Star Wars success propels Disney to world’s most powerful brand

LONDON — Walt Disney is the world’s most powerful brand, thanks to the likable robots R2-D2 and C-3P0, who propelled the entertainment company to the top spot following the box office success of Star Wars VII: The Force Awakens, London-based Brand Finance said.

With Star Wars’ brand value alone estimated at US$10 billion (S$14.2 billion), Disney is reaping rewards from the US$4 billion it paid for Lucasfilm in 2012, according to Brand Finance, which ranks brand strength based on familiarity, loyalty, promotion and marketing investment. The latest Star Wars instalment was the fastest film to take in US$1 billion and is Disney’s most successful. Star Wars toys have so far generated more than US$700 million, Brand Finance said today (Feb 1).

Toymaker Lego A/S fell to the No 2 spot following a fine by German regulators for trying to prevent retailers from discounting Lego products, as well as Lego’s refusal to sell artist Ai Weiwei the bricks in bulk, which the Chinese artist called an act of censorship. The Top 10 powerful brands list was rounded out by companies including L’Oreal SA, Nike and Coca-Cola.

Brand Finance distinguishes brand strength from the financial value of brands, which it also estimates. Apple remained the most valuable brand in Brand Finance’s ranking at US$146 billion, thanks to the success of the iPhone 6. Google surpassed Samsung to become No 2 at US$94 billion.

Brand Finance singled out a handful of Chinese brands for their strong performance. Tencent Holdings’ messaging app WeChat boosted its brand value 83 per cent to US$6.5 billion, and real estate company Evergrande Real Estate Group more than doubled the valued of its brand.

Volkswagen AG was among the year’s worst performing brands, hurt by the emissions scandal that has roiled the company. Its brand value declined by US$12 billion to US$18.9 billion, Brand Finance said. BLOOMBERG