The brand value of India along with China, Brazil and the other major developing countries have gained at the expense of most of the developed world this year. While the G7 countries lost a total of $1.436 trillion in brand value, which is approximately equal to the collective rise in the brand value of Brazil, Russia, India, and China as per the latest ‘Nation Brand 100’ rankings released by BrandFinance, a global brand valuation consultancy. The Rankings provide a comprehensive report on the world?s leading nation brands and analyses the impact that a country?s reputation and image have on foreign consumers and investors.
The 2011 Nation Brand Index points out that strong economic performance and growing brand equity in the emerging markets has fuelled this growth in their brand value. Accordingly, this $ 3 trillion convergence between the brand value of the world?s developed and emerging powers is an indication of the importance of emerging markets in the prevailing global economic scenario. Asian giants, China and India, both have brands rated A+, which is higher than half of the G7.
As per the Report, China saw the fastest expansion, clocking a growth of 40.1% in its nation brand value, which now stands at $3.001 billion compared to $2.137 billion in 2010. China clinched the third spot on this year?s league table which is a notch higher than last year, surpassing Japan and trailing Germany which stands second on the table.
Even at the ninth spot, India was the year?s second fastest growing nation brand, with 31.6% growth, with its brand value at $1.266 billion compared to $0.961 billion in 2010. India?s national brand has almost doubled in value since 2007 and among the top ten most valuable brands. India?s A+ rating is tied with China and interestingly is above Japan and France and it has higher brand equity than developed economies including Britain and Italy.
At $959 million, Brazil?s national brand gained 21.5% to jump ahead of Holland on the league table, and become the third emerging market to crack the top 10. However, with a brand value of $752 million at number 12, Russia remained the lowest rated of the BRIC economies.
The situation was very different in the developed world. At $11.370 billion though the US retained its top position as the world?s most valuable nation brand, it lost over half a trillion dollars in value. The world?s largest economy was also downgraded from AA to AA- on the back of a slow recovery and political deadlock. Seven of the10 worst performing brands were European, with Greece and Ireland each shedding over 40% of their brand value. The European Union’s total brand value fell by 4% as confidence in the EU’s endless bailouts ebbed away. The earthquake and nuclear disaster in Japan cut that country?s brand value by 25.9%, amounting to $679 million, the largest dollar-figure drop. Japan also saw the largest erosion in brand rating as lower infrastructure and brand equity numbers pushed its brand rating from AA- to A.