The value of the BrandZ™ Top 30 Most Valuable Spanish Brands is concentrated at the top of the ranking, with the number one brand accounting for almost a quarter of the brand value of the entire Top 30. The two brands at the head of the ranking – Zara and Movistar – account for nearly half of the total brand value of the Top 30.
The apparel brands that serve Spanish consumers so well and that have taken Spanish fashion to the world utterly dominate the ranking in a way that we have not seen in other markets and which marks out the Spanish top 30 as distinct. The Inditex brands, led by Zara, have not only changed the way Spaniards shop, but have transformed the clothes-shopping habits of consumers the world over, particularly the young audiences that favor what has come to be known as “fast fashion”.
Brands from 11 product and service categories make the inaugural Spanish Top 30, presenting a snapshot of what drives the Spanish economy and what Spanish consumers are passionate about, from looking good and being financially secure, to communication, cars and beer.
Some of these brands have been part of Spanish life for more than 150 years, while the youngest are aged only in their 20s. If the brands in the Top 30 are split in half according to age, the older half tend to be stronger performers on a range of BrandZ™ measures than the younger half. There is no real correlation between age, and success, however. The Top 5 in the ranking, for instance, have launch dates ranging from 1927 to 1994. Age is neither a strong help nor a hindrance when it comes to building a strong brand.
Categories and brands
Retail brands that predominantly operate in the physical world perform well in the Spanish ranking, despite the rapid growth of e-commerce. The department store El Corte Ingles (14th in the Top 30), and the supermarkets Mercadona (11th) and DIA (19th), all perform well in this inaugural Spanish ranking, along with the apparel brands, which have a huge presence in physical retail.
There are three energy brands in the Spanish Top 10, which together account for 14 percent of the total brand value of the Top 30. Iberdrola, Endesa, and Gas Natural Fenosa. The importance of energy suppliers to the running of the Spanish economy follows patterns seen in other BrandZ markets, where other “infrastructure” brands also feature heavily. Telecom providers also fall into this infrastructure category, with Movistar and Jazztel making the Top 30 in Spain.
The role of popular culture and sport in Spanish daily life helps explain the presence of three entertainment brands in ranking. Telecinco, Antena 3 and Cuatro all make the 2017 ranking; each has become known for a particular offering, whether that’s football coverage, reality TV, news and other programming, and traditional TV is still widely consumed despite the rise of online and mobile video consumption.
Technology brands do not feature in the Spanish Top 30. This is because the availability and popularity of global tech brands means there has been little need for home-grown rivals to emerge. There are strong e-commerce brands in Spain, but for search, storage and social media, there’s widespread use of global technology brands such as WhatsApp, Google, Facebook and Twitter.
WAYS TO WIN
Strong brands are valuable, and valuable brands are strong. The businesses in Spain that nurture their brands are more than 4.5 times more valuable than those that don’t. Brand Power is a BrandZ™ metric indicating a brand’s ability to predispose a consumer to buying it and to pay a premium for it. When the brands in the Spanish Top 30 are ranked according to their Power scores, those with higher-than-average power are found to be worth nearly US$6,000 million, whereas those with low scores average just over $1,200 million. Brand building is not a cost center, but an investment.
Theory in Action
The car brand SEAT is distinctly Spanish but, just as importantly, stands out in a highly competitive global market for its focus on youth, design, efficiency, utility and affordability. As a result, the average age of SEAT buyers is a decade younger than for the rest of the car market. Links with sport and music underline the youthful spirit of this 70-year-old brand, and communications take the essence of the Spanish zest for life to the rest of the world.