US brand hegemony slipping

Just as a slowdown in economic activity in the United States has had devastating effects on the worlds economies; the perceived value of the worlds most powerful brands has also taken cue from the land of opportunity.
Recent research conducted by IBA professor Dr. Kamran Siddiqui shows that growth in the brand equity of American giants faltered from 4 percent in 2008 to negative 5 percent in 2009. He asserted that this slowdown in US brands created a domino effect which had more pronounced impact on European and Asian brands.
Growth in brand equity of Europes biggest brands fell from 9 percent in 2007 to negative 6 percent in 2009. Asian giants also witnessed major slippages as their brand equity growth plunged from 10 percent in 2008 to minus 3 percent in 2009.
Siddiqui also found that while US brands were already on their way to recovery by 2010, the other two continents have witnessed stagnation in increases in their "marketing assets", since the global economic slowdown.
The study focused on the top 100 global brands over the past decade; as identified by Interbrand. While acknowledging that US firms remain dominant among the worlds leading brands; Siddiqui asserted "winds of change are blowing". "There were 63 US brands in the Top100 list back in 2001, while in 2010 they were down to 53" he said.
Across the Pacific, Asian brands have churned in much higher growth rates in the early 2000s. While their numbers remain low compared to the Western world, Asian brands have established dominant positions in automotive and electronics sectors.
Japanese and Korean giants have led the advances in brand equity in Asia with average brand equity (ABE) at $13.1 billion in 2010. This puts Asias biggest brands almost at par with American peers that had ABE of $14.1 billion in the same period, while European brands remained much smaller with an ABE of just $8.1 billion, in 2010.
European firms have witnessed a reinvigoration in "cheaper brands" as recession-hit consumers opt for value-purchases. While the average brand equity of European brands is lower, their numbers are expanding fast.
Siddiqui pointed out that, European brands have established a clear lead in luxury brands while in the apparel and sports goods sectors, their growth has been stellar in the past decade.
But perhaps the most telling sign of a possible end to the hegemony of US brands is the change of guard in the automotive sector. The cumulative brand equity of US brands in this sector has dropped from $18.79 billion in 2006 to just $10.48 billion in 2010.
With American autos losing steam, European and Asian brands appear neck and neck in the auto sector. Further, US brands also show stagnation in other sectors such as luxury, sporting goods, apparel and electronics.
Experts believe that while the worlds markets and brands still take cue from American markets, in the future; brand power may tilt in favour of the Orient.