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Harley-Davidson, Toyota and Porsche Brands Lose Value

23.09.2009
 
Harley-Davidson, Toyota and Porsche Brands Lose Value

Interbrand Agency released its annual “Best Global Brands” report. The state of the world economy worsened, which caused a downturn in the valuation of the most famous brands. All financial companies in the agency’s top 100 dropped in value, as well as almost all automotive and luxury brands. The overall value of the top 100 brands has declined 4.6%. The entire value of the listed companies is estimated at $1.15 trillion.

Interbrand only rates the companies that run businesses on at least three continents. No less than two thirds of the profit should come from other countries. There are no companies in Russia that meet these requirements; therefore none of the Russian companies are rated. Financial data of some Russian companies is comparable with the data of the top 100 brands; however, the requirements of global presence are not met.

The rating of Most Valuable Global Brands by Millward Brown, that does not have strict geographical requirements, valued MTS at $9,189 billion and Beeline at $8,884 billion. The companies were rated 71 and 72 respectively.

According to Interbrand, Harley-Davidson experienced the biggest drop in value. The “legend’s” value dropped by 43% to $4.34 billion, which is most likely connected to the 66% drop in the company profits in two quarters of the last year. Lexus, which has been extremely popular in former Soviet areas, lost 12% of its brand value that now amounts to approximately $3.16 billion. Ford lost 11%, and its brand name is now valued at $7 billion. This is not the worst rating among the American transnational automotive companies. General Motors and Chrysler Group LLC did not even make the list.

Toyota, Volkswagen and Porsche lost 8% each ($31.33 billion, $6.48 billion, and $4.23 billion respectively). Mercedes-Benz, BMW, Honda and Audi lost 7% each ($23.88 billion, $21.67 billion, $17.8 billion and $5.01 billion respectively).

Compared to last year, Hyundai brand lost 5% and is now valued at $4.6 billion.

Among financial companies, Citibank and UBS lost the most of their brand value. Citibank lost 49%, to $10.25 billion, UBS lost 50%, to $8.74 billion. In the case of the UBS devaluation, we deal was a classic lost of trust for the brand that occurred when the respected bank practically ratted its client out to the IRS. This financial loss of $17 billion does not seem that significant compared to the loss of profit from classic banking that UBS can expect in future.

In the recession some brands not only preserved their brand value but managed to grow. For example, Ferrari managed to preserve its value of $3.53 billion, which was difficult for an automotive luxury segment. Among luxury brands only Hermes managed to raise its value by 1%, to $4.6 billion.

The value of Coca-Cola, the rating leader, increased by 3%. The brand is currently valued at $68.7 billion, mostly due to the fact that Coca-Cola launched 700 new products worldwide last year, Time suggests.

IBM is on the second place with $60.2 billion, 2% more than last year. Google is another company in the top ten that increased its value. By the way, the search engines broke the brand record last year. It grew by 25% and reached the value of $32 billion.

Microsoft was rated the third, but lost 4% - to $56.6 billion. General Electric with $47.7 billion was rated the fourth despite 10% devaluation. Nokia lost 3% - to $34.9 billion and was rated the fifth.

Vitaliy Salnik

Read the original in Russian

Also read: Recess in time of recession?

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