Top ten retail brands outperform CPG brands
America's top ten retail brands are outperforming the top ten consumer packaged goods (CPG) brands in terms of their brands' overall contribution to the company's total market capitalisation, according to CoreBrand's 'Q3 2006 Directory of Brand Equity'.
The average retail company within the top ten has a brand that contributes 17% to the company's total market capitalisation. However, the average CPG company within the top 10 has a brand that contributes only 13% to the company's total market capitalisation.
On average, the top ten retail companies grew their brand's contribution to total market capitalisation by 0.43% since Q3 2005. But the average top ten CPG brand's contribution to the company's total market capitalisation fell by 0.16% since Q3 2005.
Best performers In particular, Bed Bath & Beyond and Pier 1 Imports have demonstrated the greatest one-year growth within the top ten list of retailers, having grown their brand's contribution to total market capitalisation by 6% and 5% respectively. Over the same time period, Home Depot saw a 1% decline in the brand's contribution to total market capitalisation.
Within the top ten CPG brands, Newell Rubbermaid and Colgate-Palmolive demonstrated the greatest one-year growth, having grown their brand's contribution to total market capitalisation by 5% and 2%, respectively. Over the same time period, Unilever saw a 32% decline in the brand's contribution to the company's total market capitalisation.
For the record, CoreBrand reports that the average brand equity dollar value for the top ten retail brands is US$6.89 billion, and the average brand equity dollar value for the top ten CPG brands is US$5.28 billion.
Size doesn't matter Wal-Mart, the largest retail brand, appears to be falling behind some smaller companies (such as Bed Bath & Beyond, Pier 1 Imports, Loews, Gap, and Target) in terms of the brand's contribution to the company's total market capitalisation.
P&G, the largest CPG brand, also appears to be falling behind smaller companies (such as Newell Rubbermaid, Colgate-Palmolive, Kimberly-Clark, and Estee Lauder) in terms of its brand's contribution to the company's total market capitalisation.
Brand power On average, retailers now have stronger brand power than CPG companies. Over the course of two years (since Q3 2004) the retailers have grown their brand's strength by 5% on average, while CPGs have declined by an average of 1%.
Within the retail companies, Home Depot and Lowe's have shown the greatest decline in 'brand power' since Q3 2004, falling by 2% and 8% respectively. Bed Bath & Beyond and Pier 1 Imports showed the greatest brand power increase since Q3 2004, up 13% and 11% respectively.
Within the CPG companies, Alberto-Culver and Clorox showed the greatest brand power fall since Q3 2004, falling 19% and 14% respectively. But Colgate-Palmolive, Estee Lauder, and Newell Rubbermaid saw the greatest brand power increase (up 8%, 8%, and 9% respectively).
The CoreBrand Corporate Branding Index (CBI) has tracked 1,200 US brands across 47 industries for the past 16 years, and each quarter the company produces a new Directory of Brand Equity, providing a snapshot of the health and vitality of the country's top 500 tracked brands.
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