1、Nation Brands 2017 The annual report on the worlds most valuable nation brands October 2017 Brand Finance Nation Brands October 2017 3.Brand Finance Nation Brands October 20172. Foreword 3 Expert Insights: Attracting Green Field Investment 4 Expert Insights: Nation Brand Strength and M but the USs c

2、haotic leadership has not dented its appeal to foreign investors just yet. Many companies welcome Mr Trumps proposed plans to cut taxes and regulation and seem prepared to ignore the rhetoric. Indeed, the initial investor reaction to Mr Trumps inauguration was positive, with inward investment to the

3、 US jumping nearly 40% in January 2017 compared with the previous month and 35% on the same month the previous year, according to fDi Markets. The same cannot be said for investor reaction to political upheavals in the USs closest ally nation. The UKs decision to leave the EU has done some short-ter

4、m damage to the UKs once-enviable FDI position. The UK experienced a 42% decline in greenfield capital investment year on year in 2016 and a 9% decline in project numbers. Due to the long-term nature of greenfield investment, many such investors have opted to postpone UK expansion or investment plan

5、s until there is more clarity on what kind of agreement the UK is able to strike with Brussels unlike M whether it can continue to cling to that spot will depend on long-term resolution of the UK-EU trading relationship, immigration policies, and many other changes that we will not know the shape of

6、 for years to come. Brand Power Matches FDI Power Courtney Fingar Editor in Chief of fDi Magazine and Head of Content for fDi Intelligence, a specialist division of the Financial Times Future Looks Bright for Singapore Singapore has not only maintained its position as the strongest nation brand this

7、 year, but with a Brand Strength Index (BSI) of 92.9, it is also the only one to score over 90. Singapores reputation for investing in its citizens has particularly boosted its People and Skills result, factored in the BSI calculation. The SkillsFuture movement initiated by the government, which all

8、ows every Singaporean aged 25 and above to secure S$500 for professional development, helps to maximise the nations potential. More than 400,000 people undertook training in 2016, an increase from 379,000 in 2015. The states willingness to invest in the development of its people demonstrates a nurtu

9、ring element that many other nations have yet to adopt. Executive Summary Teresa de Lemus - Managing Director, Brand Finance Spain “The events in Catalonia have a direct impact on Spains risk premium, which will increase if the regions independence materialises. Future brand values of Spain and Cata

10、lonia combined could be significantly lower than the current brand value of Spain.” Simon Haigh - Managing Director, Brand Finance Ireland “An island of calm in a sea of macro and micro economic troubles haunting the US, UK, and the EU, Ireland has seen significant growth as a location for domestic

11、and inbound investment.” Massimo Pizzo - Managing Director, Brand Finance Italy “After years of recession, reforms and improved economic conditions have led to a remarkable increase in brand value. Italys brand strength on the other hand has fallen, which can be attributed to the failure of the cons

12、titutional referendum.” Andrew Campbell - Managing Director, Brand Finance Middle East “In the Middle East, the UAE is the absolute champion of nation brand management. It is the worlds third most powerful, coming behind only Singapore and Switzerland, and the most valuable as well as fastest growin

13、g nation brand in the region.” Mark Crowe - Managing Director, Brand Finance Australia “Australia continues to perform consistently, maintaining an AAA- brand strength rating. However, inertia over reform to the taxation system is putting inbound investment at risk.” Offices and Representatives in o

14、ver 20 locations worldwide Brand Finance Network Comments Brand Finance Nation Brands October 2017 17.Brand Finance Nation Brands October 201716. Full Results Most valuable Nation Brands 1-50 Rank 2017 Rank 2016 NationNation Brand Value 2017 (USDbn) Change (%)Nation Brand Value 2016 (USDbn) Nation B

15、rand Strength 2017 (Rating) Nation Brand Strength 2016 (Rating) 11United States 21,055 2% 20,574 AAA-AAA 22China 10,209 44% 7,087 AAAA 33Germany 4,021 4% 3,882 AAA-AAA- 44Japan 3,439 15% 3,002 AAA-AAA 55United Kingdom 3,129 6% 2,942 AAAAAA 66France 2,969 27% 2,339 AA+AA+ 78Canada 2,056 14% 1,810 AAA

16、-AAA- 87India 2,046 -1% 2,066 AAAA- 99Italy 2,034 34% 1,521 A+AA- 1011South Korea 1,845 43% 1,289 AAAA 1110Australia 1,505 15% 1,305 AAA-AAA- 1214Spain 1,410 46% 966 AAAA 1315Mexico 1,049 15% 915 A+A+ 1413Switzerland 1,014 2% 998 AAAAAA 1512Netherlands 1,005 -10% 1,121 AAAAAA 1619Indonesia 845 34% 6

17、30 AA-AA- 1718Russia 832 13% 736 A+A+ 1816Brazil 798 -3% 820 AA 1917Sweden 703 -5% 742 AAAAAA- 2028Taiwan 625 33% 469 AA+AA+ 2125United Arab Emirates 594 24% 478 AAAAAA 2223Saudi Arabia 575 19% 482 AAAA 2321Poland 571 11% 516 AA-AA- 2426Turkey 570 20% 474 A+AA- 2524Norway 550 15% 478 AAAAAA 2620Belg

18、ium 548 3% 532 AA+AAA- 2730Malaysia 489 35% 361 AAA-AAA- 2822Austria 484 -3% 501 AAA-AAA- 2931Thailand 483 37% 353 AA-AA- 3033Philippines 466 38% 338 A+AA- 3127Singapore 464 -1% 469 AAA+AAA 3229Denmark 453 11% 408 AAA-AAA- 3332Ireland 427 24% 344 AAA-AAA- 3434Hong Kong 364 12% 325 AAAAAA 3535Finland

19、 322 20% 267 AAAAAA 3638Argentina 314 33% 236 A-A 3739Chile 301 31% 229 AAAA 3837Czech Republic 299 26% 237 AAAA 3940Iran 250 11% 225 A+A 4043Colombia 239 32% 181 A+A+ 4142Israel 224 19% 189 AA+AA 4236Qatar 223 -6% 238 AAAAAA- 4341South Africa 222 13% 196 AA-AA- 4446Bangladesh 208 22% 170 A-A- 4550V

20、ietnam 203 43% 141 A+A+ 4645New Zealand 199 15% 174 AAAAAA 4744Nigeria 191 7% 178 AA 4848Portugal 181 22% 149 AAAA 4947Romania 175 6% 165 AA+ 5053Pakistan 171 34% 128 AA Most valuable Nation Brands 51-100 Rank 2017 Rank 2016 NationNation Brand Value 2017 (USDbn) Change (%)Nation Brand Value 2016 (US

21、Dbn) Nation Brand Strength 2017 (Rating) Nation Brand Strength 2016 (Rating) 5151Kuwait 170 22% 140 AA-AA- 5252Peru 166 20% 139 A+A+ 5349Kazakhstan 154 6% 145 AA-AA- 5454Hungary 129 26% 102 A+A+ 5557Slovakia 104 30% 80 A+A+ 5656Luxembourg 97 14% 85 AAA-AAA 5755Egypt 88 -10% 98 A+A+ 5861Greece 80 41%

22、 57 AA+ 5958Sri Lanka 77 4% 74 AA-AA- 6060Algeria 70 10% 64 AA 6162Ukraine 68 22% 56 A-A 6264Slovenia 63 20% 53 AA-AA- 6369Panama 63 32% 48 AAAA- 6466Guatemala 62 25% 50 A+A+ 6563Dominican Republic 61 9% 56 AA 6665Iraq 60 17% 51 CCCCC 6759Uzbekistan 56 -23% 72 A+A+ 6873Myanmar 55 25% 44 A-BBB 6971An

23、gola 52 14% 45 BBB 7074Oman 50 22% 41 AAAA 7172Sudan 49 9% 45 CCCCC 7275Morocco 49 20% 40 AA-AA- 7370Lithuania 48 4% 46 AA-AA 7468Bulgaria 47 -3% 49 A+A+ 7567Costa Rica 38 -21% 49 AA-AA- 7684Uruguay 38 33% 28 AA-AA- 7779Kenya 38 27% 30 A+A+ 7881Azerbaijan 37 27% 29 AA-A+ 7976Ecuador 36 -7% 39 AA 808

24、5Latvia 34 30% 26 AA-AA- 8177Serbia 34 2% 33 AA 8278Croatia 33 1% 33 A+A+ 8386Ethiopia 31 27% 25 AA 8482Turkmenistan 31 8% 29 A-A- 8583Yemen 29 3% 29 BBBBB 8680Bahrain 28 -2% 29 AA+AA+ 8790Estonia 28 39% 20 AA+AA+ 88101Iceland 26 83% 14 AAA-AAA- 8987Jordan 25 4% 24 AA-AA- 9093Ghana 25 33% 18 A+A+ 91

25、95Bolivia 23 32% 17 A-A- 9289Tunisia 22 8% 20 A+A+ 9391Tanzania 22 14% 19 AA 9492Lebanon 21 15% 19 A+A 9588Trinidad Goods Tourism, Market, Governance and People & Skills. These are further subdivided into individual metrics. Each metric is scored out of 100 and together they contribute to an overall

26、 Brand Strength Index (BSI) score for the nation brand, also out of 100. Based on the score, each Nation Brand is assigned a rating from AAA+ to D in a format similar to a credit rating. For example, the UKs score of 85 puts it in 10th place and gives it an AAA brand rating. Step 2 Royalty Rate The

27、hypothetical royalty rate charged is determined by reference to average rates seen in agreements among companies in the industries identified within the economy and corroborated by reference to affordability. Step 3 Revenues The nation brand valuation is based on five year forecasts of sales of all

28、brands in each nation. Gross domestic product (GDP) is used as a proxy for total revenues. Forecasts are taken from the world economic outlook of the IMF in local currencies, exchange rate is then applied to individual brand values. Step 4 Weighted Average Cost of Capital (WACC) or Discount Rate In

29、order to account for the risk across each national economy a discount rate is calculated. This represents the average cost of a brands sources of finance and the minimum return required on the brand asset. The discount rate is used to calculate the present value of future brand 67 68 59 67 61 71 55

30、78 72 68 74 59 69 63 65 60 61 69 71 66 71 74 50 66 60 77 54 63 53 64 62 80 61 68 54 77 82 66 71 65 100 59 91 60 71 72 6465 61 88 63 79 WEAK BRAND BRAND “ROYALTY RATE” BRAND REVENUES BRAND VALUE FORECAST REVENUES BSI score applied to royalty rate range to determine exact rate. Royalty rate applied to

31、 forecast revenues to derive brand values. Post-tax brand revenues are discounted to a net present value (NPV) which equals the brand value. earnings (accounting for the time value of money and the associated risk). Step 5 - Brand Valuation The calculated royalty rate is applied to revenue data to d

32、erive a total brand contribution for both the nation brand value (i.e. the nation brand plus corporate brands) and the pure nation brand effect value alone. The resulting figures are then taxed at the local corporate tax rate. The brand contribution after tax is discounted back to a net present valu

33、e using the discount rate. The original brand contribution figures are then added to their discounted values into perpetuity to derive both the nation brand value and the nation brand effect value. BSI (/100) INVESTMENTSOCIETYGOODS & SERVICES GOVERNANCEGOVERNANCEMARKETMARKET PEOPLE & SKILLS TOURISM

34、INVESTMENT SOCIETY GOODS & SERVICES STRONG BRAND Disclaimer Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions produced in this study are based only on publicly available information and certain assumptions that Brand Finance used where s

35、uch data was deficient or unclear . Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the report are not to be construed as providing

36、 investment or business advice. Brand Finance does not intend the report to be relied upon for any reason and excludes all liability to any body, government or organisation. Data Sources Nation Brand Strength Ratings BBB Developing BB B CCC Weak CC C DDD Failing DD D AAA + Exceptional AAA AAA - AA +

37、 Very strong AA AA - A + Strong A A - Brand Finance Nation Brands October 2017 21.Brand Finance Nation Brands October 201720. Helping you drive business performance in an age of marketing accountability Our Approach Helping you drive business performance in an age of marketing accountability 2 . G O

38、 V E R N A N C E 3 . S T R A T E G Y 4 . C A M P A I G N 1 . I N S I G H T INSIGHT How well are we currently doing? How can we track our performance? Insight services help to uncover drivers of demand and end user decision journeys. Identifying the factors which drive behaviour allows an understandi

39、ng of how brands create economic impact. Brand Audits Brand Scorecard Tracking Brand Contribution Analysis GOVERNANCE How do we engage, direct, and manage all relevant stakeholders? Governance services to help set up an ongoing framework for brand decision- making and management. We use insight from

40、 all stakeholders to develop approaches that are accepted and promoted by all relevant parties. Governance Advisory Project & Agency Management Stakeholder Management CAMPAIGN MANAGEMENT Where should we invest budgets? Strategic evaluations of campaign activities, focus and spend to ensure resources

41、 are allocated to those activities which have the most impact value and support your positioning long-term. Market Structure Analysis Strategic Prioritisation Budget Setting BRAND STRATEGY How can we increase the value of our nation brand? Strategic branding services enable brands to be leveraged to

42、 grow economies. Scenario modelling will identify the best opportunities, ensuring nation brand decisions create the most beneficial results. Brand Architecture Brand Name Development Brand Positioning Nation Brands Services Clients Our Clients Every country aims to drive some form of competitive ad

43、vantage for their products through the countrys brand image. Some use tourism advertising, some FDI campaigns, and some global events such as the Olympics. But all these drive the “inbound”, which in an economic context is equivalent to focusing on imports only. What about exports the “outbound”? Af

44、ter all, most countries have a better chance to ride out an economic slump due to their export concentration. In the international marketplace, consumers have a much wider choice of products from different countries. They seek higher assurance of quality than what they simply get through the place o

45、f origin. Gone are the days when just saying “Made in XYZ” was enough. Clearly everything manufactured in Vietnam, Thailand, India, Australia, Turkey, China or America cannot be all great and vice versa. Consumers need a warranty and assurance from the governments about the quality of products the c

46、ountry is exporting. And the solution simply lays in a strong “National Quality Mark” which endorses the quality and authenticity of the products from the country. Key advantages of a strong national quality mark: Builds strong brands from the country Improves quality perception and global competiti

47、veness Drives local manufacturing Improves financial performance of the companies using the national quality mark Supports smaller and up-and-coming brands Due to the efforts of the national mark program called “Vietnam Value”, Vietnams processed food industry now contributes upwards of US$17 billio

48、n of Vietnams exports. The apparel industry makes up over US$22 billion of Vietnams exports. These economic contributions are absolutely crucial for Vietnams overall growth and would not have been entirely possible without the concentrated efforts by Vietnams government. Turkeys national quality mar

49、k program TURQUALITY is aiming to reach a US$500 billion export volume by 2023. The Turkish government has been investing in R&D, innovation, design, and branding to improve global competitiveness and to boost exports to reach the target. There are a few critical aspects to developing a national quality mark for a country: A national mark must be owned and managed by the government and not held by a private enterprise. It cannot just pay lip service to the products without actual quality control and investment. It needs a clear outl