UK brands have boosted their performance year on year but are still struggling to differentiate themselves from the competition, new Kantar data shows.
The BrandZ top 75 most valuable UK brands are now worth a combined $230 billion, marking an annual decline of 5%. This is an improvement on 2023’s performance, when the total valuation of the UK’s top brands slipped by 14%, but the trend remains behind the most valuable global brands which are currently growing at 20%.
UK brands are among the weakest for how different and meaningful consumers perceive them to be, impacting how much people are willing to pay for them. Kantar found that two in five of the UK’s biggest brands aren’t seen positively enough to justify charging a higher than average price for their category. Just under a third have less than a 50% chance of growth in the next 12 months.
Adele Jolliffe, head of brand consultancy, insights division at Kantar, continues: “It’s a mixed picture for UK brands and things could get bumpier before they get better. Consumer confidence is returning as inflation eases, although depending on what the chancellor announces in her budget on 30 October, we could see new pressures on household spending. With the right marketing investment, however, brands can put themselves in a strong position not just to weather any immediate uncertainty, but to grow over the long term. Our analysis shows there are clear opportunities, and teams must be really targeted in how they make the most of these. Based on how likely people are to choose them, for example, one third of the brands we’ve evaluated this year could sell more if their products and services were easier to access – whether that’s through investment in store opening or online fulfilment for example.”
Marks & Spencer is one of 2024’s standout performers in Kantar BrandZ’s UK ranking, bucking the national trend to grow its brand valuation by a whopping 38% to $2.5 billion. By comparison, wider retail brand values rose by 1% overall, while food and beverages brand values fell 9% year-on-year.
Jolliffe explains what has fuelled the retailer’s success: “Marks & Spencer has been firing on all cylinders and has really got its mojo back – we’ve tracked significant improvements in how people view the brand across both grocery and fashion. It has re-found its competitive edge in clothing, for example, closing the gap with rivals like John Lewis in terms of how different people think its fashion offer is. Its Christmas advertising campaign paid dividends well beyond the festive season, helping M&S be more relevant to more people, more of the time.”
Jolliffe concludes: “We’re seeing the business case for brand building being championed more and more as boardrooms realise just how important it is in driving profitable, long-term growth. The International Accounting Standards Board’s current review of how intangible assets like brand are incorporated into company valuations is testament to that power. What needs to come now is an emphasis on building brands in the right way and that’s where marketers can really prove their worth. As this year’s ranking shows yet again, it is the brands which differentiate themselves in a meaningful way with consumers who triumph.”
