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Move
Automotive
Finance
Luxury
Media
Retail
Sport
Tech
of Possibility
In the Decade
At a time of deep reflection, a more compelling vision of the
the deepest form of relevance future and the rest is history.
is increasingly being driven by
an uncompromising approach The lifespan of an organization
to fundamental human issues. was contracting before 2020;
Businesses that do not yet the pandemic and our collective
know, very specifically, which awakening will only serve to
Welcome to
constituents they are systematically accelerate that trend. Jeff Bezos,
disadvantaging (and how) are CEO of Best Global Brand,
at risk because in this hyper Amazon, a business so large
transparent world, the truth will it is almost planetary, said: “I
Best Global
out, and customers will “cancel”. predict one day Amazon will fail.
Amazon will go bankrupt. If you
PayPal is one of 2020’s fastest look at large companies, their
risers, thanks to a radical application lifespans tend to be 30-plus years,
of its values and the trust those not a hundred-plus years.”
Brands 2020
actions drive. In 2015 it decided
to prioritize customers’ financial While it’s hard to conceive of a world
interests over its own higher revenue in which the 100 Best Global Brands
products. Despite an immediate are no longer in our lives, we are
stock market drop of 9% this undoubtedly at a point of divergence.
→
move unleashed long-term growth. A tipping point for many. Businesses
More recently, Paypal has begun a that cannot serve citizens and
program to redistribute capital from brands that fail to gain the consent
shareholders back to its lowest paid of customers will not stay ahead
employees to ensure that everyone of our constantly renewing
who works at PayPal can pay their expectations and they will fail.
bills. At a time of anxiety, there’s
not much that matters more. Climate change is the next
I
apocalyptic event we face, so
Microsoft has become a Top 3 Best sustainability has to become a radical
Global Brand in 2020. It’s CEO, priority for organizations and brands.
n 2020, in a year of turbulence have become stronger as a result Satya Nadella, argues that in the Microsoft has committed to being
so seismic in scale and rapid of the COVID effect, which has future: “you’ll only have permission carbon negative (not just neutral)
in impact that the world is still accelerated digital transformation to profit as a business if you have by 2030 (and Shell dropped off the
computing the effects, the trends, such as cloud-based tech the consent of customers.” In this Best Global Brands list this year).
aggregate value of the Top and streaming, across sectors, we see that as people begin to
100 Best Global Brands has reinforcing the dominance of hold business to account, choice is Change, once again, is creating
grown by 9%. Their total brand technology first brands. morphing into consent and brands winners and losers and posing
value exceeds $2 trillion. are mediating the commitments a difficult choices. The real question
Crises recast the tacit contract business makes to its constituents. may be, are you going to lead from
As the pandemic and wider between organizations and people. In this mix brand is still a promise, the future or manage your decline?
social outrage exposed fault Certainly, we are seeing that now. but a promise of something
lines in society and polarized As rising expectations dissolve deeper. Done right brands offer an
people further; we see a similar into anxiety, people are demanding equilibrium between business and
divergence in the Best Global more of the businesses they buy customer. A set of shared values.
Brands with 43% of brands into. There is a growing sense of
growing, and 57% declining in human disempowerment, a growing Only 41 brands from our 2000
value (vs 29% declining in 2019). awareness of the power of brands, ranking remain on the table today.
This years’ winners are notable and consumers are beginning to At one time, it was inconceivable
for particularly fast growth; the see their consumption choices that the DotCom Boomers Yahoo
average increase amongst the as votes of confidence. In some or AOL could fail, or that we’d fall Charles Trevail
top 3 brands alone was 50%. It’s instances, organizations have out of love with our Nokia handsets. Global Chief Executive
clear that in 2020, strong brands more power than governments. But Google and Apple showed us Officer, Interbrand
Best Global Brands 2020: Automotive 5
Automotive
07 08 11 20 36
brands analysis:
-8% -3% -4% -11% +1%
51,595 $m 49,268 $m 39,756 $m 21,694 $m 14,295 $m
40 42 44 47 55
Possible futures
→
New -12% -2% -5% -3%
12,785 $m 12,568 $m 12,428 $m 12,267 $m 11,301 $m
59 79 86 93 95
T
here are 15 automotive
brands in the Best Global
-8% -1% -9% -13% -10%
Brands top 100, making
10,553 $m 6,379 $m 5,830 $m 5,077 $m 4,965 $m
it the second largest
sector, behind tech. This
emphasizes how close
a relationship consumers have with model, has racked up a highly
their cars, how much of their own impressive share price valuation.
personal identity is tied up with which
brand they drive, and therefore how And then there are the luxury
valuable automotive brands are. marques such as Ferrari and
Porsche, whose full order books
Though sales have slipped across have so far cushioned them from
the board this year, several recession, or at least moved its ill
manufacturers have seen their brand effects further down the track.
value stay surprisingly strong.
While almost all the automotive
There are mainstream manufacturers brands have slipped slightly in
who have executed a smart pivot to brand value this year, they’re not
an electric future, like Toyota and alone – only big tech has weathered
Hyundai; the latter have bucked this year’ storms unscathed.
the general downward trend of the
market, and are also demonstrating But the more forward-looking
the eastward shift in this sector. brands are now building strong
foundations to take on a future
Tech-led disruptor Tesla, with which will be greener, cleaner
its direct-to-consumer sales and hopefully brighter.
Best Global Brands 2020: Automotive
20 years of
N. OF AUTOMOTIVE
automotive
BRANDS RANKED
INDUSTRY VALUE
AUTOMOTIVE
growth
CHANGE
YEAR
The sector’s brand value, and
$M
%
the number of brands in the Best
Global Brands top 100, has risen
steadily over the last two decades. 2020 270,759 -3% 15
It’s notable how quickly the sector
bounced back after recessions. 2019 279,250 2% 15
2018 275,067 3% 16
2017 266,829 4% 16
2016 256,604 9% 15
2015 234,439 11% 15
2014 211,920 15% 14
2013 184,853 15% 14
2012 160,422 13% 13
+135
%
2011 142,212 11% 12
2010 128,026 -4% 11
2009
2008
133,030
146,528
-9%
4%
12
12 +111
%
AUTOMOTIVE SECTOR GROWTH
2007 141,463 9% 13
2006 129,578 7% 12
2005 121,547 5% 12
2004 115,883 6% 11
2003 109,448 2% 9
2001 vs 2020 2010 vs 2020
2002 107,185 -7% 8
2001 115,381 0% 8
2000 115,780 - 7
Best Global Brands 2020: Automotive 9
The Interbrand
view: The
time is now
→
I
t’s the make-or-break moment
for many of the world’s
leading car manufacturers.
Interest in EV technology
continues to accelerate. In Asia
Pacific, 54% of consumers are
considering some kind of EV as their
next purchase; in Europe, 56%
of consumers fall into the same
consideration category – and in North
America, a market synonymous with
gasoline, consideration has reached
41%, according to Deloitte’s 2020
Global Automotive Consumer Study.
Manufacturers are faced with a
challenge. Leading OEMs are sat on
$1.3tn worth of legacy investments;
factories with systems, processes
and highly trained employees built
to produce a product that seems
Best Global Brands 2020: Automotive
01
Get radical
and recalibrate
your range
Innovation is an imperative at the
core of all successful businesses. But
for the OEMs in particular, this can
no longer be just about incremental
product innovations and new models.
In uncertain times, the best way
to protect your core is to innovate
radically around it. But where should
OEM innovation efforts be focused?
The mantra is: Remove the
novel. Focus on the core.
Execute against demand.
For instance, consumer interest in
increasingly obsolete. Production the need for vehicles definitely autonomous vehicle technology
and demand have stalled. Global car exist. The big questions for has remained relatively flat over
sales plummeted 71% in China in manufacturers now, though, are the past five years. While it makes
February; 47% in the US in April; and how and where to invest to shore sense for the likes of Amazon to
80% in Europe in the same month. up long-term financial viability. spend big and acquire start-up
Global sales are expected to decline companies like Zoox, the reality
by 20-25% from pre-pandemic WHAT NEXT FOR THE is that, in the short term, the man
forecasts – with production estimates WORLD’S LEADING OEMS? on the street is more interested
tracking roughly the same. There’s a one bright spot in in control than convenience.
this current crisis, which is that
So how can the world’s leading manufacturers have learnt from However, interest in EVs is reaching
automotive manufacturers the damage caused by the 2007- a tipping point in Europe and Asia,
afford to change right now? 2009 financial crash. This time so now looks like the right time to
Also, can they afford not to? round they have more cash in double down on investments and
reserve, they have a greater grip collaborations that accelerate EV
IT’S NOT ALL BAD NEWS… on costs and they have a stronger production and distribution.
Consumers around the world expect focus on what is most profitable.
intercity travel to shift from plane Collaborations – and in some
and train to an increased use of Indiscriminate slashing of budgets instances acquisitions – will
cars. According to McKinsey, one is not the solution they are be paramount in reducing risk
third of consumers value constant employing this time round – instead, and capital investment. Auto
access to a private vehicle more any changes will be made with OEMs partnering with tech
than they did before COVID-19. a careful eye on future strategic firms can benefit both sides.
goals, inventory weak spots and
Google reports that 93% of keeping margins manageable. But there’s a subtle but vital
consumers are using their car difference between focusing on the
more – and search volume for So what does that look like in core and focusing on the profit.
‘Best Car Deals’ grew 70% practice? Here are three key
globally, year on year. strategies that automotive brands Premium manufacturers like,
Consumer interest, desire and should be adopting now. for instance, Jaguar Land
Best Global Brands 2020: Automotive 13
Rover, could learn much from a 02 03 and complement traditional sales
Know your Be shaped by
mainstream success like Toyota. and service center models and build
digital platforms that reduce friction,
dark side aspiration, not
Car companies need to re-establish making it easier for customers to
their position as pioneers of access and engage with products,
by trauma
production. This essential move may on their terms – ultimately unlocking
not produce lucrative results for some Anxiety can evoke the dark side new, more lucrative revenue streams.
time, but doubling down on change of any business, and brands that
will accelerate not just profits, are blind to theirs are at greater In times of crisis, innovative brands Innovative finance packages,
but survival in the longer term. risk of succumbing to problems. must think from the future back, customer-centric pricing strategies,
rather than from the present forward. and on-demand subscription models
This strategy runs along two As recession bites, there is an all have the potential to minimize
parallel tracks: Streamlining an increased likelihood that existing The dealer model is a case in point. It entry barriers for new customers.
already existing process so that customers may default on car has been a mainstay of the industry Luxury brand Porsche, for one, has
it stays productive and profitable, loans – many of which are owed to for many years, but it has certainly already started implementing such
while using the cash generated carmakers’ finance arms. This poses not been without its pitfalls – it has services through their Porsche Drive
from that to build a more efficient, two challenges: short-term cashflow a reputation for poor standards of and Porsche Passport programs,
future-proof structure. Part of that limitation and subsequent long- customer service, cynical practices making even the most exclusive
could involve cutting wasteful and term investment priority options. and price-gouging, and on the forms of mobility more accessible.
unprofitable low-volume products, servicing side a real issue with levels
while another aim would be to make Demand for used cars appears robust of expertise and profiteering. TIME FOR ACTION
future production more modular in the US and Asia – and showrooms The future is not going to wait. There
by sharing parts and production filled with cheaper second-hand Consumers aren’t happy with the are disruptors and potential rivals
equipment across multiple models. models, brought about by an dealer experience. They’d like waiting in the wings – many from the
increase in returned or reclaimed their car buying to happen closer fast-moving, flexible and well-funded
Toyota is one example of a company vehicles, creates an attractive to home. Which is where digital world of technology rather than the
which has taken those strategies short-term fundraising option. comes in. According to Google solid but staid engineering tradition.
to heart; it maximizes the use of data, 18% of auto shoppers would Not coincidentally, all of the top five
common parts and processes But in the immediate short-term, buy a vehicle sooner if there of this year’s Best Global Brands –
throughout its range, making its sales data risks boosting the was a purchase option online. Apple, Amazon, Microsoft, Google
capital expenditure one of the lowest perception of demand, skewing and Samsung – have been linked
in the sector. However, it has also customer desire for traditional The same is true of parts and to vehicle development recently.
kept a strong focus on innovation, carbon-fueled vehicles. This service. Consumers anticipate
particularly in hybrids, while keeping misleading surge could potentially increased online ordering of parts Now is the time to rethink everything
development costs in check thanks reduce the incentive and/or urgency and would like to see more traditional – which is difficult for a sector that
to collaborations with companies to switch to an EV-first approach. servicing to be carried out at home, has long product cycles, large and
such as Subaru and Yamaha. rather than in the service center. inflexible production processes and a
OEMs must be sensitive to the thoroughly entrenched sales model.
OEMs should strip back on all fact that urgent change is coming. In the short term, OEMs need to think
but the most profitable elements Now is the time to get ahead of the carefully about how to enhance But if not now, when?
of their traditional revenue curve, not to take easy short-term
streams, preserving only the options, no matter how immediately
essentials and pushing capital attractive and convenient.
investments to the future.
The future is not going to wait.
There are disruptors and potential
rivals waiting in the wings
Best Global Brands 2020: Automotive 15
The customer’s
view: From
icon to cocoon,
glamor to utility
→
F
reedom has always been the start of the decade (from 25m).
a huge part of the car’s We can’t underestimate the social
appeal. But in 2020, significance of the car. Between 1949
‘freedom to’ has changed and 1964 (and beyond), the ways
to ‘freedom from’. The idea we shopped, ate, worked; where we
of picking up friends, going lived and how we socialized; how
to the beach, driving to an event or we vacationed; how we dated (and
even just commuting in comfort has who); how we engaged with popular
been replaced by avoiding public culture and who we idolized – even
transport, staying away from other what we valued – all changed as a
people – and in many people’s direct result of the automobile.
case, not commuting at all.
No cars would mean no plush
It wasn’t always like this. In late 1950s suburbs. No drive-in movies. No
America, having a car was everything. shopping malls. No Golden Arches.
For the first time, vehicles were
universally accessible. As per Henry The very tenets of western
Ford’s prediction just 30 years earlier, consumerism are built on four
“any man with a good job can afford wheels. Simply having a car said
an automobile”. By 1958, there were ‘I’ve made it!’ More importantly
68m+ cars registered in the United it shouted adventure, freedom,
States – up more than two-fold since discovery, excitement and liberation.
Best Global Brands 2020: Automotive
THE NEXT GOLDEN AGE? holiday bookings for next year’s 70 YEARS ON, WHAT HAPPENED? market. There are no longer any
season are already up by 200%. really bad cars – only dull ones.
2020 has changed everything. Cars can be an identity purchase;
The revolution is coming… Again. Across the US, the #vanlife trend a statement of who we are. What The net result: we rent cars, even
If you’re leading an auto brand in is booming. As is the price tag. does a Mercedes say about you? when we own them. Our relationships
2020, undoubtedly you’re feeling A Mercedes Sprinter might cost They are advertisements for you on with our vehicles are transient. At
the strain. But let’s not miss the $40,000 new. Converted, the value wheels, or at least they should be. best, we want the next model. We
opportunity. If you lead an auto of what’s essentially a trade vehicle care the most when we buy – but
brand in 2020. This. Is. It… can rise to anything from $100,000 But now, while our cars are still almost as quickly as we’ve driven our
to over $400,000. Most suppliers a big-ticket purchase, they are cars off the forecourt, they disappear
For the first time, in a very long time, have 10 month-plus waiting lists. too often just a necessity. A into the background narrative of
as consumers, we’re actually excited convenience. At worst, a utility. our lives; they’re a functional and
about leaving the house. We want What does this mean? It’s more proof Cars – and car brands – just don’t physical manifestation of the routine.
to be outside. We really want to be of the vehicle-as-cocoon idea; the seem to mean what they did. Emotional equity depreciates almost
outside. And outside looks very freedom of the open road, plus the as quickly and almost as dramatically
different. Because when you can’t safety of having your very own space. As consumers, our relationships as that of the machine itself.
go outside, adventure no longer The pandemic has in some ways shot with our cars are increasingly
means an expensive vacation. It’s attitudes right back to the 1950s. functional. We now ask: Is it safe? For too many of us, our cars are like
not the annual family trip to Spain or All of a sudden, those vintage travel Is it reliable? Is it economical? our washing machines; functional
Greece; it’s not backpacking in Peru. posters of winding roads through Given the advancements in machines that serve a purpose.
parks and forests are seductive production capabilities and new You buy the best one you can
For the first time in decades, as rather than out-of-date. Flying technologies, the answer to these afford, then forget about it. No
consumers, we want our cars. thousands of miles to stay in a hotel questions is ubiquitously ‘yes’ at one loves their washing machine.
Moreover, we need them. We seems both dull and dangerous. pretty much every point across the But does it have to be this way?
think that the landscape is set for
a new golden age in auto travel. The new adventure is closer to home
In the United Kingdom, the National and involves your own wheels, your
Caravan Club reported that sales own space and your own itinerary.
of motor homes had risen by 71% We’re all going on a road trip.
in July. More than a third (37%)
of those sales were from people Have the world’s leading
who had never owned a caravan. OEMs caught on? And how
34% of new sales were made by do they take advantage of this
those under the age of 44. Caravan unprecedented opportunity?
FROM ‘WHY EV?’ TO ‘WHY NOT?’ of consumers are considering some ‘ADD TO BASKET…’ dealership. They’re just somewhere
kind of EV as their next purchase; you can feel and touch the car before
What we value, and what we want in Europe, 56% of consumers The ways we buy cars are changing. ordering online. It’s an increasingly
to say, now have a greater sense fall into the same consideration attractive model – Volvo EV spinoff
of urgency. The symbols we use category – and in North America, a Malcolm Myers, founder-CEO of Polestar is also using that formula,
to communicate our perspective market synonymous with gasoline, consultancy EIV, said this year that as is Chinese brand Lynk & Co.
on the world are more meaningful. consideration has reached 41% . – even before Covid – the current
Cars have always been an model is actually broken because Too many people have found the
instrument of self-expression. In April, the Chinese government it does not offer the end-to-end enforced visit to a dealer ends in
This emotional need is unlikely committed $1.4bn to subsidize the digital shopping experience that feeling patronised, hassled and
to change. But what we say construction of charging stations online customers have come to ripped-off. That can’t be healthy for
and how we say it is shifting. across the country. European expect. It’s a long way from the the long-term survival of that method
governments continue to introduce classic online shopping experience of buying a car. Instead, the new
C Space research shows that 71% new purchase subsidies, tax consumers have come to expect breed of DTC startups, and the new
of consumers are more conscious breaks, and a combination of other from Amazon, ASOS et al. Myers or established manufacturers who
of the environment as a direct result consumer incentives to encourage says: “The car classified operators are pivoting towards a customer-
of the Covid-19 lockdowns around EV adoption (over and above depend on intermediaries. And facing online experience, are
the world. We are more aware the tight emission restrictions does it still make sense for dealers shaping the future of car buying.
of our collective impact on the they place on manufacturers). to have expensive forecourts
environments around us – and on Partnerships and infrastructure with large amounts of stock?” It’s a big-ticket item, but consumers
each other (directly and indirectly). collaborations with local and are now habituated to click-and-
regional government will continue He predicts the rise of new-wave buy almost everything else. Trust
The pertinent question for many to play a significant role in the platforms which allow car buyers is crucial, of course, but reputable
consumers is shifting, from expansion of the EV market. to complete the whole transaction sellers will build a customer
‘Why EV?’ to ‘Why not EV?’ The online in one place – just like the base sooner than many think.
more accessible the technology In the near future, the cars we $4bn-revenue, eight-year-old
becomes, and the more accessible choose to buy will signal much Carvana, in the US, and Cazoo, in As McKinsey have pointed out: ‘In
the pricing of EV models, the more than status. Increasingly, the UK. These services threaten to both buying and servicing, a next
lower the barriers for entry. consumers want to show that they shake-up the whole business with normal seems to be emerging…
are contributing to the solution end-to-end car buying services Digital becomes more important
The influence of this consumer and signaling sustainability. including finance, insurance, along the entire purchase
reflection is already visible. Although warranties, free home delivery and a funnel, with half of consumers
demand was low, the Tesla Model 3 We think that the most successful seven-day money-back guarantee. being interested in online and
and Jaguar I-PACE were the best- car brands will go beyond simply contactless sales and service.’
selling models in the UK, this April. helping customers make an And then there’s the Tesla model,
Demand will continue to increase as informed decision, they will actively where the whole process is online. 18% of shoppers would buy
interest in EV technology continues encourage it, at every point They do have physical showrooms, a vehicle sooner if there was
to accelerate. In Asia Pacific, 54% across the purchase journey. but they’re nothing like the traditional a purchase option online.
18 %
of shoppers would buy
a vehicle sooner if there was
a purchase option onlineTHE RETURN OF DIY CULTURE economic circumstances, the COCOONS OF MOBILITY A third of consumers value constant
culture of ‘mend and make do’ access to a private vehicle more
From the consumer perspective, currently seems more prevalent. In 2020, of course, everything than they did before COVID-19,
there’s a duality to DIY servicing. More urgent. In many instances, changed – but drivers rediscovered according to McKinsey, and half
On the one hand, the product has we’ve had to muddle through. the sense of personal freedom a car say that they are open to extending
malfunctioned. It’s an inconvenience. can bring. The sidewalks emptied of their use beyond just travel to
And a cost. But on the other, it’s Parts suppliers, however, are commuters, now home-working, but connect with the world in a safe
an opportunity. The consumer financially weaker than the the streets filled up with drivers who way (including experiences like
emotionally invests in a solution. big manufacturers they serve. didn’t want to risk public transport. visiting drive-in movie theaters,
They carry out the repairs (often According to The Economist, concerts and food venues).
learning or utilizing new skills). nearly a quarter of 400-odd stock Travel by car became a more
market-listed parts-makers face attractive option, as the only Once you step out beyond the front
Upon completion, there is a sense immediate cash shortfalls. means of travel that provides door, the car becomes the ultimate
of accomplishment; of pride. They safety and control today. In a safe destination. Whilst you’re in
hate that the car broke down in the In this challenging environment, post-Covid world, that safety and that cocoon, you’re protected from
first place. But they love that they the D2C models start to look control take on new meaning. the world outside – and all the
were able to fix the problem. And in increasingly appealing for these They transcend the functional limitations that come with it, right
that sense, the machine becomes smaller suppliers. Will these and become deeply emotional. now. No disease. No face masks.
just a little bit more ‘owned’. parts manufacturers bypass the No new rules or ways of being. Just
OEMs altogether and forge strong “I love my little car,” Hannah, a you and the road (and maybe the
Are we entering a new age relationships with a new market? 40-year-old mother from Manchester, kids too). It’s just like it always was.
of the home mechanic? And UK, told C Space researchers about
what does this mean for OEM- The automotive companies who driving her Toyota Yaris. “I get in Consumers around the world
owned service center profits? are quick to realize and capitalize the car and I’m in control. With the expect to shift intercity travel and
on this opportunity have the world the way it is right now, I feel the day-to-day commute away
Consumers anticipate increased potential to emerge from the like driving is one of the only things from current modes of transport:
online ordering of parts and pandemic stronger – not just in that hasn’t changed,” she said. “It’s planes, trains and bicycles.
more DIY work on their vehicles, terms of capital margin gain, but my music; my route; my time. No
according to McKinsey. It makes in terms of the emotional bond one telling me what to do or how to And in the absence of being able
sense. Regardless of individual consumers have with their vehicles. do it. And I’m safe,” she explained to show off what you wear, maybe
the car as an expression of your
In a world where everything seems personality is even more important.
just a little bit more dangerous, The most successful auto brands
control is everything. And right will understand that cars now
now, nothing says control like present a very viable alternative
getting in the car and driving. to broader mobility options – and
Pick the destination. Pick the will actively position themselves
soundtrack. Pick the route. Go. against these alternatives.The analyst’s
view: Driving
into the future
→
T
he automotive sector is
in a state of flux, with the
wind of change blowing
from many directions
– social, political,
environmental, technical.
We’ve covered many of the short-
and medium-term implications, but
here are a few less obvious long-term
trends that could affect the way we
transport ourselves in the future.
Best Global Brands 2020: AutomotiveRESETTING THE MIX MOBILITY AS A SERVICE often drive a newer, nicer car than
they would be able to afford outright.
Until recently, industry commentators Ownership seems to be out of
were almost united in seeing fashion in all sorts of areas – the A recent study from Transparency
a short and dark future for the subscription model is thriving Market Research forecast that the
car as personal transport. The from fitness to furniture, personal global leasing market will grow at
scenario they envisaged saw a hygiene to pet supplies, washer- about 9% from 2020 to 2030. It’s
major shift from personal transport dryers to wine. Car ownership is big business, and getting bigger.
to mass transit. Ever-increasing no different. Owning and running
urbanization and centralization your own car can feel like an But leasing still entails ‘owning’ one
meant that we would all be making expensive, inconvenient hassle. car for a set period. A subscription
use of a dense web of multi-modal model can be far more flexible.
transport solutions involving There are car clubs which appeal to Manufacturers such as Audi,
trains, buses, metro networks, people who can’t afford to own a car Mercedes-Benz and Cadillac have
cycles, walking, ridesharing outright, or don’t want to, such as been trialling a membership model in
services, river boats and so on. younger drivers or those who live in which you can choose a vehicle, then
big cities and don’t often need a car. change it for a different type if your
The car would be squeezed out to needs change. In some examples,
the margins as a taxi vehicle or an Leasing has proved very popular you can, say, have an SUV for winter
occasional rental for trips to the among both individuals and then a convertible for a summer
country or to move bulky items. companies too – in 2019 alone, the holiday. And if you travel to a different
Fewer people would learn to drive, global company car leasing market city you can pick up a car of the same
as autonomous vehicles became grew 3.9% to hit 7.9 million units – make to drive, as though it were a
ubiquitous, and the personal vehicle and seems to have a ready market rental, all through your membership.
would go the way of the dinosaurs. among those who want an all-in-one
It’s funny how things turn out. solution to servicing, tax, insurance, Is it the future? Some version of it
warranties and the other nuisances may well be. Nobody actually wants
Since Covid-19, shared transport of car ownership. Plus users can to pay for all those extras, surely?
has become unpopular and even
officially discouraged. Employees
and employers have discovered
that working from home is not
only possible but, in many cases,
desirable. And if you’re meeting
via video and communicating via
email, text, WhatsApp, Slack,
Teams and the rest, then why pay
expensive property prices to live
near a no-longer-used office?
Why not ditch the commute?
Some companies have already stated
that they’re not going back. This
is now the new normal. However,
the new geographically spread-
out, commute-free workforce has
different transport needs to the
office-bound city commuter. In
their small towns and countryside
cottages they need to get to
local shops, schools and other
destinations not served by mass
transit. In short, they need… cars.
Who would have thought it?ROBOTS? FLYING lane-keeping, hazard detection,
CARS? JETPACKS? automatic braking, and so on
which when all activated together,
Autonomous cars have been on their could be said to constitute a sort
way for many years now. So where of autonomy. But there is always
are they? Why isn’t your car taking the unexpected to deal with, so
you to the supermarket while you don’t expect full autonomy to be
snooze, read or watch a movie? on the spec sheet any time soon.
The answer is that reality is a more And is there a real demand?
complicated place than you’d think. Possibly – but among professionals
It turns out (despite some evidence such as truck companies and
to the contrary) that humans are taxi firms. Highway freight would
actually very good at decoding a certainly be a logical use case,
complex set of inputs and translating and there is a theory that Uber’s
that into steering, braking, signaling business model is predicated on
and all the other elements of driving. future fleets of autonomous taxis.
Autonomous technology is not
quite up to the job yet, other than If that has spoiled your future
very simple trials such as Uber’s transport dreams, fear not – the
fleet of Chrysler minivans which are Spanish city of Barcelona has just
currently trundling carefully around announced a plan to start trials of
some suburbs of Phoenix, Arizona. flying taxis in 2022. In July last year,
the Spanish technology company
What’s more, consumers don’t Tecnalia unveiled its prototype
like to feel redundant. And for a pilotless, one-person air
autonomy contradicts the ideal taxi. Designed to carry a person
of why some people buy a car or load of up to 150kg, it has a
(power and control, for example). cruising height of between 100
Yes, there are functional metres and 300 metres, and can
concerns around technology and cover distances of up to 15km in 15
capability, but also emotional, minutes. Uber, too has been making
subconscious concerns around noises about the aerial taxi market.
redundancy and personal utility.
And a UK-based company called
However, autonomous driving is Gravity Industries is developing
actually arriving in the mainstream, a one-man jetpack, currently for
almost by stealth. Though specialist uses such as military
manufacturers are keen not to call and rescue missions, which could
it that, recent models by Honda, be in use as early as this year.
Toyota and others have a series of
sophisticated driver aids such as The sci-fi future is here. Maybe.
Why isn’t your car taking you
to the supermarket while you
snooze, read or watch a movie?44
HENRIK WENDERS
SENIOR VICE PRESIDENT BRAND, AUDI
-2%
12,428 $m
The brand
view: Future
is an attitude
→
H
ow has your brand
reacted to the
challenges of the
past year?
The global coronavirus
pandemic hit very hard
and has fundamentally changed our
world. More than 10 months in, it’s still
“We are aiming to having an impact. At Audi, we reacted
quickly and conscientiously with the
create a holistic and transition to #stayhome as the health
and wellbeing of our employees is
fascinating premium always at the forefront of our priorities.
We started the #AudiTogether
customer journey” program with the goal of engendering
a sense of togetherness despite the
physical distance. This program served
Henrik Wenders as the hub for all communications
activities during the corona lockdown
earlier this year. The most vital
message we wanted to give the global
Audi community, our customers
Best Global Brands 2020: Automotive 31We see Audi as a compelling
force to shape the future
of premium mobility
The online premiere drew the What has been the biggest
interest of more than 700 million lesson from all of this for your
viewers. Our partners in China have brand and its significance?
embraced livestreams and virtual For me, the coronavirus pandemic
showrooms and offered a 24/7 somehow served as a “test by fire”
online service and consultation for our revised brand strategy.
to stay in close contact with our We developed the strategy as
customers. These efforts have our response to the challenges of
and fans was that “we are in this One high-profile action was to already produced results – in the electrification of mobility, the
together.” We initiated measures shift most aspects of Audi’s day- just the first three months of shift towards sustainability and
ranging from providing emergency aid to-day business to digital to 2020 alone, we had almost three the digital transformation – and
to medical and social organizations make the whole process “corona times more online transactions how we wanted to tackle these
to broadcasting a virtual “solidarity compatible.” How was this than for the whole of 2019. issues in a more human-centric
concert”, that was viewed by over conceptualized and implemented In Europe, too, we have further way. Therefore, we translated the
49 million people. Furthermore, we at Audi, and how has it enabled digitalized our sales and marketing characteristics that have made
launched a “restart package” for you to progress – or survive? activities to adapt to the current Audi successful since it was
our dealerships and sales teams to The pandemic has served situation. For example, with “Audi founded 110 years ago – strengths
reinvigorate our sales activities. to accelerate the digital Live Consultation” – using data including innovation, perfection,
So, despite the current challenges transformation within the Audi glasses – we’ve started offering our fascination and passion – into a
facing Audi, the automotive industry Group. Especially during the customers a contactless alternative future-oriented brand strategy
and human society as a whole, as lockdown phase, we needed to visiting the dealership in person. that is authentic for Audi. We
this pandemic grinds on we are to come up with innovative Another example of how we’re did this by developing a new
continuing to work towards our solutions to ensure that business, utilizing digital: this year’s launch of understanding for our claim,
long-term goal for Audi. Which is to operations and sales didn’t come the new Audi A3 was the first-ever “Vorsprung durch Technik”.
become the most progressive and to a full standstill. In China, for all-digital market launch for us. We’re moving past a sole focus
prestigious premium brand – and to example, the premiere of the Furthermore, about 15,000 sales on technological innovation
shape the future of premium mobility new Audi A4 L – which is one of and service employees and around and placing a bigger emphasis
to make it more sustainable and more the most popular Audi models 20,000 service technicians at on togetherness, people and
harmonized with the way people are sold in China – was our very first retail partner companies have been a more collaborative culture
living today – and in the future. all-digital launch in that market. trained up in new digital formats. to shape a better future.
Best Global Brands 2020: Automotive 33Have the last 12 months reaffirmed and trustworthy as a brand – not
or changed your view on how only for our customers or within the
brands need to exist and operate, mobility industry, but for society
now and in the future? as a whole. We want to be a very
Crises have always been a catalyst clear voice for future mobility – by
for change. The COVID-19 pandemic implementing clear brand positioning
is driving the economy into the on the key issues and challenges
digital future at turbo speed. Also of our times. Our approach: to be
the automotive industry. We need future-oriented and authentic.
to adapt and evolve quickly to all-
new conditions, tackle unexpected What’s next for your brand – where
challenges and transform them you will be focusing in the near future
into opportunities using innovative to ensure growth and success?
and novel new approaches. Our most important areas of focus their values, needs and dreams at a holistic and fascinating premium
The pandemic has shown us very – sustainability and the digital the heart of everything we do. The customer journey – one that offers
clearly that a true dialogue with our transformation – have not been left shift towards sustainability, the a consistent brand experience
customers isn’t about some one- by the wayside due to the pandemic. digital transformation and design throughout. We’re harnessing
off sales or brand interaction. An To the contrary: We are moving full will continue to form the core for the ideas and feedback of our
honest conversation emerges when speed ahead in driving these vital us. Our new global brand campaign customers through interviews,
you establish a serious, equitable developments within Audi, because “Future is an Attitude” reflects our cultural surveys, expert talks and
and sustainable exchange with although the pandemic hit the “pause spirit, which is deeply rooted in our ideation sessions. The key: co-
customers and society. The only way button” on many aspects of global brand DNA: where passion, courage creating this brand experience
for us as a global brand and company activity over the past few months, and curiosity come together – and together with our customers.
to succeed now and in the future climate change hasn’t stopped. automotive progress emerges. This is the attitude at the heart of
will be for us to better understand We see Audi as a compelling force to The foundation for this new strategy everything we are doing at Audi as
what our customers want and expect shape the future of premium mobility. is bringing the new brand character we shift into this new era for our
from mobility products and services. That is why we have refined and into the digital customer experience, brand and for mobility – approaching
If we truly engage in this exchange redefined our brand strategy. Moving the retail experience and into our innovation and the future from
with our customers, I believe this will forward, Audi is strengthening its products themselves. With this a whole new perspective – this
allow us to become more relevant commitment to putting people, approach, we are aiming to create is the key to true progress!
Best Global Brands 2020: Automotive 3536
WONHONG CHO
CMO, HYUNDAI
+1%
14,295 $m
The brand view:
Doing well by
doing good
→
I
t’s an anxious world at the
moment – from Covid-19 to climate
change, political instability to
racial tensions, and #MeToo to
Brexit, there’s a lot to deal with.
How has your brand reacted to
any or all of these situations?
Recently, Hyundai Motor Company
“Having a strong sense refreshed our brand direction and
defined ‘Progress for Humanity’
of brand has enabled as the organization’s vision. This
means that ‘People’ are considered
us to act quickly” as our top priority in everything we
do and through being a brand led
organization we have been able to
Wonhong Cho adapt and respond authentically
during all of these situations. 2020
has been a testing time, but through
brand led thinking we have been
able to respond not just through
marketing communications but
with meaningful initiatives.
Best Global Brands 2020: Automotive 37One high-profile action was Has the last 12 months reaffirmed
your comprehensive response or changed your view on how
to COVID-19. What led to that? brands need to exist and operate,
And how has it enabled you now and in the future?
to progress – or survive? 2020 has meant today’s business
Our actions have been guided by environment is so unpredictable, and
the internal belief that we should we are now entering the VUCA era
act in the interests of others, and (Volatility, Uncertainty, Complexity,
having a strong sense of brand has Ambiguity). COVID-19 has caused
enabled us to act quickly. We have widespread changes, from the way
donated considerable amounts to we operate to the way consumers
organizations around the globe live, and these changes will likely
and supported communities with become our new standard. COVID-19
medical supplies, transportation, has accelerated the need for change
and facilities to fight the spread from digital transformation, the way
of Covid-19. For our customers we we communicate with customers,
have adjusted our own policies to to the way we work internally.
ensure customers have greater Everything is changing and it’s
financial projection at this time, changing fast. Our fundamental
and we have also provided new response to this evolution is to
digital retail experiences to ensure build up an agile organization with
social distancing is adhered to. All an agile corporate culture. This
this has allowed us to connect on framework allows us to rapidly
a deeper level, not just with our respond to the changing customer
customers, but wider communities. needs and ultimately creates a
Living by these principles as a customer-centric company
brand allows us to strengthen
relationships rather than one-off What’s next for your brand – where
actions that fade over time. you will be focusing in the near future
to ensure growth and success?
What has been the biggest Hyundai Motor Company has
lesson from all of this for your outlined a clear 2025 strategy which
brand and its meaning? sets business goals and tactics
We’re living in an era where to establish the organization as a
customers demand corporates leader in the automotive industry. As
to do well by doing good and we the whole industry is transforming,
need to react to this new dynamic. driven by a shift to electrification and
By doing good, as a marketer, we digitalization, all OEMs are faced
mean broadening our perspectives with increased investments as they
beyond traditional manufacturing. look to establish themselves in the
Previously, the company’s value era of future mobility. For Hyundai,
chain mainly focused on product maintaining profitability remains
excellence, but now more social key priority, and will be achieved
values should be reflected in an by continuing to provide profound
ever-expanding value chain. At customer value. The key to Hyundai’s
Hyundai, we believe our brand 2025 strategy will be providing this
can deliver meaningful impact by value in new ways through digital
focusing on a value chain with experiences and personalized value,
social values whilst delivering so we are a brand that can provide
socially relevant messages. a smart mobility experience.
Best Global Brands 2020: Automotive 3908
RITA FELDER
DIRECTOR BRAND AND MARKETING STRATEGY MERCEDES-BENZ CARS
-3%
49,268 $m
The brand view:
Creating a true
luxury experience
→
I
t is an anxious world at the
moment – from Covid-19 to climate
change, political instability to
racial tensions, and #MeToo to
Brexit, there’s a lot to deal with.
How has your brand reacted to
any or all of these situations?
At Mercedes-Benz, many things
“We as an engineering move us. During times of great
uncertainty, providing orientation and
company integrate support becomes more important
than ever. We feel it is vital to develop
creativity as a an attitude - as individuals, as a
society but also as a company.
guiding principle” Let me highlight our sustainability
initiatives to fight climate change.
Sustainability is complex with
Rita Felder manifold ecological, economic and
social facets. We have chosen a
holistic approach to CO2-neutral
mobility. We call it “Ambition 2039”.
It applies to the entire life cycle of
Best Global Brands 2020: Automotive 41Luxury has always
our vehicles - from their development continuously reinvent ourselves
to the extraction of raw materials, - we are determined to reduce
been part of the soul
to production and use, their the footprint we leave on earth
disposal and recycling. Our focus to an absolute minimum.
of Mercedes-Benz
is on a significant reduction of CO2 Another topic that is very important
emissions. In terms of our global to us is Corporate Culture. Our
production, all of our own car and corporate values apply to everyone
van plants will be CO2-neutral from who is part of our global team. Values
2022. When it comes to our vehicles, and guidelines give orientation in
our plan is for our new car fleet to be everyday life and help us do the right
completely carbon-neutral by 2039. thing. Diversity of our workforce is
It takes not only attitude but our strength, and a key factor to our
also determination to get out success. Respect, tolerance and
of our comfort zones and to team spirit characterize our corporate
culture. No form of discrimination, medical equipment and face shields.
harassment or bullying has any One of our most recent
place at Mercedes-Benz. Our collaborations, where we once
Formula 1 and Formula E racing again made use of the power of our
teams have taken a clear stance brand sensibly and brought it in line
for respect and against racism: All with our attitude. When our chief
Silver Arrows now compete in an design officer Gorden Wagener
all-black base coat with the words joined forces with Virgil Abloh, chief
“End Racism” painted on each creative director founder of Off-White
car’s halo. We have committed and Men’s Artistic Director of Louis
to positive action to improve the Vuitton, they united the worlds of
diversity of our teams in both series. fashion and art with automotive to
A brand can show attitude as well. completely shake up established
When Covid-19 hit the world at full ideas of luxury with their ‘Project
speed, we did what most companies Geländewagen’. However, we did
did: we helped in the best possible not want to stop there. A replica of
way wherever we could. In very the design study was produced and
traditional ways - and beyond. Within auctioned off as part of Sotheby’s
the first few days of the pandemic, upcoming “Contemporary Curated”
we decided to use the reach of our auction. The proceeds were
global Mercedes-Benz social media donated to an arts foundation.
channels to “Donate Our Reach”. All of those actions directly
We felt the most important thing we shape our brand image - and
could do is to educate and to inform thus the value of our brand.
in order to help slow the spread of
the virus. We used our power to What has been the biggest
reach some 50 Million people and lesson from all of this for your
encourage them to stay at home. At brand and its meaning?
the same time, we thanked those In challenging times like this
who could not stay at home and year, the world has clearly felt
who are giving their all in these that we are getting through this.
challenging times. In addition to Namely together. People. Nations.
that, we made use of one of our key Companies and brands.
assets: The brilliant brains of our We are grateful that we were
engineers as well as our production able to take a part to cushioning
facilities. For example, we dedicated and mitigating the effects of the
3D printers normally used to make pandemic to some extent.
car components to the production of We believe major brands such
Best Global Brands 2020: Automotive 43This inspiration applies to a brand when creating and
the attitude Mercedes-Benz triggering desire - the desire to
represents to the public. own something extraordinary
With it, we hope to inspire and to within a specific environment
motivate as many people as possible of values or experiences.
to take responsibility for our planet Mercedes-Benz will reshape
and society - because together its product portfolio, brand
we can achieve great things. communications and its sales
network to deliver a true luxury
What is next for your brand – where experience - a luxury experience
you will be focusing in the near future that will be electric, software-
to ensure growth and success? driven and sustainable.
Going forward, the brand will We as an engineering company
see a renewed focus on luxury, integrate creativity as a
making it an integral part of all guiding principle in all of our
products, customer interactions internal processes and external
and digital technologies. Our activities, from product creation
target is to redefine automotive to our customer touch points.
luxury. We strive to offer the Creativity for us means creating
most desirable products and perceivable luxury experiences.
services to our customers by We will further pursue our ambition
providing an enhanced product to offer luxury cars across all
substance, technological segments and sub brands:
product features and services. Mercedes-AMG, Mercedes-
Luxury has always been part of Maybach, G-Class and EQ. The
the soul of Mercedes-Benz. From new strategy will take them to
the brand’s start in the early years the next level - accelerating their
of the last century, Mercedes- development, with clear and
Benz was a contemporary desired targeted plans to unlock their
brand. Luxury itself remains a potential and drive substantial
timeless concept. It differentiates incremental EBIT growth.
as Mercedes-Benz have to give every corner of the globe.
customers orientation and support, We intend to maintain this spirit
especially in uncertain times. of helping and solidarity.
It is our brand’s inherent Naturally, our innovations, products
responsibility to express an and services are our bedrock.
attitude and to use our voice However, other important factors
with purpose. Of course, it is not shape our brand as well.
always easy to live up to these high Our influence is not limited to
expectations of oneself. We are automotive; today the brand has
a global company with different multiple touch points to many
target groups and stakeholders. cultural industries from music, to
Now more than ever, we consider sports and, of course, fashion.
it essential that we coordinate Wherever a customer meets our
quickly and work together in brand, we want to inspire them.
Best Global Brands 2020: Automotive 4555
DR. KJELL GRUNER
CHIEF MARKETING OFFICER PORSCHE
-3%
11,301 $m
The brand view:
Calm, continuous
progress
→
I
t is an anxious world at the
moment – from Covid-19 to climate
change, political instability to
racial tensions, and #MeToo to
Brexit, there’s a lot to deal with.
How has your brand reacted to
any or all of these situations?
The automotive industry as a
“We want to help our whole is undergoing the greatest
transformation in its history. The
community to make global economy is becoming more
volatile – and the Corona crisis is
dreams come true” further exacerbating the situation.
Porsche is not immune to these
developments and the current
Dr. Kjell Gruner framework remains extremely
challenging. In Europe and in the
US, we had to cope with significant
losses in the first half of 2020. At the
same time, we are optimistic that we
will be able to partially compensate
for these dips. Of course, this
Best Global Brands 2020: Automotive 47only applies if there are no further to a positive basic attitude, self- of donations. On a personal level by 2025. However, Porsche will
setbacks caused by the coronavirus. confidence and calmness are as well, many Porsche colleagues always offer combustion engines,
We are managing the crisis important in times like these. helped on a voluntary basis. The particularly in the 911. A primary task
systematically and responsibly During the Corona period, our crisis fundamental attitude is what for the brand will be to cover this
and see it as an opportunity. Our management team met every day matters to us: we want to help our ambidexterity and remain clearly
attractive new products – from the and calmly organized the issues. community to make dreams come positioned and differentiated.
911 Turbo to the Taycan electric If we would lose our heads in such true – and of course, we stand by Apart from that, we think that it
sports car are giving us tailwind. situations, this would quickly spread our community in times of crisis. is crucial to develop our brand
We have set ourselves the target of to everyone else. The more critical in all facets. That comprises the
investing 15 billion euros by 2025 in a situation becomes, the calmer What’s next for your brand – where offer of more flexible ownership
the development of our company. we should be. We take advantage you will be focusing in the near future models such as Porsche Drive
So even in the midst of corona, we of the situation and identify to ensure growth and success? Subscription, a further investment in
are staying on full throttle when additional efficiency measures, At Porsche, we have just launched community building and a continuous
it comes to future topics such as while at the same time opening one of the most significant cars development of our customer
electric mobility and digitization. up further new growth areas. And in our history: the Taycan is the touchpoints. In the last twelve
of course, we acted very quickly first fully electric sports car and months, we have not only trialed
One high-profile action was “Dreams and decisively as a team to put the a significant step in the further novel urban retail formats such as
are made at home”. What led to necessary measures in place. development of our brand. The Porsche Studios but also ramped
that? And how has it enabled Taycan will be spearheading a drive up online sales across the globe.
you to progress – or survive? Have the last 12 months reaffirmed to electrification. Around 50 percent This continuous progress across all
In times like these, it is crucial to be or changed your view on how of all Porsche vehicles could be sold aspects of the brand is crucial for
customer-centric. At the beginning brands need to exist and operate, with a fully electric or hybrid drive the future success of our brand.
of the crisis, our customers were now and in the future?
faced with a lot of uncertainty and Much like for other developments,
had to stay at home. It was important this crisis accelerated underlying
for us to show understanding as developments. In the world of brands,
well as empathy and do something there is a clear shift from being
to encourage them. This insight led product-centric towards contributing
to the #dreamsaremadeathome to our society. At Porsche, we started
campaign on our social media a project two years ago, that aimed
channels. We asked customers at clearly defining a brand purpose
simply to take a photo of their dream and answering the fundamental
car in a garage and send it to us. question what our place in this new
More than 20 brands including world would be. We at Porsche have
BMW, Volvo and Mercedes-Benz found our formula: Driven by Dreams.
came on board after a short As a brand, the place that we want to
while, and encouraged their own have in the hearts and the minds of
community to get involved. our fans should be described with the
We maintained close contact with feeling of making a dream come true.
our customers even during the peak Based on that attitude, it was obvious
phase of the Corona crisis. Virtual that we want to play an active part in
customer consultations via live cam overcoming this crisis. This resulted
or contactless test drives were just in the ‘Porsche helps’ program. For
as helpful as the many measures example, we supported the states of
taken by our dealers. In summary, we Baden-Württemberg and Saxony in
can proudly say that we hardly lost the organization of crisis task forces,
any customers during this time, even providing project managers and IT
during the peak phase of Corona. experts. In addition, we extensively
increased our charity donations
What has been the biggest all over the world. We helped food
lesson from all of this for you? banks with food supplies in Germany,
In our point of view, there are three for example. And we provided
success factors: good preparation, support to numerous hospitals and
teamwork and speed. In addition charitable organizations in the form
Best Global Brands 2020: Automotive 49You can also read
