According to UK-based valuation and strategy consultancy Brand Finance’s latest annual rundown of the world’s most powerful logistics brands, UPS is still both the most valuable and the most powerful logistics brand in 2017, valued at US$22 billion ($29 billion).
Each year, Brand Finance values the brands of the world’s biggest companies, they are evaluated on their power/strength – based on factors such as marketing investment, familiarity, loyalty, staff satisfaction and corporate reputation – and given a corresponding letter grade up to AAA+. Brand strength is then used to determine what proportion of a business’s revenue is contributed by the brand, which is projected into perpetuity to determine the brand’s value. The world’s most valuable logistics brands are ranked and included in the Brand Finance Logistics 25 2017.
FedEx retains its place in second position, valued at $17 billion – 31 per cent up from 2016 following its controversial acquisition of TNT Express – UPS was blocked by EU anti-trust authorities in 2013 from acquiring the business over concerns about market dominance in Europe, FedEx’ subsequent acquisition caused some friction and now the EU’s general court has opened the door for UPS to sue for damages.
Royal Mail dropped from seventh place in 2016 to sixteenth in 2017, with its value down 21 per cent. Brand Finance credits the Brexit referendum with negatively affected the value of many UK brands though notes that Royal Mail’s troubles go beyond this. “Its share price has dropped consistently from September 2016 and now stand at a near all-time low,” the company said in a press release. “Online migration of ad budgets is hitting revenue from direct mail – despite the best efforts of the great and the good of the UK’s advertising and marketing community pitching in for the ‘MailMen’ campaign – while a continuing fall in letter volumes is weighing heavily on Royal Mail given its Universal Service Obligation.”