Lego remains Denmark’s most valuable brand despite its brand value dropping by 9% to DKK 43.4 billion, according to the latest report by Brand Finance, the world’s leading independent brand valuation consultancy.
The iconic global toy brand has successfully built adoration and a renowned reputation across several generations of children worldwide. However, Lego’s brand value has dropped due to a reduction in forecast revenue growth, a consequence of the challenges increasingly faced from new children’s entertainment options, especially in the digital sphere. Lego is currently attempting to leverage its brand value to increase its product range and thus put that brand in a better position to compete with other electronic entertainment brands, for example through the launch of its Lego Life mobile app.
In addition to measuring overall brand value, Brand Finance also evaluates the relative strength of brands, based on factors such as marketing investment, familiarity, loyalty, staff satisfaction, and corporate reputation. Alongside revenue forecasts, brand strength is a crucial driver of brand value. According to these criteria, Lego still claims the title of Denmark’s strongest brand despite its brand strength rating dropping from the elite AAA+ rating to AAA.
David Haigh, CEO of Brand Finance, commented:
“Lego’s brand has been built over many years, and it is facing existential challenges from new technologies. Its iconic status is under threat, but Lego are working hard to leverage its existing brand strength into new product categories. So far, while its core business certainly remains threatened, they appear to be avoiding the risk of extinction faced by other businesses which have seen fundamental challenges to their markets from new technology.”
Maersk powers ahead
Shipping giant Maersk achieved remarkable brand growth, up 45% to DKK 28.6 billion, while simultaneously jumping from 4th to 2nd position, as it continues to reap the rewards of seismic changes to its operation. These changes have included the integration of Hamburg Süd, creating a single team to share best practices, resources and strengths. While the Hamburg Süd brand remains independent of the Maersk brand, the combined team means that Maersk has more ocean shipping capacity than any other brand, creating a genuine global leader for Denmark. As a result, the scale of the integrated teams is already delivering improved performance for the Maersk brand. In addition, Maersk’s earnings have jumped significantly over the last year, bolstered by the lower container handling costs.
Mixed results for retail brands
Rema 1000 (brand value up 51% to DKK 2.1 billion) is one of the fastest growing brands in the Denmark 50 ranking, with its brand value growing as a result of its solid forecast revenue growth. In a world where many retail brands are facing significant competitive challenges from online retailing, the low-cost, high-efficiency model of the Rema supermarkets may allow them to retain market share amongst its key customer groups, namely customers who may be unlikely to shop online, particularly for low-cost, routine, household groceries and supplies.
Meanwhile, Coop Danmark (down 16% to DKK 7.7 billion) has struggled this year, falling out of the top ten, down from 9th position to 13th. Coop Danmark’s supermarkets are facing an extremely competitive market, with Coop’s brand value dropping due to both a reduction in forecast revenue and also a reduction in brand strength. With Danish consumers having a variety of choices, especially with new, online, alternatives entering the market, Coop is facing difficulties to retain its customer loyalty.
Cheers to Carlsberg
Carlsberg has entered the top 10 after achieving a solid 9% brand value growth to DKK 8.8 billion. Carlsberg’s leadership has implemented a comprehensive internal strategy called “Funding the Journey” to help build the brand, which focuses on improving efficiency, reducing costs and growing revenue. Carlsberg is also focusing on product diversification outside of the traditional, mass-marketed, alcoholic beers to include a broader range of craft beers and non-alcoholic beers in Europe. This re-alignment to improve the public perception of Carlsberg has included new packaging which will reduce plastic usage by 76% with commensurate reductions in carbon emissions.
As well as Carlsberg and Carlsberg-owned Tuborg (up 6% to DKK 4.9 billion), 11 further food and drink brands are amongst the Denmark 50, with Arla and Danish Crown portfolios featuring prominently. In addition to the Arla brand itself (up 1% to DKK 22.0 billion) there are a number of other brands owned by the Arla group, including Lurpak (up 39% to DKK 3.8 billion) and Harmonie (down 15% to DKK 873 million). Meat producer, Steff Houlberg, (up 72% to DKK 1.7 billion) is the fastest-growing brand in the Denmark 50 ranking, jumping from 45th to 36th place.
Brand Finance Nordic 50 2019: Sweden reigns supreme
Looking at the classification in the wider region, Swedish brands have claimed one in every two positions in the Brand Finance Nordic 50 ranking and six out of the top 10 spots, with Ikea crowned most valuable (up 13% to DKK 138.2 billion), H&M in second (down 15% to DKK 101.9 billion), and Volvo in third (up 11% to DKK 88.4 billion).
Engineering and construction leads among sectors with 10 brands included in the ranking. Sweden’s Skanska is the highest ranked in 20th, with a brand value of DKK 14.6 billion, followed closely by Vestas, in 21st position, with a brand value of DKK 14.4 billion. Other notable sectors across the region are banking with 7 brands and retail with 5 brands.
Sixteen brands from Denmark feature in the Brand Finance Nordic 50 rankings, fewer than from Sweden (24), but more than from Finland (6) or Norway (4). Lego – named 6th most valuable brand across the region – is the only Danish brand to feature in the top 10.
Note to Editors
Every year, Brand Finance values 5,000 of the world’s biggest brands. The 50 most valuable Danish brands are included in the Brand Finance Denmark 50 2019 ranking, and the 50 most valuable brands across the Nordic countries are included in the Brand Finance Nordic 50 2019 ranking.
Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors.
Additional insights, charts, and more information about the methodology, as well as definitions of key terms are available in the Brand Finance Denmark 50 2019 report.
Data compiled for Brand Finance’s rankings and reports are provided for the benefit of the media and are not to be used for any commercial or technical purpose without written permission from Brand Finance.