LONDON, March 7, 2018 /PRNewswire/ --
Luxury brands dominate inaugural ranking, accounting for 34% of total Brand Value at $28.9 billion
Gucci leads the first BrandZTM Top 30 Most Valuable Italian 2018 Brands ranking released today by WPP and Kantar Millward Brown. It is one of the seven luxury brands to feature in this ground-breaking study, which tracks and addresses the changing environment for brands in Italy and charts the fortunes of the country's most successful brands.
Gucci tops the ranking with a brand value of $16.3 billion, followed by telecom provider brand TIM at $9.3 billion and energy company Enel in third place at $7.4 billion. Coming in at number four is food and dairy brand Kinder at $6.9 billion, with Prada taking the final spot in the Top 5 at $4.0 billion.
"Italian engineering, design and creativity are powering world-class Italian brands, both young and old," says David Roth, CEO EMEA and Asia, The Store WPP. "The BrandZTM Italian Top 30 reflects Italy's tradition of businesses built by craftspeople and experts with great vision and determination; whether it's applied to everyday items such as Barilla pasta, the finest clothes and accessories, or the quality engineering needed to create the latest Ferrari or a new yacht."
There are seven leading luxury brands in the Italian Top 30. Together, Gucci, Prada, Armani, Bottega Veneta, Bulgari, Fendi and Ferragamo contribute $28.9 billion to the total brand value of the ranking. Within the automotive industry, Ferrari revs ahead with its brand representation of performance driving. The concentration of premium brands is in contrast with Spain's focus on affordable fashion and Germany's concentration on technology and engineering.
"Italy's skill at developing premium luxury brands lends the ranking a distinctive feel, but the country has many more strong names in sectors that are less celebrated, from Oil & Gas to Financial Services to Cruise operators," says Massimo Costa, WPP Italy Country Manager.
Food and dairy brands are the next dominant category, making up 15% of total brand value at $13.1 billion. Amongst the six brands ranked, three were from the Ferrero Group, namely Kinder, Nutella and Ferrero Rocher. The total value of the brands in the BrandZ Top 30 is $85.3 billion.
Italian brands are typically rated very Healthy, meaning they score highly across the five brand indicators of Health, which comprises Purpose, Innovation, Communications, Experience and Love. Brands in the BrandZ Italy Top 30 scored particularly well for Purpose and Communications. However, as with other European markets, innovation is a challenge that brands need to act upon. Only 17% of the BrandZTM Italy Top 30 are perceived as Innovative by consumers. Innovation, when value is created in new and different ways, is one of the hardest measures to build but the one that creates the most value. On average, Italian brands that are perceived as Innovative are nearly twice as valuable versus others, with an average brand value of $3.4 billion versus $1.8 billion.
The BrandZ Top 10 Most Valuable Italian Brands 2018
Rank 2018 Brand Category Brand Value 2018 (USD mil) 1 Gucci Luxury 16,273 2 TIM Telecom Providers 9,259 3 Enel Energy 7,355 4 Kinder Food & Dairy 6,904 5 Prada Luxury 4,082 6 Ferrari Cars 3,488 7 Eni Oil & Gas 3,131 8 Nutella Food & Dairy 2,840 9 Generali Insurance 2,526 10 Armani Luxury 2,460 11 Ferrero Rocher Food & Dairy 2,372 12 Intesa Sanpaolo Banks 2,210 13 Bottega Veneta Luxury 1,948 14 Costa Cruises Cruises 1,877 15 UniCredit Banks 1,869
"While Italian brands are some of the best in the world at communicating their message to consumers, there is an area in which they may improve: they are still not perceived as Innovative and Creative. To build stronger brands and generate value and growth, Innovation is an important driver. Game changers are shaking things up and always coming up with new ways to promote their brands' experiences" says Federico Capeci, Chief Digital Officer & CEO Italy, Kantar, Insights Division.
Key trends highlighted in the BrandZ Italian Top 30 study include:
- Brands with purpose. Buyers of everything from coffee to couture now expect goods that are produced in an ethical, socially and environmentally responsible way and brands have responded. Italian brands are amongst the most Purposeful in Europe and even globally, significantly outperforming brands in Spain and the UK. For Purpose, Italy is ranked 4th - outpaced only by the BrandZ Top 30 Global, USA and Germany rankings.
- The power of 'Brand Italy'. Italian products are highly regarded around the world, particularly when linked to food, wine and fashion. Italian brands that want to leverage this reputation will need to think not just about how to promote their Italian heritage, but also how to establish their authenticity.
- Adapting to new markets. Some Italian brands have mastered the art of staying true to their beliefs while also adapting for export. Bakery brand Corsini, founded in Tuscany in 1921, for example, makes oversized cantuccini biscuits for Starbucks to go with coffee chain's extra-large coffee servings.
The BrandZ Italian Top 30 report also includes new research from Y&R's BAV Group in partnership with U.S. News & World Report and the Wharton School, which examines what it takes to build powerful nation brands. According to BAV Group's 2018 Best Countries report, Italy ranks 15th out of 80 major markets around the world across all measures. Italy stands out for being culturally influential, rich in heritage, friendly and scenic, it also ranks highly on being connected to the rest of the world, having an educated population, being safe, and promoting gender equality. These attributes contribute to "soft power" - an increasingly important source of international influence that helps build positive consumer attitudes towards Italian brands.
The BrandZ Top 30 Most Valuable Italian Brands report and ranking and extensive analysis are available online here. The reports, rankings, charts, articles and more can also be accessed through the BrandZ app, which is free to download for Apple IOS and all Android devices from http://www.brandz.com/mobile or by searching for BrandZ in the iTunes or Google Play app stores.
About the BrandZ™ Top 30 Most Valuable Italian Brands Ranking
The valuation behind the BrandZ™ Top 30 Most Valuable Italian Brands was conducted by Kantar Millward Brown, which specializes in brand equity research and brand valuation. The methodology mirrors that used to calculate the annual BrandZ Top 100 Most Valuable Global Brands ranking, which is now in its 12th year.
Commissioned by Kantar, the ranking combines rigorously analysed financial data from Bloomberg with the opinions of over 55,000 Italian consumers since 2006, gathered for nearly 800 brands in over 50 categories. The BrandZ Top 30 Most Valuable Italian Brands is the most definitive and robust ranking of the country's brands available, and the brands ranked all meet these eligibility criteria:
- the brand was originally created by an Italian enterprise;
- the brand is owned by a publicly traded enterprise, or its financials are published in the public domain
This approach produced a carefully conceived ranking of brands in 14 categories.
The suite of BrandZ brand valuation rankings and reports are also available for China, India, Indonesia, Latin America, Brazil, Spain, France, Germany the UK, the U.S. and Saudi Arabia.
About Kantar Millward Brown
Kantar Millward Brown is a leading global research agency specialising in advertising effectiveness, strategic communication, media and digital, and brand equity research. The company helps clients grow great brands through comprehensive research-based qualitative and quantitative solutions. Kantar Millward Brown operates in more than 55 countries and is part of WPP's Kantar group, one of the world's leading data, insight and consultancy companies. Learn more at www.millwardbrown.com.
WPP is the world's largest communications services group with billings of US$74 billion and revenues of over US$19 billion. Through its operating companies, the Group provides a comprehensive range of advertising and marketing services including advertising & media investment management; data investment management; public relations & public affairs; branding & identity; healthcare communications; digital, eCommerce and shopper marketing and specialist communications. The company employs over 200,000 people (including associates and investments) in over 3,000 offices across 112 countries. For more information, visit www.wpp.com.
WPP was named Holding Company of the Year at the 2017 Cannes Lions International Festival of Creativity for the seventh year running. WPP was also named, for the sixth consecutive year, the World's Most Effective Holding Company in the 2017 Effie Effectiveness Index, which recognizes the effectiveness of marketing communications. In 2017 WPP was recognised by Warc 100 as the World's Top Holding Company (third year running).
Kantar, Insights Division
Hill & Knowlton
Kantar Millward Brown
SOURCE Kantar Millward Brown