Samsung announced today that it has become number five in the Best Global Brands 2020 list announced by Interbrand, a global brand consulting company, with its largest-ever brand value of USD 62.3 billion.
Despite the challenging business environment brought on global companies by COVID-19 in 2020, Samsung saw a 2% rise in brand value from USD 61.1 billion in 2019 to USD 62.3 billion this year. Samsung ascended to the global top five in three years after reaching number six in the list of Best Global Brands 2017.
The company has been recording consistent growth in terms of brand value since starting in 43rd place in 2000 when Interbrand began publishing the Best Global Brands. Since entering the top ten with a number nine rank in 2012, Samsung has continued its steady climb, reaching 6th place in 2017 and 5th place in 2020. Samsung’s move upwards in Interbrand’s list of 100 most valuable brands in the world was backed by the continuous introduction of innovative products and implementation of broad marketing activities on the global stage.
Response to COVID-19, CSR, innovation in lifestyle-related products and continued investment in future growth engines drive brand value
According to Interbrand, major factors that played a critical role in Samsung’s growth were:
· Rapid response to COVID-19 through global activities for corporate social responsibility (CSR) and integrated global campaign
· Company-wide activities dedicated to sustainable development
· Continuous launch of innovative products including Galaxy Fold, The Terrace and BESPOKE refrigerator
· Consistent investment to lead the development of advanced technologies, such as Artificial Intelligence (AI), 5G and Internet of Things (IoT)
In response to COVID-19 repercussions, Samsung Electronics has made multiple donations according to country-specific needs to help communities overcome difficulties. Samsung also successfully ran a global campaign with the message, “Get through this together” on social media channels and outdoor billboards in Times Square in New York, Piccadilly Circus in London, Duomo di Milano in Italy and the Entertainment Building of Hong Kong as part of its endeavors to engage and communicate with consumers in difficult times. Additionally, Samsung garnered positive feedback with a campaign where photos and stories submitted by consumers through social media were collected and made into video ads for outdoor display to cheer up consumers around the world. The COVID-19 campaigns were launched in tandem with ongoing campaigns for Samsung’s CSR vision, Enabling People, and various education programs for future generations, such as Solve for Tomorrow, Smart School and Innovation Campus.
Samsung’s devotion to sustainability in all aspects of business management also contributed to a boost in brand value, as demonstrated by the eco-friendly packaging for Samsung TVs and smartphone cases utilising recycled materials. Above all, unwavering efforts to achieve innovation despite challenges posed by COVID-19 were among the main contributors that drove the company’s growth into the top 5.
Samsung’s Mobile Communications business has solidified its leadership in the 5G smartphone market and resonated with Generation Z with the Galaxy A series and marketing activities such as the Awesome campaign. The company also demonstrated continued innovation by creating a new product category with the introduction of the Galaxy Z Flip. In the network business, Samsung has established its position as a leader in 5G, by pioneering new markets and expanding partnerships with businesses in key markets such as the US and Japan.
In the Visual Display business, Samsung has been leading the TV industry by launching of cutting-edge products. Samsung has also continued efforts for sustainability in this sector, introducing products that improve accessibility for the disabled and users with colour vision deficiency, and launching the eco-friendly packaging project. In digital appliances, Samsung continued product innovation to suit changing customers lifestyles with the BESPOKE refrigerator and Grande AI washer and dryer. Its campaigns for customer-relevant topics such as cooking, sports, interior design and pet care contributed to closer communication with customers.
In the Memory business in particular, Samsung announced Vision 2030 as a solid number one in the market. Samsung became the first company in the world to produce the EUV-based DRAM and has been continuously making investments in HBM2E Flashbolt applied with AI, automotive parts, IoT, AI and 5G for years. The expansion of work-at-home measures resulting in growing demand for server and cloud services is expected to increase sales of DRAM and NAND flash chips. In system LSI, the company continued technological innovation and investment for Exynos and ISOCELL, and reinforced cooperation with major partners such as Audi.
“We started at number 43 with a brand value of USD 5.2 billion in 2000. This year, we stand among the top five with a brand value of USD 62.3 billion, which is a great accomplishment,” said Charles Kimari, Head of the Mobile division at Samsung Kenya. “We couldn’t have made the achievement without the support of our customers around the world. To further enhance our global status, we will continue to engage and communicate with consumers.”
Interbrand evaluates the brand value of businesses based on a comprehensive analysis of multiple factors including financial performance, brand influence on purchase and brand competitiveness.
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