Building and management of a Brand are positive for a company’s business and also help to make the country more competitive.
Branding arose in Brazil twenty years ago, influenced by the work of certain global Brands that were betting on new ways to relate with their customers. As an example, there is Apple, which created a computer with new premises of technology, design and interface. All of these initiatives had something in common: a value proposition with an impact on the lives of consumers. This new way of working, focused on the Brand experience, created a more emotional relationship between companies and their consumers.
The change in appreciation for intangibles was accelerated by important events, such as the digital revolution, globalized markets, access to capital, and concern with sustainability. The role of the consumer, with greater access to information and considerable power to interfere, has also evolved: he is no longer a mere “buyer”, but has become a stakeholder. Besides paying for merchandise, he wants to know if the business is socially responsible.
The result is that Brazil – the eighth economy in the world – has no Brand on the list of the 100 most valuable Brands on the planet. And this absence of strong Brands is damaging to Brazil and to the economy in global competition. Since it protected its domestic market, Brazil has created companies which thought very little of building and managing their Brands. Besides the obstacles to increasing productivity, there was little concern with winning the loyalty of the consumer, who had few options to choose from.
For this reason, it took a long time for management of the intangible to be included on the agenda of Brazilian CEO’s. Only in recent years, due to the strategic role they took on, did Brands conquer an important place among the attributions of professionals at the top of organizations. This delay provoked several distortions on the list of the most valuable Brazilian Brands: on it, there are three banks, two commodity companies, three from telecommunications, and two from the retail sector. Besides being the biggest economy worldwide, it is worth noting that the USA has 13 of the 15 most valuable Brands in the world. In other words, its companies win their customers’ loyalty in the majority of countries.
American Brands help the economy of their country a great deal in global competition. This year the GDP of the United States is forecast to increase by 3%, since components from the 21st century, such as film royalties and investments in research and development, will be included in the calculations. Billions of dollars of so-called intangible assets will now be accounted for in the biggest economy on earth.
With this as the background, we can analyze important points of the ten biggest economies in the world – USA, China, Japan, Germany, France, United Kingdom, Brazil, Russia, Italy and India, according to Brand Finance’s ranking, and come to the following conclusions:
- Technology and Internet Brands have quite a high Brand value when compared to the value of the company. The knowledge and digital era.
- Brands of state companies, with more local activities in general, have much lower Brand values when compared to the value of the company. The BRICS still have a large number of these Brands; in Brazil, Petrobras and Banco do Brasil are on this list.
- The big Brands in the BRICS belong to large local companies from the financial, energy, and telecommunications sectors.
- If we calculate a ratio between the value of the business and that of the Brand, this ranges in values between 22.4 and 13.2, while in other economies this ratio varies from 25.9 to 23.2.
- The economies of more developed countries present a wider variety of sectors of activity for their major Brands, many of which are consumer goods companies. Car Brands are very strong in Germany and Japan. Prada is the only fashion Brand among the most valuable from the countries studied.
- In more mature countries, there is a correlation between the size of the companies and the most valuable Brands. The biggest companies listed by Fortune also place high on the list of most valuable Brands.
Considering the scenario above, it is our understanding that the competent building and management of a Brand are not only positive for a company’s business but also make the country more competitive and give it a leading role in the global economy.