The total value of the 100 most valuable Australian brands is nearly $143 billion, according to Brand Finance’s annual league table, with retail brands comprising just 19.3 per cent.
Brand Finance calculates the values of brands in its league tables using the ‘royalty relief’ approach. This involves estimating the likely future sales attributable to a brand and calculating a royalty rate that would be charged for the use of the brand, ie, what the owner would have to pay for the use of the brand – assuming it were not already owned.
This year, Telstra has retained the top spot as Australia’s most valuable brand with a value of $14.3 billion, despite a two per cent decrease. Banking brands Commonwealth Bank of Australia, ANZ and NAB round out the top four, followed by Woolworths and Coles.
After a stellar run from 2009 to 2015, Woolworths has slipped from ranking second in 2016 to fifth after a 21 per cent decrease in brand value to $8.4 billion. Woolworths from 2009 to 2015 was Australia’s most valuable brand.
“Falling profits and a significant decline in brand strength, along with intense competition, will continue to put pressure on Woolworths’ brand value, unless, in particular, an improvement in customer metrics can be achieved,” Brand Finance Australia Managing Director Mark Crowe said.
Conversely, Coles has climbed two places to sixth through a 21 per cent increase in brand value to $7.9 billion.
“Coles is now poised to pass Woolworths as Australia’s most valuable retail brand,” Mr Crowe said.
IGA ranked 39 in Brand Finance’s list, with a 15 per cent increase in brand value to $789 million.
Globally, Google has overtaken Apple as the world’s most valuable brand and Lego has replaced Disney as the most powerful brand, according to Brand Finance’s Global 500 research.