Innovation-focused companies that fulfil fundamental human needs garner the highest brand esteem, according to the 2023 FutureBrand Index
LONDON, Sept. 20, 2023 /CNW/ -- Forward-thinking companies that prioritise technological innovation around products and services essential to people's lives reigned supreme in the 2023 FutureBrand Index unveiled today. The data suggests that the future of brands hinges on their ability to avoid the 'Purpose Void' – a place where an ever more informed and enquiring public relegates organisations which fail to practise what they preach – and demonstrate genuine corporate purpose through tangible impact.
The most notable risers on the list – including Microsoft, Unilever, Nestlé and Amazon – are known for their ability to fulfil more fundamental human needs amid increasing levels of global uncertainty caused by climate change, international conflicts, inflation and the rise of AI.
"In a world where safety and security are scarce, brands must become beacons of progressive responsibility and purpose-based action. They need to act as 'trust lighthouses' that can ease people's concerns and shine a light on a better future," said FutureBrand Global Chief Strategy Officer Jon Tipple. "This is especially important as many customers, from business-to-business buyers to end consumers, want to interact with organisations that put forth products and services that can make a difference in our individual lives and the world in general".
Tech rivals Apple (No. 1) and Samsung (No. 5) share the Top 5 with business-to-business companies posing the backbone of people's everyday lives. CATL (No. 2) is enabling the future of transport with its EV batteries, while the microchips produced by TSMC (No. 4) power everything from smartphones to AI. Finally, NextEra Energy (No. 3) develops renewable energy solutions in a world teetering on the edge of a climate crisis.
"If in the past the world's top brands were those promoting well-intentioned, but softer sentiment through warm words, today we observe brands which marry corporate purpose with real, positive impact climbing up the ranking" Tipple added. "They deliver reliability at a time when trust is eroding in many areas of our society. With trust in government, media and other institutions declining, companies that practise what they preach have an opportunity to gain an increasingly meaningful role in people's lives. Our survey respondents ranked the index's top-performing companies high in areas such as having strong principles, acting ethically, having a clear sense of the future, and inspiring change for the better."
The newly released index, produced by brand-led business transformation company FutureBrand, focuses on 100 companies with the largest global market capitalisation, as determined by PwC. The index is based on research around brand perception and includes an in-depth survey of business professionals in 15 countries.
Notable FutureBrand Index insights:
AI investment polishes brand halo: Actively investing in emerging technologies such as AI is an essential factor driving a company's brand perceptions success. Leading AI software and chips supplier Nvidia ranks in No. 8, while ASML, which provides equipment chipmakers use to produce AI chips, came in No. 9. Other brands forging ahead in AI also jumped up the list, including Microsoft (No. 6) and Intel (No. 22).
Consumer brands make a comeback: Over the last two years, the FutureBrand Index has tracked B2B businesses as they have marched up the Top 100. But with economic and geopolitical uncertainty persisting into this year, consumer brands have leapt back up the list. Amazon (No. 16) jumped 15 places YoY, a sign that its inflation-proof pricing models and commitment to speed and convenience are more imperative thn ever before. In addition, Unilever came in No. 18 – a rise of 13 places since it was last featured in the index in 2021, and Nestlé (No. 20) returns to the Top 20 for the first time since 2015.
Corporate responsibility efforts bolster brand ranking: Overall, companies that are known for trust, respect, resource management, and dedication to their mission ranked higher on the list. Companies that displayed a corporate conscience and responsible governance resonated strongly as seen by the performance of NextEra Energy and CATL.
Apple, Google, Microsoft, Amazon and Coca-Cola were deemed the most valuable companies in terms of the perception of their diversity, equity, inclusivity, belonging, and accessibility (DEIB) efforts. Apple, Amazon, Tesla, Microsoft and Google ranked as the companies when it comes to implementing more circular business models.
"The FutureBrand Index points towards a truth: in order to garner high brand esteem, companies must foster agility, spearhead innovation, and embrace an unwavering commitment to corporate social responsibility," said Lynne Field, Head of Strategy at FutureBrand North America. "In this era of corporate mistrust and consumer polarisation, the companies that remain true to their mission and deliver what they promise will win in the hearts and minds of their stakeholders."
Notable sectors' key insights:
Energy & Utilities:
The FutureBrand Index is a global perception study based on PwC's Global Top 100 Companies by Market Capitalization list.
The index determines the brand strength of each company on the list based on 18 Experience and Purpose attributes, such as Consistency (delivers a consistent experience to customers), Resource Management (acts ethically to maintain a sustainable environment), Indispensability (people depend on the brand), Innovation (creates products and services that are genuinely useful), Trust (is a trusted brand), and Well-being (contributes to people's well-being.)
Unlike most other ratings, the FutureBrand Index offers a rigorous assessment of how future-proof the world's 100 most valuable companies are, based on the views of an informed and professional sample. More than 3,000 business professionals were surveyed between 31st May and 12th June 2023.
The research was conducted in partnership with QRi Consulting, a global research provider and a specialist in brand, communication, product strategy, and tactics.
FutureBrand is a brand-led business transformation company. We believe that brand is behaviour, that's to say, how an organisation's products, services and people show up in the world and how they make audiences feel when they do.
As such, our mission is to bust the myth that brand is somehow abstract or intangible and is, on the contrary, a highly tangible and measurable lever of lasting and meaningful business change, progress and profit. There is nothing more real than the things we eat, drink, work for, live in, travel on and experience every day.
At the heart of what we do for our varied client partners across the world is connect credible purpose with real-world experience. Or to put it another way, help them practise what they preach. We structure and evidence this through proprietary models, most notably the FutureBrand Index, an annual and ongoing assessment of the future brand strength of the world's top 100 companies and the FutureBrand Transformation Ladder, a project planning and tracking tool that connects design creativity, experience and brand metrics with critical marketing and business outcomes. Our clients include American Airlines, Nestlé, Sanofi, Bentley, McDonald's and most recently, Air India. For more information visit futurebrand.com.
QRi Consulting is FutureBrand's global research partner for the FutureBrand Index.
Working closely with FutureBrand, QRi helped define the research approach, managed recruitment, questionnaire development, and provided in-depth analysis of the qualitative and quantitative data underpinning the report. Results are informed by QRi's extensive research, brand, and sector knowledge and experience as well as its proprietary QualiQuant methodologies.
FutureBrand collaborated with the Capital Markets division of PwC in the UK, which provided its Global Top 100 Companies by market capitalization ranking as the data source for this research and report. The report and its findings have been informed by Capital Markets' data, but FutureBrand is responsible for all views, opinions, and data emerging from this research unless otherwise stated.
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