Airbnb leads as fastest-growing brand in Interbrand's 2023 Report, with 21.8% surge.
Interbrand has recently released its Best Global Brands 2023 ranking, which shows that a significant number of the world's top 100 brands are not experiencing much growth. The rate at which the overall brand value has been increasing has slowed down considerably compared to the previous year. This year, the brand value has only risen by 5.7%, whereas last year saw a much higher increase of 16%. As a result, the total brand value now stands at $3.3 trillion.
Gonzalo Brujó, global CEO of Interbrand, said: “After a few years of strong brand growth, we have entered a period of stagnation, with this year’s table showing moderate growth in overall brand value among the world’s biggest brands.
“Businesses which have witnessed a rise in brand value, including Airbnb (#46), LEGO (#59) and Nike (#9) have all transcended their established category norms and play a more significant and meaningful role in society and consumer’s lives.
“As we continue to navigate economic and environmental headwinds, there is a need for improved business cases and better brand management to drive future investment and sustain growth within traditional sectors and beyond. Those who can successfully leverage their brand into new consumer pools of potential will reap the rewards of strong brand growth.”
Extensive analysis conducted over a span of more than 20 years has revealed that companies catering to a wide array of customer needs, even in diverse industries, consistently occupy the top positions in terms of value, accounting for nearly half of the total value. According to the data, these companies that operate in multiple sectors are more resilient, experience greater revenue growth, maintain superior profitability, and witness a significant increase in brand value. These companies prioritise the development of their brand rather than solely focusing on their products, which greatly influences consumer choices, resulting in a 12% higher preference compared to the average. This approach enables them to meet a broader range of customer needs within and across various categories.
Ashish Mishra, chief executive officer, Interbrand India & South Asia said: “A brand like Apple can no longer be ascribed to a sector. It competes across different Arenas, helping its customers connect (the iPhone), but also Thrive (the latest Apple watch was positioned as a health device), Fund (its new savings account drew nearly $1 billion in deposits in the first four days), and much more. Apple’s move across Arenas has enabled it to hold the BGB top spot for the 11th year, having overtaken Coca Cola in 2013.”
Kathleen Hall, Chief Brand Officer, Microsoft, said: “We are honored to be recognised for continued strong growth in the Best Global Brands ranking this year. The combination of brand perception and financial performance is a great indicator of brand health and relevance and one we value tremendously. With our acquisition of Activision Blizzard, our prominent leadership position in AI, and our continued commitment to make a positive impact on society, we aspire to be a brand people can trust and build a responsible future with.”
Guillaume Le Cunff, CEO of Nestlé Nespresso SA: “Since the beginning, sustainability has been at the heart of the Nespresso brand and we have worked hard to show coffee can be a force for good. This is a very proud moment to see Nespresso recognised in Interbrand's Best Global Brands ranking for the first time. And we're not stopping there. We believe that the most powerful force behind our brand is our commitment to sustainability, which enables us to consistently offer the unforgettable taste and truly elevated coffee experience that consumers expect from Nespresso worldwide.”
Other key findings
Airbnb has emerged as the fastest-growing brand of the year, with its value surging by 21.8%. Despite being a recent addition to the rankings, it has climbed eight spots, moving from #54 to #46. The brand's remarkable increase in value can be attributed to its robust investment in branding and a stable financial outlook. The company witnessed a 40% rise in revenue in 2022 compared to 2021, and it is projected to experience an additional 13% growth in 2023 compared to 2022.
The automotive industry, particularly luxury car brands, experienced significant growth in 2023. The value of automotive brands increased by 9% during this period. BMW made its debut in the top ten list, securing the tenth position. Porsche, Hyundai, and Ferrari also achieved impressive growth rates, with double-digit increases. These three brands were among the top five fastest-growing brands in the industry.
Tesla maintained its ranking at number 12 in the automotive industry this year, but its growth rate was the least impressive compared to BMW and Mercedes. While Tesla's brand value increased by only 4.0%, BMW and Mercedes experienced growth rates of 10.4% and 9.5% respectively.
“Automotive brand top risers have increased scores across Affinity, Trust, Presence and Participation – key drivers of brand value – ultimately increasing their connection with customers,” says Greg Silverman, Global Director of Brand Economics at Interbrand.
Luxury is once again a top-performing sector with its brand value rising by 6.5% this year. This is due to luxury brands’ resilience and ability to transcend categories to create luxury experiences such as restaurants, hotels and retail pop-ups.
Hermès and Dior have seen a notable increase in their brand value this year. Hermès is ranked at #23 and Dior at #76. These luxury brands have gone beyond their usual markets by forming partnerships, introducing new products, and offering unique experiences in the metaverse. As a result, they have been able to attract new customers and bring a new perspective to their brands. They are now joining other well-known brands like Prada, Tiffany, and Burberry in adopting these innovative approaches.