Luxury brands dominate inaugural ranking, accounting for 34% of total Brand Value at $28.9 billion
Gucci leads the first BrandZ™ Top 30 Most Valuable Italian 2018 Brands ranking released today by WPP and Kantar Millward Brown. It is one of the seven luxury brands to feature in this ground-breaking study, which tracks and addresses the changing environment for brands in Italy and charts the fortunes of the country’s most successful brands.
Gucci tops the ranking with a brand value of $16.3 billion, followed by telecom provider brand TIM at $9.3 billion and energy company Enel in third place at $7.4 billion. Coming in at number four is food and dairy brand Kinder at $6.9 billion, with Prada taking the final spot in the Top 5 at $4.0 billion.
“Italian engineering, design and creativity are powering world-class Italian brands, both young and old,” says David Roth, CEO EMEA and Asia, The Store WPP. “The BrandZ™ Italian Top 30 reflects Italy’s tradition of businesses built by craftspeople and experts with great vision and determination; whether it’s applied to everyday items such as Barilla pasta, the finest clothes and accessories, or the quality engineering needed to create the latest Ferrari or a new yacht.” There are seven leading luxury brands in the Italian Top 30. Together, Gucci, Prada, Armani, Bottega Veneta, Bulgari, Fendi and Ferragamo contribute $28.9 billion to the total brand value of the ranking. Within the automotive industry, Ferrari revs ahead with its brand representation of performance driving. The concentration of premium brands is in contrast with Spain’s focus on affordable fashion and Germany’s concentration on technology and engineering.
“Italy’s skill at developing premium luxury brands lends the ranking a distinctive feel, but the country has many more strong names in sectors that are less celebrated, from Oil & Gas to Financial Services to Cruise operators” says Massimo Costa, WPP Italy Country Manager.
Food and dairy brands are the next dominant category, making up 15% of total brand value at $13.1 billion. Amongst the six brands ranked, three were from the Ferrero Group, namely Kinder, Nutella and Ferrero Rocher. The total value of the brands in the BrandZ Top 30 is $85.3 billion.
Italian brands are typically rated very Healthy, meaning they score highly across the five brand indicators of Health, which comprises Purpose, Innovation, Communications, Experience and Love. Brands in the BrandZ Italy Top 30 scored particularly well for Purpose and Communications. However, as with other European markets, innovation is a challenge that brands need to act upon. Only 17% of the BrandZ™ Italy Top 30 are perceived as Innovative by consumers. Innovation, when value is created in new and different ways, is one of the hardest measures to build but the one that creates the most value. On average, Italian brands that are perceived as Innovative are nearly twice as valuable versus others, with an average brand value of $3.4 billion versus $1.8 billion.
“While Italian brands are some of the best in the world at communicating their message to consumers, there is an area in which they may improve: they are still not perceived as Innovative and Creative. To build stronger brands and generate value and growth, Innovation is an important driver. Game changers are shaking things up and always coming up with new ways to promote their brands’ experiences” says Federico Capeci, Chief Digital Officer & CEO Italy, Kantar, Insights Division.
Key trends highlighted in the BrandZ Italian Top 30 study include:
Brands with purpose. Buyers of everything from coffee to couture now expect goods that are produced in an ethical, socially and environmentally responsible way and brands have responded. Italian brands are amongst the most Purposeful in Europe and even globally, significantly outperforming brands in Spain and the UK. For Purpose, Italy is ranked 4th – outpaced only by the BrandZ Top 30 Global, USA and Germany rankings.
The power of ‘Brand Italy’. Italian products are highly regarded around the world, particularly when linked to food, wine and fashion. Italian brands that want to leverage this reputation will need to think not just about how to promote their Italian heritage, but also how to establish their authenticity.
Adapting to new markets. Some Italian brands have mastered the art of staying true to their beliefs while also adapting for export. Bakery brand Corsini, founded in Tuscany in 1921, for example, makes oversized cantuccini biscuits for Starbucks to go with coffee chain’s extra-large coffee servings.