Michelin Tops the Brand Value Charts
The Annual Brand Finance report on the world’s most valuable automobile, auto component & tyre brands was published in March 2018, which saw Michelin topping the tables across a few categories.
Michelin became the world’s most valuable tyre brand following 30% brand value growth from $6.08 billion to $7.93 billion, which allowed them to overtake Bridgestone according to Brand Finance’s data.
Additionally, as well as being the most valuable brand, Michelin proved itself to be the strongest in the annual report according to its Brand Strength Index (BSI) score. It’s BSI reached 86.9 out of 100, with its brand rating improving to AAA, leaving the French brand alone with a triple A rating.
Michelin were followed in the Brand Strength Index by Pirelli (82.0), Bridgestone (79.5), Goodyear (79.2) and Hankook (75.5),
The report explained that sustainability and technology initiatives strengthened the brand, whilst impressive performances across different motorsport disciplines also added to the increase in its value and evaluations.
Alex Haigh, Director of Brand Finance commented in the report, “a strong brand is about more than marketing. Michelin has started direct sales of tyres to customers through retail outlets and the internet, a move that helps build a brand relationship and allows the company to collect valuable data.”
Bridgestone suffered from a 6% reduction in its overall value to just under $7 billion. However, Bridgestone wasn’t the only Japanese brand to suffer though, as Yokohama and Sumitomo Rubber Industries saw losses in their brand value of 18% and 62% respectively.
The Annual Brand Finance stated that “a weak domestic market affected all three producers, while value gains from stronger sales in North America, Europe, and Asia were partially offset by a weaker yen.”
It’s also worth noting, that the report took a keen interest in the development of Chinese companies in the tyre industry, referring to these players to be appearing as “successful challengers to the established players in the tyre industry.” Despite the fact that the Chinese brands lie outside the top 10, Brand Finance predicts that brands in the form of Linglong and Sailun Jinyu should make an entrance to the top 10 in 2019.
The Top 10 according to brand value in the Annual Brand Finance Report were as follows: Michelin, Bridgestone, Continental, Goodyear, Dunlop, Hankook, Pirelli, Maxxis, Yokohama and Sumitomo Rubber Industries.
The full report can be found here: http://brandfinance.com/images/upload/brand_finance_auto_tyres_report_2018_locked_1.pdf