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Japan’s core industries demonstrate resilience in the face of modest economic growth


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Copyright © 2024 Brand Finance. All rights reserved.
Copyright © 2024 Brand Finance. All rights reserved.
  • Toyota continues its reign as the most valuable Japanese brand ranked in 2024
  • Tokyo Disney Resort: A shining star in the Japanese brand landscape, sole brand with prestigious AAA+ brand strength rating
  • GU records 35% growth, surpasses $1.1 billion in brand value  
  • Toyota has the highest Sustainability Perceptions Value of $6.5 billion; Mitsubishi Group holds highest positive gap value of $291 million


Toyota (brand value up 0.3% to USD 52.7 billion), continues to hold on to the title of being the most valuable Japanese brand ranked this year.

The automobile manufacturer’s brand valuation is supported by its strong reputation for reliability, quality, and durability. Toyota, also the second strongest Japanese brand ranked, has also seen an uplift by 3 points to 89 of 100 and maintaining its AAA rating from the past year, a reflection of notable improvements, primarily attributed to an increase in its brand equity, where Toyota scores exceptionally well.

Tokyo Disney Resort (brand value up 17% to USD 2.7 billion) stands out as the only Japanese brand to achieve the prestigious AAA+ brand strength rating, complemented by a BSI score of 90.8 out of 100. Tokyo Disney Resort’s brand strength is driven by exceptional scores across several metrics, including ‘products’, ‘promotion’, and ‘familiarity’, based on Brand Finance’s research data.

Meanwhile, GU, a leading Japanese fashion retailer, has achieved a remarkable 35% growth in brand value, reaching USD1.1 billion this year. This has propelled GU to climb up 26 spots in our ranking, making it the 112th most valuable Japanese brand ranked for 2024. Last year, GU’s brand value stood at USD807 million. According to Brand Finance’s research, despite not heavily focusing on promotions, GU is perceived by respondents in Japan as both a price premium and volume premium brand.

Japan’s Gross Domestic Product (GDP) reached approximately USD3.86 trillion in 2023, signalling a modest growth of almost 2% in comparison to the previous year. This growth trajectory has also influenced the value of its leading brands across key sectors including automobiles, industrial conglomerates, and electronics. The top 300 brands listed in this year’s ranking by Brand Finance hold a grand value of USD692.2 billion. On a year-on-year basis, Japanese brands ranked on the overall have recorded a 4% growth compared to 2023. 

Other highlights from the Japan 300 2024 report include:

  • Mitsubishi Group (brand value up 2% to USD35.5 billion), holds the second position while Mitsui (brand value up 6% to USD32.5 billion), takes third place as the most valuable Japanese brands ranked
  • Iyemon (brand value USD299 million), with a slight increase in its BSI score of 87.4 of 100 and a AAA brand strength rating, takes the third spot as the strongest Japanese brand in the rankings
  • Nippon Steel (brand value up 35% to USD3.8 billion) is the country’s second fastest-growing brand ranked, followed by TOYOTA BOSHOKU (brand value up 33% to USD997 million), rounding up the podium


Alex Haigh, Managing Director of Brand Finance Asia Pacific, commented:

“While Japan’s overall GDP growth may be modest, performance of the leading brands across key sectors like automobiles, diversified industries, and electronics paints a more nuanced picture. These brands, with their unwavering commitment to reliability, quality, and global influence, are not only weathering economic uncertainties but also actively propelling Japan forward in the global marketplace.” 

The 2024 Sustainability Perceptions Index finds that among Japanese brands, Toyota has the highest Sustainability Perceptions Value of USD6.5 billion meanwhile Mitsubishi Group has the highest positive gap value of USD291 million.

 About Brand Finance

Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance for more than 25 years, Brand Finance evaluates the strength of brands and quantifies their financial value to help organizations of all kinds make strategic decisions.

Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.

Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on over 5,000 brands, surveying more than 150,000 respondents across 38 countries and 31 industry sectors. Combining perceptual data from the Global Brand Equity Monitor with data from its valuation database enables Brand Finance to arm brand leaders with the data and analytics they need to enhance brand and business value.

Brand Finance is a regulated accountancy firm, leading the standardization of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671 and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.

Definition of Brand

Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.

Brand Strength

Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.

Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.

Brand Valuation Approach

Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.

The steps in this process are as follows:

1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.

2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.

3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.

4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.

5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.

6 Apply the royalty rate to the forecast revenues to derive brand revenues.

7 Discount post-tax brand revenues to a net present value which equals the brand value.

Disclaimer

Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such 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 study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.

The data presented in this study form part of Brand Finance’s proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.


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