Brand Finance Europe 500 2024 ranking reveals the 500 most valuable European brands, with insights on European perceptions of brands’ sustainability
[18 September 2024, London] – European consumers are significantly more discerning about a brand’s commitment to sustainability than consumers in other regions, according to new research from Brand Finance, the world’s leading brand valuation consultancy.
Brand Finance’s latest findings from the Global Brand Equity Monitor, which surveyed over 150,000 respondents across 16 European and 24 non-European markets, reveal that European respondents are 25% less likely to agree that a brand is committed to environmental sustainability, 26% less likely to agree on social sustainability, and 22% less likely to agree on governance compared to non-European respondents. Further analysis shows significant differences within Europe itself. Swiss consumers are the most sceptical, with 23% disagreeing that brands are committed to environmental sustainability, followed by respondents in the Netherlands (21%), Denmark (20%), and Norway (20%).
Rob Haigh, Strategy & Sustainability Director, Brand Finance, commented:
“Brand Finance’s research consistently shows that perceptions of corporate brands vary significantly across regions, with sustainability being a key area where European consumers set a higher standard. Sustainability has been a demand driver in Europe for longer than anywhere else, consumer awareness of a range of sustainability issues is high, and Europe continues to lead in sustainability regulations, particularly with the EU’s Corporate Sustainability Reporting Directive (CSRD). Sustainability claims must always be genuine and supported by real practices, but this is particularly true in Europe, where any real or perceived greenwashing is likely to be more rapidly exposed.”
In the latest Brand Finance Europe 500 ranking, Switzerland’s Rolex is now Europe’s strongest brand with a Brand Strength Index (BSI) score of 90.2 out of 100 and an AAA+ rating. Rolex’s brand strength is underpinned by its strong performance for familiarity and reputation – the brand achieves a perfect score of 10 for both metrics. Like several European luxury brands, Rolex also recorded brand value growth in 2024, up 25% to EUR12.9 billion.
Italy’s Ferrari (brand value up 38% to EUR9.9 billion) is now Europe’s second strongest brand with a BSI of 90.0 out of 100. France’s Chanel has made a significant leap, with its brand value increasing 30% to EUR24.3 billion and its BSI ranking catapulting from 48th to fourth place with an AAA rating. Fellow French brand Dior and Germany’s Porsche have also joined the ranks of Europe’s top ten strongest brands, securing eighth and ninth positions, respectively.
Richard Haigh, Managing Director, Brand Finance, commented:
“Brand Finance data reveals that nearly 80% of European nations featured in the Europe 500 2024 have seen brand value growth, collectively reaching EUR2.2 trillion. Looking forward, against the backdrop of a vibrant summer of sport and culture across the continent, European brands are poised to benefit greatly from heightened global awareness and consumer spending. This optimistic outlook marks a key moment for several sectors, especially luxury and premium, underscored by the rising brand values of icons like Porsche (+14%) and Hermès (+14%), alongside the improved brand strengths of Rolex (AAA+) and Chanel (AAA).”
Deutsche Telekom has retained its title as Europe’s most valuable brand for the second year in a row, with its brand value rising 13% to EUR68.4 billion. Close behind, fellow German brand Mercedes-Benz (brand value EUR55.5 billion) holds the second position. Meanwhile, UK semiconductor brand Arm saw its brand value increase to EUR1.1 billion – nearly five times its 2023 value – making it the fastest-growing European brand, driven by the global AI boom and more recently, generative AI.
Of all European countries featured in this year’s ranking, Germany has the highest aggregate brand value at more than EUR596.1 billion, accounting for almost 27% of the ranking’s total brand value. France, with an aggregate brand value of EUR471.8 billion, is the second major contributor of brand value, followed by the UK at EUR373.1 billion.
Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance for more than 25 years, Brand Finance evaluates the strength of brands and quantifies their financial value to help organizations of all kinds make strategic decisions.
Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.
Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on over 5,000 brands, surveying more than 150,000 respondents across 38 countries and 31 industry sectors. Combining perceptual data from the Global Brand Equity Monitor with data from its valuation database enables Brand Finance to arm brand leaders with the data and analytics they need to enhance brand and business value.
Brand Finance is a regulated accountancy firm, leading the standardization of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671 and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.
Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.
Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.
Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.
Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.
The steps in this process are as follows:
1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.
2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.
3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.
4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.
5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.
6 Apply the royalty rate to the forecast revenues to derive brand revenues.
7 Discount post-tax brand revenues to a net present value which equals the brand value.
Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.
The data presented in this study form part of Brand Finance's proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.
