Several research firms publish brand valuation studies. Some are based on how much a brand contributes to its parent company. Others are based on consumer impressions. No matter what the yardstick, the process is more art than science.
It is clear, for the most part, that the largest companies have the most valuable brands. Apple, Amazon, Google and Microsoft are almost always at the top of brand valuation lists. Companies with sales and competition problems, like General Motors, are nowhere near the top.
One of the most prominent findings of many brand studies is that brands, on average, have increased in value over the past several years. However, there are exceptions.
To determine the brand that is losing the most ground, 24/7 Wall St. reviewed Kantar BrandZ 2021 100 Most Valuable Global Brands report, which lists global brands by their valuation and rank in 2021 and in 2020. 24/7 Wall St. ranked companies based on the number of places they dropped in the top 100 from 2020 to 2021. All data came from Kantar’s report.
The brand valuation of the 100 global brands rose 42% in 2021, after only gaining 6% in 2020. That means that many of the brands among the top 100 that saw their valuation increase in 2021 still dropped in ranking. For example, IKEA lost considerable ground, 12 spots, in brand value ranking from 2020 to 2021 even though its brand valuation rose 17%. Other brands’ valuation simply rose faster.
Some industries as a whole lost ground. Three of America’s big four banks fell steeply in rank. Wells Fargo plunged from number 42 to 62nd place. Bank of America went from number 78 to 98, while Chase dropped from number 62 to 80. According to Kantar, consumers favored regional banks with strong neighborhood presences during the pandemic, while internationally oriented banks suffered.
The brand that lost the most value was China Construction Bank. Here are the details:
- Decline in rank, 2020 to 2021: 36 places (58th to 94th)
- Brand value in 2021: $19.8 billion
- Change in brand value, 2020 to 2021: −6%
- Industry: Banks
Click here to see all 20 brands that lost the most value in 2020.
Essential Tips for Investing: Sponsored
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
