Retail Companies Continue to Win the Brand Battle, Finds CoreBrand's 'Directory of Brand Equity'
Tuesday, 28 November 2006
Based on a comparison from CoreBrand's 3Q '06 Directory of Brand Equity, the top 10 retail brands outperform the top 10 CPG brands in terms of their brands' contribution to the company's total market capitalization.
The average retailer company, within the top 10, has a brand that contributes 17 percent to the companies' total market capitalization.
The average CPG company, within the top 10, has a brand that contributes 13 percent to the companies' total market capitalization.
On average the top 10 retail company grew their brand's contribution to the company's total market capitalization by 0.43 percent since 3Q '05.
On average the top 10 CPG company declined in their brand's contribution to the company's total market capitalization by 0.16 percent since 3Q '05.
Bed Bath & Beyond and Pier 1 Imports have demonstrated the greatest 1-year growth within the top-10 retailers. They grew their brand's contribution to the company's total market capitalization by 6 percent and 5 percent, respectively.
Over the same time period, Home depot had a 1 percent decline in the brand's contribution to the company's total market capitalization
Newell Rubbermaid and Colgate-Palmolive have demonstrated the greatest 1-year growth within the top-10 CPG brands. They grew their brand's contribution to the company's total market capitalization by 5 percent and 2 percent, respectively.
Over the same time period, Unilever had a 32 percent decline in the brand's contribution to the company's total market capitalization
The average brand equity dollar value for the top 10 retail brands is $6.89 billion. The average brand equity dollar value for the top 10 CPG brands is $5.28 billion.
Size Doesn't Matter
Wal-Mart, the largest retail brand, is falling behind smaller companies (Bed Bath & Beyond, Pier 1 Imports, Loews, Gap, and Target) in terms of their brand's contribution to the company's total market capitalization. This is an indication that the smaller companies are working harder to create value for their brand.
P&G, the largest CPG brand, is falling behind smaller companies (Newell Rubbermaid, Colgate-Palmolive, Kimberly-Clark, and Estee Lauder) in terms of their brand's contribution to the company's total market capitalization. This is an indication that the smaller companies are working harder to create value for their brand.
Brand Power
As of 3Q '06, on average, retailers have a stronger brand power than CPG companies
Over the course of two years (since 3Q '04) the retails have grown their brand's strength on average 5 percent while the CPG's have declined an average of 1 percent.
Within the retail companies Home Depot and Lowe's have had the greatest BP decline since 3Q '04. Their Brand power has declined 2 percent and 8 percent respectively.
Within the retail companies Bed Bath & Beyond and Pier 1 Imports have had the greatest BP increase since 3Q '04. Their Brand power has increased 13 percent and 11 percent respectively.
Within the CPG Companies Alberto-Culver and Clorox have had the greatest BP decline since 3Q '04. Their Brand power has declined 19 percent and 14 percent respectively.
Within the CPG companies Colgate-Palmolive, Estee Lauder, and Newell Rubbermaid have had the greatest BP increase since 3Q '04. Their Brand power has increased 8 percent , 8 percent, and 9 percent respectively
About The Charts
The CoreBand Corporate Branding Index(R) (CBI) has consistently tracked 1,200 US brands across 47 industries for 16 years. Each quarter CoreBrand produces a Directory of Brand Equity(TM), which provides a window into the index that details the health and vitality of the top 500 tracked brands.
"Brand Equity as a percentage of Market Cap" expresses the corporate brand's contribution to the company's overall market capitalization and provides a consistent metric for tracking a corporate brand's contribution to market cap over time and against one's peers.
Brand Equity dollar Value $mmm" shows the corporate brand's contribution to a company's overall market capitalization in billions of dollars. This corporate brand dollar value enables CEOs and CFOs to understand the value of the corporate brand to their organization.
Companies are listed in order of their brand equity dollar value rank.