Resilient Brands Defy Macroeconomic Challenges to Achieve Overall Value of $37.14 Billion in 2019 BrandZ™ Top 30 Most Valuable South African Brands

The BrandZ study, which is the only brand valuation ranking to combine company financial data with consumer insight and opinion, reinforces the importance of strong brands. While not immune to difficult circumstances, strong brands are protected from the worst macroeconomic effects and are positioned for a fast return to growth when conditions improve. This is key as South Africa adopts an increasingly more positive outlook following the 2018 change in government. The BrandZ study, which is the...

The BrandZ study, which is the only brand valuation ranking to combine company financial data with consumer insight and opinion, reinforces the importance of strong brands. While not immune to difficult circumstances, strong brands are protected from the worst macroeconomic effects and are positioned for a fast return to growth when conditions improve. This is key as South Africa adopts an increasingly more positive outlook following the 2018 change in government.

Standard Bank remains at No. 1 with a brand value of $3.55 billion but No. 2 brand, First National Bank(FNB), closes the gap with a value of $3.46 billion, having continued to invest in customer-focused digital innovation and strong communications. Meanwhile, an 11% increase in value to $846 million saw Capitec Bank (one of only three brands whose value went up) rise three places to No. 17. From its origins as a micro-lender to offering banking services to those unable to bank elsewhere, it now attracts customers across the wider socio-economic strata and continues to innovate, including launching a credit card.  With an overall value of $11.83 billion, the banking sector retains its pole position in the ranking.

The fastest riser in the BrandZ 2019 ranking is entertainment brand DStv which increased its value by 38% to $1.07 billion (in part due to DStv's parent company Multichoice now being listed on the JSE) to rise six places up the ranking to No. 18. By carefully curating content for local audiences, alongside initiatives such as working with South African filmmakers – many of whom are from under-privileged backgrounds, DStv has established itself as a key contributor in creating an exciting, meaningful and sustainable video entertainment industry.

The expanded scope of the research covering life insurance for the second year saw two newcomers to the Top 30. Sanlam, valued at $1.04 billion, is No. 15 and Liberty is No. 27 with a value of $406 million.

Difference has proven to be an important factor for South African consumers. As demonstrated by the banks category, innovative brands that were able to demonstrate their uniqueness were more robust; brands seen to have distinct attributes were 13% better off than those that did not.

With its ability to encapsulate the national psyche, fast food brand Nando's celebrates its difference. The third brand to make the fastest risers category, it increased 2% to $2.21 billion, to keep it in the No. 6 slot for the second year.

The BrandZ Top 30 Most Valuable South African Brands 2019

Comments

Ivan Moroke, CEO at South Africa Kantar, Insights Division, says: "Brands that have dared to be different have continued to innovate and dedicated themselves to really understanding the South African consumer – particularly during more challenging economic times when people are conscious of what they're spending. These brands are well-placed for future growth as we begin to see green shoots and increased optimism within the South African economy."

David Roth, CEO of The Store WPP EMEA and Asia and Chairman of BrandZ, says: 

"Brands can't control their external environment, but they can strengthen their business and prepare for the future through investment that allows them to respond to the market and consumers' evolving needs. This is very clear in South Africa where the success stories are brands demonstrating significant resilience in the face of extreme economic pressure."

Key trends 

The BrandZ Top 30 Most Valuable South African Brands report and ranking and extensive analysis are available online here. The reports, rankings, charts, articles and more can also be accessed through the BrandZ app, which is free to download for Apple IOS and all Android devices from http://www.brandz.com/mobile or by searching for BrandZ in the iTunes or Google Play app stores.

About the BrandZ™ Top 30 Most Valuable South African Brands Ranking

Commissioned by WPP, the valuation behind the BrandZ™ Top 30 Most Valuable South African Brands was conducted by brand equity research experts Kantar. The methodology mirrors that used to calculate the annual BrandZ Top 100 Most Valuable Global Brands ranking, which is now in its 14^th year.

The ranking combines rigorously analysed market data from Bloomberg with extensive consumer insights from over 3.7 million consumers around the world, covering more than 166,000 different brands in over 50 markets – including opinions from over 25,000 South African consumers on over 550 brands on 40 categories.

The ability of any brand to power business growth relies on how it is perceived by customers. As the only brand valuation ranking grounded in consumer opinion, the BrandZ analysis enables South African brands to identify their strength in the market and provides clear strategic guidance on how to boost value for the long-term.

The BrandZ™ Top 30 Most Valuable South African Brands is the most definitive and robust ranking of the country's brands available, and the brands ranked must meet at least one of these two eligibility criteria:

The suite of BrandZ brand valuations and reports also includes Australia, China, France, Germany, India, Indonesia, Italy, Latin America, Argentina, Brazil, Chile, Colombia, Mexico, Peru, The Netherlands, South Africa, Spain, UK and US, with new Canada and Japan rankings launching in 2019.

About Kantar

Kantar is the world's leading marketing data, insight and consultancy company. We know more about how people live, feel, shop, vote, watch and post worldwide than any other company. Working across the entire sales and marketing lifecycle, we help brands uncover growth in an extraordinary world. Kantar is part of WPP and its services are employed by over half of the Fortune 500 companies in 100 countries. For further information, please visit us at www.kantar.com.

About WPP
WPP is a creative transformation company. We build better futures for our clients through an integrated offer of communications, experience, commerce and technology. For more information, visit www.wpp.com.

Media Contacts:

Stina Van Rooyen
South Africa BrandZ Lead
t. +27-21-657-9500
e. [email protected]

Ilse Dinner
Head of Marketing Communications Africa & Middle East
t. +27-10-036-0868
e. [email protected]

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