Brand Finance released their list of the top South African brands for 2018. The results might surprise you.
Brand Finance is the world’s leading independent brand valuation and strategy consultancy. Brand Finance calculates the values of the brands in its league tables using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. The report aims to rank brands based on their brands value and strength. Brand value is described as the value of the trade mark and associated marketing IP within the branded business. A brands value is measured by three key determinants: its enterprise value (The value of the entire enterprise, made up of multiple branded businesses); its Branded Business Value (The value of a single branded business operating under the subject brand); and its Brand Contribution (The overall uplift in shareholder value that the business derives from owning the brand rather than operating a generic brand). The strength of a brand is described by Brand Finance as the efficacy of a brand’s performance on intangible measures, relative to its competitors. This is determined by a Brand Strength Index (BSI), measured through observing the marketing investment, stakeholder equity, and business performance of a brand. Here is the exact breakdown of the methodology.
These are the most valuable brands in South Africa at the moment.
- Standard Bank
These are the strongest South African brands of 2018:
- Standard Bank
- Tongaat Hulett
Overall findings of the report:
According to Jeremy Sampson, Executive Director of Brand Finance Africa, many South African brands have seen mass growth. Sampson states that South African brands grew by 8% to R426 billion from R395 billion the past year. This statistic holds much promise for the South African economy going forward. “The potential for South Africa going forward is huge, especially as new brands such as Capitec emerge,” says Sampson.
MTN has maintained its number 1 spot on the list, having grown by 8% this past year. According to the report, “MTN’s brand value grew primarily because of customers spending more on data services, consistent with a global trend of mobile phones being used to transmit more data at the expense of traditional voice traffic.” FNB made a big jump in this years report, going from 2017’s 7th place to 2018’s 3rd. It’s brand value had a 22% rise to R19.4 billion. This makes FNB South Africa’s most valuable brand. Capitec is South Africa’s strongest brand. Capitec’s brand strength has benefited from positive perceptions amongst its core customer base, which is consistent with their introduction of more unsecured credit offerings with interest rates as low as 12.9% in some circumstances.
Do you agree with the findings of the report? Let us know in the comments below!