Kantar BrandZ has revealed the ranking of the top 40 most valuable brands in 2023.
Australia’s most valuable brand, worth US$21.6 billion, is CommBank (Commonwealth Bank of Australia). CommBank accounts for almost 17% of the Australian top 40 brand value, worth a total of US$125 billion.
One of seven banks in the Top 40, CommBank uses its distinctive yellow branding and ‘Can’ motto to reassure people at a time of economic uncertainty.
Focused on driving change through education and community, CommBank has invested in partnerships and sponsorships, including women’s sport and Next Chapter, which aims to end financial abuse. Its work with both Indigenous communities and migrants enhances its salience by establishing emotional connections with existing customers and with those new to the Australian banking sector.
Ryan France, head of brand strategy, Kantar Australia, said: “We know from Kantar’s Finding Financial Freedom research that CommBank has done well by investing in capturing customers who are entering the banking category for the first time.
“Building on its work appealing to first- and second-generation migrants to Australia, CommBank has recently been advertising at Australian international airports with the tagline, ‘Meet the bank more new arrivals to Australia choose’. With Australia’s birth rate below replacement rate, migration is the clearest source of population growth and, therefore, market expansion.”
Second-placed Canva (No.2; US$16.1billion) is a relative newcomer to the brandscape and a local success story that has become something of a global phenomenon.
In a category dominated by some of the world’s biggest brands, Canva has yet to establish its salience, but is well differentiated in the eyes of consumers.
Kantar BrandZ analysis shows that brands that start by focusing on a compelling point of difference (being unique to competitors and/or setting trends) go to create value by becoming meaningful (meeting needs in relevant ways and/or building affinity) and salient (coming easily to mind), making them strong, successful brands.
France said: “Canva continues to focus on the product, but also on communicating what makes it different and establishing relevance to a wider audience.”
“Canva has been working on exactly that, growing salience by showing how it can be used by consumers with a broad range of needs. Not just a tool for making presentations, it’s been showing how it can help with an ever-wider range of tasks, from advertising a home for sale to throwing a baby shower.
“The brand Canva can probably learn best from, though, is Canva! In Brazil, the brand has already grown its meaningful salience and is fast closing in on the market leader as a result.” he added.
Brands from 13 categories reveal the diversity of what’s driving Australia’s economy
France said that this year’s Australian brand ranking shows that any brand, old or new, can increase its brand value by understanding what makes it different, but also by being meaningful and salient.
“At the heart of a brand’s value is its ability to appeal to both existing and new customers, and CommBank, with its long history and ability to adapt to changing market conditions, does this with ease, along with other enduring brands like Coles, Bundaberg Rum and Qantas.
“Current economic challenges, however, along with growing concerns about sustainability and the environment, have the potential to change the way Australians buy and consume products and services. Our expectations of brands are evolving, we want them to work, but brands that can also signal how they make life better – for people, for the community, for the planet – will find themselves on a firmer footing with investors, employees, and consumers. The is not just wishful thinking, the data is showing us that sustainability credentials can drive a meaningful difference, and that drives choice.
“Ultimately, our analysis shows that Australian consumers reward those brands that are both meaningful and salient. When brands achieve meaningful salience, they are well known for something that consumers feel is relevant to their lives. Brands that invest in this area tend to grow their market share as a result.”
Other key highlights from the Kantar BrandZ Top 40 Most Valuable Australian Brands report include:
• Retail is the second most dominant category, with 10 retail brands in the Top 40 worth over US$30 billion in brand value. Performing well throughout the pandemic and in the current cost-of- living crisis are Woolworths(No.3; US$11.7bn), Coles(No.6; US$7.2bn) and Bunnings (No.9, US$4.6bn). BWS (No.12; US$2.4bn) with convenience and customer service at its heart joins Kmart (No.15; US$1.7bn) in the Top 20.
• Both new and established brands are having an impact. Australia Post(No.19; US$1.4bn) founded in 1809 is the oldest brand in the Top 40 just eclipsing the youngest, payment services brand, Afterpay(No.20, US$1.2bn). ‘The beer for up here’ Great Northern (No.39; US$368m) founded in Cairns in 1927 only launched into most states 90 years later; but has grown to be the best-selling beer brand in the country, establishing itself as a challenger with a focus on physical and mental availability and a strong creative.
More can on Kantar Brandz’s ranking, report and extensive analysis from can be found here.