The world’s top brands have emerged from the pandemic stronger than ever. According to Interbrand’s list of the world’s leading brands, the cumulative value of the world’s 100 best global brands topped $3 trillion for the first time, up 16% year over year.
24/7 Wall St. reviewed Interbrand’s Best Global Brands report for 2022 to determine the 50 most valuable brands in the world. Interbrand, a brand consultant group, evaluates global brands based on three key components: the financial performance of the branded products or services, the role the brand plays in purchase decisions, and the brand’s competitive strength. Revenue figures represent the most recent fiscal year reported.
In its report, Interbrand explained how companies that consider the brand as an asset and an engine to growth understand the value a good brand can provide. Interbrand Global Chief Strategy Officer Manfredi Ricca added that “these companies aren’t contained by sectors, or silos, or swim lanes; they transcend traditional category thinking. They use the utility and equity in their brand to drive exponential growth in new spaces.”
According to Interbrand, as trust in traditional institutions decreases, some consumers are looking to brands to provide leadership, and they expect the companies they support to be socially and environmentally conscious and be engaged in the issues of the day. Examples of this are Apple’s pledge to privacy; Nike’s position on inclusion; and companies such as Disney and JP Morgan expressing concern over the passage of a controversial voting law in Georgia in 2021. (This is America’s least trusted institution.)
The values of the brands on the list range from about $1.4 billion for one of the Big Three automakers to $3.5 billion for one of the largest social media platforms to $5.8 billion for a big beverage company. The top five most valuable are not surprising either. They are companies that dramatically changed our lives, technology wise, in the past couple of decades. (Many of the top brands are also among the companies that control over 50% of their industry.)
The average age of the top five brands in Interbrand ranking is 39.6 years compared with an average of 110 years across all 100 brands. Software, technology, and social media businesses such as SAP, Cisco, and Instagram are well represented on the list. Luxury or aspirational brands like Gucci, Hermes, and Louis Vuitton found favor among consumers, and Chanel had the highest brand-value increase of any company on the list.
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