Data and analytics firm Kantar BrandZ has released its Most Valuable South African Brands 2022 report, which shows that the top 30 brands in the country are collectively valued at $34.9 billion, up 21% from last year.
MTN jumped four positions in the South African brand rankings to take the top spot for the first time with a brand value of $3.7 billion. The telecommunications provider also won the award as the fastest growing this year, increasing its brand value by 85% compared to last year.
Twelve South African brands boast above-average growth (21% increase in brand value). Up nine places, Investec (#16, $700 million) is the second fastest growing, followed by retail giant Checkers (#23, $531 million), part of the Shoprite Group, which is focusing heavily on accelerating its digital transformation. Cantor said. .
Most of Investec’s gains are due to improved financial conditions group showed strong results in Q1 2022, reinforced sustainable customer franchises, strong revenue momentum and sound asset quality.
Overall, Woolworths ($1.2 billion) was ranked 11th, ahead of Shoprite (13th, $801 million), Pick n Pay (17th, $642 million) and Checkers (23rd, $531 million dollars), while online store Takealot ranked 25th in terms of brand value. 461 million dollars.
Checkers was the most effective brand for convenience – ensuring that products and services fit well into consumers’ everyday lives.
“In a customer-centric environment, brands need to fit seamlessly into the everyday lives of their users. No wonder Checkers is considered the top brand here. Its Sixty60 service is not the only fast food delivery option in the country, but it is certainly the most popular,” Kantor said.
MTN’s brand value has been boosted by a combination of overseas expansion and smart strategic positioning. It is followed by First National Bank (#2, $3.5 billion) and Vodacom (#3, $3.1 billion) in the top 3 most valuable brands in South Africa.
Dis-Chem (No.27, $410 million), returned to the top 30 after a two-year absence. The pharmacy, which operates in multiple categories such as health, baby and beauty, is perceived by consumers as a reliable and focused brand that offers fair prices, Kantor said.
Brutal Fruit (No. 28, $396 million) is this year’s newcomer to the rankings and has grown its revenue significantly by expanding its brand beyond its traditional core alcohol category into cosmetics after launching the You Belong fragrance.
Size matters when it comes to alcohol performance category. Bigger brands like Castle and Hansa Pilsener, dropped in price, making alcohol one of two categories in the red this year, albeit by a modest 1%. But Brutal Fruit and flying fish have increased in value significantly, Cantor said.
“They benefit from the flavor trend the experimentation that comes from cooking the world Consumers seem more open to creativity and personal self-expression in the choice of alcohol which breathes new life into the category.”
Ivan Morok, CEO of Kantar South Africa, Insights Division, said: “South Africa’s most valuable brands are building on their country’s reputation for resilience and ingenuity to tackle the many health, social and environmental challenges they face.
“Through technology and sustainability initiatives, as well as the addition of customer-centric services and the expansion of overseas operations, the strongest brands, led by MTN, have found ways to grow significantly as the country returns to a sustainable financial recovery.”
Stina Van Rooyen, Head of Kantar BrandZ, South Africa, said: “2022 has been an eventful year for South African brands, with dramatic growth in value and strategies that appear to be building multiple measures of brand equity. Our most effective brands focus on getting their four fundamentals right for growth, which are Exposure, Functionality, Convenience and Experience.
Growing brands in South Africa tend to be very dynamic, launching new products and services, expanding into related categories and occasionally entering completely different ones.
For example, telecommunication providers offer payment services, insurers open banks, drug dealers sell their own health insurance, and alcohol brands produce fragrances.
Kantar’s global research shows that this is an excellent growth strategy. On average, brands operating in multiple categories grew 24.2% last year, while brands operating in a single category grew 13.8%.
Diversified brands also have significantly greater potential for brand value growth, with 53% achieving above-average growth, compared to only 28% of single-category brands.
Offering something different – South Africa’s top brands scored significantly higher when measured against perceived uniqueness. This difference stems from brands working hard to meet the needs of a rapidly digitizing population and expand their offerings into new categories and regions.
The 10 Most Valuable South African Brands of 2022 by The Kantar BrandZ
|#||Marco||Brand value (million USD)|
|2||First National Bank||3,500|
|4||Standard Bank||3 003|
|10||Capitec Bank||1 302|
Read: South Africa’s biggest retailers: Shoprite vs Woolworths vs Spar vs Pick n Pay