In a global marketplace, a nation brand is one of the most important assets of any state, encouraging inward investment, adding value to exports and attracting tourists. The results of this year’s Brand Finance Nation Brands report show the advantages that a strong nation brand can confer. They also show some of the pitfalls that can beset nation brands. Governments, trade bodies and businesses must take steps to ensure that their nation brand is strategically appropriate, well-managed and regularly monitored and understand how to respond in a crisis, in order to maximise the benefits and minimise damage. -- David Haigh, CEO Brand Finance
India has
moved up one position to become the world's seventh most valued 'nation brand',
with an increase of 32% in its brand value to $2.1 billion.
The US
remains on the top with a valuation of $19.7 billion, followed by China and
Germany at the second and the third positions, respectively, as per the annual
report on world's most valuable nation brands compiled by Brand Finance.
The UK is
ranked 4th, Japan is at fifth position and France is sixth on the list. While
India and France have moved up one position each since last year, all the
top-five countries have retained their respective places.
However,
the surge of 32% in India's 'nation brand value' is the highest among all the
top-20 countries on the list.
TOP 20 Countries list :
US, China, Germany, UK, Japan
France, India, Canada, Italy, Australia
Brazil, South Korea, Mexico, Switzerland, Netherlands
Spain, Sweden, Russia, Turkey, Poland
China has
retained its second position despite a decline of 1% in its brand value to $6.3
billion.
Brand
Finance said it measures the strength and value of the nation brands of 100
leading countries using a method based on the royalty relief mechanism employed
to value the world's largest companies.
The
nation brand valuation is based on five year forecasts of sales of all brands
in each nation and follows a complex process. The Gross Domestic Product (GDP)
is used as a proxy for total revenues.
The
report also said that India's 'Incredible India' slogan has worked well, while
Germany suffered due to the Volkswagen crisis.
About the
US, the report said it remains a powerful brand with an inviting business
climate.
"However
its value comes in large part from the country's sheer economic scale... The
US' world-leading higher education system and the soft power arising from its
dominance of the music and entertainment industries are significant
contributors too.
"This
soft power will help the US to retain the most valuable nation brand for some
time after China's seemingly imminent rise to become the world's biggest
economy," it added.
The study
further said that China's recent stock market turbulence and slowing growth
will also extend the US' tenure of the top spot.
Among
BRICS nations, India is the only country to have witnessed an increase in its
brand value with all others -- Brazil, Russia, China and South Africa -- seeing
a dip in their respective brand valuations.
India is
the second most valued among these emerging economies after China, followed by
Brazil, Russia and South Africa
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