Global 2015: 10 YEAR RESULTS | 9. A WORLD OF DIFFERENCE
The brands that comprise the BrandZTM Top 100 Most Valuable Global Brands are by definition the most international brands
in the world. Not surprisingly, about two-thirds of the brands are multinational in the broadest sense, with businesses that extend across the globe. The businesses of the remaining one-third cross borders too, but primarily within the surrounding region.
Both kinds of brands achieve high value. But the average Brand Value of multinational brands is about 25 percent higher than that of regional brands. Multinational brands
are older and involved in wider activities. Most interesting, multinational and regional brands achieve their Brand Power in contrasting ways.
Multinational brands excel in being seen as different. That’s because wherever a multinational brand competes, it usually faces a regional brand leader setting the category standard. The regional brands trade on salience because they’re present, widely distributed and heavily advertised. They’re meaningful because of their local affinity.
Consumers also view the regional brands as more responsible, probably because
the brands are more connected with the regions that they serve . Consumers view multinational brands as responsible too, but not to the same extent.
Strengths of multinational and regional brands differ
Both multinational and regional brands achieve high value. But the average Brand Value of multinational brands is about 25 percent higher than regional Brand Value.
It’s critical for the multinational brands to emphasize their difference and
to make that difference relevant in each regional market in which they compete. To be more accepted in each regional market, multinational brands need to act responsibly and guard against the perception that big
is automatically bad. Regional brands with aspirations to be multinational need to understand the basis of their meaningful difference, how exportable it is, and how it enables the brand to fit in or disrupt new markets.