The top 10 Singapore brands continue to dominate

Brand Finance Plc releases the fifth annual “Top 100 Singapore Brands” league table showing strong growth from the country’s top brands. The Top 10 Singapore Brands have been valued at 18.01 bn US$ in 2011, storming ahead of the remaining 90 brands featured in the leagues that have a total combined value of 35.042 bn US$.

Two brands not previously featured in the Brand Finance Top 100 Singapore Brands entered the leagues in the top 10. Astra International achieved the fourth position and Flextronics squeezed into the top 10 at number eight. Despite the competition from growing brands, the top three brands from 2010 held steady retaining their coveted positions.

Singapore Airlines continues to fly high taking the top place for the fourth consecutive year, despite moderate brand value increases of just 3% (3.75 bn US$). This compares to an overall average brand value growth of 26.1% amongst the top 10 brands. Singapore Airlines has a comfortable lead of 656 mn US$ over the number two ranked brand Wilmar International.

The top three risers by brand value growth amongst the top 10 brands were Great Eastern (83%), UOB (37%) and DBS (34%). This is in line with the general trend around the world of financial brands rebounding after the 2008 crisis. However these three brands have achieved a more marked recovery than their western peers because of their proximity to the major rapidly developing economies.

DBS Bank remained at the number three position increasing its brand value to 2.10 bn US$, a brand value growth of 34% over 2010. It is building its brand presence in the three key markets of South East Asia, South Asia and Greater China as it seeks to diversify its revenues away from its home market, through a major regional brand campaign. Singtel also kept their number five position with a 25% increase in brand value at 1.35 bn US$.

Overall, the three new brands in the top 10 had a combined brand value of 4.09 bn US$.

The top 10 brands added an impressive 30.17% to the combined brand value, with Willmar International contributing the most as the brand value gained 0.60 bn US$.

Similar to other Asian markets, there is also a sharp contrast in the contribution of the top 10 compared to the next 10 brands (51.4% vs. 19.57%). This clearly indicates the large growth potential available to a majority of the top 50 Singaporean brands. It also indicates the dominance of the top 10 and the benefits of robust brand management at the top.

More change seen in the remaining top 100

The value growth of top 10 in 2011 compared to 2010 is only 30.17%. It is a relatively small number when compared to an average brand value increase of over 70% for the rest of the top 100 brands. Brands ranked 11-20 had a value growth of 63.25% , 21-30 had a growth of 97.06%, 31-40 grew by 72.30%, 41-50 by 59.60% and the average for the brands ranked 51-100 nearly doubled their brand value (with a growth of 99.27%).

The brands ranked 51-100 nearly doubled their brand value (99.27%) indicating strong brand focus and brand building initiatives beyond the top 50 brands.

As a result of this strong growth, the bottom end of the brand value growth reached a high range of 51-22 mn US$. (Except the last two which were at 10 and 5 mn respectively). This range in 2010 was a mere 22-9 mn US$.

Segment Growth

There was evidence of uniform growth across all segments and categories.

  • Banks have a healthy 34% brand value growth
  • Telecom sector grew with an average Brand Value growth of 25%
  • The two private health care giants Parkway and Raffles Medical Group performed particularly strongly with a massive brand value growth of 136% and 123% respectively.
  • In the media category, while the SPH saw an increase of 54%, there were three new entrants, the Straits Times at number 43, Lianhe Zaobao at position 78 and Her World at position 83.
  • Real estate saw enormous growth of 400% and 300% for certain brands and 13 of the 15 brands in this category grew well. Interestingly two brands in real estate suffered negative growth with CapitaLand down 13 % and Hoo Bee losing 38% of its brand value.
  • The Transport category also performed well with SMRT increasing Brand Value by 189% and Comfort up 49% leading to strong double digit growth.
  • Retail did well with an average Brand Value growth of over 60% except for YHI which had zero growth.
  • All the hotels and motels brands continued to grow with three City Development brands (Millennium, Copthorne and Kingsgate Hotel) entering the top 100 for the first time.

Top Risers have representation from a variety of segments

Coming out of the crisis, all segments grew well. There was no dominant category amongst the top 10 risers. Five of the top 10 risers are also amongst the top 10 brands. All the top risers are within the top 22 ranked brands.

Significant brand value loss amongst losers

The losers and dropouts had a value erosion of only 1.3 bn US$. There is no specific segment or industry or sector where brand value was seen to be eroded. The value erosion was present across industry and segments such as transportation, manufacturers, food, retail, real estate, commercial services. This indicates reduction in brand value was due to brand management practices as appose to market conditions effecting particular sectors.

Samir Dixit, Managing Director of Brand Finance Singapore says, ‘It is very heartening to see that this year; the brand value growth has come from across industries and segments with no domination of any one category. This is particularly healthy from an economic development and market growth perspective. This all round growth and reduced contribution from the top 10 indicates strong brand management practices and the acceptance for brand management as a disciplined approach by all corporates, big and small’.