· Brand Value fell from US$33 billion in 2008 to US$2 billion in 2014
· The decline has been halted however and a strong recovery is in progress
· Brand value is up 37% on 2015 to a total of US$3 billion
Every year, leading brand valuation and strategy consultancy Brand Finance analyses thousands of the world’s top brands. They are evaluated and ranked to determine which are the most powerful and the most valuable. For the first time Brand Finance has created a league table of Finland’s most valuable brands, the Brand Finance Finland 10.
A remarkable turnaround in Nokia’s fortunes is the most striking finding. Nokia’s brand value has been in decline for years as consumers abandoned its handsets for smartphones and its belated attempt to update its hardware failed to inspire. Brand value peaked in 2008 at US$33 billion, making it the world’s 9th most valuable brand, but this was soon followed by a precipitous decline to US$2 billion in 2014.
President of Nokia technologies, Ramzi Haidamus, clearly had a firm grasp of the situation and the role of brand in turning Nokia’s fortunes around. He was quoted as saying “We have a very valuable brand, yet it is diminishing in value and that’s why it is important that we reverse that trend very quickly, imminently.” Nokia has managed to do just that, with brand value up 37% from US$2.2 billion in 2015 to US$3 billion this year.
The sale of Nokia’s unprofitable handset division has clearly allowed the firm to focus on the things it does best. Profitable network equipment producing division Nokia Networks has signed major deals with the likes of China Mobile and goes from strength to strength. A new strategy, based on licensing the brand and other IP to third parties has been initiated, leading to the creation of devices such as the N1 tablet, manufactured by Foxconn. Meanwhile, the recently finalised merger with Alcatel-Lucent has established a solid foundation for continued growth.
Brand Finance CEO David Haigh comments, “Just a few years ago Nokia was described as a ‘burning platform’. The fires have clearly been put out and Finland’s most valuable brand seems to have a bright future.”
Kone and If take second and third places. Elevator and escalator brand Kone lost 13% of its brand value. After great success in the past decade, Kone’s struggles this year can largely be attributed to the slowdown in the Chinese market, its leading source of revenue. In order to reverse this slowdown, Kone will have to carefully leverage its brand to derive revenues from maintenance if new equipment sales to maintenance remain suppressed.
Insurance firm, If, has been more successful, increasing its brand value 14% to US$1.13 billion having strengthened its market position through organic growth and selective acquisitions.