Italian supercar manufacturer, Ferrari has claimed the title of the world’s strongest brand, according to the latest Brand Finance Global 500 2019 report launching today at the World Economic Forum in Davos.
Ferrari’s Brand Strength Index (BSI) score increased three points from 91.5 to 94.8 out of 100 over the past year, overtaking the likes of McDonald’s, Coca-Cola, Lego, and Disney. The iconic auto brand last held the title of the world’s strongest in 2014.
Brand Finance, the world’s leading independent brand valuation and strategy consultancy, determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. According to these criteria, Ferrari is the strongest of only 14 brands in the Brand Finance Global 500 2019 ranking of the world’s most valuable brands to be awarded the highest AAA+ rating.
Since its inception, Ferrari has remained synonymous with style and performance, enabling the brand to successfully extend into other sectors – from merchandise, such as hats and sunglasses, to theme parks, and even the Maranello Village, a Ferrari-themed hotel – without losing its appeal as a luxury brand. Upmarket auto brands in general continue to turn heads and win consumer approval. Porsche and BMW follow Ferrari as first-class brands with AAA brand strength ratings.
Along with the level of revenues, brand strength is a crucial driver of brand value. As Ferrari’s brand strength flourished this year, its brand value also improved, racing ahead 27 per cent to US$8.3 billion. Most of Ferrari’s limited production of models for 2018 and part of 2019 were already sold out by May 2018, and new chief executive Louis Camilleri presented a plan in September 2018 promising 15 new models including hybrids, which remains on trend with the shift to electric across the auto industry.
David Haigh, CEO of Brand Finance, commented: “As the world’s foremost luxury carmaker, Ferrari has an unparalleled level of brand recognition, upholding excellence for design and innovation. The prancing horse logo is a perfect symbol of the brand’s strength and vitality as it plans new models and reaches outside the auto industry.”
Mercedes-Benz remains the most valuable B2C brand in Europe.
Despite lower overall car sales in 2018, Mercedes-Benz remains the most valuable B2C brand in Europe and also the most valuable auto brand in the Brand Finance Global 500.
Valued at US$60.4 billion, up 26 per cent from last year, Mercedes continues to grow its global footprint and popularity in developing markets; sales in China (as of November 2018) had risen 11.7 per cent to a record 600,000, contributing to an overall growth rate in Asia Pacific of 7.5 per cent for the same period.
Although Mercedes also enjoyed double digit growth in Germany, its home market, sales in Europe and North America were a little lower than expected.
However, the company is keeping up with industry trends, launching the first all electric vehicle in 2019 as part of its EQ series, on par to compete with Jaguar’s I-Pace and Tesla’s Model X.
Others in the Top 100 are: Mitsubishi Group (55th.); Honda (57th.); Hyundai Group (79th.); Audi (85th.); Tata Group (86th.); Nissan (89th.); and Ford (93rd.). Among a small number of other non-vehicle manufacturer automotive brands in the Top 100 included: Total (60th.), and Bosch (66th.).