Digi reclaims title for Strongest Brand
Every year, leading brand valuation and strategy consultancy Brand Finance puts thousands of the world’s top brands to the test, evaluating which are the most valuable and strongest. Brand Finance Asia Pacific has just released their annual Malaysia 100 2021 report, showcasing the top 100 most valuable and strongest Malaysian brands.
PETRONAS, Maybank and Genting continue to dominate as the nation’s top 3 brands once again this year, with a combined brand value of nearly US$19 billion, while the remaining 7 brands in the top 10 also maintained their positions in the ranking with a combined brand value of US$12 billion.
PETRONAS maintains the top spot for the 11th consecutive year, with a brand value of US$12.0 billion – still the only brand to break the US$10 billion mark in Malaysia. Maybank retains 2nd position (brand value US$3.7 billion) followed by Genting (brand value US$3.1 billion) in 3rd.
The brand value gap between first and second remains wide open at over US$8 billion, showcasing just how dominant the oil and gas giant is, even though PETRONAS saw a brand value decrease of 21% this year.
In addition to measuring overall brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Alongside revenue forecasts, brand strength is a crucial driver of brand value. According to these criteria, Digi has reclaimed the title of Malaysia’s strongest brand from PETRONAS, with a Brand Strength Index (BSI) score of 87.3 out of 100 and a corresponding AAA brand strength rating. PETRONAS’s BSI score is 87.0 and Maybank follows just marginally behind with a BSI score of 86.8.
Samir Dixit, Managing Director of Brand Finance Asia Pacific, commented, “Brand strength – the most accurate measure of brand competitiveness in the market – has remained stagnant for most Malaysian brands outside of the successful top 10. While they may be doing well locally, many have been losing out to some of the key competitors in the region. Malaysian brands need to better monitor and boldly invest in their brand strength to build up competitiveness outside of their home market.”
The top 10 account for 63% of the total brand value in the Brand Finance Malaysia 100 2021 ranking, while the bottom 50 brands contribute only 7% of the total brand value, highlighting the significant effort required from brands outside the top 10 should they wish to contest the status quo across the nation.
The brand with the highest intangible value continues to be Padini with a brand value to enterprise value ratio of 61%, followed by Bonia at 43%, highlighting the role of brands in business success, especially in the retail sector.
“The Brand Finance Malaysia 100 2021 ranking continues to be very top-heavy yet again this year. We would like to see a more diverse mix at the top and more significant brand value increases at the bottom”, added Samir.
“To do so, brands must focus on building brand strength, rather than being sales and offers driven. Such tactics might help in the short term, but can ultimately undermine the long-term value of brands. Boards must treat brands as strategic assets, instead of seeing them as legal trademarks only” he concluded.
View the full Brand Finance Malaysia 100 2021 report here.
Feature image source: nst.com.my
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