Just like anything else, our brains tend to associate certain images and attributes with a given nations in order to form a unique mental perception.
In a global marketplace, a country’s national image can be one of its most valued assets or a challenging liability. These perceptions help to forge a country’s reputation, and also have a long-lastinaar value on these national perceptions.
While the specific methodology is covered directly in the report, what you need to know is that Brand Finance uses three pillars to calculate a Brand Strength Index score.
The three pillars are:
- Goods & Services: Includes factors such as openness to tourism, market size, and trade rules
- Society: Includes factors such as quality of life, corporate ethics, corruption, and cultural image
- Investment: Includes items such as talent retention, use of technology, R&D, taxation, and regulation
The Brand Index Score is then used to calculate a hypothetical royalty rate, and to forecast revenues to ultimately derive a brand value (post-tax revenues discounted to calculate a net present value).
WHICH NATION BRANDS ARE MOST VALUABLE?
Here are the world’s 15 most valuable nation brands, as ranked in the most recent report.
|Rank||Country||2018 Brand Value||Change (vs. 2017)|
|#1||United States||$25.9 trillion||23%|
|#4||United Kingdom||$3.8 trillion||20%|
|#10||South Korea||$2.0 trillion||8%|
The U.S. takes the top spot at $25.9 trillion, but the fastest growing brand valuation was Germany’s, which jumped 28% over the past year.
HOW THE RANKING HAS CHANGED OVER TIME
Brand valuations can change over time – and looking at Nation Brands over the last eight years helps to get a sense of long-term trends:
By 2012, China had cemented the second place spot, displacing both Japan and Germany.
Meanwhile, Brazil made a brief appearance in the Top 10, but then precipitously dropped off the list. It now sits at 17th place in the 2018 rankings.