German Telecom Deutsche Telekom (product value up 17% to €60.7 billion) overtook former champion Mercedes-Benz to become the most valuable brand in Europe, according to report of leading brand valuation consultancy, Corporate Business.
Every year, Brand Finance tests 5,000 of the biggest brands and publishes over 100 brand ranking reports across all sectors and countries. The top 500 of the most valuable and most powerful European brands in the world are included in the annual Brand Finance Europe 500 2023 list.
|Position 2023||Position 2022||Brand||Value assessment||Value changes|
|1||2||Deutsche Telekom||60.653 billion euros||+16.9%|
|2||1||Mercedes-Benz||56.672 billion euros||+8.2%|
|3||4||Allianz Group||46.604 billion euros||+19.6%|
|4||3||Shell||46.466 billion euros||+7.9%|
|5||6||BMW||38.908 billion euros||+18.9%|
|6||7||Porsche||35.430 billion euros||+21.9%|
|7||5||Volkswagen||32.730 billion euros||-7.5%|
|8||8||Louis Vuitton||25.340 billion euros||+25.4%|
|9||9||EY||24.772 billion euros||+23.6%|
|10||11||Nestlé||21.616 billion euros||+20.4%|
Building on its success as the world’s second most valuable telecommunications brand, Deutsche Telekom’s latest title as Europe’s most valuable brand comes on the back of strong revenue growth in European markets and growing customer base. The latter also promoted the growth of the brand in the United States, where records were seen for new customers.
David Hay, chairman and chief executive of Brand Finance, commented:
“Deutsche Telecom had a remarkable year, overtaking Mercedes-Benz to become the European brand champion. Thanks to its rebranding efforts, the German telecommunications giant has succeeded in improving its brand visibility and strength in various international markets and segments of consumers, according to that ambition. is to be the market leader not only in Europe, but also at the international level”.
Mercedes-Benz (brand value up 8% to €56.7 billion) leads the luxury car rankings as the second most valuable European brand. Despite falling to second place this year, the brand continues to enjoy international growth. This growth can be attributed to the development of innovative new products that reflect the industry-wide transition to electric vehicles and an all-electric future.
Allianz Group (brand value up 20% to €46.6 billion) is the third most expensive European brand this year. The value of the Allianz brand increased due to record revenue and operating profit results in 2022, showing particularly strong performance in the Property Casualty, Life/Health and Wealth Management segments. Customer and employee satisfaction for the brand also reached an all-time high, cementing its position as one of the world’s most trusted financial institutions.
In addition to calculating brand value, Brand Finance also determines relative brand strength through a balanced scorecard with metrics to assess marketing investment, stakeholder equity and business performance. Complying with ISO 20671, the Business Stakeholder Equity Assessment incorporates real market research data from more than 100,000 respondents in 38 countries and in 31 sectors.
Swisscom (brand value up 18% to €6.1 billion) is Europe’s strongest brand. The Swiss telecommunications giant reinforced its brand strength through its pioneering initiatives in the European market, announcing its new 5G wireless access service for business customers at the end of last year. Swisscom is committed to strengthening its brand strength and global reputation by creating more original stores around the world, as well as revising its branding efforts, both in-store and online.
Nespresso (brand value up 245% to €2.8 billion) is a new entrant this year as the European brand with the largest change in brand value. Known for quality and luxury, Nespresso maintains consumer loyalty by constantly developing new and innovative products in its range of capsules and coffee machines.
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More than that Nestlé changed its reporting to allow for improved transparency of financial statements and revenue recognition of Nespresso separately from other brands in the portfolio. This resulted in an increase in brand value compared to the expected sales volume of the previous year. Brand Branding is an effective management method to enable investors and users of third-party accounts to increase accountability for brand management.
Porsche (brand value up 22% to €35.4 billion) has the highest sustainability perspective value of all the brands included in the European 500 position at €7.8 billion. It should be noted that Porsche’s position at the top of the table is not an assessment of sustainability performance in general, but rather shows how much value the brand has attached to sustainability perceptions. However, Brand Finance’s research found that sustainability is a key driver of choice for consumers in the luxury sector, at 22.9%. Despite the negative environmental impacts associated with the automotive industry, Porsche is one of the few luxury car brands that incorporates ESG (Environmental, Social, and Governance) principles into their communication strategies, thus reinforcing positive consumer attitudes. Porsche is committed to offering more electric and hybrid vehicles, developing clean energy sources and implementing innovative technologies to improve energy efficiency and reduce emissions.