Brand Finance has published its South Africa 50 2020 report which revealed that MTN, Vodacom, and FNB are the most valuable brands in the country.
Brand Finance is the world’s leading independent brand valuation consultancy which is well-known for quantifying the financial value of brands.
It calculates the values of the brands in its league tables using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668.
It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use to arrive at a brand value.
This brand value is understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.
Brand Finance South Africa 50 2020 report values MTN’s brand at R49.4 million, followed by Vodacom on R30.3 million and FNB on R23.9 million.
The top 10 is completed by Absa, Old Mutual, Standard Bank, Sasol, Nedbank, Investec, and Woolworths.
MTN CEO Rob Shuter said they are pleased to be appearing at the top of the list again, but what is more important is the progress they have made in the brand strength index scores.
In addition to measuring overall brand value, Brand Finance also evaluates the relative strength of brands, based on marketing investment, customer familiarity, staff satisfaction, and corporate reputation.
According to these criteria, Vodacom is the strongest brand in South Africa, with a Brand Strength Index (BSI) score of 89.5 out of 100 and a corresponding AAA brand strength rating.
Brand value expected to decline because of COVID-19
Brand Finance said the COVID-19 pandemic could see South Africa’s top 50 most valuable brands lose up to 15% of brand value cumulatively.
This is a drop of over R65 billion in brand value compared to the original valuation date of 1 January 2020.
“2020 has marked another troubled year for the South African economy as it continues to contract,” said Brand Finance Africa MD Jeremy Sampson.
He added that the far-reaching and debilitating COVID-19 pandemic has exacerbated this economic deterioration further.
“Now, more than ever, the economy will rely on the strength of home-grown brands to support the nation’s efforts to try and pull South Africa out of the slump that has engulfed the nation for the last decade,” he said.
Top 20 brands in South Africa
The table below provides an overview of the top brands in South Africa.
|Brand Finance South Africa 50|
|3||First National Bank||R23,851|
|16||Carling Black Label||R10,256|
|46||Blue Label Telecom||R1,723|
Top 50 Brands
The image below provides a comprehensive look at the top 50 brands in South Africa and the changes over the last year.