…as Telstra takes the lead
Telstra has overtaken Woolworths as Australia’s most valuable brand with a 23% increase in its brand value to $15.1 billion, according to the latest Brand Finance Global 500 rankings,
Woolworths, suffering a 14% drop in its brand value to $US7.8 billion has slipped to second position on Brand Finance’s rankings.
Remarkably, Woolworths had held the Australian crown since 2009, but its reputation has taken a battering since it announced it would close its loss-making Masters chain and look for buyers for the profitable Home Timber & Hardware business after it buys out US partner Lowe’s Companies.
The decision will see Woolworths end its large operating losses of $245 million to $300 million from Masters.
However, the most recent Brand Finance rankings were compiled before Woolworths’ decision to exit its Masters business was made public.
In the short term, Woolworths’s brand value could be impacted by poor perception around the brand following its exit from hardware and long-term it could help with repositioning the brand, but it is important for the company to make further investment in the brand, Brand Finance Australia managing director Mark Crowe said.
“With sales expecting to slow at faster rates than rivals, the biggest challenge to Woolworths and other supermarket operators is coming from the German discount chain Aldi,” Brand Finance Australia managing director Mark Crowe said.
“As flagged in last year’s result, Telstra is now Australia’s number one brand despite increasing competition especially in the mobile division. It is testimony to Telstra’s continued brand strength which has driven a 23% increase in value despite only a 3.6% increase in revenue.”
All four of Australia’s major banks made the top eight, with ANZ topping Commonwealth Bank in third and fourth position respectively, followed by Westpac and National Australia Bank.
Woolworth’s main supermarket rival, Coles, owned by Wesfarmers, came in ninth and the Singtel-owned Optus rounded out the top eight for Australia.
Among the world rankings, no Australian companies made the top 100, with Telstra ranked 110.
The latest instalment of Star Wars, which was the fastest movie to ever hit $US1 billion in box office sales, and whose brand is estimated to be worth $US10 billion on its own, helped Disney become the most powerful brand in the world, according to Brand Finance’s Brand Strength Index.
Disney owns Lucasfilm, Pixar, Marvel, ESPN and the US ABC Network and studios.
In terms of the most valuable brands, US technology giants Apple and Google placed first and second respectively.