Tech Brands Are Leading The World
Brand equity determines the worth that a brand has in the market. It also translates its value as an asset. While assessing the list of top brands based on equity as mentioned on Interbrand, the following interesting observations come to light. The Coca Cola Company was the brand with the highest equity in 2001. It stood at the top spot with $68,945 million. The company on the second spot was Microsoft with brand equity of $65,068 million and IBM, in the third place, with $52,752, million. It is interesting to note that the second and the third most valuable brand in 2001 were technology companies. The other seven companies in this list in 2001 were General Electric (GE), Nokia, Intel, Disney, Ford, McDonald’s and AT&T.
We observe a unique pattern when we look at the companies that dominate the top ten brands in terms of equity in 2019. During the last 18 years, a plethora of companies entered this list of top ten brands and departed from it. GE and AT&T were once a part of this list, however, today they stand in the top 20 spot and not in the prestigious top 10.
One reason could be their inclination to enter into several industries and not to focus on their primary niche. GE ventured into aviation, healthcare, power, renewable energy, digital industry, venture capital among others. AT&T too expanded into various industries including satellite television, cellular and fixed-line telephones, Internet services, television production and so on. Disney has maintained its place in the top ten most valuable brands because of focusing on its niche and following it with diligence. This shows that a brand must find a niche use it to catapult itself towards growth and expansion.
Looking back at this list, Apple Inc. is the top brand in 2019 with equity of $234.2 million. It entered the top 15 list in 2011 and grew exponentially during the last nine years to become the most valuable brand in the world. Interestingly, Google, which entered the top 15 list in 2008 is the second most valuable company with equity of $167.7 million. Amazon, that was in the top 15 in 2014, now enjoys the third place with equity of $125 million.
Microsoft, on the other hand, has been a part of this list since 2001. Since 2019 it is holding the fourth spot with $108.8 million in equity. A glance at the 2019 list of most valuable brands tells us about consumer preferences. Consumers want products and services to connect them across the digital media and complete their work online. Companies such as Apple Inc, Google, Microsoft and Samsung offer them the required products, services and applications.
Consumers also require a marketplace where the connection between buyers and sellers can take place. This is where Amazon comes into play. Interestingly, the only fast-food company in the top ten list is McDonald’s while the only cold beverage company is Coca Cola. Both have been consistently maintaining their image and retaining their brand positioning through advertisements and word-of-mouth promotion over the last many years.
Disney has also maintained its position as a valuable brand in the top ten list by providing entertainment to children and families through shows produced for television, digital media and by operating its theme parks. Toyota and Mercedes are the only two automakers on the list. This shows individuals, companies and countries have given them value when they need to commute and use them for transporting cargo.
The list of top ten brands according to their equity in 2019 as mentioned on Interbrand are as follows: