Interbrand Best Global Brands
Interbrand’s Best Global Brands are enduring proof that investment in long-term brand-building enables businesses to thrive over time and survive market volatility.
Year after year, over 20 years, Interbrand’s Brand Valuation analysis has shown that strong brands are powerful business assets that deliver a sustainable competitive advantage, enabling companies to outperform the competition and accelerate growth.
What is Interbrand Best Global Brands?
2019 marks our 20th year of publishing the annual Top 100 Best Global brands, a list that was the first of its kind, and has become the standard for how global organisations measure the value of a brand, based on the brand valuation methodology we pioneered over 30 years ago.
In fact, an index of the businesses behind the Best Global Brands (the ‘Best Global Brands Index’) consistently outperforms leading benchmarks such as MSCI World, S&P 500, and Nasdaq.
We publish the ranking and an accompanying report on an annual basis, and it identifies the world’s 100 most valuable brands. To develop the list, Interbrand examines three key aspects that contribute to a brand’s value:
- The financial performance of the branded products or service
- The role the brand plays in influencing consumer choice
- The strength the brand has to command a premium price, or secure earnings for the company
Our methodology
Having pioneered brand valuation in 1988, we have a deep understanding of the impact a strong brand has on key stakeholder groups that influence business growth, namely (current and prospective) customers, employees, and investors. Strong brands influence customer choice and create loyalty; attract, retain, and motivate talent; and lower the cost of financing. Our brand valuation methodology has been specifically designed to take all of these factors into account.
A strategic tool for ongoing brand management, valuation brings together market, brand, competitor, and financial data into a single framework within which the performance of the brand can be assessed, areas for growth identified, and the financial impact of investing in the brand quantified.
Interbrand was the first company to have its methodology certified as compliant with the requirements of ISO 10668 (requirements for monetary brand valuation) and has played a key role in the development of the standard itself.
There are three key components to all of our valuations: an analysis of the financial performance of the branded products or services, of the role the brand plays in purchase decisions, and of the brand’s competitive strength.
- Financial Analysis
This measures the overall financial return to an organization’s investors, or its economic profit. Economic profit is the after-tax operating profit of the brand, minus a charge for the capital used to generate the brand’s revenue and margins.
2. Role of Brand
This measures the portion of the purchase decision attributable to the brand as opposed to other factors (for example, purchase drivers such as price, convenience, or product features). The Role of Brand Index (RBI) quantifies this as a percentage. RBI determinations for Best Global Brands derive, depending on the brand, from one of three methods: primary research, a review of historical roles of brands for companies in that industry, or expert panel assessment.
3. Brand Strength
Brand Strength measures the ability of the brand to create loyalty and, therefore, sustainable demand and profit into the future. Brand Strength analysis is based on an evaluation across 10 factors that Interbrand believes constitute a strong brand. Performance in these areas is judged relative to other brands in the industry and relative to other world-class brands. The Brand Strength analysis delivers an insightful snapshot of the strengths and weaknesses of the brand and is used to generate a road map of activities to grow the brand’s strength and value into the future.
