TOP 10 World's Most Valuable Brands in 2018

TOP 10 World's Most Valuable Brands in 2018

According to Wikipedia, the brand is a manufacturer's mark and a trademark having a high reputation among consumers.

We should note that a concept of the brand is much narrower than that of a company, so a company may possess several brands: for example, Google is a brand, and Alphabet is a company.

In this article, we collected the actual information on the most valuable global brands as of 17 Jan 2018.

We suggest you have look at it and compare it with the list of the largest companies by market capitalization.

So, let’s get started.

10 Most Valuable Brands In The World

Apple inc.
$170 bln.

Industry: electronics, information technology.

Products: Personal computers and tablets, mobile phones, audio players…

Apple is the most valuable brand in the world. Today the company logo is probably recognized by many people because Apple became truly the most successful and powerful brand which value is estimated at $170 billion by experts from rating agencies.

The company was established on 1 April 1976 by Steve Wozniak, Ronald Wayne, and Steve Jobs. The trio initially engaged in the assembly of home computers and producing proprietary models of PC, but their greatest success came just in recent years of the company when Apple introduced the line of its own mobile products to the world — the iPhone smartphones and the iPad tablets.

Nowadays the range of its products is wide and includes smartwatches, computers and laptops, tablets and smartphones, and more. However, the hallmark of «apple» gadgets' popularity is a high quality, a stylish design and a brilliant marketing program by Steve Jobs.

Today the company has thousands of offices, brand stores, and service centers worldwide with a staff of nearly 116,000 employees.

The headquarters is located in the town of Cupertino, California, USA.

$101,8 bln.

Industry: Internet.

Google, the largest search network on the Internet, is probably known to all the users of the global network. Due to this, the brand «Google» is one of the most expensive in the global ranking. Experts estimated its value at $101,8 billion, which made it the second most valuable brand in the world.

The company established in 1993 by Sergey Brin and Larry Page is focused on a search service that processes billions of queries per day. Thanks to its advanced search engine, creators of the service managed to implement one of the most powerful advertising aggregators on the Internet that generates the largest share of revenue for the company.

However, it is not the only product of the company – a plenty of new projects are developed with time. Google currently releases mobile gadgets of their own making, software (e.g. Android OS) intended to work with it and owns a number of popular Internet services such as YouTube, Gmail, Google Maps, Google AdWords and so on.

Headquarters: Mountain View, California, USA.

$87 bln.

Industry: software development.

Products: Microsoft Office, Microsoft Windows, Xbox.

The internationally famous Microsoft Corporation was founded in 1975 by Bill Gates, who is the richest man in the world by now. At that time Microsoft was the first software developer which suggested using packaged software for home computers that would thereby make PC experience user-friendly and intuitive. This software – Windows operating system – was a real breakthrough since it allowed ordinary users to master PC computer skills easily. The system brought the company an incredible success and huge profits.

Today Microsoft is one of the leading companies in the PC software market as well: it releases new-generation Windows operating systems, set of applications to work with documents called Microsoft Office, and a number of other software programs. Besides, Microsoft produces own mobile devices and accessories, video, audio, and office equipment.

The headquarters is located in Redmond, Washington, USA.

$73,5 bln.

Industry: Internet.

Products: social network.

Facebook was developed by Mark Zuckerberg in February 2004. The Facebook social network is currently visited by more than 1.86 billion people every day. The value of $73,5 billion is simply an astronomical indicator of popularity and demand for an Internet project.

Today Facebook yields more than $8 billion net yearly profit thanks to online advertising. Moreover, the company is the leader of this TOP 10 list in terms of profitability, since its net profit increased by 54% within the past year alone.

The headquarters is located in Menlo Park, California, USA.

$56,4 bln.

Industry: food industry.

Products: non-alcoholic drinks.

Coca-Cola, the most famous worldwide carbonated soft drink, brings more than $8.5 billion in net profit for its company per year.

The famous beverage brand was established in 1882. Today the company’s product suite also includes such beverages like Fanta, Sprite, Diet Coke, and Schweppes. Nowadays, due to a large number of its own assets, high profitability, a huge staff, and yield, the value of the brand «Coca-Cola» is estimated at $56.4 billion.

The headquarters is located in Atlanta, Georgia, USA.

$54,1 bln.

Industry: retail business.

Amazon is an American retail company selling and delivering various goods over the Internet.

Internet users, suppliers, and producers can sell any goods on their own by using Amazon’s website as an online venue. The company’s major business line is selling of various goods alone. The popularity of service soared thanks to high-quality goods, low prices, a prompt delivery and a wide assortment of various goods.

The company was established in 1994 by Jeff Bezos. Amazon is headquartered in Seattle, Washington.
According to the overall estimations, the company employs about 230,000 employees, has more than $55 billion in assets at the given moment. Its annual turnover amounts to approximately $75 billion.

$43,9 bln.

Industry: broadcasting, animation, movie making, and theme parks.

Products: feature-length animated cartoons.

The brand was created back in 1923 by Walt Disney and his brother Roy Disney. The brand started out as a small animation studio, which is now one of the largest studios in Hollywood.

The company also has 11 entertainment parks, 2 water parks and ABC, a major television and radio broadcasting network.

The headquarters and primary production facilities are located in Burbank, California, USA.

$41,1 bln.

Industry: automobile manufacturing.

Products: automobiles.

Toyota, a Japanese company, started its operation in 1924 and was founded by Sakichi Toyoda. It is interesting that he didn’t even engage in manufacturing automobiles, but producing weaving looms. His son, Kiichiro Toyoda, took an interest in automobile manufacturing and established a division for producing automobiles with the funds received from selling a patent on an intelligent production machine.

Annual sales of automobiles almost reached 249,9 bln. $ in 2017. At that, the car sales in Japan itself declines significantly, which is a testimony to the company’s activity in the global market.

The headquarters is located in Toyota, Aichi, Japan.

$40,3 bln.

Industry: food.

Products: fast food.

McDonald's, a worldwide chain of fast-food restaurants, now holds 9th place in the ranking of the most valuable brands. The company’s current estimated value amounts to $40,3 billion despite the fact that McDonald’s capitalization decreased by 11% as a result of a series of incidents happened in 2015.

The company was founded in 1940 by two brothers, Mac and Dick McDonalds, who opened their first restaurant in San Bernardino, California.

Today it employs over 1,800,000 people.

$38,2 bln.

Industry: Electronics.

Products: Electronics, household appliances, shipbuilding, aircraft engineering, finances, chemicals, and entertainment.

Samsung was established in South Korea in 1938. The company is globally known as a consumer electronics producer.

A little later, Sanyo merged with Samsung that gave birth to Samsung Group. As a result, marketing approaches and mission of the company underwent changes. In 1980, the first models of Samsung air conditioners appeared in the market that marked the beginning of successful development of Samsung company in the European and Asian markets in the domain of climatic equipment manufacturing.

In 1983, Samsung company started production of personal computers. During the years of 1991-1992, development of the first product line of mobile phones was completed. In 1999, Samsung Electronics won Forbes Global magazine’s award in the category of consumer electronics manufacturing.
Nowadays, the Samsung Group has plenty of production lines related to various kinds of products.

The company is headquartered in Suwon, the provincial capital of Gyeonggi-do, the Republic of South Korea.

#11 – #30 costliest brands list

# Brand Value Industry
11 General Electric $37.9 bln. Conglomerate
12 AT&T $36.7 bln. Telecommunications
13 IBM $33.3 bln. Technology
14 Intel $31.4 bln. Technology
15 Cisco $30.7 bln. Technology
16 NIKE $29.6 bln. Apparel
17 Mercedes-Benz $29.2 bln. Automobile industry
18 Oracle $29.1 bln. Technology
19 Verizon $28.9 bln. Telecommunications
20 Louis Vuitton $28.8 bln. Luxury
21 BMW $28.7 bln. Automobile industry
22 Budweiser $24.6 bln. Alcohol industry
23 American Express $24.5 bln. Financial services
24 Walmart $24.1 bln. Retail
25 Marlboro $24,05 bln. Tobacco industry
26 Honda $24 bln. Automobile industry
27 SAP $23.8 bln. Technology
28 Visa $21.4 bln. Financial services
29 Gillette $19.2 bln. Consumer goods
30 Pepsi $18.2 bln. Beverage industry

*Some data may not be accurate for the lack of access or limited access to the published reports in recent periods.

How is a brand value estimated?

There are different ways to estimate the brand value, but many of them are controversial. Everyone understands the concept of value in his/her own manner, so estimation is generally subjective.

Popular methods and approaches to estimation of the brand value are as follows:

Total Costs. The brand is estimated based on the sum of all costs incurred to build the brand since its creation. They may include advertising costs, costs for assets purchase, employee salaries, etc. After indexing the obtained sum we shall get the real value of the brand.

Note that the resulting value will reflect only the cost of branding, and it’s not the fact that owners of the brand will agree to sell it at the given cost.

Market Value. This is the easiest method of estimation. We simply multiply the number of issued shares by their current market value. By the way, we have a list of the most expensive shares in the world.

The drawbacks of this method are as follows: market price is changing rather fast, the brand value drops significantly during a crisis and, on the contrary, an asset might be overvalued by investors.

Income. The essence of the method is that future net income, which is directly related to the brand, is calculated to estimate the value of the brand at the moment.

The methods described above generate raw data, so in this article, we have used data on the value of the brands according to the online edition of Forbes.