Report: Iconic, established brands take out strongest and most valuable brands in Australia

Qantas is Australia’s strongest brand, Telstra is once again Australia’s most valuable brand, and retail enjoys a surge

Qantas has become Australia’s strongest brand, surging from third place last year and improving its brand strength index to 86.6. Telstra remains Australia’s most valuable brand, despite its brand value dropping 7.3 per cent, according to the latest brand value report by Brand Finance Australia.

Whether Telstra will remain on top is unclear, with both Woolworths and Coles surging to take second and third place in the most valuable list, up from fourth and fifth place respectively, the former surging 23 per cent and the latter 31 per cent in brand value over the past year.

According to the Australia 100 Report undertaken by Brand Finance, Commonwealth Bank (fourth) is Australia’s most valuable banking brand, despite dropping two places since last year, as the fallout from the Royal Commission hits all the banks. ANZ, which lost 13.3 per cent of brand value, and Westpac, which lost 2.3 per cent, also dropped places since last year to fifth and eighth respectively. NAB remained static in sixth place. Colonial First State was worst bank hit, with it brand value falling 28 per cent.

The report measures overall brand value using revenue forecasts and the brand strength index (BSI), and also evaluates the relative strength of brands, based on factors such as marketing investment, familiarity, loyalty, staff satisfaction, and corporate reputation.

Rounding out the top 10 most valuable brands was BHP in seventh, Optus in ninth, and Rio Tinto in tenth place.

According to the report, Telstra’s fall in brand value was primarily driven by a decrease in brand strength as the telco continues to face many challenger brands in its key service areas of mobile, internet and landline telecommunications. Despite this fall in brand strength, it remains Australia’s fifth strongest brand.

Optus’ brand value was up six per cent to $5.3 billion and increased its brand strength this year, overtaking Telstra to become the country’s strongest telecommunications brand, and Australia’s fourth strongest brand overall.

Retail brands also surged ahead, despite the threat from Amazon. Woolworths and Coles both achieved steady brand value growth, with Coles also making an appearance in the top 10 strongest brands list. Across the board, the brand value of other retailers also grew strongly, with Bunnings up 33 per cent to $2 billion, Westfield up 30 per cent to $2 billion, Kmart up 35 per cent to $1.5 billion, JB Hi-Fi up 14 per cent to $1.4 billion, and Harvey Norman up 34 per cent to $1.2 billion.

Harvey Norman was also listed as Australia’s second strongest brand, after Qantas, with Westfield coming in sixth.

In addition, despite significant fears a year ago, the report found the arrival of Amazon into the broader Australian retail market has not yet harmed the value of Australian retail brands.  

Managing director of Brand Finance Australia, Mark Crowe, said Woolworth’s revival has continued, moving up two places to become Australia’s second most valuable brand.

“Strong customer metrics and improved brand investment have seen Woolworths remain ahead of Coles, which has also moved up two places to claim the third rank following an increase in brand value of 31 per cent," he said. “If current growth trends were to continue, Woolworths will again challenge Telstra for the most valuable Australian brand in coming years." 

In contrast, Australian banks’ brand value and brand strength have both suffered in the aftermath of the Financial Services Royal Commission. While the banks’ underlying financial performance is sound, the adverse impact on brand equity will require significant brand investment to mitigate against erosion of brand revenues over the next 12 to 18 months, Crowe said.

“Qantas’ brand performance is quite exceptional given that enterprise value has decreased by eight per cent. This result highlights the importance of the iconic brand to the company as it deals with increasing competition on its domestic and international routes. Brands in the airline sector have been to the fore in Australian aviation with both Jetstar (28%) and Virgin Australia (16%) also recording strong increases in value,” he said.

Top 10 most valuable brands

  1. Telstra
  2. Woolworths
  3. Coles
  4. Commonwealth Bank
  5. ANZ
  6. NAB
  7. BHP
  8. Westpac
  9. Optus
  10. Rio Tinto

Top 10 strongest brands

  1. Qantas
  2. Harvey Norman
  3. Virgin Australia
  4. Optus
  5. Telstra
  6. Westfield
  7. Commonwealth bank
  8. Jacob’s Creek
  9. NAB
  10. Coles

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+:google.com/+CmoAu

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Building a human-curated brand

If the FANG (Facebook, Amazon, Netflix, Google) sector and their measured worth are the final argument for the successful 21st Century model, then they are beyond reproach. Fine-tuning masses of algorithms to reduce human touchpoints and deliver wild returns to investors—all with workforces infinitesimally small compared to the giants of the 20th Century—has been proven out.

Will Smith

Co-founder and head of new markets, The Plum Guide

Sustainability trends brands can expect in 2020

​Marketers have made strides this year in sustainability with the number of brands rallying behind the Not Business As Usual alliance for action against climate change being a sign of the times. While sustainability efforts have gained momentum this year, 2020 is shaping up to be the year brands are really held accountable for their work in this area.

Ben King

CSR manager & sustainability expert, Finder

The trouble with Scotty from Marketing

As a Marketer, the ‘Scotty from Marketing’ meme troubles me.

Natalie Robinson

Director of marketing and communications, Melbourne Polytechnic

It's a pretty interesting article to read. I will learn more about this company later.

Dan Bullock

40 staff and 1000 contracts affected as foodora closes its Australian operations

Read more

If you think it can benefit both consumer and seller then it would be great

Simon Bird

Why Ford is counting on the Internet of Things to drive customer engagement

Read more

It's a good idea. Customers really should control their data. Now I understand why it's important.

Elvin Huntsberry

Salesforce CMO: Modern marketers have an obligation to give customers control of their data

Read more

Instagram changes algorithms every time you get used to them. It really pisses me off. What else pisses me off? The fact that Instagram d...

Nickwood

Instagram loses the like in Australia; industry reacts positively

Read more

I tried www.analisa.io to see my Instagram Insight

Dina Rahmawati

7 marketing technology predictions for 2016

Read more

Latest Podcast

More podcasts

Sign in