New Zealand’s Most Valuable Brands
New Zealand’s Most Valuable Brands
§ Although this is the first year in which the most valuable Kiwi brands have been determined, Telecom NZ has been tracked as part of Brand Finance’s Global Telecoms brands: it has shown impressive growth of 30% over the past 3 years.
§ Fisher & Paykel AA+ brand rating results in the brand contributing 20% of the combined enterprise value of Fisher & Paykel Healthcare and Appliances holdings
§ The National Bank of New Zealand, ASB Bank and Bank of New Zealand all feature in the world’s top 500 banking brands with a combined brand value of NZD $1.2 billon.
§ Despite being in 4th position, there is room for Contact Energy’s brand value to grow. The brand’s 9% contribution to enterprise value is less than top international energy brands.
Apple, and the Rise of Lifestyle Technology Brands
With a value of US$70.6 billion, Apple has become the world’s most valuable brand – dwarfing 2nd placed Google which has a value of US$47.5 billion. The rocketing value of Apple has been driven by the launch of a stream of eagerly awaited products, and the announcement of its 25th billion download from the App Store.
Commenting on Apple’s performance, Tim Heberden, Australian managing director of Brand Finance, said “The extraordinary growth of the Apple brand reflects its fusion of technical innovation and design to become a lifestyle rather than a functional brand. Apple has matured from being a quirky brand to one that is regarded as a ‘must have’ for both personal and corporate users Apple’s AAA+ brand rating is testament to the queues outside Apple stores throughout the world and the resulting brand earnings.”
Technology has become the most valuable sector in the 2012 BrandFinance® Global 500. The 49 tech brands include Microsoft, Intel, Amazon and HP.
Brand Finance’s study suggests that we are embracing luxury brands, despite the grim economic outlook. A new breed of recession proof and aspirational ‘Alphabrands’ have bucked the trend for consumers to opt for cheaper products during times of economic uncertainty.
Louis Vuitton, with a value of US$4.9 billion, is the winner in the soaring fashion category, followed by Hermès (US$3.4 billion) and Polo Ralph Lauren (US$3.4 billion). Tiffany & Co, Christian Dior and Burberry have made the Global 500 for the first time, and Prada and Coach have returned.
About Brand Finance:
Brand Finance is a world leader in the valuation of brands and other intangible assets. Brand Finance has valued brands for the purposes of financial reporting, tax compliance, transactions, litigation, and strategic planning.
The BrandFinance® Global 500 is published annually and incorporates data from all listed companies globally. Each brand is accorded a brand rating: a benchmarking study of the strength, risk and future potential of a brand relative to its competitor set as well as a brand value: a summary measure of the financial strength of the brand.
Brand Finance has used the Income Approach and Relief from Royalty Method to value the brands. The Income Approach to valuation determines the value of an asset as the net present value of its future earnings. The Relief from Royalty method determines the earnings attributable to a brand with reference to the royalty that the brand would command in an arm’s length licensing agreement. The premise behind the valuation method is that ownership of the brand relieves the company from paying a royalty - the brand value is represented by the incremental earnings resulting from brand ownership. This is a generally accepted method used for financial reporting and tax valuations, and consistent with ISO 10668 – Monetary Brand Valuation.
Financial information for each brand has been sourced from Bloomberg and annual reports. Sector specific royalty ranges are sourced from Brand Finance’s royalty database, and measures of brand strength are obtained from a variety of sources.