Each year UK-based valuation and strategy consultancy, Brand Finance appraises the brand values of the world’s leading logistics companies. Once again, UPS seized the top position by a long-shot, with a brand value of US$22 billion. FedEX took second place with its brand valued at $17 billion—up 31% from 2016 following its acquisition of TNT Express.
Brand Finance’s valuation methodology is a multi-step process which begins by giving each company a letter grade (up to a AAA+) based on perceived power/strength of the brand. This grade is ultimately a product of quantitative and qualitative factors such as marketing investment, familiarity, loyalty, staff satisfaction and corporate reputation. Once a grade has been assigned, brand value is then calculated based on the proportion of a company’s revenue that is contributed by the brand.
This year saw no shortage of developments leading to large shifts to brand values. UPS’ brand value for example, was elevated by drone testing initiatives, and its recent order for fourteen 747-8Fs. UK-based Royal Mail’s brand value meanwhile, fell 21% following the Brexit referendum. Additionally, mail volumes continue to fall and its stock price is at an all-time low.