STC has emerged as Saudi Arabia’s most valuable brand and the Middle East’s most valuable telecoms brand, according to the latest analysis by Brand Finance.
Global 500 2017, the annual report on the world’s most valuable brands has been released, listing the top 500 valuable brands across the world.
STC grew 11% in value this year to $6.2 billion. In terms of STC's brand value, the report states: "The Riyadh-based giant demonstrates a departure from its once traditional methods; it is embarking down a path of ‘humanisation’, re-engaging its many stakeholders with a fresh, personable outlook. A clear indication of its success is the 5-point increase in its brand strength index score, proving that putting some heart into it pays off."
After facing a decline against Apple and Samsung for years, Nokia is again back in the groove. Consolidation seems to have worked in its favour, as Nokia’s brand value has climbed 62% to $4.9
billion. It's majorly being attributed to the upcoming launch of the ‘Nokia 6' at MWC 2017.
Emirates, one of the top brands of the Gulf, witnessed a 21% decline in its brand value to $6.1 billion, however, it retains its AAA rating.
AT&T's brand value increased by 45% YoY, overtaking Verizon as the most valuable telecom brand globally.
Huawei's brand value has gone up, and its rank has moved up to 40 from 47 last year. Cisco has moved down from 50 to 55 this year. Ericsson has bad news since the brand rank has gone down to 331 in 2017, from 127th rank in 2016.
Etisalat's ranking has witnessed remarkable improvement from 406 in 2016 to 293 in 2017. Vodafone's ranking has gone down from 30 in 2016 to 50 in 2017. While Orange's ranking has improved taking it from 53 in 2016 to 51 in 2017.
David Haigh, CEO, Brand Finance said: "Brand Finance’s recently conducted share price study revealed the compelling link between strong brands and stock market performance. It was found that investing in the most highly branded companies would lead to a return almost double that of the average for the S&P 500 as a whole. Acknowledging and managing a company’s intangible assets taps into the hidden value that lies within it."
Apple has for the last five years held sway as the world’s most valuable brand. However, 2017 results don't repeat that trend. The report says that Apple has over-exploited the goodwill of its customers, however, it has failed to generate significant revenues from newer products. Apple’s loss has been Google’s gain. Six years after it last held the title in 2011, Google is now the world’s most valuable brand with a value of $109 billion.Apple moved to the second position for this year's rankings. The other brands in the top ten list are Amazon, AT&T, Microsoft, Samsung, Verizon, Walmart, Facebook and ICBC,
Technology is the largest sector by brand value, followed by banking.
According to Brand Finance’s Brand Strength Index (BSI) assessment, the top most powerful brand for 2017 is Lego, followed by Google.
Brand Finance calculates the values of the brands in its league tables using the ‘Royalty Relief approach’. This approach involves estimating the likely future sales that are attributable to a brand and calculating a royalty rate that would be charged for the use of the brand, i.e. what the owner would have to pay for the use of the brand—assuming it were not already owned.