Japan secures 4th spot in the Global Soft Power Index, maintaining its position from 2024
TOKYO, 25 February 2025 – Japan has surpassed the US, Germany and its closest Asian rival, China, to secure the top position in Business & Trade, with a score of 71.5 out of 100 in the Brand Finance Global Soft Power Index 2025, according to a new report from Brand Finance, the world's leading brand valuation consultancy.
Japan scored an impressive 9.2 points in the Business & Trade pillar, securing top positions in several key categories. The nation ranked 3rd for having ‘a strong and stable economy’, 2nd for ‘products and brands the world loves,’ and 6th for fostering a business-friendly environment. Japan’s ability to drive economic growth while maintaining stability continues to solidify its position as one of the world’s most attractive and influential markets in global commerce.
Reflecting its growing influence, the country’s Reputation has climbed to 2nd, up one spot from 2024. Japan is widely admired for its political stability, ethical governance, and internationally respected leadership. With ‘high ethical standards and low corruption’ (ranked 1st) and a strong adherence to law and human rights, Japan sets a global benchmark for governance excellence.
Alex Haigh, Managing Director Asia Pacific, Brand Finance, commented:
"Japan’s rise to #1 in Business & Trade, surpassing the US, Germany and China, marks a significant shift in global perception. This achievement underscores the country’s strength as a stable, innovative, and highly trusted economic force. Beyond commerce, Japan’s leadership in governance, sustainability, and technology further cements its role as a model for progress and resilience on the world stage. As global challenges evolve, Japan’s ability to maintain stability while driving innovation will be key in shaping the future of international trade and diplomacy”
With a bold vision for a greener future, Japan leads in Sustainability, ranking 1st globally with a remarkable 7.2 points in sustainable cities, transport, and green energy investment. Its environmental protection efforts have propelled it from 8th position to 4th globally, reinforcing its role as a pioneer in clean technology and climate action.
Japan’s position as a global leader in Education & Science reflects its enduring dedication to innovation and knowledge. Ranked 2nd overall with an exceptional 8.7 points, the nation continues to set the bar in technology and science, consistently advancing in key areas like strong education system, research, and space exploration. Japan’s commitment to pioneering new frontiers in both scientific discovery and technological development underscores its role as a hub for progress and future-oriented growth, deeply influencing global industries and research initiatives.
Brand Finance publishes the Global Soft Power Index based on responses from over 170,000 global participants across more than 100 countries. This comprehensive research assesses perceptions of all 193 United Nations member states across 55 metrics, delivering a detailed view of how nations influence preferences and behaviours on the global stage through attraction and persuasion rather than coercion.
The Global Soft Power Index offers invaluable insights into the evolving dynamics of soft power as nations navigate complex global challenges, providing a comprehensive benchmark for assessing a nation’s influence and appeal on the world stage.
Global Insights: U.S. Leads Global Soft Power, China Rises to Second Spot
The United States maintains its position at the top of the ranking with an all-time highest Global Soft Power Index score of 79.5 out of 100. Once again, it leads in the Familiarity and Influence Key Performance Indicators (KPIs), three out of eight Soft Power pillars, and ranks highest in 12 out of the 35 nation brand attributes.
For the first time, China has surpassed the UK to rank 2nd with a score of 72.8 out of 100 - its highest ever position. Since 2024, China has recorded statistically significant growth across six of the eight Soft Power pillars, and in two-thirds of measured attributes, stemming from strategic efforts including Belt and Road projects, an increased focus on sustainability, stronger domestic brands, and post-pandemic reopening to visitors.
At the same time, the United Kingdom’s drop to third place behind China reflects a period of stagnation in its nation brand perceptions. While scores remain relatively stable, a lack of progress across key pillars – especially Business & Trade, down to 6th, and Governance, down to 3rd, are an argument that the UK should bolster its Soft Power strategy.
El Salvador is 2025’s fastest-rising nation, climbing 35 spots to 82nd with a +3.2-point increase in its Soft Power score. El Salvador has significantly reduced gang violence and homicides, with improving views of El Salvador as ‘safe and secure’ and ‘politically stable and well governed’. El Salvador has also advanced in Business & Trade - its 2021 decision to accept Bitcoin as legal tender, though controversial, has attracted significant attention.
Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance, Brand Finance evaluates the strength of brands and quantifies their financial value to help organisations make strategic decisions.
Headquartered in London, Brand Finance operates in over 25 countries. Every year, Brand Finance conducts more than 6,000 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 6,000 brands, surveying more than 175,000 respondents across 41 countries and 31 industry sectors. By combining perceptual data from the Global Brand Equity Monitor with data from its valuation database — the largest brand value database in the world — Brand Finance equips ambitious brand leaders with the data, analytics, and the strategic guidance they need to enhance brand and business value.
In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance, compliant with ISO 20671.
Brand Finance is a regulated accountancy firm and a committed leader in the standardisation 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.
