Page 10 - BrandZ Top 50 Most Valuable Latin American Brands 2015

20
21
LATIN AMERICA
KEY FINDINGS AND FUTURE TRENDS
21
3
4
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015
Even in a crisis context, companies that have strong brands were more valuable than the average of the market: BrandZTM Top 50 LatAm portfolio increased 2% in USD, while almost all economic indices such as GDP, Country risk and Company’s Market capitalization showed a substantial decrease.
Most popular brands and local icons in the Latin American region like Skol (Brazilian Beer), Telcel (Mexican Communication Provider), Bradesco (Brazilian Bank), Bancolombia (Colombian Bank), Falabella (Chilean Retail) and Televisa (Mexican Communication Provider) are examples of brand strategies focused on the massive middle class and low-end population, exploring emotional attributes that are heavily associated with local needs.
According to The Economist magazine, in Europe the foreign commerce flow inside the European bloc is almost 72%, while
in the Latin American region it is less than 30%. This is one reason why the BrandZTM Top 50 Most Valuable Latin American Brands 2015 has predominantly local brands. However, this situation represents a great opportunity for local brands to expand their operations overseas, breaking geographical and cultural barriers. Corona (Mexican Beer), Falabella (Chilean Retail), Claro (Latin American Communication Provider) and Itaú (Brazilian Bank) are good examples of this movement.
The Financial Institution category had the most impressive performance in the ranking, growing 18% from 2014 to 2015. The Brazilian financial market showed a significant recovery with the M&A operations, which favored the perception of the current players, together with the reduction in the credit costs of the Stated-Owned Enterprises (SOE) banks, mainly Banco do Brasil and Caixa Econômica Federal. Another outstanding performance was Bancolombia, which increased its value by 16% in the period. The bad news in the category came from the Chilean banks, due to the economic instability of the country.
BRAND VALUE DISTRIBUTION BY COUNTRY
1.
Mexico grew its contribution to the BrandZTM Top 50 Most Valuable Latin American Brands 2015 for the third consecutive year, from 33% to 37%. The categories Beer, Food & Personal Care, Financial Institutions and Services – which combined value grew 15%, led this growth. It
is a combination of solid financial performance with an increase in the perception of consumers in that market.
Brazil maintained its contribution
to the BrandZTM Top 50 LatAm at 24%. The country performed well in the categories Beer, Food & Personal Care and Financial Institutions, but this was neutralized by the weak performance in the B2B category that is mainly represented by the oil company Petrobras (decreased in 75%), which suffered with corruption and operational problems in 2014.
3.
Chile, with a portfolio of BrandZTM
Top 50 LatAm based in Retail, 3% decreased from 20% to 15% from 4% 2014 to 2015. This industry, which
comprises 9 brands in the Top 15 16% Chilean ranking and represents
almost 60% of the Chilean
ranking, dropped 17%. A more
detailed analysis of this variation
showed that Financial Market
Capitalization decreased 22.8%.
Apparently, a strong brand helps
companies to reduce the impact of
financial valuations within the crisis
context. 5%
Colombia, the fourth on the list, 15% dropped from 16% to 15% due
to a decrease in value from an
important brand, Ecopetrol. On the
2.
2%
The value distribution by country in the BrandZTM Top 50 Most Valuable Latin American Brands 2015 was a repeat of what happened in 2014: Mexico dominated the ranking, growing from 33% to 37% share. Brazil remained in second position, with a steady contribution of 24%.
4.
37%
24%
other hand, Financial Institutions, the main category in the country, increased by 3%.
20%
2014
2015
24% 2%
15%
Mexico
Brazil
Peru Colombia LatAm
Chile
Argentina
Source: Millward Brown and BrandZTM
1%
33%