Samsung zips past Toyota to become Asia's top brand www.asia.nikkei.com
TOKYO -- Samsung has overtaken Toyota as Asia's most valuable brand for the first time, according to a global ranking released on Monday by U.S. consultancy Interbrand.
Its Best Global Brands 2017 list features 11 from Asia -- the same number as last year. But a stronger showing by South Korean brands over their Japanese rivals illustrates an ongoing shift in the marketplace, where more dynamic Asian companies are nudging aside the once-dominant Japan Inc.
The survey also underscores the limited brand power of Chinese companies, despite their massive scale and market capitalization. For the most part, their reach is still confined to their home market.
Samsung improved to sixth place, from seventh -- no small feat considering recent setbacks, including the bribery conviction of the group's heir, Samsung Electronics Vice Chairman Lee Jae-yong. The company was also forced to scrap its Galaxy Note 7 smartphone last October after just two months on the market, due to fire-prone batteries.
"Samsung has made it a policy of strengthening its brand in the past 10 years," Interbrand Japan's chief executive Masahito Namiki said in an interview. "The policy remains unchanged, despite the turmoil at the top, helping to limit the fallout from the scandals on its brand image."
Samsung has two powerful lines of business -- flash memory and smartphones -- but still has a ways to go to catch up with archrival Apple, the world's No. 1 brand. "Everyone knows what Apple is," Namiki said. "That's not always the case with Samsung."
Toyota saw its ranking drop to seventh, just one year after it became the first Asian company to crack the top five. The Japanese automaker suffered a sales decline in the key U.S. market. At the same time, it faces rising costs for the development of self-driving cars -- a field in which U.S. technology companies like Google and Tesla have the lead.
"The question facing the auto industry is whether it will be able to maintain growth in the face of new competition from other industries," Namiki said.
Apple, Google, everyone else
Brand power, Interbrand contends, is crucial for success in business. It helps recruit and retain talent, while allowing companies to charge premium prices. The extra money earned, in turn, can be invested in new products to further strengthen brands.
Published Date:2017-09-26