Interbrand’s Top Retail Brands 2011

Today Interbrand released its top 100 Retail Brands survey for 2011. Walmart is this years most valuable retail brand with a calculated value of 142,030 million $.

The study covered brands in several different countries such as USA, Germany, Canada, France, Spain, U.K and Asia-Pacific. Walmart was the most valuable brand, wherein Woolworths, Shoppers Drug Mart, Tesco, Carrefour, Aldi and Zara took the pole position in their home market.

The calculation of a brands value is based on the companies estimated profit of the next five years also known as economic value added. Additionally Interbrand evaluates the significance of a brand, as well as brand awareness and brand image. The sum of these discounted outputs accounts for the net present value of a brand. Therefor the calculated value of a brand is the equivalent of the expected future earnings, which are solely attributed due to the presence of the brand. (So if Wallmart would not have the brand “Wallmart”, they would achieve 142’030 million $ less earnings in the next five years. Did I get that right?).

The different criteria used by Interband (e.g. how they calculate brand awareness or brand image) were not published in the report.

One of the most important issues Interbrand currently focuses on, is the development of the web and the influence it has on buying decisions and there fore a brands value:

“The internet has enabled consumers to have the power to access what seems like an infinite amount of information that can educate them about choices, and help them make better decisions, whether it’s something as stressful as medical treatments, as serious as child safety, or as frivolous as fashion and entertainment.”

“While word of mouth, be it good or bad, is nothing new to retailers, social media allows it to be immediate and far-reaching. A dissatisfied customer can air complaints to her social circle in an instant — and when used for the positive, word of mouth is a powerful generator of goodwill and brand advocacy.”

“People love sharing and “friending.” Becoming friends online means we’re curious about one another and willing to pay attention. Platforms like Facebook and LinkedIn make it so much easier to find like-minded people than in times past, when we relied on traditional school, church, and civic groups. Be aware of the cardinal rule: It’s rude to try and sell something to a new friend.”

“Unbound by time or space, the internet provides people with a virtual meeting space where they can share data, common interests, and passions. By listening and responding thoughtfully, retailers can earn their place in this community. Meaningful relationships develop based on shared values, a truth that applies to the brand/consumer relationships just as it does to the interpersonal kind.”

“These new abilities, behaviors, and expectations mean that retail brands will succeed only if they deal openhandedly with consumers, providing transparency in everything from social responsibility to owning up to mistakes. The dynamics of the wireless world have brought etiquette back to selling. Rather than shout their wares, brands must seek permission to speak and then only along the channels allowed by the consumer. Retailers must be demand-worthy.”

Interbrand even shows several examples of best practices performed by retailers online:

“Mango (Spain), connects with an international shopper base through its blog and the highly engaging “What Should I Wear by Mango” video mini-series campaign. This creative approach supports its plan to continue to expand globally to offset soft domestic sales.”

The new possibilities virtual marketing and selling offers companies is overwhelming.  Agencies and companies around the world are obviously trying to capture and monitize this change in buying behavior.

You can download the entire report here: Interbrand Best Retail Brands 2011

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