Google, Apple and Ikea have topped the list of most trusted and credible brands in Australia according to Y&R's Brand Asset Valuator study.
The top twelve brands named in the report are Google, Apple, Ikea, PayPal, YouTube, Microsoft, Windows 7, eBay, Wii, Dyson, Vegemite and Subway.
Despite the troubles facing the retail market, not all brands are suffering from a lack of consumer confidence.
Technology giants Google and Apple had twelve of the top twenty brands
named in the survey between them, including Apple's iPhone and the
Google-owned YouTube.
The BAC stated that this confirms the
trend of consumer preference for brands that have “a creative, visionary
or pioneering spirit.” Other brands, including Ikea and Lego, also
rated highly due to these criteria.
Some of the bigger brands that have seen a consistent decline in trust over the last five years include Qantas, Kodak, Dymocks, Levi's, OPSM, Dairy Farmers, Mr Sheen and Meadow Lea.
Australia's leading brands may be suffering from a lack of credibility with consumers, retail is not quite 'dead' yet to the study.
“There are several factors contributing to this decline,” said Keith Newton, director of Brand Asset Consulting (BAC), which conducted the study. “The need for innovation is too often sacrificed in the pressured quest for sales. Widespread discounting has also undermined what some brands actually stand for.”
Consumers’ trust in leading brands is also experiencing a rapid decline, with trust in brands declining 22 per cent in the last two years due to consumer anger over escalating prices, poor customer service and confusing offers from retailers, insurance, utilities and financial services.
Despite this, the overarching message of the report is that retail is not 'dead', just evolving. Newton said that brands including Zara, Abercrombie and Fitch and Victoria’s Secret are climbing the Australian BAV Brand Strength axis due to younger Australian women.
Newton said another problem is that big brands are not protecting themselves from cheaper 'home brand' options from others. “The leading supermarkets are strong brands, and so are their better 'own label' offerings,” said Newton. “Once their product marketing improves, the brands that have failed to build brand strength will really feel the heat and...will be hurt even more by the home brand price offerings.
“The milk market is a classic example,” Newton continued. “The supermarkets' [home brand options] have severely hurt the value of many milk brands.”
Five thousand Australians were surveyed online for their opinions on more than 1300 brands across 121 categories.
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