While brand value is not a common financial metric, it can play a crucial role in a company’s overall success and profitability. The value of a brand reflects its perception in the public domain, can influence customers’ buying decisions and supplier relationships as well as attracting human talent.
Based on several factors such as clarity, authenticity, relevance or presence, Interbrand determines companies’ brand value on a yearly basis. In its recently released ranking of Japanese domestic brands with an overseas sales ratio of less than 30 percent (as opposed to Japanese global brands with an overseas sales ratio of more than 30 percent), the consultancy identified the telecommunication’s industry as having the most valuable brands. NTT Docomo topped the list for the seventh consecutive year, with a brand value of approximately 9.8 billion U.S. dollars. Established in 1992, NTT first took over the mobile communications business reorganizing Nippon Telegraph and Telephone Corporation. Over the years, it has successfully adapted to the digital market and now provides a wide range of IT services, resulting in one of the largest customer bases in Japan.
In terms of value growth, despite declining domestic beer consumption, the brewing company Asahi performed best among the top 10. Its brand value grew by 11 percent compared with last year to about 1.8 billion dollars. By acquiring eastern European beer brands in 2017, the maker of Japan’s best-selling beer has also been seeking to expand its growth overseas.
This chart shows the value of the leading 30 most valuable domestic Japanese brands in 2018.
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