Aramco, one of the world’s largest integrated energy and chemicals companies, has powered itself into the top 20 of the most valuable global brands in a latest ranking.
The Saudi-based company, ranked 16 globally, is the highest newcomer in the Kantar BrandZ Most Valuable Global Brands 2022 ranking with a value of more than $99 billion, said the report.
Following its IPO in 2019, Aramco instantly became one of the world’s largest publicly traded companies by market capitalization.
Apple sits on top of the ranking and is on track to become the first trillion-dollar brand. With a brand value of $947.1 billion, Apple stands out for its high degree of differentiation and continued diversification across its hardware, software and services portfolio, it said.
Google moves up to second place and is one of the fastest risers in the ranking, increasing its brand value by 79% to $819.6 billion. Google’s suite of work and productivity apps have made it an essential part of consumers’ lives worldwide.
Top 100 brands' value hits $8.7 trillion
The combined value of the world’s Top 100 most valuable brands has increased by 23% to $8.7 trillion over the past year, highlighting the importance of brand strength in navigating an unsettled global economy. This year, brands needed to exceed a total brand valuation of $21,219 million to earn the title of one of the world’s biggest brands - a threshold that’s increased more than fourfold since the list’s debut in 2006.
Thirty-seven brands improved their ranking this year. In 2022, over three quarters of brand value originated from US companies. Media & Entertainment, Business Solutions & Technology Providers and Retail categories account for over half of the total value of the Top 100 ranking.
Key trends highlighted in Kantar BrandZ’s global study include:
• Newcomers in 2022’s ranking emerge from a range of categories. Aramco, one of the world’s largest integrated energy and chemical companies debuted highest at No16. India’s IT services and consultancy Infosys arrived at No 64. Latin America’s largest online commerce and payments ecosystem, Mercado Libre entered at No 71.
• Microsoft, Zara and IBM lead the way in the new Kantar Sustainability BrandZ Index, which shows sustainability already accounts for 3% of brand equity and is expected to rise.
• Tesla is one of this year’s biggest success stories shifting to No 29 from No 47 mirroring the world-wide sales trend of electric vehicles more than doubling in 2021.
• Louis Vuitton (No.10; $124.3 billion) is the first luxury brand to reach the global Top 10 reflecting the growth of the luxury market worldwide and in China in particular. Louis Vuitton experienced 64% growth in brand value this year and is the first European brand to reach the global Top 10 since 2010.
• Chinese brands hold strong, despite facing unique pandemic challenges, placing twice in the global Top 10 with Tencent at No 5 and Alibaba at No 9. China is also the only market rivalling the USA’s dominance in the Media & Entertainment category with WeChat at No.5 and TikTok at No 9.
Nico Stouthart, Senior Partner Consulting Division, New York, Kantar and Aramco Client Lead, says: “I am excited to see Aramco entering the global BrandZ ranking as the highest newcomer at position 16. This is very much in line with their exciting ambition to further drive their global presence by pioneering innovative technologies that will positively impact people and the communities they live in.”
“We are excited to see the first brand born in the region enter the top 20 Most Valuable Brands. This year’s Kantar BrandZ global ranking continues to reinforce our belief that strong brands create tremendous value, even in uncertain times. The top 100 brands added another $1.3 trillion of brand value this year. We have seen the strongest growth in consumer tech and luxury brands, as these highly meaningful and strongly differentiated brands gained momentum. We are also seeing that brands growing in value are creating more connections, whether it’s by connecting to more people by amplifying their meaningful difference and reaching to greater audiences; or by connecting to new markets and categories and driving conversations around broader issues impacting the people,” comments Amol Ghate, Managing Director, Middle East, North Africa and Pakistan, for Kantar’s Insights Division.
Sector leaders come from a mix of industry sectors
Technology and luxury brands grew the fastest; 46% for consumer technology and 45% for luxury. Bank and automotive brands also demonstrated impressive growth -- automotive by 34% and banks by +30%. This compares to growth across sectors such as apparel (20%) and personal care (17%). At a category level, Wells Fargo was the only new No.1 brand, moving from second to first place in the Banking category and replacing China’s ICBC.
“Strong brand affinity underpins a customer’s willingness to pay and has never been more important for organizations looking to offset spiking inflation,” explains Martin Guerrieria, Head of Kantar BrandZ. “This year’s results show us the value of continued investment in brand and marketing capabilities, as a means of maximizing business returns, irrespective of market conditions.”