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Monday, February 24, 2020 9:04:11 AM
By: TheStreet | February 24, 2020
A good product or service has value, but a good brand identifies one seller’s good or service as distinct from those of others. A brand is an identity, carrying with it perhaps cultural, emotional and experiential history to a consumer. Brands may be anchors, associated with loyalty, recognition, and consistency.
The purpose of a strong brand, according to Brand Finance, a business valuation and strategy consultancy, is to attract customers, build loyalty, and motivate staff, but ultimately its purpose is to make money.
Brand Finance’s recent report on the fastest-growing brands in the world examines 100 brands, and how much their value has increased since 2014.
To determine the value of a brand, Brand Finance estimates the likely future revenues that are attributable to each brand by calculating a royalty rate that would be charged for the use of the brand. The value is the net economic benefit that the brand would achieve by being licensed in the open market.
The ranking is not not company values, nor is it brand values, but the degree at which the brands have grown over the past five years. Amazon’s (AMZN) brand value of $188 billion is significantly higher than Facebook’s (FB) $83 billion, but Amazon ranks eighth on this list, with a 5-year brand value increase of 316%, compared with Facebook’s much greater increase of 747%.
Internationally, China's WeChat brand stands out with the most growth in value over five years at 1540%, and the growth of four other Chinese brands leaving the No. 1 U.S. brand, Facebook, at No. 5 worldwide.
Based on Brand Finance’s report, these are the fastest growing U.S. brands. Click through the gallery below to see them all.
1. Facebook (media)
• 2019 brand value: $83.2 billion
• 5-year brand value increase: 747%
• Ranking worldwide: 5
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