Italian luxury brands dominate the ranking contributing nearly 40% of the Top 30’s value
“Made in Italy” brand value continues to grow year-on-year, due to the strong international market presence of well-known Italian brands. According to the 2019 BrandZTM Top 30 Most Valuable Italian Brands ranking by WPP and Kantar, Italian brands have increased their brand value over the last 12 months by 14% to $96.9 billion, despite operating in times of economic and political uncertainty.
Luxury fashion label Gucci tops the ranking and is 2019’s fastest riser, growing by a staggering 50% to $24.4 billion over the last year.
Completing the Top 5 brands are telecom provider TIM (No.2 $9.41 billion), energy company Enel (No.3 $7.94 billion), chocolate confectioner Kinder (No.4 $6.80 billion), and luxury sports car manufacturer Ferrari (No.5 $4.75 billion).
Four others in the Top 30 have grown their brand values by more than 20%: Ferrari (No.5) by 36% to $4.75 billion, Fiat (No.20) 23% to $1.39 billion, Campari (No.30) 23% to $591 million and Fendi (No.13) by 22% to $1.88 billion.
As the Top 30’s only new entrant this year, mobile phone and broadband provider Fastweb (No.27 $891 million) has been perceived by consumers as shaking up the telecoms sector with its speedy connections and transparent consumer offer.
‘Brand Italy’ continues to make its mark on the world
BrandZ analysis found that Italian brands have an exceptionally strong presence throughout the world with 10 brands in the Top 30 having 90% or more of their exposure overseas (a combination of revenue, volumes sold and profitability from overseas). This international approach towards brand building allows them to broaden their potential audience base, spread their exposure to risk, and capitalise on growth in fast-developing markets. According to research by WPP’s BAV Group, ‘Brand Italy’ performs exceptionally well, in part due to the heritage, authenticity and associated lifestyle of many of the brands.
Further research from BrandZ revealed those Italian brands that have 50% or more of their exposure overseas, increased their brand value by 20% year-on-year, while those brands with less than 50% overseas exposure remained flat.
Massimo Costa, Italy Country Manager, WPP says: “Many of the companies featured in our ranking are what we call ‘Industry Heroes’ and represent a typical Italian business model that is excelling globally. The ranking reveals a cluster of agile, interconnected businesses, driven by a strong entrepreneurial spirit, which dictates the pace of growth and innovation in their business.”
David Roth, WPP says: “The BrandZ Italian Top 30 ranking demonstrates the significant growth opportunities for Italian businesses that are willing to invest in their brands. Moving beyond a brand’s home market requires ambition and bravery, and Italy’s leading brands have shown resilience and innovation in standing apart from other regions to deliver a great consumer experience.”
Creativity helps bridge the innovation gap
Innovation is by far the largest driver of brand value growth in Italy. Those brands seen to be most innovative grew their brand value by 17%, compared to the 1% growth seen by brands regarded as less innovative.
Compared to other BrandZ European rankings, such as France, Germany and the UK, consumers regard Italy’s Top 30 brands as particularly healthy – a measurement that identifies brand purpose, innovation, communications and experience. A key contributor to innovation is creative communications; an area that BrandZ data suggests that Italian brands overall lag behind. Improving innovation through more creative thinking and communications will provide a valuable opportunity to power future growth.