Brands worth Investing In
Investing is a risky business. Some companies succeed while others fail. But there are also some really strong companies out there with highly valued brands which are growing year by year and multiplying their profit. Inter-brand made a list of the most valuable brands in the world for 2014. While evaluating them, Inter-brand considered financial performance of branded products, ability to influence consumer’s behavior, and the prestige allowing them to charge premium prices and secure their future earnings. So, are you wondering what kind of investment could make you a millionaire? Hint: Tech companies are on the rise. Let’s have a look at the world’s most valued brands, the brands worth investing in:
H&M +16%
Brand value: $ 21,083 m
H&M’s expansion and growth is remarkable. The company increased new store openings by 10-15% every year, and this year is opening 375 stores, mostly in China and the US. Their online presence is expanding with HM.com, which is serving customers in parts of the US and Europe. H&M is now on the way to being both a respected fashion brand and cost-efficient. It is socially conscious and was honored for its values and ethical practices, named as one of the World’s Most Ethical Companies in 2014. It was also ranked as #1 for using certified organic cotton around the globe.
Honda +17%
Brand value: $ 21,673 m
Honda’s Japanese cars and motorcycles are coming back to Formula 1 after 20 years out as an engine supplier for McLaren. This effort should differentiate Honda in the automotive industry and speed its growth. Their marketing campaign, “Sound of Honda/Ayrton Senna 1989,” won a Grand Prix at Cannes Lions Festival of Creativity. The F1 race calendar is full of contestants in emerging countries, which are already big markets for Honda.
Oracle +8%
Brand value: $ 25,980 m
After 10 years of expansions and around 100 acquired companies that led to complex end-to-end back office solutions, Oracle decided to take a break. The new challenge facing the company is how to define itself and find its purpose. Marketing communications are focused on simplicity. Oracle is ensuring integrated experience for all businesses and compliance of its software for cloud computing.
Amazon +25%
Brand value: $ 29,487 m
Amazon is considered to be one of the most approachable and accessible companies. Its focus on consumer satisfaction might be the key of their huge success. Their core business Amazon Prime is still growing and new extensions of their products such as Kindle Paperwhite and Fire Phone are bringing new customers. Amazon did not stop there and made one more step to “wow” them. Thanks to cooperation with Federal Aviation Administration, Amazon’s customers can use their devices while taking off and landing of a plane.
Cisco +6%
Brand value: $ 30,936 m
Connecting the previously unconnected, Cisco is another tech company which plays it well. Cisco wants to grow their presence in global marketplace, from IP phones used in offices to home network equipment to advertising and promotion events. Remarkable also is its speed-to-market, which increased from 3-5 years to only 12-18 months. Brand value is definitely influenced by the strong marketing Cisco is running – 20% of the company’s revenues are dedicated solely to marketing and sales activities.
Disney +14%
Brand value: $ 32,223 m
Disney is creative and innovative in its use of technology and its approach to global growth. Strategy based on these areas made Disney one of the most valued brands in the world this year. This 91-year-old company is not afraid to use new technology to analyze customers’ needs and personalize their experience. Disney started to cooperate with Jack Dorsey, Chairman of Twitter, and announced an exclusive deal with Marvel Programming for Netflix. It also acquired the YouTube network Maker Studios. The huge success of Frozen opened new doors and opportunities, and Russia and China now belong to the largest markets for Disney movies.
BMW +7%
Brand value: $ 34,214 m
BMW is keeping their leading position among best-in-class automotive brands. Ongoing activities aiming to create a sustainable future for mobility, such as the Efficient Dynamics initiative, are continually increasing BMW’s brand value. The company is fueled by innovation and is currently developing solutions to lower carbon emissions across the brand’s range. Besides that, it is the consistent communication and strategy clarity which drives BMW to be one of the most successful brands around the globe.
Mercedes Benz +8%
Brand value: $ 34,338 m
Not a BMW person? Mercedes Benz is another automotive company that is in the top 20 brands according to Inter-brand. New models and fresh attitude towards their brand strategy brought record sales – in the previous year Mercedes Benz increased their financial performance by 14% worldwide and 9,5% in the US. Mercedes offers comfort, performance and prestige. Everything that customers expect from them. What’s more, Mercedes is developing new ways for sustainable mobility too, decreasing emissions and using intelligent energy system for hybrid vehicles. Customers are important to the brand and new features aiming to create a premium customer experience are definitely one of the reasons the value of Mercedes Benz is rising.
McDonalds +1%
Brand value: $ 42,254 m
One of the world most successful fast food chains is currently serving more than 70 millions of customers a day in 100 countries. McDonalds lately responded to consumers’ demands and added new healthier alternatives to their classic menu. Besides that, they created strategy to become a more ecological and ethical company. McDonalds’ goal is to purchase only verified and ecologically sustainable beef by 2016 and 100% sustainable palm oil, coffee and fish by 2020. The brand’s challenge nowadays is to create an image of high quality food.
Toyota +20%
Brand value: $ 42,392 m
Toyota is the winning brand among automotive companies for 2014 according to Inter-brand. A crisis at the beginning of 2014 and a $1.2bn fine from the US Justice department didn’t stop the ambitious company from increasing its sales and keeping its position as a trustworthy company.
Samsung +15%
Brand value: $ 45,462 m
This high-tech company is a strong player in many segments, currently fighting a battle in the smartphone industry with another giant, Apple. Samsung is developing new products and shaping the world we know with innovations: curved TV, virtual reality headsets, and wearable electronics are new products in their portfolio. The prognosis seems to be positive for Samsung.
Microsoft +3%
Brand value: $ 61,154 m
Big changes happened at Microsoft this year. New CEO Satya Nadella is an expert in company cloud computing, and his arrival signaled a new era for Microsoft. Satya switched from previous “Windows first” strategy to “mobile and cloud first.” Microsoft’s efforts to increase relevance and provide services and products customers want are working well. Cloud computing enterprise Windows Azure, strategically rebranded, and the personal voice assistant Cortana accompany the latest launch of Windows 8.1. The acquisition of the Minecraft company signals Microsoft’s high ambitions in mobile, cloud computing and games industry.
Coca Cola +3%
Brand value: $ 81,563 m
This famous soft drink brand is nowadays challenged by many market changes. Consumers are more conscious about health and Coca Cola is evolving together with their customers. Coca Cola Life, a drink sweetened naturally with stevia, was launched in 2013 in Argentina and Chile, and in 2014 in the US and UK. Ecology is big topic nowadays, and Coca Cola set a goal that by 2020 it will use its PlantBottle technology for all its bottles. In terms of marketing, Coca Cola is one of the role models. Its “Share a Coke” campaign increased its sales by 2%, its Facebook fan base by 25 millions, and servings to 1.9 billion a day.
Google +15%
Brand value: $ 107,439 m
Google is one of the most ambitious and innovative companies in the world nowadays. Though Google is categorized as a search company, product development has gone far beyond such limited definition. Recently, they started to test self-driving cars and launched Project Loop – a global network of high altitude balloons bringing wi-fi to remote areas. Unfortunately, not every Google project meets success and the prognosis for Google Glass is not so bright anymore. Investments and acquisitions of Google in past years shows that company is interested in robotics, biotechnology, artificial intelligence and wearable technology. It is their vision, bravery and crazy ideas that make Google an outstanding brand.
Apple +21%
Brand value: $ 118, 863 m
The most valuable brand of 2014 according to Inter-brand is Apple. The tech giant introduced Apple Pay this year, a system which is allowing people to pay with their Apple devices, Apple Watch, iPhone 6 and iPhone 6 plus, CarPlay and HomeKit. Apple is making life smarter, from wearable technology to communication over devices at home. This year the company acquired great talents such as Angela Ahrendts (ex-CEO of Burberry), Paul Deneve (ex-CEO of Yves Saint Laurent) and Jay Blahnik (a developer of Nike’s fuel band). Let’s see what ambitious Apple brings next year.
The world’s best companies have some things in common. All of them are taking responsibility for the future they are shaping, in terms of both sustainability and innovation. They create solutions around their customers’ current and future needs. These companies value talent, have a clear vision and are not afraid to invest in marketing. Only brands behaving like these are worthy to investing in.