Deutsche Telekom (brand value up 13% to EUR68.4 billion) has claimed the title of the world's most valuable European brand. In addition to being the most valuable European brand, it is the ninth most valuable brand globally and is the world’s most valuable telecoms brand.
Deutsche Telekom's customer momentum, driven by network strength, has boosted group service revenues, while successful fibre deployment in Europe, alongside 5G leadership in the US, has enhanced connectivity perceptions. Brand Finance research highlights Deutsche Telekom's leadership in customer satisfaction metrics, driving a Brand Strength Index (BSI) score increase to 83.0 out of 100 and a corresponding AAA- rating. This consistent global brand delivery is reinforced by introducing Deutsche Telekom’s unified global claim, "connecting your world," completing its Global Brand Strategy with a heightened international focus and customer perspective.
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)
Mercedes-Benz is the second most valuable European brand, with a 2% decrease in brand value in 2024 to EUR55.5 billion. Brand Finance’s research found that Mercedes-Benz has substantially enhanced its brand strength, with research identifying a notable rise in customer service scores and an overall BSI score of 85.2 out of 100. There have been significant uplifts across nearly all brand investment pillars, which will be essential to defend the brand’s leading position from competition in electric vehicles.
Shell's brand value has demonstrated resilience and growth amidst a challenging economic landscape seen by the oil and gas sector. It recorded a 1% increase to EUR47.0 billion, reinforcing its status as the most valuable oil and gas brand globally and the third most valuable European brand. This increase in brand value is particularly notable given the backdrop of falling revenues, a decline in enterprise value, and a drop in its BSI score from 77.2 to 74.2 out of 100.
According to their Q2 2023 earnings report, Shell's financial performance faced significant pressures in 2023, with a 56% tumble in profits to USD5.0 billion (approximately EUR4.5 billion), attributed to lower oil and gas prices, diminished liquefied natural gas (LNG) trading results, reduced refining margins, and decreased sales volumes. These factors contributed to a 1.7% decline in the value of Shell shares, slightly underperforming against the broader European energy index. However, the chemicals segment has seen significant earnings growth, benefiting from higher product margins and lower impairment charges, indicating a successful pivot towards more sustainable and diversified energy solutions.
In 2024, Rolex knocked Ferrari off the top to become the world’s strongest European brand. It has a BSI score of 90.2 out of 100 and an equivalent rating of AAA+, the highest accolade for brand strength awarded by Brand Finance. The brand’s stellar brand strength score is underpinned by its strong performance for familiarity, for which it achieves a perfect score of 10.
While luxury and premium sector brands’ exceptionally high familiarity scores are rooted in their iconic legacies and unique heritages, they have also leveraged initiatives such as celebrity endorsement, sponsorship, and social media campaigns to enhance their brand strength. For example, Rolex's association with prestigious sports stars and events, such as its endorsement of Roger Federer and sponsorship of the Formula 1 tournament since 2013, has significantly elevated its brand strength.
With a BSI score of 89.3 out of 100 and an AAA rating, Swisscom stands as the strongest telecom brand in Europe and third strongest overall among European brands, showcasing its brand resilience. Swisscom's robust reputation bolsters its brand strength, which is evident in its exceptional reputation score. Swisscom continues investing in its strong reputation and innovation within the sector. This includes investments exceeding CHF100 million (approximately EUR105 million) in the development of AI solutions, as per an official release by the brand in January 2024.
Furthermore, the company prioritises network expansion, with substantial investments in optical fibre technology, eventually replacing copper infrastructure long-term. Swisscom has also demonstrated solid brand value growth, securing the 86th position among the top 500 most valuable European brands, with a brand value of EUR6.2 billion.
Arm’s brand value has surged 393% to EUR1.1 billion, making it the world’s fastest-growing European brand. The semiconductor and AI boom and Arm’s unique IP licensing model have fuelled this brand value growth. Rather than directly producing physical chips, Arm designs, and licenses chip architecture to other companies, allowing the brand to focus on development while enabling others to integrate Arm’s chips into their products.
Since rejoining the public market via an Initial Public Offering (IPO) in 2023, Arm has performed in line with the trend of AI and semiconductor brands outperforming analyst expectations, further propelling its brand value.
Edison has the second largest brand value growth this year, with its brand value doubling to EUR2.2 billion. The Italian utilities brand’s robust growth was thanks to a rise in energy prices. In addition, Edison has contributed heavily to Italy’s energy security, having covered roughly 20% of the country’s gas requirements in 2022 with a supply portfolio that helped to substitute for Russia’s gas imports.
In May this year, the “Waterproof Venice” exhibition was opened at the Arsenale of Venice and will remain open for public consumption until this October. This conceptual display was heavily contributed to by Edison, the brand being a co-founder of the Venice Sustainability Foundation and a leader in Venice’s energy transition. Edison has also supported the decarbonisation, security, and flexibility of the region’s energy system through many other projects, such as its plant in Marghera Levante.
Tryg is Europe’s third fastest-growing brand, with a brand value increase of 61% to EUR1.5 billion. In January 2024, Tryg announced that one of the brand’s 2024 strategic focal points would be to reduce exposure of its corporate business to US liability and property insurance outside the Nordics – to improve profitability while minimising earnings volatility.
This premium increase has helped raise premium growth and forecasts, leading to brand value growth. Tryg also recorded a significant uptick in its brand strength with an 18.2-point rise in its BSI score to 82.3 out of 100 and a 4-rating jump from A+ to AAA, informed by new original research by Brand Finance in the Denmark market. Our study found that Tryg is both well-known and highly reputable in Denmark.
Brand Finance also uses its Global Brand Equity Monitor (GBEM) research to compile its Sustainability Perceptions Index. The study determines the role of sustainability in driving consumer choice, which brands consumers believe to be most committed to sustainability, the proportion of brand value attributable to sustainability perceptions, and the value at risk or to be gained, based on the difference between sustainability perceptions and actual performance. At EUR13.7 billion, Mercedes-Benz has the highest Sustainability Perceptions Value (SPV) of any brand in the ranking, followed by Porsche (SPV EUR9.8 billion) and BMW (SPV9.4 billion). Brand Finance research finds that sustainability is a crucial driver of choice for consumers in the luxury auto and auto sectors, at 23.8% and 11.5%, respectively. Brand Finance’s perceptual research is analysed alongside CSRHub’s ESG performance data to determine a brand’s ‘gap value’.
This is the value at risk, or value to be gained, arising from the difference between sustainability perceptions and actual performance. Chanel has the highest positive gap value among European brands, at EUR696 million. This gap value suggests that Chanel could generate up to EUR696 million in additional value through enhanced communication of its impact and accomplishments in sustainability. Louis Vuitton, with a positive gap of EUR558 million, and Aldi (EUR498 million) are the brands with the second and third highest positive gap values.