‘Polite’ UK brands missing out on $10 billion in value
UK brands are missing out on $10 billion in potential, thanks to short-term marketing tactics. According to a new study from Kantar, UK brand growth is now lagging behind global peers, nudging up by 8% compared with the worldwide average of 29%.
Surveying the world’s leading 100 companies, Kantar determined that the global long-list has seen value rise by 29% over the last year. A range of markets both in Europe and beyond have all seen strong double-digit growth. In comparison, the top 75 UK firms have seen expansion of just 8% – and while in a slower wider market, that’s nothing to be sniffed at, it is clear that they are being left behind.
Jodie Gillary, head of brand activation at Kantar Insights UK & Ireland, explained, “We know strong brands perform better, are more resilient and grow faster in the long run. And this isn’t just theory – our data shows that brand perceptions really can move the needle commercially. It’s a tough time for the industry and, with pressure on margins right now, marketers are being pushed to do more with less. But the reality is that almost half of the UK’s most valuable brands aren’t seen positively enough to justify charging a higher-than-average price for their category, so it’s never been more important for businesses to grasp the financial imperative of investing in considered brand building.”
UK brands are leaving $10 billion of value on the table as a result of gaps in their brand building, and a reliance on short-term marketing tactics. According to the researchers, it may be a matter of culture.
Globally, the concept of brand contributes to 33% of the value of a company, while in comparison, this falls to just 29%. Analysis reveals that while UK brands are good at meeting consumer needs and are generally well known, they often struggle to differentiate themselves from the competition, which is putting a ceiling on their growth – and that may come from reservations around ‘blowing one’s own trumpet’.
Gillary explained, “British brands are at risk of being too polite to be bold. They can and should be braver. Disruption within a category has been responsible for 71% of incremental brand value growth for the top 100 brands globally since 2006. That’s a huge $6.6 trillion in additional value. But our data shows that UK disruptor brands are down 19% in value since 2019.”
Kantar does not believe it is simply beyond British brands to be forthright in their marketing, though. There are “some fantastic examples of businesses which have broken the mould” – working to “shake things up”. Amid these was HSBC, with a brand value of $21.6 billion, up 14% year on year – now the UK’s most valuable brand for the first time ever, pushing Vodafone ($18.5 billion) into second place. Financial services brands made up 9 of the top 10 fastest growing UK brands this year. By contrast, the lead category in France is luxury, with business tech taking the top spot in Germany and apparel in Spain.
Commenting on what such brands do right, Gillary added, “The brands which manage to do that and grow fastest over the long term aren’t necessarily the biggest or the cheapest – they’re the ones which set themselves apart from competitors and in a way that chimes with what consumers want and need. That will look different for every brand, whether it’s through product innovation, for example, branching into new categories, or standout digital experience. The key is never to stand still – to consistently shake things up while staying absolutely true to the brand.”
Since 1998, Kantar’s BrandZ has shared brand-building insights with business leaders based on interviews with 4.3 million consumers, for 21,000 brands in 54 markets. Kantar is a marketing data and analytics business advisor, and a top brand partner to some of the world’s top companies
The UK’s professional services sector was recently the subject of a report which looked specifically at its own marketing prowess. At a time of heightened competition and sluggish growth, the research from Soba: Private Label found that consultants were too dependent on stock buzzwords, and not centred heavily enough on customers in their language.
