· Michelin brand value grows 30% to US$7.9 billion in latest Brand Finance Tyres 10 ranking
· Japanese brands slip as Bridgestone, Yokohama and Sumitomo all fall in value
· Chinese tyre brands gain traction as they begin to challenge for top ten ranking
Michelin has become the world’s most valuable tyre brand following 30% brand value growth to US$7.9 billion over the last year according to the latest Brand Finance Auto & Tyres 2018 report. It overtook Bridgestone (down 6% to US$7.0 billion), which slipped from first to second place in the annual Brand Finance Tyres 10 ranking.
As well as being the most valuable brand, Michelin is also the strongest. Its Brand Strength Index (BSI) score was up a sector-leading 6% to 86.9 out of 100. The corresponding brand rating improved a notch to AAA, making Michelin the only tyre brand with a clear triple-A rating.
Sustainability and technology initiatives have strengthened the Michelin brand, including a concept for a 3D-printed tyre that can be adapted to road conditions and never needs replacing which was unveiled last summer to widespread acclaim. Michelin tyres also performed well in motorsport, winning at the Le Mans 24hr race and being used in Formula E, which is itself becoming a desirable place to showcase technology for leading car manufacturers.
Alex Haigh, Director of Brand Finance, commented:
“A strong brand is about more than marketing. Michelin has started direct sales of tyres to customers through retail outlets and the internet, a move that helps build a direct relationship with consumers, and allows the company to collect valuable data. It is also widening its sub-brand portfolio, allowing it to sell price-competitive tyres and premium ones without cannibalising market share.”
Japanese Brands Slip
The world’s biggest tyre company by market capitalisation, Bridgestone, dropped to second place. Bridgestone was not the only Japanese brand to lose value, with Yokohama down 18% to US$0.8 billion and Sumitomo Rubber Industries down 62% to US$0.6 billion. A weak domestic market affected all three producers, while value gains from stronger sales growth in North America, Europe, and Asia were partially offset by a weaker yen.
Chinese Tyres Gain Traction
At the same time, Chinese companies have appeared as successful challengers to the established players in the tyre industry. Although mainland Chinese brands are still outside the top 10, the largest ones, such as Linglong and Sailun Jinyu, are making their mark, and given their current brand value growth, should make a successful entrance to the top 10 as early as next year.
Note to Editors
Every year, leading valuation and strategy consultancy Brand Finance values the world’s biggest brands.
The Brand Finance Auto & Tyres 2018 report includes three key league tables:
Brand value is equal to a net economic benefit that a brand owner would achieve by licensing the brand. Brand strength is used to determine what proportion of a business’s revenue is contributed by the brand.
More information about the methodology as well as definitions of key terms are available in the Brand Finance Auto & Tyres 2018 report.
Data compiled for the ranking tables and report is provided for the benefit of the media and is not to be used for any commercial or technical purpose without written permission from Brand Finance.