The 2008 Corebrand ranking shifts a few major global brands up, while also shifting a few down (Microsoft). James Gregory, CEO of Corebrand puts it this way:
“The current economic crisis is not a brand crisis. Corporate brands remain strong in the face of the downturn. However, some strong brands are being run over by the economy because brands are not stronger than the underlying financials of a corporation. For example, GE has a relatively strong brand but has significant financial exposure so the brand is hurting.”
James Gregory is spot on. John Gerzema also agrees that branding is hurting. Via his book, "The Brand Bubble", Gerzema alludes to this present and "impending brand bubble":
"Now, another bubble is hiding in our economy. This bubble represents $4 trillion dollars in S&P market capitalization alone. It’s twice the size of the subprime mortgage market. And it accounts for over one-third of all shareholder value. Credible evidence suggests that financial markets think brands are worth more than the consumers who buy them. The constantly rising valuation of major brands is creating a brand bubble, one that could erase large portions of intangible value in firms and send a shockwave through the global economy."
How will the 2009 ranking look?
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