The world’s most valuable brands (2019)

Prestigious companies focused on market research and communication have produced a ranking of the 100 world’s most valuable brands valued by consumers.

For the first time Amazon has surpassed Google as the most prestigious brand in the world. It goes without saying that retail and technology multinationals occupy the most privileged places.

These results were obtained, among others, from the research carried out by professionals and from indicators and data from over 3.7 million consumers around the world. The study took into account 166,000 trademarks from 50 different markets.

Under the branding standards, three indicators stand out when assessing a brand:

First of all, we find the profits, that is, the total revenue percentage generated by the goods and services associated to the brand. The capital expenses and the investment made to create the brand must be deducted from these profits in order to obtain the real value that the distinctive sign contributes to the company.

In second place, we find the contribution of the brand or brand equity. Only part of these profits can be considered as a direct boost created by the brand. Among other factors, the market analysis of each country and other indicators, such as tangible, functional, intangible or emotional attributes (e.g. differentiation, perceived quality and notoriety) must be taken into account.

Finally, growth potential has to be assessed. That is, the gains boosted by the distinctive sign. Accordingly, through financial projections based on the consumption data, the study is made based on income, growth opportunities and the barriers of the brand itself.

It is necessary to emphasize that the registration of a trademark not only provides a differential value for the acquisition and loyalty of customers as given by branding, but also authorizes the owner – during the validity of 10 years renewable indefinitely – to exclusively protect the distinctive sign and therefore, to capture the present and future brand equity.

Consequently, in addition to creating a quantitative and qualitative value, we believe the registration of a trademark is essential, since by the mere fact of achieving it, the law confers on its owner the right to prevent a third party from registering an identical or similar sign for identical or similar goods and services to those registered by the previous sign, in addition to condensing the reputation and the added value provided by the sign.

Article by Xavier Badia.

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