The new annual study by WPP and Kantar tracks the performance of Australia’s most valuable brands through the world’s largest brand equity platform, using a brand valuation methodology that combines interviews with consumers and financial and business performance analysis.
Highlighting the continued critical role of the banking sector within Australia’s economy*, the Big Four banks have all made it into the Top 5, with Commonwealth Bank of Australia taking the lead (US$16.4 billion). ANZ bank (US$11.9 billion) and telecoms provider Telstra (US$10.8 billion) were placed second and third respectively.
|
Rank 2018 |
Brand |
Category |
Brand Value 2018 ($M USD) |
|
1 |
Commonwealth Bank of Australia |
Banks |
16,412 |
|
2 |
ANZ |
Banks |
11,907 |
|
3 |
Telstra |
Telecom Providers |
10,774 |
|
4 |
Westpac |
Banks |
9,306 |
|
5 |
National Australia Bank |
Banks |
8,781 |
|
6 |
Woolworths |
Retail |
7,105 |
|
7 |
Coles |
Retail |
5,207 |
|
8 |
Optus |
Telecom Providers |
3,503 |
|
9 |
St. George |
Banks |
2,658 |
|
10 |
Origin |
Energy |
2,236 |
Retail was the second top performing sector (US$19.6 billion), followed by telecom providers (US$17.3 billion). Retail chains Woolworths and Coles came in at sixth and seventh position. Retailers had the highest number of brands represented in the BrandZ Top 40, with a total of 11 brands (including Westfield, Bunnings, BWS and Harvey Norman) across product subcategories. While retailers have always enjoyed a central role within the Australian economy, they now face a growing threat from disruptive foreign players offering personalised shopping experiences.
Australia’s geographic isolation has historically led to a lack of outside competition. Increasingly, this geographic isolation is being flattened by technology, and global brands are now a mere click away. Unlike other countries, there is a distinct absence of technology brands within the BrandZ Australia Top 40, with consumers perceiving an innovation gap across local brands. They expect more and favour brands that are more “tech savvy” and offer greater convenience and efficiency.
Globalisation does present opportunities for strong Australian brands. Only 13 of the ranked brands report any overseas revenue – with such contributions making up just 7% of total revenue. Alcohol brands like Bundaberg, and Victoria Bitter and airlines like Qantas and Jetstar only derive a fraction of their revenues from global markets. In fact, only Fosters derives the bulk of its revenue from outside of Australia. Brands can defend their markets and accelerate growth through new market penetration, by focussing on improving capabilities across business areas from logistics and communication to customer care.
Editors notes
About the BrandZ™ Top 40 Most Valuable Australia Brands Ranking
Carried out by marketing and brand research agency Kantar, BrandZ™ is the world’s largest and most definitive brand equity platform, reflecting the brands that are integrated into today’s consumer lifestyles. It is the only brand valuation study to combine interviews with over three million consumers globally with analysis of the financial and business performance of each company (using data from Bloomberg and Kantar ).
In order to identify the dollar amount a brand contributed to the overall value of a corporation, BrandZ combines measures of brand equity based on interviews with over three million consumers about thousands of brands, with rigorous analysis of the financial and business performance of each company (using data from Bloomberg and Kantar ). The BrandZ rankings are the only brand valuations in the world that take into account what people think about the brands they buy. For a brand to be included in the BrandZ Top 40 Most Valuable Australian Brands they have to have originated in Australia and be publicly listed on a stock exchange or publish their company financials.
*Australia’s banking sector comprises a high proportion of the BrandZ Australia Top 40 total brand value versus other global BrandZ valuations markets, given the industry’s unique role within the Australian economy. The results of the Royal Commission may affect their short and long-term valuations. Between April and mid-May this year, BrandZ has seen the overall brand value of the banking sector falling by US$8.8 billion, driven principally by lower share prices due to ongoing industry scrutiny.