MEXICO CITY, Feb. 28, 2020
Brazilian banks Bradesco and Itau grow 35% each to top this year's ranking
MEXICO CITY, Feb. 28, 2020 /PRNewswire/ -- With an overall brand value increase of 38%, the Latin American retail sector has outperformed all other categories in the 2020 BrandZTM Top 50 Most Valuable Latin American Brands report, launched today by WPP and Kantar. The huge growth in retail compares to just 2.6% growth in value of the overall BrandZTM LatAm ranking this year.
Investment in digital transformation has been key; the most valuable retailers are driving customer engagement and business value with innovative business models, including omni-channel solutions, online and mobile platforms and digital payment systems. Mexico's Walmart-owned discount store, Bodega Aurrera (No. 6, $5.4 billion) was the best performer overall with a 44% increase in brand value and a rise of four places in the ranking. This follows aggressive expansion plans that saw new store openings to help strengthen its distribution capabilities and physical presence in the region.
Chile's Falabella (No. 7, $5.2 billion) was the other retail brand to make the top 10, thanks to the development of an integrated digital retail platform to maximise its diverse portfolio and to leverage its omni-channel strategy. Other top retail performers included Lider (No. 13, $3.2 billion), Liverpool (No. 21, $2.4 billion) and Lojas Americanas (No. 39, $1.3 billion) with 19%, 10% and 23% brand value growth respectively.
The highest ranked newcomer this year was e-commerce company MercadoLibre (No. 19, $2.5 billion), with a presence in around 20 LatAm countries, which recently introduced new digital payment methods including QR codes, virtual wallets and discounts with the Mercado Pago app. Supermarket chain Magazine Luiza (No. 24, $2.3 billion) and fast fashion retailer Renner (No. 29, $1.9 billion), both Brazilian brands, also entered the Top 50 this year.
Overall there were 11 retail brands in the Top 50, with the others being Sodimac (No. 12, $3.2 billion), Ipiranga (No. 38, $1.3 billion) and Tottus (No. 45, $1.1 billion). Their combined value was $27.1 billion, 20.2% of the total ranking compared to 15.1% in the previous report.
Financial institutions topped the ranking for the first time, with Brazilian banks, Bradesco (No. 1, $9.5 billion) and Itau (No. 2, $8.4 billion) both growing 35%. Facing threats from the rise of fintechs and neobanks, established financial institutions have also invested in technology to deliver financial services to customers. These include new digital payment methods, such as the Mexican state-owned Cobro Digital (CoDi), a new system introduced by the Bank of Mexico (Banxico) that is set to revolutionise finance in Mexico in line with the government's objective to move to a cashless economy.
With a total brand value of $134.3 billion, up from $130.8 billion in the previous year's ranking, the 2020 BrandZTM Top 50 Most Valuable Latin American Brands report features a range of industry sectors, from energy and healthcare companies to communications providers and airlines, and includes brands from across six Latin American countries – Argentina, Brazil, Chile, Colombia, Mexico, and Peru.
The BrandZ Top 10 Most Valuable Latin American Brands 2020
Brand Value 2020 (USD million)
David Roth, CEO, The Store WPP EMEA and Asia and Chairman of BrandZ, said: "While businesses face challenging conditions in several Latin American markets, those that have adopted new digital platforms and investment in innovative ways to engage with customers have delivered growth and strengthened their brand across the region. The success of Brazil's Bradesco and Itau banks demonstrates that brands can grow their value even when threatened by the emergence of challenger brands."
Gabriel Castellanos, CEO, Hispanic LatAm, Insights Division, Kantar: "As several countries in Latin America experience political and/or economic challenges, the link between brand and financial growth becomes particularly important. In the context of a global slowdown, this might sound discouraging, but brands that leverage their strengths may actually be standing in front of a "pot of gold" of potential growth – as demonstrated by the fastest growing brands in 2020."
Eduardo Tomiya, Managing Director, LatAM, Consulting Division, Kantar: "Brazil leads the ranking with two of its banks taking the two top places; Brazilian brands also grew 21% and represented 40% of the overall value. As well as banking, retail and cosmetics were the big winners, although all brands face the challenge of how to increase consumer perception of differentiation and relevance if they are to become the global brands of the future."
Oliver Pacht, Managing Director, Mexico and CAM, Consulting Division, Kantar: "Digital disruption coupled with a 70% smartphone adoption rate across the region is driving change across all categories and our latest ranking shows that those brands that empower consumers to greater convenience and choice are winning. But with the constant shift in consumer demand, brands will need to be agile in spotting the next wave of emerging consumer expectation, whilst adopting a "humanized" approach to growth that emphasises experience rather than products. Top performing brands focus on the people they serve."
Other trends in the BrandZTM Top 50 Most Valuable Latin American Brands report:
The 2020 BrandZTM Top 50 Most Valuable Latin American Brands report and ranking are available online at http://www.millwardbrown.com/brandz/. The reports, rankings, charts, articles and more can also be accessed through the BrandZ app, which is free to download for Apple IOS and all Android devices from http://www.brandz.com/mobile or by searching for BrandZ in the iTunes or Google Play app stores.
About the BrandZ™ Top 50 Most Valuable LatAm Brands Ranking
The valuation behind the BrandZ™ Top 50 Most Valuable LatAm Brands was conducted by Kantar, which specialises in brand equity research and brand valuation. The methodology mirrors that used to calculate the annual BrandZ™ Top 100 Most Valuable Global Brands ranking, which is now in its fourteenth year. Commissioned by WPP and Kantar, the ranking combines rigorously analysed financial data from Bloomberg with the opinions of more than 100,000 LatAm consumers.
The BrandZ Top 50 is the most definitive and robust ranking of the LatAm brands available, and the brands ranked all meet these eligibility criteria:
The suite of BrandZ brand valuation rankings and reports includes the annual Global Top 100 as well as rankings for Australia, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Spain, Saudi Arabia, South Africa, the US, UK, Netherlands and Latin America.
Kantar is the world's leading evidence-based insights and consulting company. We have a complete, unique and rounded understanding of how people think, feel and act; globally and locally in over 90 markets. By combining the deep expertise of our people, our data resources and benchmarks, our innovative analytics and technology, we help our clients understand people and inspire growth.
WPP is a creative transformation company. We build better futures for our clients through an integrated offer of communications, experience, commerce and technology. For more information, visit www.wpp.com.