The COVID-19 pandemic has highlighted the importance of a strong brand in times of economic crisis. According to the Edelman Trust Barometer, the percentage of the population that trusts private companies has increased from 59% in 2019 at 54% in 2021. This has come at a time when consumer spending has plummeted and businesses have struggled to adjust to the pandemic economy.
Companies with strong brands have weathered the pandemic better, and some have even added significant brand value during the crisis. Other companies, however, have lost brand equity as consumer attitudes towards a product or service have changed. Consulting and data analysis company Kantar defines brand value as the part of a company’s financial value that cannot be attributed to tangible assets such as cash and inventory or intangible assets such as patents and trademarks.
To determine the 20 brands that are losing ground, 24/7 Wall St. reviewed Kantar BrandZ 2021 100 Most Valuable Global Brands report, which lists 100 global brands – their rating and ranking in 2021 and 2020. 24/7 Wall St. ranked companies by how many places they lost in the top 100 from 2020 to 2021. All the data comes from the Kantar report.
The brand valuation of the Global 100 brands increased by 42% in 2021 after only 6% in 2020. But this means that many brands that saw their valuation increase in 2021 have further dropped in the top 100 rankings. For example, IKEA lost considerable ground – 12 places – in the brand value ranking from 2020 to 2021, even though its brand value increased by 17%. The valuation of other brands has simply increased faster. (Some of the companies on this list may still suffer due to public opinion over the war in Ukraine. These are the companies that refuse to leave Russia.)
While several major Chinese brands increased significantly in brand value from 2020 to 2021, including TikTok (158%), Meituan (119%) and Baidu (57%), the three brands that fell the most in the rankings are also based in China. . China Construction Bank rose from No. 58 to No. 94, the largest of all companies rated by Kantar BrandZ. China Mobile fell from No. 36 to No. 68, and Didi Chuxing fell from No. 64 to No. 93. The drop came as the three big companies hit a record high bad income and lost millions of customers.
Three of the big four US banks also fell sharply. Wells Fargo moved from No. 42 to No. 62; Bank of America from #78 to #98; and Chase from No. 62 to No. 80. According to Kantar, consumers have favored regional banks with strong neighborhood roots during the pandemic, while internationally oriented banks have suffered. Regional banks like Commonwealth Bank of Australia and RBC of Canada have significantly increased their brand equity. (It’s the American company with the worst reputation.)
Click here to see 20 brands that lost the most value in 2020