· Sberbank cements position as Russia’s most valuable brand with 18% growth and claims title of the country’s strongest brand with elite AAA+ rating
· Oil & Gas brands fill 4 of top 10 rankings as Gazprom, Lukoil, Rosneft and Tatneft vary in performance
· United Aircraft Corporation is Russia’s fastest-growing brand, up 62% from 2017
· Aeroflot defends title of the world’s strongest airline brand
Sberbank’s brand value has surged by 18% to ₽670.4 billion, according to the latest report by Brand Finance, the world’s leading independent brand valuation and strategy consultancy. Sberbank’s remarkable performance further extended its lead as the most valuable Russian brand, worth more than twice as much as the second-ranked brand, Gazprom (brand value up 5% to ₽320.8 billion).
Sberbank’s brand value grew strongly on the back of encouraging performance in the domestic Russian market. The brand is also investing in future growth, as earlier this year it announced new plans to combat the threat from tech competitors. Digitalisation is an important emerging trend in modern banking and Sberbank’s investment in blockchain indicates its intent to operate in that space with confidence and proficiency.
In addition to measuring overall brand value, Brand Finance also evaluates the relative strength of brands, based on factors such as marketing investment, customer familiarity, staff satisfaction, and corporate reputation. Along with the level of revenues, brand strength is a crucial driver of brand value.
According to these criteria, Sberbank has claimed the title of Russia’s strongest brand this year, earning the elite AAA+ rating. It is now one of just two AAA+ banking brands in the world, alongside China’s ICBC bank. Sberbank’s brand strength performance has been driven by remarkably high brand equity amongst its customers and other key stakeholders in Russia. Brand Finance’s original market research found that, at 8.22 out of 10, Sberbank has earned the highest domestic reputation score from among all banking brands in the world.
David Haigh, CEO of Brand Finance, commented:
“Sberbank’s performance this year in both brand value and brand strength has been exemplary. The brand has solidified its pre-eminence in its key Russian markets, scoring exceptionally well in Brand Finance’s original consumer equity research that feeds into our valuations. As start-ups and tech ecosystems alike encroach on the financial services industry, Sberbank’s dominance as a brand will provide a solid foundation to adapt and thrive.”
Oil & Gas brands dominate
Oil & Gas remains the largest industry segment amongst Russia’s most valuable brands, accounting for over ₽1.1 trillion or 32% of the overall brand value in the Brand Finance Russia 50 2018 league table, ahead of the Banking sector representing 25% of the country’s total. It also claims four spots among the ranking’s top 10 most valuable brands. However, the leading Russian Oil & Gas brands each recorded very different results this year.
Gazprom (brand value up 5% to ₽320.8 billion) remained the second-most valuable Russian brand overall, with steady growth. Meanwhile, third-ranked Lukoil (brand value down 1% to ₽281.1 billion) lost a little brand value, while Rosneft (brand value up 13% to ₽203.9 billion) grew strongly in fourth place. Tatneft (brand value up 9% to ₽97.3 billion) improved to become the ninth-most valuable brand in Russia this year.
The Oil & Gas brand to experience the most significant brand value loss this year is Surgutneftegas (brand value down 56% to ₽59.8 billion). The brand fell out of the top 10 rankings, down from 6th place last year to 14th in 2018.
The fastest-growing brand in the sector this year is Transneft (brand value up 53% to ₽58.9 billion). The monopoly pipeline operator was able to leverage an expectation of increased future earnings, jumping from being the 25th most valuable brand of 2017 to 15th this year.
UAC is Russia’s fastest-growing brand
United Aircraft Corporation has achieved extremely rapid brand value growth, up 62% from 2017 to ₽38.6 billion this year, making it the fastest-growing brand in the league table. UAC increasingly unifies its brand positioning with key stakeholders. It is now the world’s highest-volume supplier of fixed-wing combat aircraft and has increased sales to many non-Western countries. UAC’s brand has grown strongly on forecasts of boosted sales to Iran, where American and European brands such as Boeing and Airbus have been forced to limit sales due to the geopolitical situation.
Aeroflot defends title of the world’s strongest airline brand
The national carrier Aeroflot has maintained its status as the world’s strongest airline brand with AAA brand rating driven by consistently strong equity with stakeholders, built up through investments in its brand and marketing promotion in the Russian and key international markets.
David Haigh, CEO of Brand Finance, commented:
“Aeroflot has invested heavily in its young fleet, delivering a superior product and customer experience among increasing expectations. This is complemented by marketing activities, especially in Asia, where Aeroflot’s sponsorship of Manchester United is paying strong returns to brand reputation.”
View the full list of Russia’s 50 most valuable brands here
Note to Editors
Every year, leading independent valuation and strategy consultancy Brand Finance values the world’s biggest brands. The 50 most valuable brands in Russia are included in the Brand Finance Russia 50 2018 league table.
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 assessed through a balanced scorecard of factors (such as marketing investment, stakeholder equity, and business performance) and used to determine what proportion of a business’s revenue is contributed by the brand.
Additional insights, more information about the methodology, as well as definitions of key terms are available in the Brand Finance Russia 50 2018 report.
Brand Finance helped craft the internationally recognized standard on Brand Valuation – ISO 10668, and the recently approved standard on Brand Evaluation – ISO 20671.
Data compiled for the Brand Finance league tables 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.