A year of significant ups and downs for individual brands in the German Top 50 has done little to alter the overall composition of the ranking. This underlines the growth that is possible for brands even in slow-growing categories. In essence, while a rising market can benefit a whole sector, the strongest brands year in and year out make their own growth.
The largest contributor of value to the German Top 50 is, as was the case in the 2018 ranking, cars. Around a fifth of the value of the entire ranking – nearly $70 billion in value – comes from just five brands: BMW, Mercedes-Benz, Audi, Volkswagen and Porsche.
The car category grew by 4.5 percent this year, with the vast majority of that extra value coming from VW; the brand was still suffering last year from the public backlash over “Dieselgate”. This year, it has bounced back with vigor, and is by far the ranking’s fastest-growing brand, with brand value 66 percent higher than 12 months ago. The value of the other car brands, in comparison, was static. If we expand this category to include broader automotive-related products and services, then brand value growth for the year would be 18.5 percent, supercharged by the inclusion this year of Continental tires and Sixt car rental.
Technology is the next-biggest contributor of value to the ranking, a sector represented by just two giant brands: SAP and Siemens.
Telecommunications providers account for 14 percent of the Top 50’s value this year and this is another sector to experience value growth compared to 2018, thanks in part to the entry of Unitymedia to the ranking, in 23rd position.
Retail and the closely linked apparel sector were both fine performers this year. Both adidas and Puma saw strong double-digit growth (16 and 37 percent respectively) putting them among the fastest-growing brands in the Top 50 this year. Hugo Boss saw a 7 percent lift.
E-commerce specialist Zalando joined the Top 50 for the first time, in 21st place, giving the retail sector a strong value boost to complement the growth that most of the existing brands in the category enjoyed. dm (in 32nd place) also added value to the category this year.
Reflecting strong consumer confidence in Germany, retailers Aldi, Lidl, REWE, Kaufland and Edeka enjoyed brand value growth, in some cases approaching 10 percent.