Commentary

Just An Online Minute... Most Powerful Brands

  • by April 5, 2006
We're always interested in the rankings for the world's most powerful brands. Research firm Millward Brown put its list out this week and Microsoft scores the No. 1 position with a brand value of $62,029 million, followed by GE at $55,834 million, Coke at $41,406 million, then China Mobile, Marlboro, Wal-Mart, Google, IBM, Citibank, and Toyota.

The new brand ranking combines consumer research with public financial data to measure the contributions brands make to the bottom line. The ranking was developed by Millward Brown Optimor, Millward Brown's financial and return on investment unit, with data from the Brandz Top 100 database, which provides brand equity measures for more than 30,000 brands, and Bloomberg.

Millward Brown found that Europe is the leader in terms of luxury brands: Louis Vuitton ranked (24), Mercedes (28), Porsche (44), Chanel (75), and Cartier (82). And, the study shows that demand for luxury goods is growing, spurred by the rise in global wealth, and the increase of so-called "super-affluent" consumers in developing countries.

Other findings include: Chinese brands like China Mobile are gaining global power, and emerging brands like Lenovo are also raising their profile. Retail brands are becoming a more important factor in driving consumer shopping behavior, a finding reflected in branded experiences at retail. In this regard, Wal-mart ranked (6), eBay (38), and Amazon (78).

The study also finds that new business models have enabled new brands such as Starbucks, ranked (48), and Zara (87) to establish their positions not only in the market but in consumers' minds. With the increasing acceptance of digital lifestyles, brands that enable customers to lead them such as Google, ranked (7), and eBay are growing fast.

"This is the first study that goes beyond financial data and 'expert opinion' to include in-market insights about a brand's strengths and momentum from potential customers," said Andy Farr, executive director at Millward Brown Optimor and lead researcher on the study, in a statement. "It proves that investing in brands is key to a company's long-term success."

Joanna Seddon, executive vice president, who heads up Millward Brown Optimor globally, added: "We've seen that strong brands can create very real financial value in many ways. The best brands drive revenues and profits, reduce risk and cost of entry into new markets and attract talented staff to companies."





OMMA magazine is searching the galaxy for our 2006 Rising Stars. Click here for details on how you can nominate yourself, or that supernova who toils two cubes down.



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