India moves up nation brands ranking to 7th position
Pic: Brand Finance
India ranked seventh in the Brand Finance Nation Brands 2019 ranking, up from ninth last year, after recording 19 per cent growth in brand value to $2.6 trillion, according to a report by brand valuation consultancy Brand Finance. Looking beyond the top 10, the average year-on-year nation brand value growth among developing nations stands at 13.9 per cent.
This is compared to 0.4 per cent for the developed economies included in the annual study of the world’s 100 most valuable nation brands. Claiming second position, China continues to grow at a very healthy rate, recording an impressive 40 per cent rise in brand value to $19.5 trillion.
Building on its solid performance in previous years, China is closing the gap behind long-standing leader the United States, which has recorded a brand value growth of just 7 per cent over the past year.
The difference in value between the two nation brands has dropped from $12 trillion last year to just over $8 trillion in 2019.
Other movers in the top 10 include Japan and the United Kingdom swapping places; Canada, dropping from seventh to eight (down 2 per cent to $2.2 trillion); Italy falling from eighth to tenth (down 5 per cent to $2.1 trillion); and South Korea, which inched up one place from tenth to ninth (up 7 per cent to $2.1 trillion), according to a press release from the UK-based consultancy.
This implies on an average, the nation brands of developing economies have been growing at a pace 31.3 times faster than the developed ones.
Nation brand values of most developed economies have contracted or stagnated year on year. Japan is a notable exception with 26 per cent growth, but even so, it is only the 15th fastest-growing nation brand this year, behind many developing African, Middle Eastern, Asian and Latin American nation brands.
Consistently with previous years’ trends, 11 out of the 20 fastest-growing nation brands of 2019 come from the Middle East and Africa, with Ghana (up 67 per cent), Uganda (up 56 per cent), and Egypt (up 50 per cent) in the top five.
Although catching up, at $37.8 trillion, the combined nation brand value of the 65 developing economies in the study remains far behind that of the 35 developed economies, which sits at $60.3 trillion. Topping the ranking again this year, the nation brand value of the United States alone stands at $27.8 trillion.
Behind the US, China, and third-placed Germany, Japan’s brand value has increased 26 per cent to $4.5 trillion. In spite of predictions that its economy would suffer in the face of a global slowdown, Japan has been able to reap the benefits from its solid consumer spend and high levels of business investment.
Japan has pushed the UK, which saw little uplift from last year (up 3 per cent to $3.9 trillion), into fifth position. With the final Brexit decision yet to come and therefore not currently accounted for in the nation’s brand value, the next few months will be crucial in determining the UK’s future outlook.
The uncertainty around Brexit has prevented both the UK and the rest of the EU from faster growth. Ireland, however, seems to be making the most of the situation. Ireland’s nation brand value has more than doubled since 2015–the year before the disruption of status quo through the Brexit referendum–increasing 110 per cent.
By contrast, in the same period, the UK’s nation brand value and the combined brand value of the other European Union (EU) member states have only grown 19 per cent and 32 per cent respectively.
Confirming strong performance, Ireland is the fastest-growing nation brand in Western Europe in 2019, up 12 per cent to $604 billion, while all other players in the region have recorded a minimal uptick or a decline. A potential no-deal scenario is, however, likely to cause challenges for Ireland going forward.
Turkey has recorded a remarkable turnaround from its performance in 2018, going from a loss of almost a third of its nation brand value, to this year leaping up 47 per cent to $560 billion. The nation is back on track following a recession and the sharp fall in value of the lira, which tainted the economy in the second half of 2018.
Singapore has retained its title of the world’s strongest nation brand, earning the elite AAA+ rating and a Brand Strength Index (BSI) score of 90.5 out of 100. Although this is a slight drop from 2018, Singapore is the only nation in the ranking to record a BSI over 90.
Fibre2Fashion News Desk (DS)