGITAL SALMON SMOLLAN
STRATEGIES
At OgilvyRED we tackle the Lagence Plus is a global PSB, a member of Young & PRISM delivers high quality Rockfish is a full-service Salmon is a global digital Founded in 1931, Smollan is
toughest brand, business and PBN Hill+Knowlton Strategies integrated WPP agency Rubicam Group and the WPP work in sports marketing, Digital Innovation agency commerce consultancy a retail solutions company,
innovation challenges our is the preeminent strategic bespoke to Chanel. Group, is a global research sponsorship, content creation, - born of Technology, that defines and delivers delivering growth for
clients face in a constantly communications, public consultancy that delivers PR and event activation. embedded in Start-ups, market-changing ecommerce retailers and brand owners
disrupted world. Our relations and government Katerina Sudit custom, prescriptive strategy and fueled by Strategy. solutions and customer across five continents. We
consulting solutions help affairs firm specializing in US CEO for blue-chip corporate, Working with great brands, At Rockfish, we define journeys for the worlds cover every aspect of how
clients navigate complexity Russia, Ukraine, Kazakhstan Katerina.Sudit@ political and entertainment including Aston Martin, IHG, Innovation as Radical, leading brands. brands are managed in retail
with a unique combination and the CIS. We have had a lagenceplus.com clients. PSBs operations Ford, JP Morgan Private Ownable, and Meaningful environments through the
of rigor and creativity. Our presence on the ground in the include over 200 consultants Bank, Mazda, SUBWAY, solutions fueled by productive Founded in 1989, with creation and execution of
integration with the larger region since 1991. We offer our and a sophisticated in-house INFINITI and Tata, PRISM disruption. Key Strengths: operations in London, leading solutions in field sales,
Ogilvy Group offers clients full clients unmatched synergies market research infrastructure is recognised for both its Marketing & Amsterdam, New Delhi, retail execution, activation,
implementation capabilities. in experience, wisdom with global capabilities. PSB individual delivery and for Transformation Apply Beijing and Melbourne, we information and technology.
and creativity and are fully is headquarted in Washington working collaboratively with a holistic view of the have over 700 experts in Internationally recognised
www.ogilvyred.com integrated with Hill+Knowlton D.C., with offices in New York, WPP agencies and Teams. customer & the re-oriented multichannel commerce, for our exceptional human
Strategies worldwide. Nearly Seattle, Los Angeles, Denver, In 2016, PRISM was awarded value chain shaping client platforms platform of over 60 000
Carla Hendra half of all Fortune 500 global London, and Madrid. PSB top honours in the WPP Customer Experience that drive 7.4 billion in people and our sophisticated
Global Chairman companies have chosen to gets To the Point, backing Worldwide Partnership Bringing valuable, revenue annually across retail, systems, we drive sales
Carla.Hendra@ogilvy.com work with Hill+Knowlton actionable strategy with Awards for its work with relevant, & revenue-driving distribution, manufacturing, and create brilliant shopper
Strategies, which offers senior scientific-grade data to give Aston Martin. experiences to market FMCG and financial services. experiences for some of the
counsel, insightful research you competitive edge, no Innovation in Digital worlds most loved brands.
and strategic communications matter the business problem. With our global network, Strategically extending Our clients include Argos,
from over 80 offices in 50 PRISM is committed to brands into new, native Asian Paints, Audi UK, www.smollan.com
countries. www.psbresearch.com building strong, effective digital revenue-streams DFS, Halfords, Jumbo,
relationships by delivering Commerce & Shopper LloydsPharmacy, Premier David Smollan
pbn-hkstrategies.com Curtis Freet industry-leading sponsorship Growing revenue online via Farnell, Sainsburys, CEO
CEO insight and communications online platforms (Amazon, Selfridges, Ted Baker and David.Smollan@smollan.com
Myron Wasylyk CFreet@ps-b.com strategies, engaging content, etc.) & pure plays Sligro Food Group.
Chief Executive Officer and innovative digital, social Platforms & Enterprise
Myron.Wasylyk@ media and experiential Activating technology in www.salmon.com
hkstrategies.com campaigns. support (and enablement)
of whats next Neil Stewart
www.prismteam.com CEO
rockfishdigital.com NStewart@salmon.com
Jamie Copas
Group General Manager Tim Rumpler
JCopas@prismteam.com Executive Vice President -
Marketing, Communications,
and Revenue
Tim.Rumpler@
rockfishdigital.com
6 Resources Resources/ WPP COMPANY CONTRIBUTORS

WPP is the worlds largest communications
services group, with billings of US $74 billion
and revenues of US$19 billion. Through its
operating companies, the Group provides
THE INNOVATION GROUP VALENSTEIN & FATT WUNDERMAN Y&R
a comprehensive range of advertising and
marketing services including advertising
The Innovation Group is Valenstein & Fatt is the Wunderman is Creatively Y&R is one of the worlds & media investment management; data
J. Walter Thompsons in- creative agency formerly Driven. Data Inspired. A most iconic ad agencies. We investment management; public relations &
house creative think tank known as Grey London. A leading global digital agency, operate as a Global Boutique,
for the future. The practice small name change, but a Wunderman combines connecting deep insights
public affairs; branding & identity; healthcare
produces groundbreaking big deal. Founded in 1917, creativity and data into work from local business needs and communications; direct, digital, promotion
thought leadership, consumer in a world of division and that inspires people to take consumers with strategies and & relationship marketing and specialist
insight and sector innovation discrimination. Our founders action and delivers results objectives that travel across
communications. The company employs over
content. unable to put their names for brands. In 2015, industry borders. United by a global
above their door. Fast- analysts named Wunderman infrastructure and common 205,000 people (including associates and
It offers a range of forward to 2017. Everything a leader in marketing tools and technology, all investments) in over 3,000 offices across 112
consultancy services that help has changed, yet nothing database operations as our clients have access to countries.
clients not only understand has changed. Too much in well as a strong performer people and resources from
whats happening now and this world remains ugly. Yet in customer engagement everywhere in our network.
next, but how to action this in the more diverse we are, the strategy. Headquartered in WPP was named Holding Company of the
the framework of their brand. more powerful our ideas New York, the agency brings Y&R has 189 offices in 93 Year at the 2016 Cannes Lions International
become. So we continue to together 7,000 creatives, countries around the world, Festival of Creativity for the sixth year running.
The Innovation Group also celebrate difference. To break data scientists, strategists and with clients that include Bel
offers creative innovation down barriers to opportunity. technologists in 175 offices in Brands, Campbells Soup
WPP was also named, for the fifth consecutive
labs, ideating and rapid Because everyone has the 60 markets. Wunderman is Company, Colgate-Palmolive, year, the Worlds Most Effective Holding
prototyping concepts based right to put their name above a WPP company (NASDAQ: Danone, Dell, Telefonica Company in the 2016 Effie Effectiveness
on future change with its team their door - whoever you are, WPPGY). For more and Xerox, among many
Index, which recognizes the effectiveness of
of futurists, creative directors, wherever you come from. information, please follow us others. Y&R is part of WPP
strategists and researchers. @Wunderman. (NASDAQ: WPPGY). marketing communications. In 2016 WPP was
For more information, valensteinandfatt.com recognised by Warc 100 as the Worlds Top
contact us at innovation@ www.wunderman.com www.yr.com Holding Company (second year running).
jwtintelligence.com. Leo Rayman
CEO Mark Read David Sable
jwtintelligence.com/the- Leo.Rayman@greyeu.com Global CEO Global CEO For more information, visit www.wpp.com.
innovation-group Mark.Read@wunderman.com David.Sable@yr.com
Lucie Greene
Worldwide Director
Lucie.Greene@jwt.com
6 Resources Resources/WPP COMPANY BRAND BUILDING EXPERTS
WPP Company Brand Building Experts
These individuals from WPP companies

provided additional thought leadership,
analysis and insight to the report
Nick Annetts Carolyn Armstrong Beth Balsam Laima Bendziunaite Nick Bull Vicky Bullen Nana Nielsen Jeremy Pounder David Recaldin Lyubov Reshetilo Harriet Richardson Elspeth Ross
Wunderman & Agenda Kantar TNS Hill+Knowlton Strategies MediaCom Kantar Millward Brown Coley Porter Bell Kantar Millward Brown MindShare Kantar Retail PBN Hill+Knowlton Kantar TNS OgilvyRED
Firefly Practice Strategies
David Butt Eleonora Calio Amy Cashman Casey Caufield-Grabinski Mimi Chakravorti Callum Cheatle Helen Rowe Jo Ryman Eduardo Safi Omar Sahi Parnika Shrimali Debbie Shuttlewood
Acceleration Kantar Millward Brown Kantar TNS Kantar Millward Brown Landor Associates Group XP Kantar TNS - More Kantar Vermeer J. Walter Thompson Kantar Futures Kantar Millward Brown Kantar TNS
London Place
Winnie Cheng Edward Chiaramonte Pietromaria Costamagna Anais Dupuy Daniel Guo Simon Horner Jenny Skelly Emily Smith Morag Spencer Marie Stafford Phil Sutcliffe Nimai Swain
Kantar TNS Kantar Millward Brown Wunderman Kantar Worldpanel Kantar TNS Kantar Worldpanel Kantar TNS Kantar Added Value Kantar Millward Brown The Innovation Group Kantar TNS Kantar Millward Brown
James Huckle Laura Hurst Arvind Kapavarapu Shepherd Laughlin Rosie Laurence Agathe Laurent Guilhem Tamisier Andy Turton Veronika Vdacna Hannah Walley Parag Wasnik Eric Wiley
Mirum Agency Kantar Added Value MindShare J. Walter Thompson Mindshare Kantar Added Value MediaCom Kantar TNS MindShare Kantar Millward Brown DKSH | Smollan Rockfish
Veronique Le Therisien Cecile Lefevre Anna McAvoy Mark Miller Nina Mynk Jodi Neuhauser Simon Wood
Kantar TNS - More Kantar Worldpanel Kantar Millward Brown Wunderman OgilvyOne Business Maxus Kantar TNS
London Place Corporate
6 Resources Resources/BRANDZ GLOBAL TOP 100 TEAM
BrandZ Global Top 100 Team
These individuals created the report,

providing research, valuations, analysis and India Hovenden
India Hovenden is Personal Assistant
Paul Reiffer
Paul is a multi-award winning British
David Roth
David Roth is the CEO of the Store
insight, editorial, photography, production, to David Roth, at WPP. She also

supports the team with BrandZ
valuations and administration.
photographer, who has travelled the
world capturing people, commercial
images and limited edition fine art
WPP for Europe, the Middle East,
Africa and Asia, and leads the BrandZ
worldwide project. Prior to joining
marketing and communications landscape photography WPP David was main Board Director of
the international retailer, B&Q.
www.paulreiffer.com
Nikhil Banga Amandine Bavent Elspeth Cheung Ken Schept Raam Tarat Igor Tolkachev
Nikhil Banga is a BrandZ Valuation Amandine Bavent is a BrandZ Elspeth Cheung is the Global BrandZ Ken Schept is a professional writer Raam Tarat is the Global Project Igor Tolkachev is a part of The Store
Manager for Kantar Millward Brown. Valuation Manager for Kantar Millward Valuation Director for Kantar Millward and editor specializing in reports and Manager for BrandZ, at Kantar WPPs EMEA and Asia team. He leads
He looks after brand valuation Brown. She manages the brand Brown. She is responsible for books about brands and marketing. Millward Brown. He project managed and coordinates BrandZ worldwide
projects in BrandZ for various valuation projects for BrandZ Her valuation, analysis, client management He helped develop WPPs extensive the production of the BrandZ Top projects and partnerships.
countries. role involves conducting financial and external communication for the library of global publications and has 100 Most Valuable Global Brands
analysis, researching brands and BrandZ rankings and other ad hoc reported on the international retail 2017 report, as well as marketing
performing valuations. brand valuation projects. sector as an editor with a leading US communications for other BrandZ
business media publisher. projects.
Jessika Duggal Lucy Edgar Martin Guerrieria Peter Walshe Doreen Wang
With thanks and appreciation to:
Jessika Duggal is a Marketing Lucy Edgar is the Global Marketing Martin Guerrieria is Global BrandZ Peter Walshe is Global Strategy Doreen Wang is the Global Head
Executive at WPP The Store assisting Manager at Kantar Millward Brown Research Director at Kantar Millward Director of BrandZ and was of BrandZ, Kantar Millward Brown
Richard Ballard, Deepak Chhabra,
with communication, microsite and where she is responsible for the PR, Brown and heads the consumer involved in the creation of this and a seasoned executive with over
application creation for global events. marketing and communications on research component of BrandZ. He brand equity and insight tool 19 17 years experience in providing Jo Bowman, Sarah Cousins,
She also supports marketing logistics the BrandZ projects. is involved in delivering the full suite of years ago, and has contributed to all outstanding market research and Tuhin Dasgupta, Dede Fitch,
for the BrandZ valuations. BrandZ research tools. the valuation studies and developed strategic consulting for senior Kim Fitzsimmons, Chris Luckens,
BrandZ metrics, including executives in Fortune 500 companies Nikhil Mall, Anthony Marris
CharacterZ, TrustR, and RepZ. in both the US and China. and Megan Schmid
6 Resources Resources/BRANDZ
The BrandZ
brand valuation Online &
contact details Mobile
Experience the NEW
The brand valuations in the BrandZ Top 100 Most
BrandZ app and website
Valuable Global Brands 2017 are produced by Kantar
Millward Brown using market data from Kantar Retail
and Kantar Worldpanel, along with Bloomberg.
GET THE FREE APP
The consumer viewpoint is derived from the BrandZ If you are interested in brands, you need this
database. Established in 1998 and constantly updated, this app to get valuation data and a lot more at
database of brand analytics and equity is the worlds largest, your fingertips. It enables you to:
containing over three million consumer interviews about
more than 100,000 different brands in over 50 markets. Access the latest brand news in real time ...OR VISIT US ONLINE!
View individual brand profiles and videos
For further information about BrandZ Obtain unique content and Insights View the latest BrandZ valuation
contact any WPP Group company or: rankings from across the world
Share articles and data across social media
Read the latest thought leadership,
Doreen Wang Save your favorite articles research and insights on brands
Global Head of BrandZ Create your own ranking tables,
Kantar Millward Brown You can access on and offline on any Android and sort by value or brand
+1 212 548 7231 and Apple devicejust search for BrandZ. Create interactive graphs for
Doreen.Wang@millwardbrown.com brands you want to compare
Access the new media and AV
Elspeth Cheung gallery
Global BrandZ Valuation Director Create and print your own reports
Kantar Millward Brown Test your brand knowledge with
+44 (0) 207 126 5174 Bloomberg our BrandZ Quiz
Elspeth.Cheung@millwardbrown.com The Bloomberg Professional service is the
source of real-time and historical financial news
Martin Guerrieria and information for central banks, investment Visit us at www.brandz.com
institutions, commercial banks, government offices
Global BrandZ Research Director and agencies, law firms, corporations and news
Kantar Millward Brown organizations in over 150 countries. (For more
+44 (0) 207 126 5073 information, please visit www.bloomberg.com)
Martin.Guerrieria@millwardbrown.com
BrandZ Top 100 Most Valuable Global Brands 2017 314

Writing Ken Schept
Photography Paul Reiffer
www.brandz.com

BZ Global 2017 Report

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BZ Global 2017 Report

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Brand value increases 8%

to $3.6 trillion, led by tech

Value of all US brands

Photograph by Paul Reiffer

$ = Total Category Value

Value of the BrandZ 12-Year Value Growth

Global Brands 2017 100 Most Valuable

Technology $11 rsona

% = Brand Value Change 2017 vs. 2016

+48% # Rank in the Gl b s illi

+30% +29% +29% +27%

billion $12.1 $4.9 bil

Welcome & Change 174

Introduction The Global 74 Thought Leadership

Each time I write a welcome column for our annual

Global Top 100

value rises 8%,

despite the years

Thats why this report is so

152% over 12 years Think of this report as the definitive

BrandZ Top 100 Most Valuable Global Brands 2017 8 9

Photograph by Paul Reiffer

BrandZ Top 100 Most Valuable Global Brands 2017 10 11

disruption The fastest-rising

BrandZ Top 100 Most Valuable Global Brands 2017 14 15

BrandZ Top 100 Most Valuable Global Brands 2017 16 17

Global Top 100

rises 8%, 152%

Chinese brands rose 937 percent

BrandZ Top 100 Most Valuable Global Brands 2017 18 19

Brand Brand YEARS YEARS

The strong get even stronger

Source: Kantar Millward Brown / BrandZ (including data from Bloomberg)

In 2017, the average age of a Top

BrandZ Top 100 Most Valuable Global Brands 2017 20 21

value change PURPOSE

RETURN TO looked closer to home and responded to

BrandZ Top 100 Most Valuable Global Brands 2017 22 23

At the same time young people sought the newest,

CITY CENTRIC Global and local combined

CONSOLIDATION/ sellable moments of niche disruptor brands

E-commerce still rules. Retailers in mature markets continue to close

PREMIUM/ proportion of luxury brands in the Personal Care

BrandZ Top 100 Most Valuable Global Brands 2017 24 25

BrandZ Top 100 Most Valuable Global Brands 2017 26 27

BrandZ Top 100 Most BrandZ Top 100 Most

1 Technology 245,581 4 7% 0 26 Apparel 34,185 4 -9% -2

2 Technology 234,671 4 3% 0 27 Telecom Providers 31,602 3 -14% -2

3 Technology 143,222 4 18% 0 28 Regional Banks 31,570 2 -6% -1

4 Retail 139,286 4 41% 3 29 Luxury 29,242 4 3% 1

5 Technology 129,800 4 27% 0 30 Cars 28,660 4 -3% -2

6 Telecom Providers 115,112 3 7% -2 31 Retail 27,934 2 2% 1

7 Payments 110,999 4 10% -1 32 Technology 27,243 3 19% 6

8 Technology 108,292 5 27% 3 33 Beer 27,037 4 -3% -2

9 Technology 102,088 4 18% 1 34 Apparel 25,135 3 0% 1

10 Fast Food 97,723 4 10% -1 35 Cars 24,559 4 -8% -2

11 Telecom Providers 89,279 3 -4% -3 36 Payments 24,150 4 -9% -2

12 Tobacco 87,519 3 4% 0 37 Technology 24,007 4 23% 11

13 Soft Drinks 78,142 5 -3% 0 38 Personal Care 23,899 4 2% -2

14 Retail 59,127 2 20% 4 39 Technology 23,559 5 -19% -10

15 Regional Banks 58,424 3 0% -1 40 Cars 23,513 4 4% -1

16 Logistics 58,275 4 17% 1 41 Luxury 23,416 5 18% 3

17 Telecom Providers 56,535 4 1% -2 42 Baby Care 22,312 5 -3% -5

18 Entertainment 52,040 4 6% 1 43 Telecom Providers 22,002 3 0% -3