We live in a society that is constantly changing. Everything evolves and, with it, the world of retail. A study conducted by Brand Finance states that the value of 7 Spanish brands has increased by 0.8%reaching position as 7 of the 500 most valuable companies in the international ranking. Santander, Zara, The English Court, BBVA, Movistar, Mercadona Y Repsoltogether add up to a value of 52,600 million euros, 4% more than in 2021. 2020 wreaked havoc in all sectors due to the health crisis caused by Covid-19. However, this is a clear example of that everything can be better.
Notably Manzana still leading the rankingwith a value of 306,186 million euros, obtaining 36.6% more than the results obtained in the past 2021.
“Spain increases investment in intangibles, which represent 38% of the declared business, 5% higher than in 2020 (33% in 2020), although as we know it is much higher and has become clear with the pandemic”, declares Teresa de Lemus, managing director of Brand Finance Spain in the report.
Spain, thirteenth country that contributes the most value in the international ranking
Compared to other countries, this one has lower inflation. Although, it does not control the price of energy. It is a country that stands out for having more mortgages than rents, which helps keep inflation. According to the report, Spain is in the thirteenth position of countries that contribute the most value. The ranking is dominated by the United States, with an increase in value of 49%, and China, with 19%.
The 7 most valuable and recognized Spanish brands worldwide belong to different sectors: distribution (Mercadona and El Corte Inglés), textiles (Zara), telecommunications (Movistar), oil and gas (Repsol) and banking (Santander and BBVA).
Santander Bank
It has been present in the ranking since 2012 and it was not until last year when managed to increase its brand value by 9.5%. This growth has been caused by a rapid improvement in the economy, after having experienced a tough 2020. This recovery of the banks has led Banco Santander to climb a step and stand at 126.
Zara
It ranks below Banco Santander, occupying the second place among the most valuable brands in the world. Last year it had losses of 14.9%, while this year it has only managed to increase its value by 0.1%. These losses caused the company to drop 11 places in the ranking, from 140 to 151. The drop in the actual revenue scores and the expected margin are reasons for this decrease.
As a result of the Covid – 19, Inditex announced that it had increased its income until 2021 thanks to the rapid incorporation into the digital world, such as creating online stores and focusing on electronic commerce.
The English Court
El Corte Inglés (+16.5%) together with Mercadona (+31.7%) and Repsol (+24.1%) are three of the Spanish brands that have increased their brand value the most. This large increase, like Zara, has been caused thanks to the investment in e-commercewhich have boosted the brand’s online sales.
BBVA
BBVA has benefited from its merger with Banco Sabadell. However, not everything was going to be rosy, and the fact is that the sale of the US business to PNC has caused the decrease in revenue forecast and brand value (-9.9%).
The company is having a gradual evolution both in Spain and in other corners of the world. That is why it has dropped 75 positions in the ranking, going from 251 to 326.
Movistar
Something similar has happened to Movistar as to BBVA. The decline in revenue has caused a negative impact on the brand. In the ranking, the company represents one of the biggest falls with respect to the others, exactly 17.7%. As stated in the Brand Finance report, “The pandemic negatively affected revenues, but the sector is expected to return to growth in 2022.”
Mercadona
The company has registered a 31.7% increase due to higher revenues and brand strength. The digital strategy and the sustainable model have contributed to this.
Repsol
Reposition yourself in the position 368 of the ranking. Forecasts are much higher than the previous year. This has been caused by high oil prices and improving incomes.
Therefore, by way of conclusion, it can be seen that the entry into the digital world and electronic commerce has caused, to a large extent, an increase in the value of Spanish brands. Although it does not happen equally in all companies. All of them hope to continue along the same lines, growing, and moving up in the ranking.
