Apple, Microsoft and Amazon are the top three brands: Interbrand Report

Interbrand has launched its Best Global Brands 2023 ranking, revealing many of the world’s top 100 brands are in a state of stagnation. The rate of growth in the overall brand value of the table slowed sharply after last year's significant increase - rising 5.7% this year compared to last year’s 16% increase, taking the total brand value to $3.3 trillion ($3.1 trillion in 2022).

Interbrand cites a lack of growth mindset, weaker brand leadership, and poor forecasting as behind the slowdown. This follows a longer-term trend in which brands operating exclusively in one sector taking an incremental approach have experienced slower brand value growth.

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.”

More than two decades of analysis show companies that address a more diverse set of customer needs, often across sectors, continue to dominate the top of the table - making up almost 50% of the total value. Based on the data, these companies operating across several different verticals are more stable1, achieve higher top-line growth2, remain more profitable3,  and benefit from a greater growth of brand value4. For these companies, a focus on brand rather than product plays a greater role in driving choice (+12% vs average), meaning they can address more customer needs, within and across categories.  

Ashish Mishra, Chief Executive Officer, Interbrand India & South Asia said: “This year’s  BGB report highlights the disproportionate rate of growth for brands that move beyond their narrow categories to operate across multiple ‘Arenas’ – a term coined by Interbrand to describe the shift by brands from the constraints of conventional categories to a focus on catering to core human needs. By shifting focus from category norms to customer truths,  Arena Thinking supercharges the growth of the world's most influential brands. The world’s most valuable brand of the decade - Apple exemplifies this best. It originally played in the Connect Arena with iPhone but delved seamlessly into Thrive through the Watch and has had a tremendous response with its play in the Fund Arena recently. Closer to home, some of the biggest value-creating brands of the decade have also transcended the conventional categories and have begun to operate in broader Arenas. Jio, JSW, Asian  Paints, and Adani are worthy examples of it” 

Key Takeaways:

• Total table value grew by 5.7% this year compared to 16% growth in value last  year 
• Interbrand cites a lack of growth mindset, conservative brand leadership, and  uncertain forecasting behind the slowdown  
• Companies that operate across multiple sectors continue to dominate the top of the table – making up 50% of the total value. Data shows a stronger focus on  brand enables these companies to unlock rapid growth vs. the competition 
• Airbnb (#46) fastest riser in value (+21.8%) despite only entering the table last  year 
• Apple remains the #1 brand for the 11th year in a row. It is the first brand to  rise above half a trillion USD in brand value 
• Strongest performing sectors are automotive and luxury with sector value rising 9% and 6.5% respectively. BMW (#10) entered the top ten for the first  time, with Porsche (#47), Hyundai (#32) and Ferrari (#70) also performing well 
• Top 10 highest brand value riser is Microsoft (+14%) 
•  Zara (#43) and Sephora (#97) are two retail stars of the table with brand value  rising by 10% and 15% respectively 
•  Nespresso is this year’s new entrant (#98) 

Other key findings  

Top riser

Airbnb is this year’s top-rising brand with its value increasing +21.8%. It also jumped eight places in the table (from #54 to #46) despite only entering the ranking last year. The brand’s significant increase in value is partly due to its strong investment in the brand and solid financial outlook - revenue was up 40% in 2022 vs 2021 and is expected to rise an additional 13% in  2023 vs 2022.

Automotive and luxury witness the strongest growth

Automotive brand value rose by 9% in 2023, with BMW (#10) entering the top ten for the first time (#10). Porsche (#47), Hyundai (#32), and Ferrari (#70) all achieved a double-digit rate of growth and accounted for three of the top five fastest-growing brands.  

Tesla held its position in the table this year (#12), but its rate of growth was the slowest among the automotive brands with its brand value increasing 4.0% compared to BMW and  Mercedes which grew 10.4% and 9.5% respectively.  

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 (#23) and Dior (#76) are two of the biggest luxury brand risers, with 10.2% and  8.4% growth in brand value respectively this year. They are joining the likes of Prada, Tiffany, and Burberry in moving beyond traditional markets and extending their brand presence with new partnerships, product launches, and consumer experiences in the metaverse – creating new meaning with new customers.