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Brand Relevance Index™ United States Prophet.Com/Relevantbrands-2018 2018 United Kingdom Germany China prophet.com/relevantbrands-2018 United States prophet.com/relevantbrands-2018 2018 United Kingdom Germany China Brand Relevance Index™ United States prophet.com/relevantbrands-2018 2018 United Kingdom Germany China RELEVANT BRANDS INSPIRE PEOPLE 3 Prophet Brand Relevance Index™ prophet.com/relevantbrands-2018 Contents 4 15 Introduction Top Brands Among Males / Females 5 Defining Relevance 16 Top Brands Among 6 Millennials / Non-Millennials Four Principles of Brand Relevance 17 Key Findings 12 The Top 50 Brands 19 in China Themes 13 25 Principle Leaders Spotlight on The Top 25 Brands of 2018 14 Industry Leaders 49 Methodology 4 Prophet Brand Relevance Index™ prophet.com/relevantbrands-2018 Introduction 2018 At Prophet, we believe that the strongest brands are the ones that are relentlessly relevant and are making a difference in consumers’ lives. We surveyed nearly 13,000 consumers from 47 cities on 249 brands across 33 industries to develop our customer-based brand relevance ranking. 5 Prophet Brand Relevance Index™Index™ prophet.com/relevantbrands-2018 Defining Relevance Relentlessly relevant brands engage, surprise and connect. They delight, What is Brand Relevance? disrupt and deliver. They are restless. They push themselves to earn and re-earn customers’ loyalty — and they define and redefine what’s possible in their categories and in our world. Those companies that have built relentlessly relevant brands generally have... FOUR COMMON PRINCIPLES... 6 Prophet Brand Relevance Index™ prophet.com/relevantbrands-2018 Four Principles of Brand Relevance 1 1 Customer Customer Obsessed Obsessed 2 Ruthlessly Pragmatic Brands we can’t imagine 3 living without Distinctively Inspired Everything these brands invest 4 in, create and bring to market Pervasively is designed to meet important Innovative needs in people’s lives. 7 Prophet Brand Relevance Index™ prophet.com/relevantbrands-2018 Four Principles of Brand Relevance 2 1 Ruthlessly Customer Obsessed Pragmatic 2 Ruthlessly Pragmatic Brands we depend on 3 Distinctively Inspired These brands make sure their 4 products are available where Pervasively and when customers need them, Innovative deliver consistent experiences and simply make life easier for their customers. 8 Prophet Brand Relevance Index™ prophet.com/relevantbrands-2018 Four Principles of Brand Relevance 3 1 Distinctively Customer Obsessed Inspired 2 Ruthlessly Pragmatic Brands that inspire us 3 Distinctively Inspired These brands make emotional 4 connections, earn trust and often Pervasively exist to fulfill a larger purpose. Innovative “Life gets a little bit better when people can make more out of their moments—whether it’s cooking a new recipe, trying a different hairstyle, or redecorating their home. In these moments, people tell us they feel a spark of creativity and more confident. And they like that they can be themselves. We’re humbled that so many people have made Pinterest a part of their lives and made our brand rele- vant. We remain committed to helping them discover what they love and do those things in their real life.” 9 Prophet Brand Relevance Index™ prophet.com/relevantbrands-2018 Four Principles of Brand Relevance 4 1 Pervasively Customer Obsessed Innovative 2 Ruthlessly Pragmatic Brands that consistently 3 innovate Distinctively Inspired These brands don’t rest on their 4 laurels. Even as industry leaders Pervasively they push the status quo, engage Innovative with customers in new and creative ways and find new ways to address unmet needs. 10 Prophet Brand Relevance Index™ prophet.com/relevantbrands-2018 “It’s clear to be successful, brands need more than size and ubiquity. They must create a product that people love enough to integrate into their everyday lives. The brands that inspire this level of loyalty will ultimately grow the fastest because they are relevant in the moments that matter most to consumers.” SCOTT DAVIS CHIEF GROWTH OFFICER Prophet 11 Prophet Brand Relevance Index™ prophet.com/relevantbrands-2018 Computing & Software Social Media & Internet Services Financial Data Services WE SURVEYED COUNTRY Retail China 13,000 CONSUMERS 249 Technology ACROSS BRANDS Endpoints & Software Apparel Beauty Durable Goods Electronics & Gaming Hospitality Information Media Telecommunications Travel & Services Mobility 12 Prophet Brand Relevance Index™ prophet.com/relevantbrands-2018 How it Adds Up 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. The Top 50 Brands in China 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 13 Prophet Brand Relevance Index™ prophet.com/relevantbrands-2018 The Results are in... Customer Ruthlessly Distinctively Pervasively Who is Winning Obsessed Pragmatic Inspired Innovative Across the 4 Principles of Brand Relevance Brands we Brands we Brands that Brands that can’t imagine depend on inspire us consistently living without innovate 14 Prophet Brand Relevance Index™ prophet.com/relevantbrands-2018 Industry Leaders Apparel Beauty Computing & Durable Goods Electronics & Financial Software Gaming Data Services Hospitality Information Media Retail Social Media & Technology Services Internet Services Endpoints & Software Telecommunications Travel & Mobility Over half of all brands in top 50 fall into computing & software, 56% social media & internet services, financial data services and retail. 15 Prophet Brand Relevance Index™ prophet.com/relevantbrands-2018 Top Brands Among Top Brands Among Males Females 1. 1. 2. 2. 3. 3. 4. 4. 5. 5. 16 Prophet Brand Relevance Index™ prophet.com/relevantbrands-2018 Top Brands Among Top Brands Among Millennial Non-Millennial 1. 1. 2. 2. 3. 3. 4. 4. 5. 5. 17 Prophet Brand Relevance Index™ prophet.com/relevantbrands-2018 Key Findings An Evolving Brandscape In several ways, the 2018 Brand Relevance Index is pointing towards a more sophisticated Chinese consumer who has more faith in Chinese brands. 18 Prophet Brand Relevance Index™ prophet.com/relevantbrands-2018 Key Findings Local Brands Rise… …Fueled by Innovation Less Bling, Eternal Pragmatism More Confidence First, local brands now constitute Second, for the first time, innovation Finally, Chinese consumer remain of the majority of the BRI’s Top 50 – not basic price/value reassurance fundamentally practical. Of the four Third, the appeal of in-your-face bling brands. Two years ago, 32 of the – is propelling the momentum BRI principles – pervasive innovation, amongst consumers in first-tier cities Top 50 brands were multinational of local brands. In 2017, when customer obsession, distinctive may be wearing thin. Apple (#11) (MNC) brands. Today, 30 are from the AliPay and WeChat were included inspiration and ruthless pragmatism, and Huawei (#4) flip in ranking mainland. New local brand categories in measurement of “pervasive the last pulls the most weight (7% nation-wide compared to last year run the gamut from consumer innovation,” local brands boasted more than average). This reflects a and Apple ranks higher in third-tier electronics, to retail, digital media a large advantage. But when those basic cultural truth: Chinese want cities than in glittering coastal capitals. and travel & hospitality. two power brands were excluded, brands that will help them advance in On the other hand, aspirational MNC MNCs took the lead. In 2018, that lead life, products that are means to an end. brands from hospitality and auto evaporates. It is important to note, industries rank only in the top 50 in however, the local brands still score third-tier cities. The fact that most lower on “distinctive inspiration,” consumers in these markets are not indicating the lack of long-term brand yet able to afford these brands is likely purpose, the lynchpin of loyalty and indicative of future optimism. price premiums. 19 Prophet Brand Relevance Index™ prophet.com/relevantbrands-2018 Themes When we looked at the highest performers, we observed that they have FIVE WAYS of continually reinventing themselves. The top brands have the commitment to stay ahead of customer needs and market trends—and they have the discipline to execute on the insights they develop. These insights form the foundation for ideas that become game-changing innovations. 20 Prophet Brand Relevance Index™ prophet.com/relevantbrands-2018 Themes 1 1 4 Ignite Foster 2 5 Ignite Liberate Empower 3 Ignite meaningful and Enrich tangible innovations Scale and speed no longer defines success in China, categories - Huawei (#4) and Xiaomi (#15) marked Innovation is something easy to claim yet just difficult innovation does. With Internet bringing booming this exciting shift by outperforming Apple (#11) in to deliver. Successfully cutting through the clutter access to information, Chinese consumers are growing smartphones. Huawei P20 Pro is the first phone in the requires meaningful and tangible innovation that is to be more strategic in their purchase - they value new, world that carries a triple rear camera. Xiaomi’s Mi based on in-depth consumer insights rather than meaningful benefits from a brand beyond its heritage Mix launched back in 2016 showed the world near- innovation for the sake of innovation or marginal equities. Home-grown brands in China used to win on bezelless design long before iPhone X did. These features improvement. The question is, do you know broad penetration and speed to market, but are now brands keep inspiring the consumers by introducing what is meaningful and tangible to consumers? realizing innovation will fuel the next round of growth.
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