The rise and fall of global brands

The power of a brand can be considered synonymous with the business prospects of the institution it is attached to. Many market research companies take a stab at determining the top global brands each year based on brand values. Some interesting insights from one such annual ranking for the world‘s most powerful brands released by Millward Brown – a global research agency specializing in advertising and branding - are worth taking a stock.
The continuous rise of technology and telecom brands - rocketing their way up the top global brands list in the last six years confirms that this is the age of technology and its integration.
The second learning from the trends in top brands list can be related to the 2008 crisis. With the 2008 financial crisis consumer preferences changed, which led to transformation across categories. The stock market plummeted and home prices plunged, and so did the spending capacities of consumers.
The first sector to take a hit was undoubtedly the financial sector. This can be seen from how the global banking sector’s brand value has receded by 44 percent from 2006 to 2013 with less than half of these banks remaining amongst the top 100.
Another sector that depicts a striking trend is the oil and gas sector. A number of exploration and production and fuel companies became increasingly recognizable brands after the crisis. During 2008, crude oil prices rose from $40 to over $140 per barrel and dropped to almost same levels before rising extravagantly again in mid-2012. These fluctuations certainly changed consumer behaviour across the world.
Going back to banks, the increasing presence of regional banks offers quite a few of the changing dynamics. While the west-led global banks grapple with falling revenues and measly profits, the brand image of Asian banks broke the chains to grow beyond borders, gobbling up the share of retreating European banks.
Who leads where is better depicted by the regional break-up of the brands. The North American brands, whether in the technology, personal care, beverages or oil and gas sector, continue to remain sticky due to their global presence and longevity in the global market. And hence, they continue to grab the biggest share in the powerful brands.
However, it is Europe that has taken the hit. Europe, known for high value brands especially in the luxury category, continues to face strong economic headwinds, which has hit hard on European brands. In the meanwhile, Asian brands are catching up on the top 100 list.