ComfortDelGro and Genting Singapore replace Semcorp and Keppel in the top 10
UOB posts the highest brand value gain amongst the 3 banks and also joins in the Brand Finance Global 500 ranking for the first time.
Every year, leading brand valuation and strategy consultancy Brand Finance puts thousands of the world’s top brands to the test, evaluating which are the most powerful and valuable, publishing the Brand Finance Singapore 100.
The three local banks have been performing well for a number of years and in 2017, we see no other contenders capable of challenging the top three spots. DBS, with US$ 5.4 billion brand value, holds its crown at the top of the Brand Finance Top 100 Most Valuable Singapore Brands table for the fifth consecutive year. OCBC and UOB again finish second and third with a brand value of US$3.64 billion and US$3.62 billion. Notably, UOB is the most improved brand by absolute value, its brand value has increased US$856million, closing the gap with OCBC.
‘We see the more aggressive moves from the banks particularly in M&A, with DBS acquiring wealth and retail business of ANZ in 5 markets and OCBC acquired National Australia Bank and Barclays wealth business in Singapore and Hong Kong. These will provide a boost to the brands’ values after the business integration and we expect the top 3 spots continue to be dominated by the banks next year.’ said David Haigh, Group CEO of Brand Finance Plc.
‘The 3 banks have contributed 30% of the total brand value in Singapore, up from 27% last year. The growth is in line with other financial brands around the world but we wish to see a more diverse mix at the top.’ he added.
David also congratulated UOB on having the highest brand value increase amongst all the top 100 brands indicating the strong brand and business alignment by UOB contributing to this significant increase.
“For UOB, there is possibly more upside in the future as their BSI has still room to grow and that will surely provide them with some buffer when DBS and OCBC integrate their acquisitions impact into the business and might report a higher revenue base”, commented Samir Dixit, managing Director of Brand Finance Asia Pacific.
The Focus on Brand Strength
The brand strength, measured by Brand Strength Index (‘BSI’), the average BSI of the Top 100brands has improved dropped from 60.3 in 2016 to 59.6 this year. The brands have remained stagnant in terms of their brand strength and while they may be doing well locally, they have been losing out to some of the key competitors in the region as they lack competitiveness outside of Singapore market.
“What’s extremely alarming is that the “BBB” rated brands have increased to a whopping 13 in total, up from 1 in 2016”, highlights Samir Dixit, Managing Director of Brand Finance Asia Pacific.
“Singapore Airlines is named the strongest brand amongst one of the three brands with triple-A brand rating, along with DBS and OCBC. However, it is also the only brand in Top 10 losing brand value due to weakening of brand strength (down from AAA last year) and weaker business performance whilst others have an average of 14% growth in brand value”, pointed out Jake Ng, analyst with Brand Finance Asia Pacific.
With a US$ 857 million BV increase, UOB had the highest brand value gain amongst all Singapore brands. In fact more than double the value increase of # 2 highest value increase brand CapitaLand which had a brand value increase of US$ 384 million.
ComfortDelGro and Genting Singapore, with 12% and 23% value growth, made their way into the top 10, replacing Semcorp and Keppel who in the tough industry in this couple of years.
CapitaLand missed the top 10 spot by a narrow margin, with brand value surging 69%. The high revenue forecast helped the company to finish at 11th place.
Samir Dixit, Manging Director of Brand Finance Asia Pacific highlighted that “While the Singapore brands have grown considerably well overall, it is the brand strength for most brands that still remains a concern. Also, the rankings still remains very top heavy with 57% of the total brand value contributed by the Top 10 brands and 93% contributed by the Top 50 brands. We would like to see a more diverse mix at the top and more significant value increase at the bottom which means other brands must start focusing on their value and brand strength.”
Samir Dixit also challenged the Singapore companies to be more brand-driven and not sales or offers-driven. “These while help sell in the short term, might destroy the long term value and the strength of the brand. Brand has to be a strategic agenda for the senior management and boards and must be managed like any other business asset and not just a legal trademark.”
“It is exciting to see UOB having made it to the Brand Finance Global 500 rankings in 2017 with DBS and OCBC. Other than the Big 3 in Singapore, there are only handful of ASEAN brands in the Global 500, including the Telkom Indonesia and Sampoerna from Indonesia, Malaysia and Thailand state-owned oil & gas giants – Petronas and PTT”, he added.