ERJ staff report (TB)
London – Bridgestone is the world's most valuable tire brand, according to new research from Brand Finance P.L.C. reported by Tire Business.
The London-based brand valuation and marketing firm found that No. 2 Michelin closed the gap to Bridgestone to near parity in the latest ranking.
Brand Finance puts the global value of the Bridgestone brand at $4.45 billion (€3.48 billion) and that of the Michelin brand at $4.36 billion (€3.41 billion). Bridgestone and Michelin rank comfortably ahead of Contintental, Goodyear and Pirelli, the rest of the top five, Brand Finance said.
The firm calculates a brand's value using a discounted cash flow technique, which discounts estimated future royalties at an appropriate discount rate to derive the present value of the trademark and associated intellectual property rights. The royalty relief methodology determines the value of the brand in relation to the royalty rate that would be payable for its use if it were owned by a third party.
The top five brands retained their relative positions from the 2012 rating, the company's data show. Michelin's brand value increased 12 percent over 2012, while Bridgestone's gained just 1 percent.
Brand Finance put the value of the Continental brand at $3.24 billion (€2.53 billion), slightly ahead of Goodyear's $3.21 billion (€2.51 billion) (The Pirelli brand was valued at $1.45 billion (€1.13 billion).
The Goodyear and Pirelli brand values gained 14 and 19 percent, respectively, over 2012, Brand Finance said.
Bridgestone and Michelin are rated the Nos. 254 and 264 brands overall, according to Brand Finance's calculations.
"The tire market is forecast to grow 5 percent per annum to 2015 and competition for this growing prize is intensifying," Brand Finance CEO David Haigh said.
"In what is one of the most highly branded industry sectors, manufacturers spend millions of dollars on sponsorships, advertising and promotional activity in order to gain market share, particularly within Asia Pacific, which accounts for half of the global tire market."
While growth factors into the calculation, Brand Finance said, brand development and protection are also crucial.
In Bridgestone's case, for example, Bridgestone Corp. successfully sued Chinese tire company Guangzhou Bolex to get that company to stop making and selling tires under the "Gemstone" brand, using the same font and colors of the Bridgestone trademark.
This trademark infringement action demonstrates Bridgestone's commitment to protecting its intellectual property rights and maintaining its brand value globally, Brand Finance said.
Commenting on the results, a Bridgestone spokesperson said that "as a global brand, Bridgestone responds to its customer needs in three important ways: by committing to manufacturing world class quality products made only from materials that are renewable or recyclable; to reduce CO2 emissions as a business; and to operate in a way that ensures a balance with the environment."