Black Friday
In-store purchasing remains notably more popular than online shopping, but with virtual card usage on the rise.
BRAND VALUE
SA's digital-first brands dominate Valuable Brands list
By our News Team | 2021
Banking giant FNB is South Africa’s most valuable brand for second successive year, according to Kantar BrandZ.
First National Bank (FNB) retains top position with brand value of US$2.7bn
Takealot enters the ranking at No.23 with a brand value of US$446m
Against a backdrop of global and local crises, South African brands have proven remarkably resilient in 2021 and are well on the road to recovery, reflected in the cumulative value of the 2021 Kantar BrandZ Most Valuable South African Brands ranking, which this year stands at US$28.8bn.
According to Kantar, it highlights the power of brand resilience in the face of macroeconomic turbulence and pandemic effects and we are starting to see a reversing of the long-term trend of steep erosion of brand value in South Africa.
FNB is SA’s most valuable brand for the second year running with a brand value of US$2.7bn. Vodacom moved up the ranking to No.2 with a brand value of US$2.57bn, while Castle beer held steady at No.3 with a brand value of US$2.52bn.
Emerging ecommerce giant Takealot is this year’s only new entrant at No.23 with a brand value of US$446m.
The rapid adoption of ecommerce during the pandemic saw brands accelerate towards digitisation. Responding quickly and decisively to the pandemic, the fastest rising brand was health and insurance giant Discovery at No.7, with a brand value of US$1.38bn. This is a 26.6% increase in brand value.
Key trends
Trends and highlights in this year’s Kantar BrandZ Most Valuable South African Brands study include:
- FNB’s performance as top brand is based on a strong focus on digital innovation pre-pandemic and strong consumer understanding.
- The ranking of this year’s only new entrant, Takealot, was due to its accelerated digitisation and rapid advance of ecommerce during the pandemic.
- Discovery was this year’s biggest improver, with a 26.6% increase in brand value.
- Discovery, Capitec Bank and Absa bank bucked a declining trend in financial services with a 26.6%, 10.4% and 3.2% growth in brand value respectively.
The Internet
Online users in almost every country surveyed want better control over how their personal data is collected, used and sold.
Advertising Spending
But the silver lining is that October outperformed all other months so far in 2022. Digital, OOH and newspapers are among categories that grew.
Consumer Research
We’re so worried that the people we’re buying gifts for will be offended by our present, that we overspend or get them what they don’t want.
Brand Acquisitions
Study finds brand acquisitions may not work out as planned, as consumer perceptions of the brand become tainted. But this can be mitigated.
Supply Chain
Consumer-packaged goods industry in Africa is being ‘systematically transformed’ by Ramani’s ‘huge ambition’, investor says.
Executive Appointments
Zayd Abrahams joins from banking group FNB, where he currently leads marketing for the Personal Banking and Private Banking segments.
Marketing ROI
Despite evidence that shows it’s a bad idea, marketing budgets are often the first to be scrutinised and tightened in times of uncertainty.
Consumer Engagement
Strategies needed to optimise digital commitment from consumers have shifted as the global business and geopolitical landscape changes.
Traditional Media
Traditional media remains stronger on the continent than in developed markets, with relatively high cost of digital access being a factor.
Online Shopping
As retailers struggle, they may need to rein in their returns procedures, particularly for ‘serial returners’ and ‘retail borrowers’.