Apple, Ferrari and Jordan: what is their secret to being the best brands on the planet?

Trends sophie. Local Monday 02nd December 2024 01:50 AM REPORT

The world's biggest brands lost $200 billion (€192 billion) in revenue last year. What could they have done better?

The first Best Global Brands report was published 25 years ago. The world has changed a lot since then, with the launch of the iPad, GoogleMaps and social networks.

While some brands have become global giants, others have practically disappeared from circulation. (Nokia, we’re looking at you.)

But what is the secret to brand longevity and growth?

In this episode of The Big Question, Hannah Brown spoke with Gonzalo Brujó, Chairman and CEO of Interbrand, the world's largest brand consultancy.

What makes a brand successful?

According to the latest Best Global Brands report, the cumulative value of the world's 100 most profitable brands has more than tripled since Interbrand published its first ranking in 2000.

And while growth from $988 billion to $3.4 billion may seem impressive, Gonzalo said it could have been much better.

In fact, with the right brand and marketing strategy, these brands could have collectively been worth $6.9 billion, he suggested.

This represents $3.5 billion (€3.3 billion) in missed value creation, the equivalent of the entire UK GDP.

“Companies are looking for effective marketing. They are really focused on how they can sell today, today, today,” Gonzalo told Euronews.

“What we recommend is that brands combine their marketing strategies. It's about performance marketing, but also how they can build their brand in the long term. »

What are the best practices of the most successful brands?

The strongest progression in the 2024 ranking is that of Ferrari (+21%, ranked 36th). Gonzalo attributes his success to the company's diversification.

“Companies that invest in different categories saw an increase of 6% this year compared to those that only operate in one category,” he explained.

This has been demonstrated by several luxury brands that have launched into hospitality, entertainment and fashion in order to offer their audiences a 360-degree luxury experience.

This is also the case for incumbent champion Apple, which has dominated the top spot since 2013 and operates across technology, entertainment, financial services and healthcare.

Are we going to see a rise in celebrity brands?

For the first time in this year's ranking, Jordan, Nike's brand derived from Michael Jordan, entered the top 100 and was the first personality brand to do so.

Ranked 99th and valued at $6.4 billion (€6.2 billion), Gonzalo doesn't see Jordan's arrival as the start of a new trend for brands.

“I see other brands that are likely to appear in the rankings related to AI or travel and hospitality.

But for now, I don't see a celebrity brand in the future. »

In fact, Gonzalo warned of the dangers of someone being too closely tied to a brand. He cited Tesla, which before the US elections experienced one of the biggest drops in value of the year (-12%), as an example of this phenomenon.

“I think the way Elon Musk has presented himself to the public has been very polarizing. I think this is starting to affect the relationship between Tesla, Elon Musk and its customers. »

The Big Questionis a Euronews Business series in which we speak with industry leaders and experts to discuss the most important topics of the day.

Watch the video above to see a full discussion on the Best Global Brands report.