Retail was named the second top performing sector within Australia’s economy next to the banking sector, according to a recent study by WPP and Kantar Millward Brown.
Retail followed banking at $19.6 billion, according to the BrandZTM Top 40 Most Valuable Oz Brands study, which tracks the performance of the country’s most valuable brands. Telecom providers came in third at $17.3 billion.
The Big Four banks have all made it into the Top 5, with Commonwealth Bank of Australia taking the lead ($16.4 billion). ANZ bank ($11.9 billion) and Telstra ($10.8 billion) were placed second and third respectively.
Supermarket giants Woolworths and Coles came in at sixth and seventh.
Retailers had the highest number of brands represented in the BrandZ Top 40, with a total of 11 brands (including Westfield, Bunnings, BWS and Harvey Norman) across product subcategories.
According to the study, Australia’s top 40 brands do not have a strong presence on the world stage. Only 13 of the ranked brands report any overseas revenue – with such contributions making up just seven per cent of total revenue. Alcohol brands like Bundaberg, and Victoria Bitter and airlines like Qantas and Jetstar only derive a fraction of their revenues from global markets.
In fact, the study stated, only Fosters derives the bulk of its revenue from outside of Australia.
Brands can defend their markets and accelerate growth through new market penetration by focussing on improving capabilities across business areas from logistics and communication to customer care.
While retailers have always enjoyed a central role within the Australian economy, the study states they now face a growing threat from disruptive foreign players offering personalised shopping experiences.
“Technology is reshaping the Australian business landscape,” said David Roth of The Store, WPP. “Digital transformation, artificial intelligence and the accelerating speed of change have significantly reduced barriers for competitors like Amazon to enter and disrupt markets with greater efficiencies and reduced costs, while offering consumers access to highly desired global brands.”
According to the study, Australia’s geographic isolation has historically led to a lack of outside competition. Increasingly, this geographic isolation is being flattened by technology, and global brands are now a mere click away.
Unlike other countries, there is a distinct absence of technology brands within the BrandZ Australia Top 40, with consumers perceiving an innovation gap across local brands. They expect more and favour brands that are more “tech savvy” and offer greater convenience and efficiency.
“While retail platforms and technology make it easier for Aussie brands to expand, they also bring new players to our shores – and as such, the best defence is a strong brand,” said Jon Foged, CEO of Kantar Australia. “Applying innovation across your product, business and customer experience in an agile environment are essential to survival in this global market.”
The BrandZ Top 10 Most Valuable Australian Brands 2018
Rank 1 – Commonwealth Bank of Australia (Category: Banks) Brand Value 2018 ($M USD) 16,412
Rank 2 – ANZ (Category: Banks) Brand Value 2018 ($M USD) 11,907
Rank 3 – Telstra (Category: Telecom Providors) Brand Value 2018 ($M USD) 10,774
Rank 4 – Westpac (Category: Banks) Brand Value 2018 ($M USD) 9,306
Rank 5 – National Bank of Australia (Category: Banks) Brand Value 2018 ($M USD) 8,781
Rank 6 – Woolworths (Category: Retail) Brand Value 2018 ($M USD) 7,105
Rank 7 – Coles Category: Retail) Brand Value 2018 ($M USD) 5,207
Rank 8 – Optus (Category: Telecom Providors) Brand Value 2018 ($M USD) 3,503
Rank 9 – St George (Category: Banks) Brand Value 2018 ($M USD) 2,658
Rank 10 – Origin (Category: Energy) Brand Value 2018 ($M USD) 2,236
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