How have the best brands changed in 10 years? - March 13, 2019

How have the best brands changed in 10 years?

What are the most valuable global brands? If you follow our blog, that’s a relatively easy question to answer. What brands were the best 10 years ago? Now that’s a tough one! Luckily, a new animation shows how the strongest brands have changed in the last 10 years. There are some surprises on the list!

It’s not hard to name some of the most valuable brands of the world. Among others, Apple, Amazon, Google and Microsoft easily comes to people’s mind who follow the markets. These brands are the obvious choices now, but 10 years ago the top list was vastly different.

What has changed in a decade?

In brief, a lot. A decade ago Coca-Cola was the strongest global brand. Companies like Apple, Google and Amazon weren’t even close to be among the top of the brands at all. Facebook, now placed 9th on the list, barely existed back then. To see how much has changed, just watch the animation made by TheRankings Youtube page, it says more than a thousand words.

Probably the most interesting part of the video is to see how some companies (like Apple, Google and Amazon) skyrocketed to the top of the list. During this same period, mammoths like Coca-Cola, GE, Intel and IBM fell sharply. The most shocking however is Nokia. The brand that once was synonymous with quality cellphones is now a brand bought and sold by others. The only brand that fell but recovered is Microsoft, which had to reinvent itself in many aspects to gain hold again.

Two things did not change

Although brands appeared, disappeared and switched places during this decade, one thing remained mostly constant. The most valuable brands remained US-based ones. In 2008, 12 of the 15 most valuable brands were American. Ten years later, still more than half, 11 of them are from the USA.

Interestingly, companies from the IT industry are still highly represented on this list, too. In 2008, 8 of them were tech or telco companies, now 9 of them are. This was a global trend we underlined in our post about the most valuable brands from last year. The lead of IT companies however grew, while the significance of FMCG (Fast Moving Consumer Goods) companies like Coca-Cola and Marlboro fell sharply.

Brand value is not everything

Although this chart is interesting, we already wrote about how brand value is not everything about a company. This indicator isn’t only based on economic performance, but it’s also based on customer perception. While brand value isn’t just based on hard data, there are other indicators, like revenue and market capitalization that tell more about a companies’ worth.

Revenue is basically the income a company makes in a year. Apple for example had an over $265 billion revenue, which is far above its brand value. Market capitalization in the meanwhile is the product of the total number of a company’s outstanding stocks and the actual price of one stock. Now it’s around $820 billion, but last year it broke the $1 trillion barrier for a short while. (Amazon achieved the same feat, but it also fell, now it’s around $808 billion.)

Although these numbers are different, there’s a great correspondence between them. Therefore, it’s good to keep an eye on brand value even if it’s not an above all measurement.

Disclaimer: This analysis is for general information and is not a recommendation to sell or buy any instrument. Since every investment holds some risk, our main business policy is based on diversification to minimize threats and maximize profits. Innovative Securities’ Profit Max has a diversified portfolio, which contains liquid instruments. This way, our clients can maintain liquidity, while achieving their personal investment goals on the long term.