According to Interbrand’s Best Global Brands Report, Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) are the top dogs when it comes to brand value. The report claims Apple’s brand is worth $118.9 billion dollars in 2014, a scintillating 21% increase from last year. Moreover, Google’s brand value also now exceeds the $100 billion mark, coming in at $107 billion.
The Coca-Cola Company (NYSE:KO), International Business Machines Corp. (NYSE:IBM) and Microsoft Corporation (NASDAQ:MSFT) came in third through fifth respectively. Of interest, four of the top ten companies are tech firms. Samsung Electronics Co. Ltd. (LON:BC94) (KRX:0059935) was number eight on Interbrands Best Global Brands list with a brand value of $45 billion. That’s a 15% increase from 2013.
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Statements from Interbrand Executive Director
“A lot of our thinking about this year’s report is really around the ‘Age of You,’” elaborates Alfred DuPuy, Executive Director at Interbrand. Most of the high-ranked brands this year, such as Google and Apple Inc. (NASDAQ:AAPL), he notes, are successful because “they make it about you and are able to curate those experiences to you.”
Interbrand calculates the annual brand rankings by examining at the financial performance of the products or services connected to the brand. “Sometimes there are some bigger companies that aren’t on the list,” explains DuPuy. “It’s because we cannot access their financials.” In these cases Interbrand considers the role a brand plays in customers purchases and the ability of a brand to command a high price.
DuPuy also notes that many of the top brands are deeply woven into people’s lives, and the companies are constantly making new efforts to improve their relationships with customers through “new products or new ways of communicating.” He points to Facebook Inc (NASDAQ:FB) as a good example of this. Facebook, #29 on the Interbrand 2104 top brands list, has seen its increase by 86% since 2013. Other fast-climbing firms include Audi AG (ETR:NSU) (OTCMKTS:AUDVF), Amazon.com, Inc. (NASDAQ:AMZN), Volkswagen AG (ADR) (OTCMKTS:VLKAY) (ETR:VOW) and Nissan Motor Co Ltd (ADR) (OTCMKTS:NSANY) (TYO:7201).
Apple and Google up, Nokia and Nintendo down
Some companies have slid down the list this year. Brands such as Nokia and Nintendo saw the largest drops in brand value from 2013, with Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V)’s brand value dropping around 44%, while Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY) (TYO:7974)’s was down around 33%. DuPuy says: “You’re left to wonder ‘what are they thinking? What are they doing?’ and they are not really telling us or helping us understand that.”
Five new brands made it onto the list in 2014: DHL, Land Rover, FedEx Corporation (NYSE:FDX), Hugo Boss AG (ETR:BOS3) (OTCMKTS:BOSSY) and Chinese telecom and network provider Huawei Technology Co Ltd (SHE:002502).