Innovation and experience are critical factors driving brand performance, according to analysis by marketing data, insight and consultancy Kantar.
Those seen as highly innovative are growing on average 10% faster than brands with a medium-to-low score. High brand experience performers are seeing a 9% improvement in value.
The latest BrandZ Top 40 Most Valuable Australian Brands report, commissioned by WPP, shows brands involved in the new digital retail economy are clear leaders in mastering the two of the key indicators of innovation and experience.
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.
“BrandZ research highlights the importance of a strong brand as one of the key building blocks of resilient businesses,” says Ryan France, Kantar Australia executive director brand.
The top 10 brands:
Overall, Australia’s biggest brands have dropped 5% to US$96.8 billion, led by the telco sector with an 18% fall, as major players struggle with smaller margins.
However, there are eight new entrants to the ranking in 2019.
"This demonstrates that no-one can be complacent," says France. "Companies that don’t invest in developing a strong brand can easily be replaced by those that are more effective in meeting consumer needs."
The banking sector, facing the fallout from the financial services royal commisison, fell 13% in total category brand value.
However, the banks still maintained a strong presence within the Top 40. Commonwealth Bank retains the top spot with a value of US$15.9 billion, followed by ANZ at US$10.9 billion and Westpac at number 4 (US$7.6 billion).
The dividing line between many of the best performers and those that struggled was their level of perceived consumer trust.
One sector demonstrating the power of trust is retail. Bunnings (No. 9, US$2.7 billion) is Australia’s most trusted brand with a score of 144, achieving a standout growth of 46%.
“Bunnings is a brilliant example of the power of combining consumer trust with being highly meaningful and different to the competition,” says James Brown, Kantar Australia executive director retail and shopper.
“Those that achieved this compelling mix performed six times better in this year’s ranking; and while bricks and mortar retail is facing some challenges, the sector still boasts some of our most trusted brands and this is a strong asset to have as they navigate the tough economic climate. Aussie consumers do trust those brands that are highly meaningful and different to their competitors.”
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