Brand boosts the bottom line
Strong brands do far more than win industry awards and climb rankings such as these. The value of a brand has a clear, measurable link with the share price of the company behind it.
Over the 12 years in which we have been tracking the BrandZ™ Top 100 Most Valuable Global Brands, the companies behind the top-ranking brands have far outperformed stock market benchmarks.
The value of the BrandZ™ Strong Brands Portfolio increased 124.9 percent between April 2006 and April 2017, outperforming both the S&P 500, which grew 82.1 percent, and the MSCI World Index, which grew 34.9 percent. (The MSCI World Index is a weighted index of global stocks.)
In concrete terms, $100 invested in 2006 would be worth $135 today based on the MSCI World Index growth rate, and $182 based on the S&P 500 growth rate. But that $100 invested in the BrandZ™ Strong Brand Portfolio would have more than doubled in value, to $225.
Strong Brands are a very valuable asset.
Strong brands generate superior shareholder returns
In difficult economic times, having a strong brand does not make a business immune to a change of fortune, but it can help soften the blow. In 2008-2009, the most valuable brands in the world took a hit due the global economic downturn, but their value was somewhat protected; their value did not fall by the same extent as other brands, and their recovery came more quickly as conditions improved.