Australia’s top brands revealed
What are the Aussie brands finding strength in the current market?
Key Points
- Australia’s top brands jump 15 per cent in value to $194 billion.
- Woolworths is the most valuable brand for the fourth consecutive year.
- Bunnings is the nation’s strongest brand for the second year running.
Whether we like to admit it or not, brands have a lot of influence on our purchasing decisions. We find ourselves invested in the success of the brands we like.
Is your supermarket, bank or telco as strong as you think they should be? And if you have a financial stake in them by owning shares, how is your investment in these companies going? New analysis reveals the companies we trust and those that fail.
The winner is – Woolworths: for the fourth consecutive year, Woolworths has been named Australia’s most valuable brand, increasing 18 per cent to $16.2 billion.
Bunnings, meanwhile, ranked as Australia’s “strongest” brand.
The loser is – Optus, which due to the cyberattack in September, dropped 10 points in brand strength and suffered a 19 per cent fall in brand value to $3.3 billion.
These are some findings from Brand Finance Australia’s analysis of Australia’s top companies. Brand Finance calculates two metrics: “brand value” and “brand strength”. A brand’s strength is a score out of 100 measuring, among other factors, its marketing investment, financial performance and sustainability.
A brand’s value looks at how much of a company’s profits are attributable to its “brand”. It is a combination of the brand strength score, how much it would cost to licence the brand’s assets and the company’s forecast revenue. It includes a valuation of the trade name, trademarks and logo and is used in mergers and acquisitions.
The total value of Australia’s top 100 brands has risen by 15 per cent to reach $194 billion according to Brand Finance. Seventy-four brands in the Brand Finance Australia 100 2023 ranking saw an increase in brand value, while 21 dropped, three remained stable, and two new brands entered the ranking.
After a slow recovery from the reputational damage sustained during the banking royal commission, the leading banks grew strongly in brand value with an overall 17 per cent increase.
Leading the way was the Commonwealth Bank (brand value up 28 per cent to $11.4 billion), which has reversed its decline in brand value and regained its place as Australia’s third most valuable brand.
Similarly, NAB (brand value up 36 per cent to $7.9 billion) and ANZ (brand value up 22 per cent to $7.6 billion) recorded increases to be ranked the 5th and 7th most valuable Australian brands.
Conversely, Westpac (brand value down 1 per cent to $5.2 billion) and Macquarie (brand value down 3 per cent to $4.6 billion) have recorded slight drops due to weaker brand strength.
While Optus dropped in brand strength and brand value, Telstra maintained its place as Australia’s second most valuable brand, recording a 29 per cent increase to be valued at $13.2 billion.
Brand Finance found the growth was driven by improvements in customer service, ease of dealing with, value for money and word of mouth, along with consideration and recommendation.
Coles (brand value up 10 per cent to $10.9 billion) continued to hold on to its fourth spot in the ranking, enjoying a 10 per cent brand value increase to $10.9 billion.
Bunnings (brand value up 35 per cent to $5.4 billion) has maintained its position as Australia’s strongest brand, with a Brand Strength Index (BSI) score of 88.2 out of 100 and a corresponding AAA brand strength rating. Bunnings has remained top-of-mind for Australian consumers and is noted for its availability, value for money and wide range of products.
NRMA retains its ranking as Australia’s strongest insurance brand, while Seek.com.au enters the top ten strongest brands for the first time in ninth place.
For further reading: Brand Directory and AFR
