MTN, Vodacom the most valuable brands
The country’s top 50 brands continue to show positive growth despite South Africans trimming the fat in the economic downturn.
The country’s top 50 brands continue to show positive growth despite South Africans trimming the fat in the economic downturn.
The Brand Finance report, published by the business valuation consultancy last week, revealed the country’s most iconic brands were defying the flat SA economy and recording healthy brand value growth.
Brand Finance CEO David Haigh said the 5.8% growth in brand value was promising for the job market, compared to only 1.2% GDP growth over the same period.
“The impressive performance
of SA’s most valuable brands poses a potential source of growth for the economy that, in turn, could lead to increased job creation and funds flowing to the fiscus,” he said.
In terms of overall brand value, telecoms giants MTN and Vodacom retained first and second place respectively.
MTN pushed its brand value up 14% to R50.3bn and has grown its subscriber level steadily over the past year and boosted revenue, according to the report.
Likewise, Vodacom’s brand value rose 21% to R33.3bn, despite the brand recording revenue losses in its SA business.
FNB retained the bronze spot on the podium, its brand value increasing 32% to R25.5bn.
“The bank’s retail division has expanded its customer base, extended its credit line to top clients and recorded high levels of transactions through its app, all demonstrating its defiance to the economic troubles in the country,” the report noted.
Similarly, Absa retained fourth and Standard Bank was firm in fifth. The three banks make up the most valuable sector in the country collectively.
Sasol also held on to sixth place from 2018, chalking up a 33% growth year on year to a brand value just shy of R21bn.
MultiChoice jumped three places from the previous position despite a boycott amid the Steve Hofmeyer saga. This followed a decision by Africa’s biggest pay-TV operator to no longer air content by the controversial Afrikaans musician.
Retailer Woolworths dropped one position to eighth, recording an 8.6% brand value growth to R16.722bn, while Castle beer broke the top 10 from 11th position in 2018, with a 19.3% growth surge.
Nedbank rounded out the 10 with a 6.7% brand value growth to R15.817bn.
In contrast to the upward movement in the banking sector, health-care brands recorded a decline in value.
Mediclinic was down 50% to R5.8bn, Netcare was down 40% to R3.2bn, and Life Healthcare recorded a 17% drop to R1.9bn.
“These three hospital group brands have a combined market share of 83% of the national private facilities and have therefore faced criticism that the sector is too concentrated,” the report states.
It found that Engen and Clicks were among the nation’s fastest-growing brands, up 67% and 59% respectively.
“Oil company Engen is the fastest-growing brand in SA, recording an impressive 67% rise in brand value to R6.7bn.
“In 2018, Engen built 15 new service stations across the country, a record for the brand, and partnered with doughnut giant Krispy Kreme to launch its new forecourts.
“Clicks also boasts a significant rise in brand value, increasing 59% to R6.1bn. The retailer has committed to its expansion programme over the last year, and with dozens of new stores in the pipeline, shows no signs of slowing down as it aims to hit its 900-store target.”