Volatility in Brand Value

VOL. 0063 – FLORIDA, WEDNESDAY, OCTOBER 08, 2025

Juan F. Arjona Harry

President & CEO Strategee   

Five years hardly represent a time period in which the context may be lost. For many of us five years is only a brief period in which a Strategic Marketing Plan meets two or three normal settings and some other severe adjustment motivated by supervening events in the markets.

Incredibly in five years a corporation (especially when it comes to the large ones) may lose relevance or what is worse, its vedette brand loosing value. However market volatility anchored in tremendous consumer volatility dynamics is destroying belated efforts to accommodate global brands in the markets, but especially in the minds of consumers.

A new middle class is emerging on the planet. It is a kind of technological consumer who favors brands that make everything they expect; are brands that come from below. Its most extreme demands are being met by brands that come up that are scalable motivated by the intoxication of going global and thus enjoy a cash flow unprecedented in recent history.

Just look at the Brand Finance ranking on a comparison of only 5 years; around five years separate a ranking of the other, and there are five brands that disappeared from the Top Ten. Coca-Cola, Toyota, Vodafone, HSBC and Hewlett Packard. 5 years ago were part of a select group of Top Ten, today they have no choice but to become resigned to losing positions and see the technology category brands on the top 10.

In just five years since Apple went from # 27 to # 1, multiplying by nearly 8 the value of its brand worldwide.

We know that-at the end-the most valuable of a corporation is its ability to generate and retain cash flow. Thanks to the cash flow is that corporations can generate innovation. Apple has come to drive more cash than all the American government in a single year.

But... in the end... What is the secret?

The world's most reputable publications confirm this in five basic rules:

1. Radical innovation.

2. Technological innovation that exceeds the value expected by the market.

3. Policy of value capture from the value generated.

4. Continuous innovation.

5. Oriented Branding by Brand Marketing, rather than by Product Marketing.

It is not understood for example how Walmart is not the world's largest digital/virtual retail store, where precisely its EBITDA can withstand the most demanding design of any transactional website platform (in 5 years loses 8 positions).

Only those brands that connect with their market and technology become the language of its constant renewal and innovation, are the ones whose demand will generate and retain cash flow.