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Samsung Leaps Within World’s Most Valuable Brands in 2005
Alfred Sinn

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Korean electronic giant Samsung has raced ahead of Japanese mega-brand Sony for the first time in the annual ranking of The Top Global Brands compiled by Interband, a leading brand consultancy in the US and BusinessWeek publication.

The 2005 rankings rewarded companies that focus on the consistence of their brandings, providing simple and unified identities in every product and market around the world, and also credits those that value every contact and connection with consumers.

The rankings put firms like eBay, HSBC, Samsung and Apple as the top gainers, while brands like Sony, Morgan Stanley, Volkswagen and Hewlett-Packard lost the most ground in branding awareness.

Due to the explosion of new technology like Internet pop-up ad blockers, interactive digital cable channels that allow consumers to skip ads and choose what they want to watch and the fast release of movies on DVD. Firms are finding traditional advertising on the Internet, TV and cinemas even more difficult to imbed their products brandings into consumers’ minds. So the question to ask is how to build up a brand in a world where consumers are increasingly in control of the media?

The brands that rose to the top of this year’s ranking all had widely varied arsenals and were able to unleash different campaigns for different consumers in different media, almost simultaneously. They wove messages over multiple-media channels and blurred the lines between advertising and entertainment.

Perhaps the best example of brand building in this age of media fragmentation is Korean electronics giant Samsung. Over the past five years, Samsung, which ranked 20th, has posted the biggest gain in value of any Global 100 brand, with a 186 per cent surge.

Even sweeter, Samsung surpassed No. 28 Sony in this year’s ranking, a far more entrenched rival as at one time consumers viewed the Korean brands as an inferior and cheaper option to the prestigious Japanese global technology products leader.

Brand values were determined using the method Interbrand pioneered 17 years ago and has since used to value more than 3500 brands. Value was calculated as the net present value of the earnings that the brand expected to generate and secure in for the time frame of July 1, 2004 to June 30, 2005.

In order to be included in the top global brands list, a brand had to be valued at greater than $US2.1 billion ($A2.76 billion). They were selected according to two criteria: First, the brands had to be global, generating significant earnings in the main global markets. Second, there had to be sufficient marketing and financial data publicly available for preparing a reasonable valuation.

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