A perceived lack of trust has wiped billions of dollars worth of value from some of Australia’s largest brands, according to a new report.
Despite a challenging year, Australia’s big banks are still among Australia’s most valuable brands, according to the BrandZ Top 40 Most Valuable Australian Brands report from WPP and Kantar. Overall the brand value across the category declined by 13 per cent – almost $6 billion – over the last 12 months.
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CommBank weathered the Royal Commission storm to hold onto the title of Australia’s most valuable brand. Its brand declined just 3 per cent to US$15.9 billion, followed by ANZ at US$10.9 billion (-8 per cent) and Westpac at number four, worth US$7.6 billion (-18 per cent).
“The 2019 ranking not only highlights the importance of trust, but the dire consequences of losing it,” said David Roth, CEO of The Store WPP EMEA and Asia and Chairman of BrandZ.
“Brands that have seen their value drop this year need to look to those that are getting it right and determine the long-term strategies they need to adopt to win back the consumer confidence that will act as a lever for growth.”
One brand getting it right is Bunnings, it is one of just seven brands to rise in value this year, achieving standout brand value growth of 46 per cent to reach US$2.7 billion. At number 9, it is also Australia’s most trusted brand with a score of 144.
Joining the Top 40 for the first time are Australia Post (No. 21, US$1.1 billion) indexing 125 for innovation and 138 for brand experience, and Afterpay (No. 20, US$1.2 billion) with 124 for innovation.
The leading 40 brands in the country have a combined brand value in 2019 of US$96.8 billion – a decline of 5 per cent over last year’s ranking.
Foxtel, insurance companies, energy providers and telcos also experienced significant declines in their brand value.
“There are eight new entrants to the ranking in 2019. This demonstrates that no-one can be complacent. Companies that don’t invest in developing a strong brand can easily be replaced by those that are more effective in meeting consumer needs.” says Ryan France, Kantar Australia Executive Director Brand.
The report can be downloaded here.
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