The Commonwealth Bank has reclaimed the title of Australia’s most valuable banking brand and now sits just behind Telstra as nation’s most valuable brand.
Supermarket chain Woolworths, which topped the chart for several years, has continued to slide, under assault from discounters.
Brand Finance today released its annual global rankings, and a local Australian league table, of the value of brands.
Telstra retained the number one place as Australia’s most valuable brand with an estimated value of $US10.943 billion.
“It is testimony to Telstra’s brand strength that despite a decline of 18% in enterprise value, Telstra’s brand value has only decreased by 2%,” says Brand Finance Australia managing director Mark Crowe.
Telstra’s business performance has had a positive impact on brand value. Reported revenue increased 2%, while the expected cumulative annual growth rate has also improved from 3.7% in 2016 to 4.2% this year.
On a global scale, Telstra is ranked 125th in the Global 500, a list now headed by Google at $US109.5 billion which has overtaken Apple as the world’s most valuable brand.
In Australia, the strength of Australia’s banking sector is highlighted with the big four banks and Macquarie all listed in top the ten.
The Commonwealth comes in second overall with a brand value of $US8.207 billion.
“A 9% increase in brand value has helped CBA reclaim its position as Australia’s most valuable banking brand,” says Crowe.
The Commonwealth and Qantas, ranked 13th at $US2.022 billion for value, remain Australia’s most powerful brands with brand ratings of AAA-.
Woolworths fell to fifth from second on the back of a 21% decrease in brand value. From 2009 to 2015 Woolworths was Australia’s most valuable brand.
“Falling profits and a significant decline in brand strength, along with intense competition, will continue to put pressure on Woolworths brand value, unless in particular an improvement in customer metrics can be achieved,” says Crowe.
Competitor Coles, owned by Wesfarmers, climbed two places to number six via a 21% increase in brand value.
“Coles is now poised to pass Woolworths as Australia’s most valuable retail brand,” says Crowe.
Here are Australia’s 10 most valuable brands:
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