The growth of brands is slowing down, according to Interbrand

The Best Global Brands 2023, the new annual report from Interbrand, highlights a significant slowdown in the growth of global brands, dropping from 16% to 5.7% this year. However, while Apple stands out in the top position, the automotive and luxury sectors are performing relatively well, experiencing notable growth.

 

Interbrand, the brand strategy and design consultancy, released its brand ranking for the year 2023 on Tuesday, November 21. Titled “Best Global Brands 2023,” the report highlights a period of stagnation for many brands among the top 100 global brands.

 

After a significant increase in the previous year, the growth rate of the total value of brands in the ranking has slowed considerably, dropping from 16% in 2022 to only 5.7% in 2023. This shift brings the overall value of brands to $3.3 trillion this year, compared to $3.1 trillion in 2022.

 

“After a few years of strong brand growth, we have entered a period of stagnation, with this year’s ranking showing moderate growth in the overall value of brands,” said Gonzalo Brujó, Global CEO of Interbrand.

 

According to Interbrand, this slowdown is attributed to insufficiently growth-oriented mindset, weaker brand leadership, and poor forecasts. This trend aligns with a longer-term pattern where brands operating exclusively in one sector and adopting a gradual approach have experienced slower growth in their value.

 

Apple at the top

 

Unsurprisingly, Apple remains the top brand in the ranking for the 11th consecutive year. It is the first brand to surpass the half-trillion-dollar mark in brand value.

 

Over twenty years of analysis demonstrate that companies addressing a more diverse range of customer needs, often across different sectors, maintain their dominance at the top of the ranking, representing almost 50% of the total value.

 

“A brand like Apple can no longer be attributed to a single sector,” commented Manfredi Ricca, Global Strategic Director at Interbrand. “It competes in different areas, helping its customers connect (the iPhone), stay healthy (the latest Apple watch positioned as a health device), finance themselves (its new savings account attracted nearly a billion dollars in deposits in the first four days), and much more. Apple’s evolution in all these areas has allowed it to hold the top spot in the Best Global Brands for the 11th time, surpassing Coca-Cola in 2013.”

 

Zara (43rd) and Sephora (97th) stand out as retail stars, with their brand values increasing by 10% and 15%, respectively.

 

Automotive and luxury in full swing

 

In 2023, the value of automotive brands recorded a 9% increase. BMW, entering the top 10 for the first time, secured the 10th position. Porsche (47th), Hyundai (32nd), and Ferrari (70th) all displayed double-digit growth rates, placing them among the five fastest-growing brands.

 



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Read also>INTERBRAND UNVEILS ITS REPORT ON THE MOST INNOVATIVE BRANDS IN 2023

Featured photo : ©Press

Picture of Hugues Reydellet
Hugues Reydellet
Hugues Reydellet is a young and passionate journalist whose favorite subjects are economy, culture, gastronomy, but also cars, and sports. With a sharp pen and an insatiable curiosity, Hugues is constantly on the lookout for new hot information to report.

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