Brand awareness has pros and cons

PTT still works on building its brand awareness, as the group is expanding its business overseas. In the process, Thailand will benefit from that, given that few Thai brands are recognised globally. Thais have long been familiar with foreign brands like Toyota, Honda, Mitsubishi, Hitachi, Sharp, GE, IBM, Hyundai, Sony, Ericsson, Nokia, Blackberry, Samsung and, most recently, Apple. To the dismay of some, the outlook is gloomy for Thai brand recognition overseas.

In the 14th annual ranking by Interbrand – the world’s leading brand consultancy – no Thai brand made it into the top 100 global brands. Coca-Cola held the No 1 ranking for 13 years, but in 2013 Apple stole that prize. Coca-Cola’s ranking fell to No 3, with Google in second place. Apple has appeared on Interbrand’s Best Global Brands ranking since 2000, when it ranked No 36 and had a brand value of US$$6.6 billion. Today, Apple’s brand value is $98.3 billion – almost 15 times its value in 2000.

Apple’s meteoric rise in brand value can be attributed to the way it has created a seamless omnichannel experience for customers. By keeping consumers at the centre of everything it does, Apple is able to anticipate what they want next and break new ground in terms of both design and performance. To date, 72 million Macs are in use, on top of record-breaking sales for the iPhone and iPad.

“Few brands have enabled so many people to do so much so easily, which is why Apple has legions of adoring fans, as evidenced by the record-breaking launch of the iPhone 5c/5s. In revolutionising the way we work, play and communicate – and for mastering the ability to surprise and delight – Apple has set a high bar for aesthetics, simplicity and ease of use that all other tech brands are now expected to match, and that Apple itself is expected to continually exceed,” Interbrand said on its website.

Few would deny that. On the day that the iPhone 5s was launched, news agencies monitored queues in front of Apple stores in many countries. It was also said that Samsung was researching why people queued up to buy newly-launched iPhone products.

Prada, the iconic Italian luxury fashion brand (No 72 on the Interbrand list), emerged as Interbrand’s third top riser this year, with a brand value increase of 30 per cent – just behind top-rising technology brands Facebook and Google. Prada’s increase in brand value reflects the organisation’s ability to strike a harmonious (and profitable) balance between honouring its Italian heritage and producing innovative and cutting-edge designs. By effectively intertwining its digital and physical touchpoints and with the Prada Foundation’s support of the art world, Prada has been able to engage with its customers in more meaningful ways – and expand its global footprint in the process. According to Interbrand, the brand value is based on the financial performance of the branded products or service, the role the brand plays in influencing consumer choice, and the strength the brand has to command a premium price or secure earnings for the company

Well, iPhone leads in these three areas. Its products influence consumers worldwide and command a premium price. With similar functions, an iPhone 5 (32GB) sells at Bt26,000 in Thailand while a Windows Phone costs about half that. 

It reminds me of what Professor Dominique Turpin of the IMD said in 2011. Being innovative, investing money and regularly introducing new products are the three principles of success in turning a local brand into a global one. Apple was praised for regularly launching new products. 

Challenges lie ahead for Samsung (No 8), which has surpassed Apple in smartphone sales, and appears to be leading the tech sector in terms of connectivity and home automation. Samsung, which had one of the strongest increases in absolute brand value this year, continually anticipates what consumers will desire next. Despite the strong performance of many brands in this sector, a number of tech and consumer electronic brands did not rise, or even earn a position on this year’s ranking.

Being top of the table might not be PTTEP’s dream right now. But it will be interesting to see if any Thai brand is among the top 100 even a decade from now.