IKEA (brand value down 2% to €15.0 billion) has achieved a decade-long reign as the most valuable brand in the Nordic region, according to the latest report by the world’s leading brand valuation consultancy, Brand Finance. Since the first launch of the Brand Finance Nordic rankings in 2013, IKEA has remained on top every year, staying ahead of challengers such as Volvo (brand value down 19% to €12.2 billion) and H&M (brand value up 4% to €11.0 billion).
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the world’s biggest brands to the test, and publishes around 100 reports, ranking brands across all sectors and countries. The world’s top 100 most valuable and strongest food brands are included in the annual
IKEA’s brand value dropped by 2% this year, a reflection of IKEA faced challenges such as lower customer demand and supply chain disruptions over the course of the pandemic. Despite these challenges, IKEA was still able to retain its title as the most valuable Nordic brand for the tenth-consecutive year. Successful initiatives implemented by IKEA such as new product innovations, brand partnerships and the implementation of its “Click and Collect” online service did much to boost its online sales during this period. IKEA also aspires to be climate positive by 2030 by reducing waste through its Circular Hub, a bold aspiration on its sustainability agenda.
Second-ranked Volvo (brand value down 19% to €12.2 billion) with its wide range of electric vehicles are in a strong position to refocus on an EV-led future. With the launch of its fuel cell joint venture and its agreement to form another joint venture for high performance public charging across Europe, Volvo demonstrates its belief that to remain successful and remain at the forefront, collaborations with other leading brands such as its recent venture with Geely Auto, are important.
IKEA’s brand value has sustained significant value for a decade. Despite recent pandemic challenges, IKEA has not faltered in delivering its affordability, design and comfort to people all over the world. Nordic brands are returning to growth but are not quite at their pre-pandemic levels just yet.
Anna Brolin, Managing Director, Brand Finance Nordics
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’s assessment of stakeholder equity incorporates original market research data from over 100,000 respondents in more than 35 countries and across nearly 30 sectors.
Lego (brand value up 13% to €5.2 billion) is the strongest brand in the Nordic region with a Brand Strength Index of 87.5. The Danish toy giant has successfully navigated the ongoing uncertainty around the COVID-19 pandemic to creatively meet extraordinary consumer demand for its products. In conjunction with other famous brands, Lego is continuing with its development of new, innovative and exciting sets to benefit from the significant brand value associated with other entertainment products.
Lego’s planned expansion with its mix of retail and digital commerce also led to the creation of more immersive and memorable brand experiences. Despite the challenges of bricks and mortar retailing across the world in the midst of a pandemic, this iconic Danish brand expanded further with the opening of 165 branded stores worldwide in 2021.
Viaplay (brand value up 94% to €378 million) is one of the world's fastest growing streaming groups with a unique content offering. Following successful launches in Estonia, Holland, Latvia, Lithuania, Poland, and USA, its brand value almost doubled. Viaplay’s vision is to be the most diverse and inclusive storyteller with imminent plans to launch its streaming services in five new markets.
Philco, the second fastest growing Nordic brand, (brand value up 69% to €235 million) is a brand known by generations of customers who associate it with quality appliances and user-friendliness. It is also a brand that is known for being environmentally friendly. Its re-entry into the European market was well received. The Philco brand value grew substantially in this period as consumers took comfort in the familiarity of its trusted brand name.
Elisa (brand value up 67% to €1.2 billion) is the third fastest brand in the ranking and is likely to have achieved significant and subsequent growth through its international investment and acquisition programme as well as by leading on ever important environmental issues, such as when it became the first carbon-neutral mobile operator in Nordic countries.
Swedish Engineering & Construction industry firm Sandvik (brand value up 59% to €2.2 billion) grew significantly in brand value as a result of the signing of 14 strategic acquisitions. SKF (brand value up 56% to €1.6 billion) also achieved strong brand value growth indicating that despite the many disruptions brought about by the pandemic, the sector’s rebound remains on course.
Finland’s OP Banking brand increased its brand value by 65% to €660 million, correlated with the positive recovery of the Finnish economy as the nation looks towards a post-pandemic future.
Despite the Nordic countries being small in size and with relatively small economies, it is interesting to note their impressive overall score in the Soft Power Index 2022. It illustrates that the world looks favourably on most of the elements that build the Nordic countries’ nation brands.
Amongst 120 nations included in the survey, Sweden ranked 14th, Norway 17th, Denmark 18th and Finland 25th. The Nordic countries scored particularly well in important categories such as “Governance” and “People & Values”.