The COVID-19 pandemic highlighted the importance of a strong brand in times of economic crises. According to the Edelman Trust Barometer, the percentage of the population who trust private businesses fell from 59% in 2019 to 54% in 2021. This came at a time that consumer spending fell and businesses struggled to adapt to the pandemic economy.
Companies with strong brands were better able to weather the pandemic and some even added significant brand value during the crisis. Other companies, however, lost brand value, as consumer attitudes toward a product or service shifted. Data analytics and consulting company Kantar defines brand value as the portion of a company’s financial value that cannot be attributed to tangible assets like cash and inventory or intangible assets like patents and trademarks.
To determine the 20 brands that are losing ground, 24/7 Wall St. reviewed Kantar BrandZ 2021 100 Most Valuable Global Brands report, which lists 100 global brands – 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. But that means that many of the brands that saw their valuation increase in 2021 still dropped in ranking among the top 100. 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 of the companies on this list could further suffer due to public sentiment about the war in Ukraine. These are the companies refusing to leave Russia.)
While several major Chinese brands rose significantly in brand value from 2020 to 2021, including TikTok (158%), Meituan (119%), and Baidu (57%), the three brands that sank the most in the ranking are also based in China. China Construction Bank fell from No. 58 to No. 94, the most of any company evaluated by Kantar BrandZ. China Mobile fell from No. 36 to No. 68, and Didi Chuxing fell from No. 64 to No. 93. The decrease came as the three major companies posted record poor earnings and lost millions of customers.
Three of America’s Big Four banks also fell steeply in rank. Wells Fargo fell from No. 42 to No. 62; Bank of America from No. 78 to No. 98; and Chase from No. 62 to No. 80. According to Kantar, consumers favored regional banks with strong neighborhood presences during the pandemic, while internationally-oriented banks suffered. Regional banks like the Commonwealth Bank of Australia and RBC of Canada rose significantly in brand value. (This is the American company with the worst reputation.)
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