The 2008 Best Global Brands

Yes, Coca-Cola has retained its number one position, with a brand value of US$66,667-million. It is followed by IBM, which took over the second place from Microsoft, which has dropped to number 3.

Google for the first time has moved into the top 10, at number 10, with a brand value of $25,590-million. Last year, it was in 20^th place. Google is also the biggest climber, having increased its value by 43%. Interbrand attributes this to innovations such as Google Mobile, Google Docs & Spreadsheets and Google Book Search, and its acquisition of YouTube, which extend the brand's reach, but says most significant is Google's core business as 99% of its revenues come from advertising on its search result pages. As Interbrand puts it: "It is no longer an internet brand, it is the internet."

Jeremy Sampson, executive chairman of Interbrand Sampson Group, the African arm of Interbrand, predicts that Google could be the brand to knock Coca-Cola off the number one position.

Top 10 brands

The credit crunch

The credit market crisis has affected leading financial services brands, with Merrill Lynch at number 34 dropping 21% in brand value. and Citi, number 19, has lost 14% of its brand value.

Morgan Stanley (No. 42) has lost 16% in brand value, with its decline due largely to the credit crisis, but it was also hit by a class action lawsuit with its shareholders outraged by its delay in disclosing its level of exposure.

HSBC (No.27) and credit card companies Visa (a new entrant at No. 100) and American Express (No.15) have survived due to their trusted brands.

The results were compiled in June, before the market chaos we have seen in the markets in the last week with the failure of Lehman Brothers.

2008 biggest risers

As mentioned above, Google is the biggest riser, increasing its brand value by 43%. It is followed by Apple which has shown an increase of 24%. This has been attributed to its ability to identify new customer needs and deliver products like the iPod, iPhone and MacBook Air which balance coolness and mass appeal.

Amazon.com has increased by 19%, largely due to a shift in focus away from books. "Amazon is fast becoming a super-mall, selling everything from toys, jewellery, clothes, and electronics alongside its core offering of books, CDs, DVDs and games," says Interbrand.

ZARA, a Spanish-owned clothing chainstore, has increased its brand value by 15%. Interbrand says: "Having expanded into eight new territories in the last two years, Zara is now a truly global force, with operations in 72 countries. It owes its status as the master of impulse shopping to its truly original business model.

"The retail stores are not just the end of a highly efficient supply chain, they are the beginning of the design process. Design input comes from market specialists and buyers as well as designers, so its fast fashion is directly customer-driven.

"The weekly roll-out of new stock gives people a reason to visit more regularly than most outlets, and the price point makes spontaneous purchase highly likely. How do you buck a downward trend? Give the people what they want."

Nintendo has increased its brand value by 13%, thanks to the phenomenal success of the Wii and DS consoles.

Interbrand's comment: "In just a few short months, Nintendo pulled off something the gaming industry had been struggling to do for years - widen the market... Innovation continues to drive the brand as new concepts, such as Wii Fit and the Brain Training series, push the boundaries of what video games can be and the ways in which people can engage with them."

2008 Fallers

Ford: minus 12%

Ford has struggled to convince consumers that it does more than just produce big cars with big engines. It has invested heavily in owning the big-truck space in the past, and despite new products it's taking time to shift its image.

CITI - minus 14%

As mentioned above, it has been hit by the US sub prime crisis. "It has been one of the more high-profile sufferers, being forced to announce eye-watering losses and cut thousands of jobs. New CEO, Vikram Pandit, has taken bold steps to refocus the business on its core areas, which has resulted in the closure of many unprofitable branches and the sell-off of some global operations," says Interbrand.

Morgan Stanley: minus 16%

Morgan Stanley has been involved in a class-action suit with shareholders outraged by its delay in disclosing the level of its exposure to mortgage-backed securities in the US. .

GAP: minus 20%

As a middle of the road fashion retailer, Gap's worldwide sales are in decline as budget-conscious consumers trade down or are lured away by more appealing competitors. In addition, its brand reputation has suffered through child labour issues in India.

Merrill Lynch: minus 21%

Among the worst hit by the credit crisis. Although it is a brand which has traditionally thrived on a reputation for not being a risk taker, has seen its involvement in packaging sub-prime US home-owner securities spectacularly backfire, says Interbrand.

Where does SA fit in?

No South African brand makes the top 100 of the Best Global Brands.

To get on to the list, a brand needs to operate across at least three continents, explains Jeremy Sampson, executive chairman of Interbrand Sampson Group, the African arm of Interbrand.

"Probably the most valuable brand in Africa is MTN, but it doesn't have the geographical spread," he says. MTN has presence across Africa and in the Middle East.

"If MTN had an office in South America, it would be on the list."

Douglass de Villiers, chief executive of Interbrand Sampson Group, adds: "We really need to build great South African brands, but we haven't cracked it yet.... To become a really decent global brand needs to be plotted and planned."

Those that have the potential to become great global brands include SABMiller, Standard Bank, KWV and Amarula, he says.

South Africa, however, is still trapped into the "mentality of commodities" not brands, Sampson maintains.

*You can download a list of the top 100 Best Global Brands 2008 on the right-hand side of the page.