IKEA is the most valuable and strongest brand in Sweden, valued at SEK150.5 billion
Retail giant IKEA remains the most valuable Swedish brand for the tenth consecutive year with a brand value of SEK150.5 billion, according to a new report from leading brand valuation consultancy Brand Finance. Although the furniture brand faced challenges during the pandemic with lower customer demand and supply chain disruption, the brand has retained first position in the Brand Finance Sweden 50 2022 ranking by boosting online sales and implementing an effective ‘Click and Collect’ fulfilment services to strengthen its supply chain. The brand has also innovated in the field of product design and launched various new products and brand partnerships.
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. Sweden’s top 50 most valuable and strongest brands are included in the annual Brand Finance Sweden 50 ranking.
In addition to brand value, Brand Finance 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. In addition to being the most valuable brand, IKEA is also the strongest brand in the ranking with a Brand Strength Index (BSI) score of 83.2 out of 100 and a corresponding AAA- brand rating. The brand is actively investing in sustainability initiatives by reducing waste with its Circular Hub and aims to be climate positive by 2030.
Media brand Viaplay is the fastest-growing brand with 87% brand value growth
The brand value of Swedish media brand Viaplay has increased by an impressive 87% this year, to now be valued at SEK3.8 billion. The media landscape underwent changes at the onset of the pandemic and the brand launched new original TV series and movies to capitalise on consumer demand. Keeping up its momentum, Viaplay will be increasing its service offerings with Viaplay Select and its mobile application in various international markets including Japan, USA, the Netherlands and Poland to name a few. The brand also rebranded from Nordic Entertainment Group to Viaplay to reflect changes in its scale to emphasize its global reach and impact as an entertainment service provider as the group’s streaming service brought in the highest revenues.
Swedish banking brands are led by Nordea and Swedbank
Nordea is the most valuable Swedish banking brand in the ranking, it achieved a 26% brand value growth year-on-year. The bank’s acquisition of France-based SocGen Finans with its finance business has paid dividends. The second most valuable banking brand in Sweden is Swedbank (brand value up 12% to SEK25.9 billion), the brand achieved an increase in its Brand Strength Index (BSI) score, 80 out of 100 and a corresponding AAA- brand rating. The bank’s CSR score has increased significantly as the brand establishes sustainability as the core of their business strategy and launches new sustainability and environmental initiatives. The banking brand also joined the Partnership for Carbon Accounting Financials (PCAF), a worldwide collaboration of financial institutions aimed at enabling harmonized assessments and disclosures of greenhouse gas emissions that are financed by loans and investments.
It is pleasing that the Swedish top-50 brands have regained almost half their steep value drop during the pandemic. Despite continued market turbulence, even if now triggered for other reasons. Just as the Swedish nation brand has proven resilient, even during a for Sweden unusually shaky year, so have exporters in post-COVID Sweden. On the top-10 list the value of only one brand, Volvo, has dropped substantially since last year. All other top brands have either gained considerably or managed to maintain their value.
It will be interesting to see to what degree sustainability investment - nowadays a key value component of many Swedish brands - continues to pay off. It is of course always sad to see old established brands drop out of the top-50 list, like this year SSAB. However, no list of this nature stays vital without changes. SSAB would not have dropped out without tough competition, meaning unless other successful fast-growing global brands had entered the list for the first time. This year no less than four exciting newcomers enter the top-50 list: AAK, Dometic, IFS and Viaplay.Anna Brolin, Managing Director, Brand Finance Nordics
New entrants in the ranking Dometic Group and IFS break into top 50 Swedish brands
The highest climbers among the new entrants in the Brand Finance Sweden 50 ranking are Dometic Group at 37th place and IFS at 38th place. Tourism brand Dometic Group (brand value of SEK5.8 billion) is driving sustainability in its sector scoring well in the CSR measures in the Brand Strength Index (BSI). The brand is a pioneer in providing services in mobile living and is doing so by decreasing carbon emissions and by using renewable energy. Additionally, new entrant technology brand IFS (brand value of SEK5.3 billion) breaks into the ranking in the 38th position. Being a multinational enterprise software brand allows IFS to operate at a large scale with over 10,000 customers worldwide and a well-connected ecosystem of partners to innovate in the technology sector using tools like IFS’s cloud services across sectors including construction, telecommunication and retail.
Sweden is punching above its weight and ranks number 14 in 2022 Global Soft Power Index”
This year Sweden ranks 14th in the Global Soft Power Index 2022 which implies that the nation drops five spots. The year-on-year rank drop for Sweden relates to the resurgence of the larger nations in the 2022 study as they bounce back from COVID. The overall score still improved (marginally) which illustrates that the world continues to look highly favourably on most elements that build the Swedish nation brand.
Additionally, Sweden achieved a top three rank in no less than six subcategories. Examples include the subcategories ‘tolerance and inclusivity,’ ‘acts to protect the environment’ and ‘an appealing lifestyle.’ Only seven countries in the world achieved a greater number of subcategory top spots. Sweden also achieved a high ranking in the category ‘People & Values’. In this category, Sweden was ranked highly for values such as ‘generous,’ ‘fun,’ ‘friendly,’ ‘trustworthy,’ and ‘tolerant and inclusive’.