30/03/2017 05:32 AST
The first BrandZ brand valuation ranking of Saudi Arabian brands by WPP and global research specialists Kantar Millward Brown, in partnership with Prince Mohammad bin Salman College of Business and Entrepreneurship (MBSC), showed that Saudi Telecom Company (STC) is the most valuable brand in the Kingdom worth $6.6 billion. In the first ranking of its kind in Saudi Arabia, the findings show that the Top 20 brands are worth a combined brand value of $37 billion.
The report is the first edition of a regular BrandZ study to track the rapidly evolving environment for brands in Saudi Arabia and chart the changing value of the country’s most valuable brands.
BrandZ brand valuation studies are the largest brand-building platform worldwide and the only consumer-focused source of brand equity knowledge and insight. They use a unique and authoritative brand valuation methodology which analyses corporate financial data and strips away everything that does not pertain to the branded business, followed by in-depth consumer research to assess consumer attitudes towards brands.
David Roth, CEO EMEA & Asia, The Store, WPP, said: “As Saudi Arabia moves away from its reliance on oil by developing a thriving private sector and fostering entrepreneurship, domestic brand value provides a tangible indication of economic growth and diversification.
“Our pioneering study ranks the country’s most accomplished brands, analyses their success, and identifies the key forces that are driving the growth of brands in Saudi Arabia.”
“By fostering a solid understanding of their brand, and building the skills to develop and deliver that brand consistently across their entire business, Saudi companies can secure a stronger share of regional and global markets,” said Fahd Al Rasheed, Vice Chairman of the Board of Trustees of MBSC.
“The power of an independent assessment to help companies better evaluate their brand – its value, positioning, strengths and weaknesses – cannot be overstated. The BrandZ Top 20 Most Valuable Saudi Brands 2017 report encourages them to do exactly that.”
Brands that were founded in Saudi Arabia dominate both the Top 20 ranking and the local market. Having expanded to build a presence in markets across the Middle East and North Africa, STC’s brand value of $6.6 billion accounts for 18 percent of the total value of the Saudi Top 20 brands.
The top two brands in the ranking, STC and Al Rajhi Bank, account for one third of the total value of the Top 20. Jabal Omar, Almarai and National Commercial Bank (NCB) complete the top five brands in the Kingdom which between them holds two thirds of the Top 20 brands’ combined brand value.
This concentration of value at the top of the ranking is also seen in similar BrandZ studies in China, India, Indonesia and Brazil. The exception to this pattern is the Global BrandZ valuation ranking in which the value of brands is more evenly distributed throughout the rankings.
Of the 334 Saudi brands that were measured in the compilation of the ranking, 69 percent were local, 26 percent were global brands with a presence in Saudi Arabia, and the remaining 5 percent were regional brands.
Almost one third of the 334 brands measured by BrandZ are “Clean Slate” brands – brands that consumers often don’t know exist, or if they do, they are not well defined in people’s minds.
The presence of a high proportion of local brands is often seen in markets that are just beginning to open up. BrandZ™ data shows that brands, regardless of their origin, can, however, build strength and value in Saudi Arabia by being meaningfully different to the competition and by achieving fame and widespread distribution.
Alongside the brand value ranking, Kantar Millward Brown research and analysis also identifies some key insights to help brands grow in Saudi Arabia. Included among the key takeaways are
Saudi Gazette
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