What's Happening?
According to Kantar's BrandZ ranking, UK brands are missing out on $10 billion in value, contributing only 29% to total company value compared to 33% for global brands. Despite a return to growth after three years, UK brands continue to fall behind international peers in brand value growth. The analysis, conducted with the University of Oxford's Saïd Business School, highlights that strong brand equity correlates with high share price returns and resilience to crises. Jodie Gillary from Kantar Insights UK & Ireland notes that UK brands are not disrupting as effectively as global counterparts, leading to a decrease in value. The financial services sector, however, shows strong performance, with HSBC taking the top spot in the UK ranking.
Why It's Important?
The lag in brand value growth for UK companies has significant implications for their competitive positioning in the global market. Brands that fail to innovate and disrupt risk losing market share and financial performance. The financial services sector's success underscores the importance of brand building and market adaptation. Companies that effectively leverage digital tools and cultural moments can enhance their brand equity and financial outcomes. The findings suggest that UK brands need to adopt more aggressive brand-building strategies to close the value gap with global peers.
What's Next?
UK brands are encouraged to embrace digital, social, and partnership strategies to increase their brand value. The focus should be on long-term brand building rather than short-term promotions. Companies like Dove, which have successfully disrupted through innovative campaigns, serve as models for others. The financial services sector's growth indicates potential for other industries to follow suit by investing in brand equity and market adaptation.
Beyond the Headlines
The report highlights a cultural dimension where UK brands need to balance consistency with evolving cultural trends. Brands like British Airways and Dettol have successfully navigated this by leveraging their heritage and adapting to current consumer expectations. The challenge for UK brands is to remain relevant while maintaining their core brand identity.
