The top five brands grew by 10% in value but with little movement, with no newcomers or dropouts amongst Switzerland’s top five brands.
Behind dominant leader Nestlé (brand value up 11% to CHF21.3 billion), Rolex (brand value up 32% to CHF10.2 billion) now ranks second, surpassing UBS (brand value up 6% to CHF9.28 billion) and Roche (brand value down 3% to CHF8.05 billion) in ranking.
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes over 100 reports, ranking brands across all sectors and countries. The world’s top 50 most valuable and strongest Swiss brands are included in the annual Brand Finance Switzerland 50 2023 ranking.
Rolex becomes runner-up for both brand value and brand strength
In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 100,000 respondents in 38 countries and across 31 sectors.
Rolex demonstrates the resilience of luxury brands in the post-COVID era, following an increase in demand in key markets such as the USA and UK. In addition to brand value, Rolex’s brand strength also improved, taking it to a BSI of 88 out of 100 and a corresponding AAA rating.
Rolex boasts a large and resilient customer base, whose demand Rolex can count on despite market turbulence. Its subsidiary brands, like the ultra-exclusive Patek Philippe, also enjoyed new success in the past year. This growth phenomenon is not limited to Rolex and luxury watch manufacturers. According to Bain and Co., the luxury brand market has grown by 21%.
With key domestic brands like TAG Heuer (brand value CHF2.51 billion), Omega (brand value CHF4.29 billion), and Jaeger-LeCoultre (CHF1.42 billion), this is good news for the Swiss brand landscape.
Nespresso is fastest-growing Swiss brand, up 217% with Alpiq behind, up 87%
Nespresso (brand value up 217% to CHF2.72 billion) is this year’s fastest-growing Swiss brand, attributed to parent brand Nestlé’s financial disclosures. Behind Nespresso, Alpiq (brand value up 87% to CHF993 million). The power generator was greatly assisted by high energy prices, nearly doubling the brand’s revenue in the last year. In the Swiss market, Alpiq avoided high gas prices through hydroelectric infrastructure, while consumers in other markets bore the brunt of the high prices.
Nestlé retains title but lacks sustainability perceptions with moderate Sustainability Perceptions Score
As part of its analysis, Brand Finance assesses the role that specific brand attributes play in driving overall brand value. One such attribute, growing rapidly in its significance, is sustainability. Brand Finance assesses how sustainable specific brands are perceived to be, represented by a ‘Sustainability Perceptions Score’. The value that is linked to sustainability perceptions, the ‘Sustainability Perceptions Value’, is then calculated for each brand.
Despite an increase in brand value and a good business year, Nestlé still faces a moderate image in terms of sustainability. In the new Brand Finance Sustainability Perceptions Index, Nestlé received a Sustainability Perceptions Score (SPS) of 4.1 out of 10.
Nestlé’s image is still shaped by its position as a producer of disposable packaging, as well as controversies surrounding unethical advertising and forced labour. In response, initiatives like paper-made, recyclable Nespresso capsules and the expansion of plant-based product ranges responds to consumer demand for greater sustainability and in turn, reflects in brand awareness.