- Banks in the region lead the ranking, driven by Brazilian brands
- Brazilians Renner and Natura, and the Mexican Don Julio, are the three strongest brands in Latin America.
British consultancy firm Brand Finance, specialized in brand valuation, released this Wednesday its Brand Finance Latin America 100 2020 ranking, featuring the 100 most valuable brands in the region.
Analyzing more than 5,000 brands from different industries, Brand Finance disclosed Mexico as the leading country in this edition, filling 37 positions and representing 42% of the total value of the list. Brazilian brands are close behind, with 33 brands – or 38% of the total list value. Corona, the most valuable brand in the region, tops the ranking with a brand value of $ 8 billion.
According to the analysis carried out by the consulting firm in 2020, the combined value of the 100 most valuable brands in the region exceeds $ 143 billion.
“In our regional ranking for the year, Brazil and Mexico are equally distributed in the number of brands that they place in the top 10,” says Laurence Newell, director of Brand Finance for Mexico and Latin America. “From the perspective of countries, of the 100 most valuable, 37 are Mexican and 33 Brazilian. There are also 12 from Chile, 8 from Colombia, and 5 from Argentina, among others.”
Financial services in the spotlight
When looking by sector, banking and financial services lead the ranking. Accounting for 25% of the total brand value, 18 banking companies appear in the list, valued at a sum of $36 billion. Brazil’s biggest private lender Itaú, Bradesco, and the state-owned bank Caixa grab the top positions in the ranking, as Brazil leads the segment with five brands in the top 100.
From Colombia, Brand Finance highlighted Bancolombia, Banco de Bogotá, and Davivienda. In Chile, Banco de Chile, BCI (Banco de Crédito e Inversiones), and Banco del Estado de Chile ranked among the 100, while Argentina placed Banco Galicia and Banco Macro in the list. In Peru, BCP (Banco de Crédito del Perú) was the country’s representative in the sector.
Whether due to the increase in digital account openings linked to emergency funds of the Covid-19 pandemic or to higher penetration of electronic payments as social isolation measures were adopted throughout the year; financial and banking services have been a strong agenda during 2020 in Latin America. According to the study, most of these financial brands are seeing an upward trend in their brand value this year.
Renner, Natura, and MercadoLibre are among the 10 strongest brands
Aside from measuring overall brand equity, Brand Finance’s ranking also listed the Latin American companies that best perform when it comes to brand strength, based on factors such as marketing investment, customer perceptions, staff satisfaction, and corporate reputation.
According to the consultancy firm, the Brazilian fashion retailer Renner, which achieved the post of the strongest brand in the region, was the only brand in the region to reach the highest rate (AAA+) regarding brand strength. Renner scored particularly high in areas such as recommendation and social responsibility.
“In our analysis, brand strength is a key driver of brand value. Only a handful of brands around the world and in all industries achieve this prestigious rating of AAA +, which is assigned only to those who exceed 89.5 in BSI [Brand Strength Index],” Brand Finance CEO David Haigh added.
As the Top 10 Strongest Brands in Latin America, in addition to Renner, Brand Finance disclosed Don Julio, Natura, Gol Airlines, Brahma, Televisa, Aguila, MercadoLibre, Del Valle, and Liverpool, respectively.