Best Japan Brands 2016 Report - interbrandjapan トップ · has released its Best Japan Brands 2016 report. The report, ... Brands are ‘business strategy brought to ... process

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Interbrand Japan, Inc. Hiroo Plaza 9F 5-6-6 Hiroo, Shibuya-ku Tokyo 150-0012

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Best Japan Brands 2016 Report The report identifies: 2016’s Top 40 Japan's Best Global Brands 2016’s Top 40 Japan's Best Domestic Brands Press Release February 17, 2016


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Interbrand Releases 2016 Best Japan Brands Report Japan’s Top 40 global brands and Top 40 domestic brands identified » Toyota claims the #1 position for the eighth consecutive year. » Subaru (#12) and Mazda (#13) dramatically increase their

respective brand values once again. » Eleven automotive brands appear in the ranking of Japan’s Top

40 global brands, confirming that the automotive industry remains a driving force of global Japanese brands.

» MUFG achieves the conditions required to be considered a ‘global brand’ and enters the ranking of Japan’s Top 40 global brands in the #6 position. DENSO (#25), Isuzu (#31), Kubota (#34), and Makita (#37) enter the global brand ranking for the first time as well.


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Interbrand - Best Japan Brands 2016 TOKYO, Japan (February 17, 2016) – Interbrand, the world’s leading brand consultancy, has released its Best Japan Brands 2016 report. The report, produced by Interbrand’s team in Japan, includes two rankings: One identifies the Top 40 Japan's Best Global Brands (the brands of Japanese companies that conduct business globally in monetary terms), while the other identifies the Top 40 Japan's Best Domestic Brands. For the eighth consecutive year, Toyota claimed the #1 position on the ranking of the Top 40 Japan’s Best Global Brands. Interbrand attributes the strength of the Toyota brand to its evolution as a trusted, high-quality automotive brand to one synonymous with innovation, leading the future of mobility through product development, sustainability, and a focus on people. As the largest automobile company in the world, Toyota’s pioneering initiatives will have a significant impact on the ways in which drivers experience their vehicles and mobility in general. “We are delighted to honor the top global and the top domestic brands in Japan with the release of our annual Best Japan Brands report,” noted Interbrand Japan’s CEO, Yuki Wada. - “The Top 40 global brands and the Top 40 domestic brands identified within our report are all facing a variety of challenges in terms of their abilities and successes in driving choice and loyalty for their products and services. The relationship between business and brands has never been more important in driving growth.” Stuart Green, Interbrand Asia Pacific CEO added - “It's no coincidence that the fastest growing brands in the world, and indeed Japan – are also the fastest growing companies. Brands are ‘business strategy brought to life' - the strategic bridge between business and people. You can’t create great products, environments, cultures or communications without a well-defined brand that drives every experience."


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Overview of the Top 40 Japan's Best Global Brands This year, the Top 40 global Japanese brands having realized a total monetary brand value of US$158,968 million. Outlined below are some key findings: 1. Automotive brands continue to boost value again, leading the global market Subaru (#12, +39%) continued to show strong growth in the North American market by building value around its slogan “Enjoyment and Peace of Mind.” Mazda (#13, +36%), continued to pursue “Celebrate Driving” on all fronts, thanks to a strong commitment to branding by senior management. In terms of brand value, these were two of the three fastest-growing brands this year. Eleven automotive brands appeared in the ranking of the Top 40 global Japanese brands, with Toyota (+16%) claiming the #1 position for the eighth consecutive year, followed by Honda (#2, +6%), Nissan (#4, +19%), Lexus (#9, +1%), Bridgestone (#11, +16%), Suzuki (#14, +19%), DENSO (#25), Isuzu (#31), and Mitsubishi Motors (#35). 2. Electronics and technology brands continue the significant challenge of

adapting to changes within their industries In contrast to automotive brands, Japan’s electronic and technology brands are still in the process of adapting to new and significant changes in their industries. Nikon (#21, -30%), for example, looked to drive further growth by grasping at new territories with its advanced imaging technologies, alongside the release of innovative new products and services. Further results showed brand value plunging for brands such as Nintendo (#10, -27%), which also fell off Interbrand’s 2015 Best Global Brands ranking in October. Maintaining and growing brand value in the electronics and technology sector requires companies to be at the very forefront of changes in consumer behavior and innovation surrounding their products and services. 3. Some brands expanding overseas accelerate growth by rolling out its Japanese

values in a distinct and unique way We see some brands that are growing on a global scale are doing so by continually refining their strengths and management practices of Japanese values, as they venture into new markets. Examples include UNIQLO (#8, +13%), Unicharm (#19, +19%) and Yakult (#16, +19%). Japanese brands that present themselves in a distinct and unique way fare much better when going head-to-head with global competition.


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Top 5 risers (year-on-year percentage increase in brand value): Subaru (+39%) Mazda (+36%) Yakult (+19%) Unicharm (+19%) Nissan (+19%) New entrants: MUFG (#6) DENSO (#25) Isuzu (#31) Olympus (#32) Kikkoman (#33) Kubota (#34) Mitsubishi Motors (#35) Makita (#37) Ajinomoto (#38) Fujifilm (#39) Casio (#40)


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2016 Top 40 Japan's Best Global Brands

2016 2015 Brand Sector Brand Value(US m$)

Change inBrand Value

Ratio of Overseas Sales(FY2014)

1 1 Toyota Automotive 49,048 16% 77.6% *

2 2 Honda Automotive 22,975 6% 84.0% *

3 3 Canon Electronics 11,278 -4% 80.6% *

4 5 Nissan Automotive 9,082 19% 83.7% *

5 4 Sony Electronics 7,702 -5% 72.8% *

6 New MUFG Financial Services 6,980 New 40.4%

7 6 Panasonic Electronics 6,436 2% 52.1% *

8 7 UNIQLO Apparel 5,493 13% 42.5%

9 9 Lexus Automotive 3,340 1% 77.6% **

10 8 Nintendo Entertainment 2,977 -27% 75.4%

11 11 Bridgestone Automotive 2,828 16% 81.1%

12 13 Subaru Automotive 2,776 39% 77.3%

13 17 Mazda Automotive 1,899 36% 79.7%

14 14 Suzuki Automotive 1,870 -1% 63.7%

15 12 Komatsu Machinery 1,790 -17% 78.6%

16 15 Shiseido Personal Care 1,619 0% 53.0%

17 19 ASICS Sporting Goods 1,254 0% 80.5%

18 20 Ricoh Printers, Machinery 1,231 1% 62.4%

19 23 Unicharm Personal Care 1,175 19% 64.1%

20 21 Daikin Machinery 1,140 -3% 74.0%

21 16 Nikon Precision Equipment 1,095 -30% 85.7%

22 18 Hitachi Diversified 1,087 -14% 46.6%

23 22 Mitsubishi Electric Diversified 1,028 -7% 41.9%

24 24 Shimano Machinery 995 8% 90.0%

25 New DENSO Automotive 929 New 58.9%

26 27 Yakult Food & Beverages 911 19% 39.7%

27 25 Nomura Holdings Financial Services 843 -4% 25.7%

28 29 Yamaha Diversified 825 13% 83.5% ***

29 28 Fujitsu Computer Services 795 8% 39.6%

30 26 Epson Printers, Machinery 746 -12% 74.6%

31 New Isuzu Automotive 720 New 63.7%

32 New Olympus Precision Equipment 716 New 78.9%

33 New Kikkoman Food & Beverages 711 New 54.6%

34 New Kubota Machinery 705 New 64.6%

35 New Mitsubishi Motors Automotive 704 New 79.6%

36 30 Konica Minolta Electronics 684 -3% 80.6%

37 New Makita Machinery 669 New 83.7%

38 New Ajinomoto Food & Beverages 650 New 56.5%

39 New Fujifilm Chemical 641 New 58.8%

40 New Casio Electronics 624 New 68.6%* The brand values of Toyota, Honda, Canon, Sony, Nissan and Panasonic were taken from “Best Global Brands 2015”.** Lexus’s ratio of overseas sales is the same as Toyota’s.*** The brand values of Yamaha Motor Co., Ltd. and Yamaha Corporation have been combined and calculated. The overseas sales ratio divides the total overseas sales of both companies by the gross sales.


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Overview of the Top 40 Japan's Best Domestic Brands 1. Brands increased their value through brand-based management Suntory (#8, +13%) has steadily increased its brand value in the domestic market by increasing relevance to both connected as well as more socially conscious consumers, in particular through its sustainability initiatives. Calbee (#22, +24%) has realized growth through innovation and direct contact points with customers such as Calbee Plus. NEC (#21, +18%) is strengthening its company-wide brand management. 2. MUJI led increases in brand value for the fourth consecutive year through a distinctly Japanese persona

MUJI (#17, +25%) continued to increase its brand value by combining a universal perspective with an accessible Japanese style. Rakuten (#7, +19%) has become a ubiquitous presence in Japan. Japan Airlines (#16, NEW) entered the domestic ranking for the first time thanks to high praise and thus strong performance for its Japanese-style services. 3. Reorganization of brand value from a global perspective Japan is witnessing a decreasing birthrate and an aging population. As a result, various industries (construction, real estate, retail trade businesses, and even service industries), are facing growth challenges as they traditionally depend heavily upon the domestic market. In order to increase their brand values, companies within these sectors will need to embrace a new perspective beyond Japanese shores.


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Top 5 risers (year-on-year percentage increase in brand value): MUJI (+25%) Calbee (+24%) Rakuten (+19%) NEC (+18%) Mitsubishi Estate (+15%) New entrants: Japan Airlines (#16) KOSÉ (#27) ORIX (#29) BANDAI NAMCO (#30) ABC-MART (#32) Resona (#34) Sumitomo Mitsui Trust (#35) Sumitomo Realty & Development (#36) Daiwa Securities (#37) Matsumotokiyoshi (#38) Cookpad (#39) Nomura Real Estate (#40)


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2016 Top 40 Japan's Best Domestic Brands

2016 2015 Brand Sector Brand Value(US m$)

Change inBrand Value

Ratio of Overseas Sales(FY2014)

1 1 NTT DOCOMO Telecommunications 9,198 -4% Less than 10%

2 3 SoftBank Telecommunications 6,092 -14% 55.6% *

3 5 au Telecommunications 4,514 7% Less than 10%

4 4 SMFG Financial Services 4,444 5% 22.0%

5 6 Recruit Media 3,403 3% 25.7%

6 7 Mizuho Financial Services 2,901 13% 25.3%

7 8 Rakuten Internet Services 2,784 19% 13.6%

8 10 Suntory Food & Beverages 2,159 13% 42.6% ***

9 11 Kao Personal Care 2,016 6% 33.1% *

10 9 Kirin Alcohol & Others 1,596 -18% 36.7% *

11 13 Asahi Alcohol & Others 1,563 11% 13.3%

12 12 Tokio Marine Financial Services 1,524 7% 32.9% *

13 14 Lawson Convenience Store 1,288 -7% Less than 10%

14 15 NISSIN FMCG 1,132 5% 19.3%

15 16 SECOM Security 1,086 2% Less than 10%

16 New Japan Airlines Transportation 1,070 New 39.6% ***

17 17 MUJI Retail 1,064 25% 29.6%

18 18 Mitsubishi Estate Construction & Real Estate 879 15% Less than 10%

19 20 Mitsui Fudosan Construction & Real Estate 752 5% Less than 10%

20 19 FamilyMart Convenience Store 745 3% Less than 10%

21 24 NEC Computer Services 588 18% 20.0%

22 26 Calbee FMCG 584 24% 10.1%

23 23 Meiji Food & Beverages 565 12% Less than 10%

24 22 NTT DATA Business Services 563 11% 29.8%

25 25 Dai-ichi Life Financial Services 544 12% Less than 10%

26 21 Daiwa House Construction & Real Estate 532 -1% Less than 10%

27 New KOSÉ Cosmetics 462 New 16.4%

28 30 TOTO Construction & Real Estate 441 6% 24.6%

29 New ORIX Financial Services 437 New Less than 10%

30 New BANDAI NAMCO Entertainment 428 New 18.7%

31 28 Sekisui House Construction & Real Estate 423 -7% Less than 10%

32 New ABC-MART Apparel 419 New Less than 10%

33 29 Yamato Transportation 411 -4% Less than 10%

34 New Resona Financial Services 390 New Less than 10%

35 New Sumitomo Mitsui Trust Financial Services 379 New 12.9%

36 New Sumitomo Realty & Development Construction & Real Estate 260 New Less than 10%

37 New Daiwa Securities Financial Services 255 New Less than 10%

38 New Matsumotokiyoshi Retail 221 New Less than 10%

39 New Cookpad Internet Services 210 New Less than 10%

40 New Nomura Real Estate Construction & Real Estate 191 New Less than 10%

***The overseas sales of Japan Airlines is the total of their international routes and overseas sales. The sales generated substantially overseas are not publicly disclosed.

* Although overseas sales exceeded 30% of total sales for the corporation as a whole, Softbank, Suntory, Kao, Kirin and Tokio Marine were included in the domestic ranking

** The evaluation of brand value and ratio of overseas sales is based on figures for the publicly-traded Suntory Food & Beverage Limited.

Therefore, Japan Airlines has been evaluated in the domestic rankings this fiscal year.

because overseas sales for businesses operating under respective brands did not.


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Study criteria and methodology

CRITERIA FOR INCLUSION In order to shed light on the value of global Japanese brands and enable comparison of their relative position against a common global measure, brands meeting the following criteria were selected for evaluation: 1. The brand originated in Japan: The corporate or business brand is the product of a Japanese

enterprise

2. Financial information is publicly available: The corporation was publicly listed as of 31 October 2015, and analyst reports are available

3. Overseas sales (sales outside Japan) account for at least 30% of the brand’s total sales, based on FY 2014 results: Brands for which overseas sales account for less than 30% of total sales are covered in the ranking of the Top 40 domestic Japanese brands

Note: For brands that also appeared in the Best Global Brand 2015 tables, FY 2015 brand values are

used.

METHODOLOGY Interbrand’s methodology for evaluating brand value is based on the brand’s financial strength, influence on purchasing decisions, and contribution to future earnings. In the same way that securities analysts analyze and evaluate the value of a company, we analyze and evaluate the value of a brand by asking, “What is its future earning potential?” This methodology has been certified compliant with ISO 10668, the global standard for measuring the monetary value of brands as established by the International Organization for Standardization. The evaluation is made up of the following three specific analyses: 1. Financial Performance: Project the company’s future earnings First, we estimate the current and future revenues of the business operating under the brand. We then subtract operating expenses, taxes, and capital cost of investment to calculate future economic profit. Our analysis is based on published corporate data; future projections are based on analyst performance forecasts. (Note: For analyst forecasts this evaluation relies on the IFIS Consensus, an average of major analysts’ estimates published by IFIS Japan, Ltd. http://www.ifis.co.jp/en/index.htm. The IFIS Consensus data used is current as of December 10, 2015. 2. Role of Brand: Derive the brand’s contribution to profits Next, in order to derive the brand’s contribution to future economic profits as calculated in the analysis of financial performance, we analyze the brand’s influence on customer purchasing decisions. In evaluating the role that a brand plays in consumer purchasing trends, we perform benchmark analyses by industry that draw on our database of brand value evaluations accumulated over the past 25 years. Based on these industry benchmarks, we perform a proprietary analysis to derive a brand contribution score.


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3. Brand Strength: Evaluate the brand’s contribution to future earnings Brand strength analysis measures a brand’s power to inspire what the client needs to sustain future earnings—market loyalty, repeat purchases by consumers, and lock in—and discounts brand earnings to derive a present value. Our evaluation offers a systematic means of determining a brand’s risk based on the 10 factors below that we believe are key. These include not only external factors such as market position, consumer recognition and favorability, and brand image but also internal factors such as support for the brand among management and employees and the company’s brand protection system.

This results in a score on a 100-point scale that is converted into a discount rate that can be applied to future brand profits to derive brand value.

Brand Strength ScoreINTERNAL FACTORS EXTERNAL FACTORS

- Clarity - Governance - Authenticity - Differentiation - Presence- Commitment - Responsiveness - Relevance - Consistency - Engagement


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About Interbrand Interbrand is the world’s leading brand consultancy, with a network of 29 offices in 22 countries. Since it opened for business in 1974, Interbrand has changed the way the world sees branding: from just another word for “logo” to a business’s most valuable asset. Publisher of the highly influential annual Best Global Brands report and Webby Award-winning brandchannel, Interbrand believes that brands have the power to change the world—and helps its clients achieve this goal every day. Interbrand’s combination of strategy, creativity, and technology delivers fresh ideas and insights, deep brand intelligence, clear business opportunities, and compelling brand experiences. Interbrand has divisions specializing in healthcare (InterbrandHealth) and retail (Interbrand Design Forum in North America and HMKM in Europe and Asia). Interbrand is part of the Omnicom Group Inc. (NYSE: OMC) network of agencies. For more information, please visit us at Interbrand.com and follow us on Twitter, LinkedIn, Instagram and Facebook. Interbrand Japan was established in 1983—historically the third office in Interbrand’s global network, following London and New York. Interbrand Japan provides a full suite of services through strategy, creativity and technology to build brand and business value for various Japanese organizations and associations, Please visit http://interbrandjapan.com to learn more. Contact Tokyo Masamichi Nakamura, Executive Director Hideaki Kuroki, Senior Director [email protected]

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Best Japan Brands 2016 Report - interbrandjapan トップ · has released its Best Japan Brands 2016 report. The report, ... Brands are ‘business strategy brought to ... process