Shell reinforces its title as the UK’s most valuable brand, with other top brands illustrating the UK’s service-oriented economy
Shell's brand value has demonstrated resilience and growth amidst a challenging economic landscape, recording a 1% increase to GBP40.3 billion, reinforcing its status as the UK’s most valuable brand. This slight increase in brand value is particularly notable given the backdrop of falling revenues, a decline in enterprise value, and a drop in the Brand Strength Index (BSI) from 77.2 to 74.2. Shell's financial performance has faced declines, with a 56% tumble in second-quarter profits to USD5.0 billion, attributed to lower oil and gas prices, diminished liquefied natural gas (LNG) trading results, reduced refining margins, and decreased sales volumes.
Despite these challenges and a slight decrease from an AA+ rating to AA, Shell's brand strength remains robust. According to Brand Finance data, Shell maintains high levels of familiarity and recommendation among stakeholders. However, consideration and reputation have experienced a moderate decline, reflecting broader market and operational challenges.
Behind Shell, EY (brand value up 16% to GPB24.7 billion) maintains its standing as the second most valuable UK brand. The 16% increase in brand value is attributed to enhanced financial performance, with 2023 marking a pinnacle year characterised by record global revenues and sustained significant growth. EY's success can be attributed to strategic investments in pivotal partnerships, cutting-edge technologies, and continuous training initiatives to upskill its workforce. EY’s growth contrasts competitor UK commercial services brands PWC (brand value down 6% to GBP19.8 billion) and KPMG (brand value down 8% to GBP11.4 billion), ranked third and seventh, respectively.
Annie Brown, General Manager, UK Consulting, Brand Finance, commented:
“In the 2024 UK 250 ranking, the UK’s top ten most valuable brands have remained largely stable, with BP and Vodafone being the only two brands to swap positions. BP’s brand value increased by 7% to GBP14.9 billion, while Vodafone’s dropped by 17% to GBP11.7 billion. Notably, three of the top ten brands hail from the Commercial Services sector and two from Banking, underscoring the service-oriented nature of the brand powerhouses propelling the UK’s economy.”
EY has become the UK’s strongest brand, with smaller and specialised product UK brands like Greggs and Robinsons proving powerful
Despite experiencing a slight decrease in its BSI score, EY has also become the UK’s strongest brand. Dettol (brand value down 31% to GBP865 million), the UK’s strongest brand back in 2023, has seen a decline in brand value and strength. It now holds a AAA- rating and has fallen out of the top ten strongest brands list. This decline is attributed to decreased recommendation and price premium scores, resulting from increased prices during and following the pandemic to offset rising costs. In turn, this has spurred increased competition from more affordable brands.
On the other hand, several highly focused UK brands have proven themselves strong. Greggs (brand value up 6% to GBP899 million) has become the UK’s second strongest brand. It maintains a AAA rating despite a slight decline in its BSI score. Greggs derives its brand strength from high scores across several metrics, including value for money, consideration, and familiarity. Despite its relatively smaller size, Greggs’ brand strength position is a testament to its firm foothold among UK consumers and its ability to build and preserve brand loyalty.
Similarly, Robinsons has improved its brand value by 25% to GBP327 million, making notable improvements in brand strength. The family favourite squash brand climbed 46 places in the BSI ranking, becoming the UK’s fifth strongest brand. This rise also promoted Robinson to a AAA rating, reflecting high consideration, familiarity, and loyalty scores. Robinson’s improved performance is a reflection of recovered brand strength. This recovery follows its decline in 2023 when it cut ties with Wimbledon, marking the end of an 86-year partnership with the All England Lawn Tennis Club. Robinson’s rise in the 2024 ranking comes together with its first brand refresh in almost a decade, proving highly valuable for the brand and its ability to remain at the forefront of customers’ minds and reinforce its leading position in the UK’s squash market. Fairy (brand value down 2% to GBP361 million) also demonstrates the power of specialised product UK brands, now ranked sixth for its brand strength. Additionally, both Robinsons and Fairy are examples of brands which hold Royal Warrants, which according to Brand Finance data are widely recognised as a of symbol trustworthiness and superior quality – characteristics that can drive brand strength.
Semiconductor brand Arm skyrockets, nearly quintupling in value through AI-driven growth
Arm has driven its brand value to surge 391% to GBP945 million and climb 143 ranks compared to the previous year. The semiconductor and AI boom, coupled with Arm’s unique IP licensing model, have fuelled this brand value growth. Rather than directly producing physical chips, Arm designs and licenses chip architecture to other companies, allowing the brand to focus on development while enabling others to integrate Arm’s chips into their products. Since rejoining the public market via an Initial Public Offering (IPO) in 2023, Arm has performed in line with the trend of AI and semiconductor brands outperforming analyst expectations, further propelling its brand value.
The resurgence of travel, leisure, and tourism to pre-pandemic levels is apparent in many of the UK's fastest-growing brands. Saga emerges as the UK’s second-fastest-growing brand, with its brand value increasing by 57% to GBP213 million. Similar growth trends drive British Airways (brand value up 40% to GBP2.6 billion) and Jet2.com (brand value up 29% to GBP761 million), demonstrating double-digit brand value growth. Strong leisure demand in the post-pandemic era has fuelled improved revenues for these brands, driving brand value growth.
Sky holds largest Sustainability Gap Value of UK brands at £145 million
Brand Finance also utilises its Global Brand Equity Monitor (GBEM) research to compile a Sustainability Perceptions Index. The study determines the role of sustainability in driving brand consideration across sectors and offers insight into which brands global consumers believe to be most committed to sustainability.
The Index displays the proportion of brand value attributable to sustainability perceptions for individual brands. This Sustainability Perceptions Value is the financial value contingent on a brand’s reputation for acting sustainably. From here, Brand Finance’s perceptual research is analysed alongside CSRHub’s environmental, social and governance (ESG) performance data to determine a brand’s ‘Gap Value’. This is the value at risk or to be gained based on the difference between sustainability perceptions and actual performance.
Sky (brand value down 22% to GBP6.7 billion) has the highest ‘Gap Value’ of any UK brand, at GBP145 million. A positive gap value means that brand sustainability performance is stronger than perceived: brands can add value through enhanced communication about their sustainability efforts, so that perceptions are raised to fully account for the brand’s actual sustainability performance.
Sky’s gap value suggests it could generate an additional GBP145 million in potential value for shareholders through enhanced communication of its impact and accomplishments in sustainability.