Retailers have pushed aside banks to become Australia's most valuable brands.
The Australian retail sector accounts for 25% of total brand value, according to the latest report by Brand Finance, the world’s leading brand valuation consultancy.
Supermarket brands, such as the most valuable Woolworths (brand value up 6% to $12.6 billion) and competitor Coles (up 4% to AU$7.9 billion) in 4th position, have been leading the charge by ensuring that grocery supply was not disrupted by COVID-19.
The Australian banking sector has suffered an overall 11% drop in brand value due to weaker performance forecasts and unfavourable financial conditions caused by the COVID-19 pandemic.
Of the five banking brands in the top 10, only Macquarie has managed to keep a steady brand value year-on-year, while Commonwealth Bank (down 11% to $9.1 billion), ANZ (down 5% to $6.4 billion), NAB (down 20% to $5.5 billion), and Westpac (down 15% to $4.9 billion) have all suffered losses.
As increasing competition puts pressure on telecoms brands, the value of the Telstra brand dropped by 18% to $9.5 billion, reaching its lowest point since 2014.
The story is similar for Optus which fell by 19% to AU$3.8 billion due to a drop in forecast revenue and external economic factors.
As the only mining brand in the top 10, BHP has dropped to fifth this year following a 17% fall in brand value to $7 billion. Brand Finance says this is due to a greater economic risk across the market.
The strongest bank brand this year is Commonwealth Bank, with a Brand Strength Index (BSI) score of 84.9 out of 100, followed by Optus and NRMA – the only other brands on the ranking with a AAA rating – which scored 86.3 and 82.7 out of 100, respectively.
Overall, the total brand value for the top 100 most valuable Australian brands is down 9.2% since the 2020 valuations, a decrease of $14.7 billion.
The brand value in the top 100 ranking represents $144 billion of an estimated AU$294 billion of all brand value in Australia.
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