Telekom/T-Mobile becomes Germany’s most valuable brand

Telekom/T-Mobile has been revealed as the new number one brand in the 2023 Kantar BrandZ Top 50 Most Valuable German Brands ranking. It has increased its value by a remarkable 43% since 2021, to $67.2 billion – accounting for 18% of the Top 50’s total value. The telecom provider has continually delivered on its promises, rapidly expanding its 5G service globally and accelerating the rollout of fibre-to-the-home. It constantly evolves its ‘Life is for sharing’ positioning, introduced in 2006 to emphasise its role in bringing people together, to keep the idea fresh and sustain emotional relevance. This has increased consumers’ predisposition to buy, and the brand’s ability to charge a premium.

The combined value of the Kantar BrandZ Top 50 Most Valuable German Brands 2023 now stands at $372 billion, which represents a 5% increase in two years. This demonstrates the solid foundations of a ranking largely composed of legacy brands that have built great strength, affinity and pride among consumers over time. Despite significant challenges – including inflation, supply chain bottlenecks, and skilled labour shortages – 29 of the 50 brands found paths to growth, with just under a quarter growing their value by at least 20%.

There are four newcomers and re-entrants to the German brand ranking: TUI (No.39; $1.6bn) and Dr.Oetker (No.43; $1.2bn) have returned to the ranking, while Jacobs (No.30; $2.2bn) and MAN (No.37; $1.8bn) enter the ranking for the first time.

Brand value in Germany is driven by Automotive, Telecom Providers, Retail and Business Solutions and Technology Providers, which collectively contribute 65% of the total value. The ranking is extremely diverse, with brands from 18 categories. The most valuable is Germany’s iconic Automotive sector ($74.5bn). The country’s carmakers have shifted their priorities to move full speed ahead with electromobility, and consumers have recognised and appreciated this. Mercedes-Benz (No.3; $24.6bn) leads the pack, with a 10% value increase. It has successfully responded to consumers’ needs, while making them aware of this through powerful communications.

The fastest rising category is Travel Services (+121%), helped by the rebound in global travel following the pandemic. This category, too, incorporates renowned legacy brands, including Lufthansa (No.32; $2.1bn), which bounced back quickly thanks to the decades of brand equity it has built up, which made it less vulnerable to disruption than competitors.

Retail is the largest category, featuring 11 brands and holds the third highest value ($49.2bn). German retailers have become ‘consumer champions’ by negotiating hard with manufacturers and are seen as transparent and fair. The top performer is former mail-order and now online giant Otto (+44%; $1.9bn) which climbed seven positions to No.35. Its winning strategies have included positioning itself strongly in the sustainability space.

The hard discounters, Aldi (No.7; +17%) and Lidl (No.10 +23%) have continued to grow by finding imaginative tactics to drive down prices. However, REWE (No.34; +25%) and Edeka (No.21; +26%) have put them under pressure by taking the opposite direction. They have created distinctive brand identities by introducing healthy, fresh, local and organic products, launching their own labels, and investing in creative and engaging communications.

Christoph Prox, Managing Director, Insights Division at Kantar, says: “Our times remain disruptive and turbulent, yet once again we’ve seen solid growth from Germany’s strongest brands. Their consistency has proved to be a powerful advantage: the strong associations and roots they’ve built in people’s minds and hearts have allowed them to emerge strongly from the recent ‘stress test’. This demonstrates how important it is not to be tempted to cut investment in brand building, or to focus on short-term ‘fixes’ such as price cuts. Change, challenge and opportunity always go hand-in-hand, and those brands with an in-depth understanding of consumers, and which act on insights faster, will be the winners.”