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  • So which are the world's most valuable telecom brands? Check the Brand Finance report on the Top 500 telecom brands

    Airtel is India #1, World’s #22

     

    By A Correspondent

     

    Airtel is India’s #1 telecom brand and globally #22. It is up from 28 last year in the Brand Finance ranking of the Top 500 telecom brands. AT&T saw its brand value grow 45% this year to US$87 billion, overtaking Verizon as the most valuable telecoms brand. Its acquisitive growth in South America and Mexico follows its 2015 takeover of DirecTV, resulting in continued growth in brand value and an increase in market share.

     

    Verizon, though it has lost its position at the top of the table, remains strong, registering a 2 point BSI score improvement and 4% brand value growth. A spate of rumours has surrounded Verizon’s potential takeover of Charter Communications. Such a deal would create the US’ biggest internet provider and is yet another example of the consolidation affecting the industry. Verizon’s share price jumped as the speculation continued though has since cooled after the deal failed to materialise and concerns were raised at the levels of debt the new entity would be exposed to. A new Charter/Verizon combined entity would reportedly be the world’s largest debtor, with borrowings of over US$200 billion.

     

    In India, Idea is at #2 at Rank 64, followed by Reliance Communications (97), BSNL at 115, Aircel at 125, Tata Communications at 126. Vodafone is part of the global Top 500 at #6. There are a total of 14 Indian brands in the Top 500 list.

     

    T (Deutsche Telekom) is Europe’s most valuable telecoms brand, though its growth is largely being driven by its performance outside the continent. The 10% increase in brand value came largely as a result of higher revenues and increased market share in the U.S. market. In the third quarter of 2016 T-Mobile (US) added around 969,000 subscribers, dwarfing both Verizon and A&T which added only 200,000 and 450,000 respectively.

     

    Huawei retains the top spot in the infrastructure table with a brand value of US$25 billion after growing 28%. The Chinese giant persevered with its efforts to raise its brand profile worldwide. After successfully implementing global marketing campaigns, which include celebrity endorsements, its brand recognition subsequently increased to 81% in 2016, up from 76% in 2015.

     

    Qualcomm is the fastest growing telecoms infrastructure brand, rising 65% in value to US$6.8 billion. However, legal disputes with Apple regarding allegations that Qualcomm is exploiting its dominant position by charging excessive royalties raise questions about whether this growth can be sustained.

     

    Nokia is one of the more remarkable success stories of 2017. Its brand value peaked at US$33.1 billion in 2008, making it the world’s 9th most valuable brand across all sectors. Its slow response to the emergence of smart phone technology led to a well-documented decline at the hands of Apple and Samsung. Brand Value sunk to a low of just of US$2 billion in 2014.

     

    However, after a period of consolidation, Nokia is firmly on the road to recovery. After the mobile device division was sold off, the brand survived as Nokia Networks (rebranded from NSN). Nokia Networks acquired a controlling stake in Alcatel-Lucent in 2016 to create one of the largest players in the sector. Alcatel-Lucent has since been rebranded as Nokia, further reinforcing the position of the Finnish brand.

     

    2017 marks another turning point in the Scandinavian giant’s saga, as the Nokia brand is once again be visible on mobile devices. HMD (founded by Nokia veterans in 2016) is launching a number of handsets and a tablet, Nokia’s largest ever device at Mobile World Congress. Perhaps the greatest level of excitement is focussed on the revival of the iconic 3310.  This newfound momentum sees Nokia’s brand value climb 62% to US$4.9 billion while the fundamental brand equity measures are improving too, which sees Nokia’s brand strength rating upgraded from AA to AA+.

     

    Every year, leading valuation and strategy consultancy Brand Finance values the brands of thousands of the world’s biggest companies. Brands are first evaluated to determine their power/ strength (based on factors such as marketing investment, familiarity, loyalty, staff satisfaction and corporate reputation) and given a corresponding letter grade up to AAA+. Brand strength is used to determine what proportion of a business’s revenue is contributed by the brand, which is projected into perpetuity to determine the brand’s value. The world’s 500 most valuable telecoms brands are then ranked and included in the Brand Finance Telecom 500 and the Top 10ninfrastructure providers in the Telecoms Infrastructure 10.

    View the full list of the world’s 500 most valuable telecom brands here

    View the top 10 telecoms infrastructure brands here

  • Snatches from devices major Huawei's white paper on the business of mobile videos and how various factors are fuelling each other for its growth

    The Mobile Video Report

     

    Device major Huawei has released a white paper entitled “Mobile Video Report –a Key Driver of Mobile Market Value” to elaborate on consumer behaviour, data pricing, networks, devices, and content drivers, and how they are all fuelling each other to boost the adoption of mobile video, which drives its evolution as a basic mobile service for operators. The white paper plots a Mobile Video Maturity Scorecard model to identify the strengths and priorities of regional market for operators. It also introduces global leading operators’ experience on the improvement of user experience, business model exploration and obtaining content sources, and supports operators to succeed in seizing huge video opportunities.

     

    Video as a lifestyle: Video is dominating traffic loads on more and more mobile networks today. Principally, as a means of entertainment, it evolves through the adoption of social video, live streaming, and immersive 360 degree or VR/AR services. Video is also becoming increasingly important to users in other respects, such as a means of communication, a source of information and security, or a means of self-expression. Strategy Analytics forecasts the population of mobile video users will double to more than 2 Billion by 2021, with 36% penetration.

     

    “We keep seeing innovative video services coming up. For example, after Facebook started video autoplay in 2013, mobile video adoption underwent a steep change, and soon all the social networks around the world would follow suit. More recently we see live video streaming as another trend that has kept gaining momentum and competition has intensified. These new services, in addition to opening new monetization channels, are important elements in the social networks’ ecosystem. Mobile video is one of the most effective tools to increase user engagement and extend their stay inside the social networks,” says Nitesh Patel, Director of Wireless Media Strategies, Strategy Analytics.

     

    Growth drivers for mobile video: The demand for drivers in behaviour patterns, quality of experience, and affordability, are propelling the supply factors in video-optimised devices and networks. This also drives content providers and app developers to embrace mobile video, and TMT service provider ecosystems to re-align the platform of choice for mobile video in all its forms. These supply-side factors complete the circle by further driving up demand by enhancing the quality of experience, affordability, and ubiquity of mobile video.

     

    “The mobile video market space is huge, and it is expected to be the next ’voice’ business for operators in terms of profit contribution,” says Qiu Heng, President of Huawei’s Wireless Marketing Operation Department. “We see the world’s leading operators actively exploring video services. They are enhancing user experience through network technology innovation, increasing revenue by exploring new business models, and targeting the future by obtaining the content source. Huawei will continue its efforts to support operators to succeed in seizing huge video opportunities.”

     

    Regional priorities for video service stimulation: While these drivers propel video to the centre of the mobile service experience, the stage of service evolution around the globe is still quite diverse. Operators will need to coordinate their product and service development to tap into the opportunity that video services offer at the appropriate moment. Markets with low mobile broadband coverage may not want to aggressively push data pricing to fuel a video boom, at this present time. However, in all regions, operators should evaluate the influence they have on all of these service drivers to ensure they are ready to exploit the mobile video opportunity as it emerges.

     

    The white paper plots these demand-side and supply-side drivers on to a mobile video maturity scorecard model, which helps operators assess the drivers of their regional market and find the insufficient criteria that hinders mobile video adoption and suggest specific priorities for regional markets to increase their video maturity scores and stimulate mobile video services.

     

  • No Made-in-India brand on list as Huawei makes Best Global Brands history as first Chinese brand to enter the report

    Apple ranks #1 and Google #2 in Interbrands Best Global Brands

     

    By A Correspondent

     

    For the second year in a row, Apple and Google claim the top positions on Interbrand’s Best Global Brands ranking. Valued at USD $118.9 billion, Apple (#1) increased its brand value by 21 percent. Google (#2), valued at $107.43 billion, increased its brand value by 15 percent. For the first time in the history of Best Global Brands, two global brands – not just one – have each earned a brand value that exceeds USD $100 billion.

     

    Huawei (#94), the Chinese telecommunications and network equipment provider, also makes Best Global Brands history as the first Chinese company to appear on Interbrand’s ranking. With 65 percent of its revenue coming from outside of China and with its earnings continuing to climb both domestically and across Europe, the Middle East, and Africa, Huawei is quickly becoming one of the largest telecommunications equipment makers in the world. The company is currently the third largest smartphone manufacturer in the world-just behind Samsung and Apple. The Chinese brand is one of five new entrants to enter the Best Global Brands ranking this year-the others being DHL (#81), Land Rover (#91), FedEx (#92), and Hugo Boss (#97).

     

    “Apple and Google’s meteoric rise to more than USD $100 billion is truly a testament to the power of brand building,” said Jez Frampton, Interbrand’s Global Chief Executive Officer. These leading brands have reached new pinnacles-in terms of both their growth and in the history of Best Global Brands-by creating experiences that are seamless, contextually relevant, and increasingly based around an overarching ecosystem of integrated products and services, both physical and digital.”

     

    Interbrand’s Best Global Brands methodology analyzes the many ways a brand benefits an organization-from delivering on customer expectations to driving economic value.

     

    When determining the top 100 most valuable brands each year, Interbrand examines three key aspects that contribute to a brand’s value:

    >> The financial performance of the branded product and service
    >> The role the brand plays in influencing customer choice
    >>The strength the brand has to command a premium price or secure earnings for the company

     

    2014 Overview: Brands Entering the “Age of You”

    In addition to identifying the top 100 most valuable brands, this year’s Best Global Brands report also examines three pivotal ages in brand history that have reshaped business for the better: the Age of Identity, the Age of Value, and the Age of Experience. Interbrand contends that a new, emerging era is upon the global business world: the Age of You.

     

    “As consumers and devices become more connected and integrated, the data being generated is creating value for consumers, for brands, and for the world at large,” said Mr Frampton. “As a result, brands from all categories and sectors will get smarter-with products and devices working in concert with one another, across supply chains, and in tandem with our own individual data sets. Brands that seek to lead in the forthcoming Age of You will have to create truly personalized and curated experiences, or what we call ‘Mecosystems,’ around each and every one of us. Such brands will have to rehumanize the data, uncover genuine insights, and deliver against individual wants, needs, and desires.”

     

    Said Ashish Mishra, Managing Director, Interbrand India, “The Age of You era that is upon us will enable micro-segmentation, absolute customisation and personalisation – notions hitherto considered impossible. In the flat world of now, the elements of the future ecosystems are all ready. However disjointed developments around Big data, technology platforms, content, software, devices and apps together have created a complex information over class. The need of the hour is to integrate them around the customer needs and desires. And to do so, we will need to employ both intelligence as well as imagination, thus creating inspiring precedence for the world to follow”

     

    Key Report Highlights

     

    2014 TOP RISERS: Facebook (#29, +86%), Audi (#45, +27%), Amazon (#15, +25%), Volkswagen (#31, +23%), and Nissan (#56, +23%)

     

    Facebook (#29, +86%): The world’s largest social network, Facebook continues to exceed expectations. Reported on its Q2 earnings call, income from its operations was a staggering USD $1.4 billion. One year prior it was USD $562 million. Facebook’s ad business on mobile phones has been particularly strong. For the first time in its history, the company reported that revenue from advertising on mobile phones exceeded half (53 percent) of all its advertising for the quarter. Facebook’s acquisitions of messaging service WhatsApp for USD $19 billion and Oculus VR for USD $2 billion signal a new strategy unfolding. The company is building a vast product portfolio, brimming with competing services and apps.

     

    Audi (#45, +27%): Audi is the top-rising automotive brand in this year’s Best Global Brands report. It was a record-breaking year for the brand, having sold the greatest amount of cars in its history, and having achieved an operating profit of more than USD $6 billion. The company also awed audiences at the 2014 International Consumer Electronics Show (CES) in Las Vegas, Nevada with its A7 self-driving car. Audi also plans to introduce 17 new or revamped models this year and will move forward with the production of an electric version of the R8 sports car in a push to gain momentum on rival BMW (#11). The company also plans to invest more than USD $30 billion through 2018 in new products, technology, and production sites. Earlier this year, it also announced a partnership with Google, which will allow Audi drivers and passengers to use an Android-powered entertainment and information system that will run on the car’s hardware.

     

    Amazon (#15, +25%): It was another banner year for Amazon, “Earth’s most customer-centric company.” Amazon’s commitment to responsiveness has become part of the brand’s mythos. It continues to grow its core business through services such as Amazon Prime, which, at one point, garnered more than a million subscribers in a single week. Expansions on previously popular product lines-the new Kindle Paperwhite and Fire Phone-brought more customers into the Amazon ecosystem, while a content licensing agreement with HBO helped it to make a bigger push into the entertainment sector.

     

    Volkswagen (#31, +23%): Volkswagen, Europe’s leading automaker and one of this year’s top-rising Best Global Brands, is striving to become the world’s leading automaker by 2018. Its latest model, the XL Sport, recently debuted at the Paris Motor Show and served as yet another symbol of the innovative power, passion, and technical competence of the Volkswagen brand. Beyond its manufacturing and design capabilities, Volkswagen’s “Think Blue” concept continues to prove that ecological sustainability remains a top corporate objective.

     

    Nissan (#56, +23%): Nissan continues to drive up the Best Global Brands ranking with improved financial and brand performance. Nissan’s leadership consistently pushes brand building as a major priority across the organization, clearly identifying the link between a strong brand and market share. Nissan’s recent car launches-Qashqai, Murano, and Rogue-have demonstrated how its “Innovation and Excitement for EVERYONE” brand positioning is shaping its product lineup.

     

    2014 NEW ENTRANTS: DHL (#81), Land Rover (#91), FedEx (#92), Huawei (#94), and Hugo Boss (#97)

     

    DHL (#81): The burgeoning e-commerce market has opened a sea of opportunity for delivery and logistics companies. As international online shopping continues to grow-and is poised to grow 200 percent in the next five years-brands like DHL and FedEx have made strides in bolstering their e-commerce capabilities. The most valuable brand of the new entrants to this year’s Best Global Brands ranking, DHL announced recently announced a five-year strategy plan aimed at tapping emerging markets to grow its global market share. As part of its plan, its MAIL division will be renamed Post – eCommerce – Parcel to better reflect its character under the new strategy.

     

    FedEx (#92): FedEx is also realigning its business to make the most of the booming e-commerce sector. Earlier this year, the company launched a new service designed to make it easier for customers to control when and where packages are delivered. The service is called FedEx Delivery Manager and is available through multiple digital platforms, including a free mobile app. Customers can request alerts via email, SMS text, or phone. FedEx has also developed a host of Web-based services to help brick-and-mortar retailers boost their online sales. Retailers can easily integrate FedEx’s Web Services platform into their own Web systems-allowing them to track shipment information. With FedEx’s Web Integration Wizard, its customers can track the shipments directly via the retailer’s home site.

     

    Land Rover (#91): British carmaker Land Rover continues to refine its product lineup with fresh styling, high-tech platforms, and downsized engines. Since being acquired by Indian automobile company Tata Motors in 2008, Land Rover has witnessed double-digit growth each consecutive year. This past year, Land Rover’s unit sales rose 15 percent year-over-year to nearly 350,000.

     

    Huawei (#94): As mentioned previously, Huawei is both a new entrant and the first Chinese brand to ever appear on the Best Global Brands ranking. In 2013, the Chinese telecommunications and network equipment provider reported a net profit increase of 34.4 percent to CNY ¥21 billion (USD $3.38 billion) up from CNY ¥15.6 billion in 2012. As companies, as well as entire industries, continue to shift from legacy storage and equipment to more agile products (cloud services, 3G routing, security solutions, etc.), Huawei is poised to dominate key areas of the IT market-from mobile phones to carrier-grade networks.

     

    “Huawei’s rapid growth and long-term investments in its brand helped it earn a place among the world’s most valuable brands,” said Frampton. Despite its low brand awareness in the U.S., Huawei has gradually expanded its reach around the world. It continues to demonstrate its technological prowess in both its consumer products as well as in its enterprise solutions-and it remains well positioned to meet the needs of customers in both emerging and developed markets.”

     

    Hugo Boss (#97): Hugo Boss, the German fashion house, was one of the strongest-performing apparel brands globally in the past year. The company saw revenue grow 10 percent in Europe, where it makes more than half its sales, while the Americas grew 7 percent, and Asia grew just 2 percent, largely due to China’s slowing economy. On the whole, Hugo Boss is moving away from selling through partners and starting to run its own stores, allowing it to have greater control over price points and the way the clothes are presented. This year, Hugo Boss celebrated its 20th anniversary with an exhibit at the Saatchi Gallery in London, a microsite, and a multichannel campaign. The microsite offered a look into the Saatchi Gallery exhibit by illustrating 20 iconic Hugo Boss items and 20 internationally acclaimed artists. Clicking on a product brought consumers directly to the e-commerce site where they could either purchase the product or find it in a store.

     

    Key Sector Highlights

     

    Leading automotive brands continue to rethink the future of mobility. A combined focus on energy-efficient products and integrated technology is helping leading auto brands drive brand loyalty and value.

    This year, the collective brand value of the automotive brands appearing on the Best Global Brands ranking increased 14.6 percent. All 14 automotive brands collectively make up a combined brand value of USD $211.9 billion. With three out of the five Top Risers hailing from the automotive sector, the past year proved to be a record-breaking one. This year’s top 14 automotive brands include: Toyota (#8, +20%), Mercedes-Benz (#10, +8%), BMW (#11, +7%), Honda (#20, +17%), Volkswagen (#31, +23%), Ford (#39, +18%), Hyundai (#40, +16%), Audi (#45, +27%), Nissan (#56, +23%), Porsche (#60, +11%), Kia (#74, +15%), Chevrolet (#82, +10%), Harley-Davidson (#87, +13%), and Land Rover (#91, NEW). Toyota, which has been the most valuable automotive brand on the Best Global Brands ranking since 2004, continues to be a leader in green technology development. Since the launch of its first-generation Prius 17 years ago, Toyota has sold a total 3.2 million units of the vehicle globally. Toyota has also expanded its hybrid range to a total of 25 vehicles, including the Prius Plug-in Hybrid. Toyota plans to spend USD $7 billion on environmental technology in the fiscal year ending March 2014, an increase of 11 percent compared to the previous fiscal year. ­With the era of the connected car rapidly approaching, the sector’s Top Risers-Audi, Volkswagen, and Nissan-are working to redefine the essence of the driving experience and build stronger emotional ties with their customers.

     

    The technology sector leads as the most valuable category overall. Legacy and one-time leading brands struggle to evolve at the pace of change.

    Out of this year’s top 100 brands, 13 hail from the tech sector. The category as a whole grew 11.3 percent year-over-year, and collectively is worth USD $493.2 billion in brand value. While Facebook (#29, +86%), Apple (#1, +21%), and Google (#2, +15%) represent this year’s fastest growing brands, a number of one-time leading brands experienced the steepest decline in brand value. Finnish communications and information technology provider Nokia (#98, -44%) experienced the largest decline in value among the top 100 brands, dropping from its #57 position in 2013 to #98 this year. Once a dominant player in the cell phone industry, it has seen its market share decline steadily since 2010, struggling to compete against rivals Apple and Samsung. Microsoft (#5, +3%) acquired the Finnish brand’s consumer products in April this year, and despite changes in leadership and operational structure, it remains unclear how Microsoft will use the brand and how it will evolve in the future. Japanese consumer electronics company Nintendo (#100, -33%), had another difficult year. The brand fell 33 places this year to take the #100 position, with a brand value of USD $4.1 billion. The company has acknowledged its woes in the hardware space, and CEO Satoru Iwata also publicly stated that the company must evaluate other opportunities, including those in the mobile market. Earlier this year, he announced that the company has plans to start a new health-related business by March 2016.

     

    Against the backdrop of global economic recovery, financial services brands experience growth in brand value.

    The value of financial services brands has experienced steady growth in recent years. All 11 financial services brands appearing on this year’s Best Global Brands ranking increased in brand value: American Express (#23, +11%), HSBC (#33, +8%), J.P. Morgan (#35, +9%), Goldman Sachs (#47, +3%), Citi (#48, +10%), AXA (#53, +14%), Allianz (#55, +15%), Morgan Stanley (#63, +11%), Visa (#69, +10%), Santander (#75, +16%), and MasterCard (#88, +13%). On the whole, companies within the financial services industry are continuing to build brand value by engaging with their customers and providing more seamless, convenient, and fully integrated experiences. Many financial services organizations have increased investments in mobile marketing, social media, online video, and more-and such efforts, as evidenced by this year’s Best Global Brands ranking, are paying off.

     

    Leading luxury brands continue to embrace digital platforms. A new era of exclusivity is paving the way for personalization and curated brand experiences.

    While luxury brands have been slower to embrace online channels, the rise of digital sales, online browsing, and brand consideration is forcing them to reimagine their respective customer experiences. As reported by Luxury Interactive and ShopIgniter, 65 percent of luxury marketers expect digital marketing to be the most important form of marketing for their brand.

     

    Detailed brand profiles, thought leadership articles, interactive charts, and interviews with brand leaders from around the world are available at bestglobalbrands.com.

     

  • Writer Chetan Bhagat to endorse China's Huawei products such as smartphones & tablets

    Smart move! Huawei ropes in Chetan Bhagat

    By Gulveen Aulakh

    India’s bestselling writer is entering unchartered territory, perhaps a first for any writer-the world of celebrity brand ambassadors. Chinese telecom equipment maker Huawei Technologies has roped in Mr Chetan Bhagat as brand associate for its devices such as smart phones and tablets, a senior executive told ET.

     

    “Mr Chetan Bhagat is a youth icon and he has changed the dynamics of the publishing industry. Our endeavour is to bring high-end technology at affordable prices. Our target audience and values are the same,” Huawei Devices India President Mr Victor Shan said. He refused to disclose the size of the deal. Industry insiders estimate it at nearly Rs 1 crore.

     

    Mr Bhagat-whose fifth book, Revolution 2020, is scheduled for launch on October 8-said he liked the concept of brand association. “They offered a brand-association in which I had no pressure to say nice things as such, unless I actually liked the product. I liked that concept,” he told ET in an email from Bangkok.

     

    <r Bhagat has been using Huawei phones for more than a month. The move has come as a surprise for brand experts. “I do not believe it (the partnership) gels, but it just might work. Companies make very odd choices, sometimes they click and do well,” brand consultant Mr Harish Bijoor said. He added that the deal gives hope for a different class of brand ambassadors and pave way for more cerebral kind.

     

    As part of his first endorsement deal, Mr Bhagat will launch Huawei’s new products including the world’s first Android 3.2-powered tablet, Mediapad, and Vision cloudphone, the world’s first smart phone based on cloud services.

     

    The tablet, scheduled for launch next month, will have electronic versions of Mr Bhagat’s books pre-embedded in it. Mr Bhagat will also be associated with all promotional and marketing activities of the firm across all media-be it digital, above-the-line or below-the-line campaign.

     

    Huawei, which plans to spend $3 million on promotions and advertising till December, has been struggling to build a positive image in India. Its image took a hit when the Indian government raised concerns that Chinese vendors could use telecom equipment they supply to snoop on the country and even launch cyber attacks.

     

    Huawei -the world’s second-largest telecom gear maker after Ericsson with 2010 revenues of $28 billion, or Rs 1.27 lakh crore – is now banking on Mr Bhagat’s power as an influential writer and motivational speaker to revive its image.

     

    Mr Bhagat will be Huawei’s brand associate for six months. “We will monitor the change in perception of the brand after the association, and then decide to extend it further,” Huawei Devices Director, Marketing & Solutions, Mr Anand Narang said.

     

    Huawei, which has been selling its gadgets in India for two years now, plans to become a more consumer-oriented company. In 2010-11, it recorded $490-million sales in the country and sold 12 million units including data cards, set-top boxes, CDMA and GSM feature phones and smart phones. The company targets $600-million sales this fiscal.

     

    It will seek to reach out to young consumers through new products and services over the next few months. Mr Bhagat will use these products and engage with consumers.

     

    “Chetan has a huge presence on Facebook and Twitter, with a combined following of nearly 2 million. He will engage with consumers on social media on his new book Revolution 2020, beginning from a contest on Facebook site this week,” Mr Narang said.

     

    Huawei is the launch partner for Revolution 2020. Huawei Devices Sales Director Mr P Sanjeev said that the company will consider the possibility of Chetan creating content for the brand, for instance, writing short stories that will be available for Huawei device users. The gear maker also plans to work with colleges where Huawei may offer some products at special prices .

     

     

    Source:The Economic Times

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