The COVID-19 pandemic left an economic impact on the value of Latin American brands. London-based consultancy Brand Finance reported that the 100 more important brands in the region together lost 24,704 million dollars in value over the past year.
This ranking of Latin American brands is led by the Mexican beer Corona, whose brand value reaches 5,822 million dollars. Then, it is followed by the Mexican oil company Pemex (5,549 million dollars) and the Brazilian bank Itaú (5,065 million dollars).
In the fourth position was the Mexican telephone company Claro, which also has a strong presence in Peru (4,657 million dollars), while the fifth place was occupied by Banco do Brasil (4,040 million dollars).
Banco del Crédito del Perú (BCP), in position 47 on the list, was the only Peruvian representation, although other brands with a broad presence in the country did manage to enter such as Mercado Libre, Natura, Bimbo, OXXO, Latam Airlines and the Azteca Bank.
The general retrogression of these 100 Latin American brands meant a joint loss of 17% of their value, among the health emergency.
Now when companies have to prepare their plans for 2022, at Unión Andina we wanted to insist on what are the key elements for brands to increase their value and, especially, to take advantage of their registration and the intellectual property they have associated with.
What elements are key in the value of a brand?
The methodology used by Brand Finance to prepare this annual ranking with the 100 Latin American brands with the highest value follows two international standards: ISO 10668, referring to the international standard on the financial valuation of brands, and ISO 20671 on the evaluation of brands.
Both standards not only consider brands as key intangible assets for companies, but also offer guidelines for economic valuation. There, the value of the company, the value chain associated with the brand and the economic contribution of the brand to the value of the business are analyzed.
To complete the assessment, the investment made in marketing, the perception that key actors in society have about the brand and the impact on the financial performance of the company are also examined.
The result is a list that can be very useful in the world of intellectual property because it serves as a reminder that all those names, terms, signs, symbols, logos and designs, intended to identify goods, services or entities have a capable value translate into millions of dollars.
The challenge of Peruvian brands
The Brand Finance Latam 2021 index showed a key trend in the sectors that gained the most value in the most recent years. For example, brands related to oil and gas companies are in decline, while brands driven by data and technology are experiencing their boom.
Another key trend is that the value of brands is now served equally by the legal, marketing and finance teams of companies in Latin America.
“There has never been a greater recognition of brands as assets and the need to manage them for their value,” said David Haigh, Executive Director of Brand Finance. This thanks to globalization and the power of digital markets.
Unfortunately, among these 100 highest-value brands, only one Peruvian appears: Banco de Crédito del Perú (BCP). This bank is not only the largest and the leading provider of integrated financial services in Peru, but it also climbed 8 places in its brand valuation to go from position 55 to 47 in the Brand Finance Latam 2021.
“There has never been a greater recognition of brands as assets and the need to manage them for their value,” said David Haigh, Executive Director of Brand Finance. This thanks to globalization and the power of digital markets.
Unfortunately, among these 100 highest-value brands, only one Peruvian appears: Banco de Crédito del Perú (BCP). This bank is not only the largest and the leading provider of integrated financial services in Peru, but it also climbed 8 places in its brand valuation to go from position 55 to 47 in the Brand Finance Latam 2021.
Most of the brands in this top 100 belong to Mexico and Brazil. To the point that 40 brands on the list belong to Mexican companies, while another 34 are from Brazilian companies. The 6 Argentine brands managed to add 24% more to their economic value, while the 9 Chilean brands had a retrogression to lose 34% of their value. The 6 Colombian brands on the list also lost 19% of their value during the past year.
The challenge for Peruvian companies is to strengthen their perception among consumers and key actors, work to expand their financial results and focus their marketing plans for next year with the goal of gaining greater market share and achieving greater customer loyalty. Perhaps this way, many more Peruvian brands can be seen in the top 100 of the most valuable brands in Latin America by 2022.
If you want to help protect the brands of your clients or companies in Latin America, you can contact us and receive a free first approach with our specialists in Intellectual Property.
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Brand Finance (2021) América Latina 100 Informe anual sobre las marcas más valiosas de América Latina en 2021. (Brand Finance (2021) Latin America 100 Annual report on the most valuable brands in Latin America in 2021) Recovered from: https://brandirectory.com/rankings/latin-america/
Photo: Gestión