Welcome to the 2013 Best Brazilian Brands report, which is launching at a time of great excitement in the market that put the “B” in BRIC. With the 2014 FIFA World Cup and the 2016 Olympic Games on the horizon, this is also a time of assessment and national soul-searching.
Despite some economic uncertainty, our country is fearlessly asking the hard questions and gaining ground in global discussions. At the same time, we find Brazil's media, citizens, and political and business leaders all grappling with pressing issues here at home.
Although the economic rise that created huge expectations of growth and personal gains in the last decade now seems unsteady, the emergence of the middle class has become a reality. As a result, new consumer habits have emerged along with a contemporary group of environmentally astute and digitally savvy brands. Meanwhile, our biggest and most established brands are finding fresh ways to innovate and increase their relevance both at home and abroad.
The total value of the 25 brands on this ranking remains roughly the same as last year, but there are interesting nuances to note. Four of the top five brands lost value since last year’s report, with a collective loss of R$ 5.48 billion (USD $2.48 billion). New entrants on this year's ranking—BTG Pactual, Ipiranga, Porto Seguro, Arezzo—and brands with the highest growth—Hering, Casas Bahia, Brahma, Cielo—not only balance the scale but also decrease the concentration of value in the top five.
Indeed, it is increasingly difficult to become one of Brazil's 25 most valuable brands. The “cut-off” increased from a brand value of R$ 250 million (USD $109 million) in 2012 to R$ 294 (USD $128 million) this year.
There was a strong showing by beer brands on our 2013 list, with an average growth of 27 percent driven by the exceptional operational performance of Ambev domestically, and by the sponsorship deals tied to major sporting events.
Retail and apparel brands also had a good year, with an average increase in brand value of 17 percent. This is a clear reflection of the increased purchasing power of the Brazilian middle class and the ability of brand managers to capture value.
Brazil’s biggest financial brands, however, are still feeling the impact of changes in the domestic economy, from decreasing interest rates to regional and global economic turmoil. But the consistent investment in management and the strength of these finance brands have helped to smooth out the relative loss in brand value for this sector.
The brands with major government ties, such as Petrobras and Banco do Brasil, are also struggling with key Brand Strength factors, including commitment, responsiveness, authenticity, and understanding—a situation that makes them more susceptible to decreased brand value.
Although it has been a year of some dramatic change, it’s always exciting to observe which brands make the cut and join the year’s top 25. For example, the debut of BTG Pactual this year at #10 comes as a result of excellent financial results and increased Brand Strength.
Also new on our ranking, Arezzo now joins Havaianas in presenting a strong identity for Brazilian design and fashion globally. Porto Seguro’s debut follows consistent focus on providing outstanding brand and customer service, while Ipiranga returns to the list after aligning its brand management with solid financial results.
We hope you find what’s going on in our market as exciting as the Interbrand Sao Paulo team does, and we look forward to continuing the conversation and seeing the global spotlight shine on this vibrant and dynamic market.
Interbrand São Paulo
Interbrand São Paulo