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Brand Contribution | Beer, luxury, beverages categories lead ranking

Brand Contribution | Beer, luxury, beverages categories lead ranking

Brand Contribution sustains brands during market fluctuations

The BrandZ™ Brand Contribution metric assesses the extent to which brand alone, independent of financial or market factors, drives purchasing volume and enables a brand to command a price premium. Brands that score well in Brand Contribution are viewed positively by consumers.

Eleven of the Brand Contribution Top 15 are beer, luxury, or beverages brands. These are categories that especially depend on the perceived value of the product. Brand plays an important role in sustaining that perception with consistency through normal market fluctuations.

Represented by five brands in the Brand Contribution Top 15, the beer category declined 6 percent in value because it is under pressure from declining consumption and the changing preferences of Millennials and Centennials. The beer Brand Contribution leaders are: Modelo, Skol, Corona, Heineken, and Stella Artois.

Four of Brand Contribution Top 15 are in the luxury category, which increased 29 percent in value, more than any other category in the BrandZ™ ranking, in part because brands became more accessible to a wider audience, including young people. The luxury Brand Contribution leaders are: Chanel, Gucci, Hermès, and Burberry.

The beverages category, represented by two brands, has been under pressure for a decade because health concerns have reduced consumption of carbonated beverages. The category is represented by two brands, including Coca-Cola, which has been able to leverage the power of its heritage brand to sustain its business, enabling the company to transition to a healthier product offering. The other beverages category Brand Contribution leader, the Chinese dairy brand Mengniu, joined the BrandZ™ Beverages Top 15 ranking this year, when the scope of the ranking changed from soft drinks to beverages.

The other four categories represented, with one brand apiece, are baby care, personal care, payments, and logistics. For the baby care brand Pampers, which is No. 1 in Brand Contribution, brand strength is a critical differentiator in a category that depends on high levels of trust and also has been subjected to intense online competition.

Similarly, brand is a vital differentiator for personal care brand Estée Lauder, which operates in a category filled with online price-driven competitors. Both the payments brand PayPal and the logistics brand Fedex depend on high levels of trust and name recognition.

(Brand Contribution is expressed on a scale of one to five, five being highest. For complete details, please see the BrandZ™ Valuation Methodology in the Resources section.)