"German brands are doing extremely well"
Once a year, the consultancy Interbrand publishes a ranking of global brands. This time, car manufacturers in particular performed above average. "Luxury also plays a role," says Interbrand manager Simon Thun in the podcast "Die Stunde Null".
How do you measure the value of brands?
Simon Thun: We look at three aspects. Firstly, the financial outlook, i.e. the question of what analysts expect from the development of companies. Secondly, the significance of the brand in the respective industry. And thirdly, there is the aspect of how important the brand is in comparison to its relevant competitors. All three factors combined result in the current value of the brand.
There are some conspicuous features in the current ranking. The four major US tech companies - Apple, Microsoft, Google and Amazon - have been at the top for some time now. But something is happening behind them. Among other things, there is a strong upswing in car brands, although it is often said that this is an industry on the decline. How can this be explained?
The automotive brands are the clear winners in this year's ranking. This is mainly due to the fact that the industry has been undergoing a deep transformation for years. It's all about sustainability, electrification and changing customer demand. You can see that companies have been aligning their brand management accordingly for some time. And now they are benefiting from the momentum. Incidentally, growth among car manufacturers is similar to previous years. It is more the case that the other sectors are slowing down.
Two German car brands have also made it into the top 10, namely Mercedes and BMW. However, Audi and Porsche are also showing strong growth in brand value. Are we underestimating the role of these brands in Germany?
Basically, all German brands are subject to very thorough brand management. The premium and luxury segment also plays a role here, where financial growth is stronger.
So the German companies are doing well overall?
Actually, all ten brands in the ranking that have their headquarters in Germany are very stable. In a country comparison, the German brands are doing extremely well.
What was the last big newcomer in the top 10?
That was certainly Nike last year. In recent years, the company has very consistently focused its marketing on the target groups that are crucial for the brand. This year, BMW, a German company, has joined them.
It is noticeable that the values of a number of companies have fallen. There is a concentration of tech companies. Like Facebook, Intel, Philipps, Nintendo, Huawei and HP. What is the reason?
This cannot be applied to the entire industry. These are very different cases that operate in very different environments. But what is striking when you break it down to a single case is that Facebook is declining as a brand, while Instagram is growing significantly. So the relevance is changing. Instagram has a much clearer profile.
In which sectors do brands play the biggest role?
This often has to do with the objective framework conditions. We see that the role of the brand is very small in the energy supply sector. It is extremely high in the luxury sector, where the brand is often a decisive factor in the purchasing decision. As humans, we are not purely utility-oriented beings.
As an expert, are you immune to the temptation to pay attention to the brand when shopping?
Of course I am also influenced by brands. But I don't see this as a negative thing. A brand can symbolize an attitude to life or the values you stand for.
But sometimes it's simply about the social prestige that you buy into.
In our view, this motivation has been declining for years. Of course, there are cases where people define themselves through brands. But we see that this is changing. It's more the case that companies are being held accountable via the brand: If you promise something but behave differently, consumers may vote with their feet and go elsewhere.
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In the annual ranking by Interbrand, car brands, including German ones like Mercedes and BMW, have seen significant growth, positioning themselves among the Most Valuable Brands globally. This upward trend can be attributed to the industry's transformation towards sustainability, electrification, and changing customer demands, with companies like BMW now finding a place in the top 10.
Source: www.ntv.de
