The latest Most Valuable Global Brands ranking from WPP and Kantar Millward Brown came out last week, and it’s no surprise the top 9 is full of massive tech companies (McD’s is #10). But I like thinking about why that’s no surprise. In fact, the seven newcomers this year are tech companies, too… XFinity, YouTube, Hewlett Packard Enterprise, Salesforce, Netflix, Snapchat and Sprint.
What are they doing differently than the CPG, manufacturing and service brands that used to dominate this list? WPP listed some key trends they’re seeing that have contributed to this tech-fueled growth..
This is my favorite of them:
Traditional non-tech brands are adopting technology to innovate and increase consumer appeal. Fastest riser Adidas has introduced 3D printing to produce its footwear, for example, while fast food brand Domino’s Pizza offers customers a real-time tracker for their order.
And here are the rest…
Consumer-centric technology ecosystems are making brands indispensable. Consumers can increasingly carry out a variety of activities, from online shopping to watching television, under the banner of one brand and across multiple devices. This convenience for consumers also allows the most powerful brands to minimise the risk of consumer switching.
New brands are increasingly born global, allowing them to grow rapidly. Technology allows businesses to provide their offerings globally from day one. This is fostering a new breed of entrepreneur, who is not restricted by the geographical or sector boundaries that have traditionally limited the speed and scale of growth.
Traditional non-tech brands are adopting technology to innovate and increase consumer appeal. Fastest riser Adidas has introduced 3D printing to produce its footwear, for example, while fast food brand Domino’s Pizza offers customers a real-time tracker for their order.
The BrandZ Top 100 is getting younger. The average age of a brand is now 67 years, compared with 84 years in 2006, reflecting the entry of the newer technology brands and the emergence of brand China.
Brands that make it clear how they will make consumers’ lives better, such as Huawei and Toyota, have grown three times more on average over the last 12 years (the top third grew +170% compared to the bottom third which was +57%).
Great communications puts a brand at an advantage. The top third in terms of strongest communications (including McDonald’s and L’Oréal Paris) have grown 196% in value, compared with 47% for the bottom third. This is because they have successfully amplified the difference they have built.
Source: BrandZ Top 100 Most Valuable Global Brands 2017
GREG SWAN 