Michelin brand’s value has grown approximately 30% to $7.9 billion according to Brand Finance‘s latest ranking of the top 10 tire companies. Brand Finance specializes in brand valuation and the valuation of intangible assets.
The sharp increase (+30%) means it overtook previous leader Bridgestone, which saw its brand value fall 6% to $7 billion, resulting in a one-place drop from first to second position.
As well as being the most valuable brand, Michelin is also the strongest. Its Brand Strength Index (BSI) score was up a sector-leading 6% to 86.9 out of 100. The corresponding brand rating improved a notch to AAA, making Michelin the only tire brand with a clear triple-A rating.
Sustainability and technology initiatives have strengthened the Michelin brand, including a concept for a 3D-printed tire that can be adapted to road conditions and never needs replacing which was unveiled last summer to widespread acclaim. Michelin tires also performed well in motorsports, winning at the Le Mans 24hr race and being used in Formula E, which is itself becoming a desirable place to showcase technology for leading car manufacturers.
“A strong brand is about more than marketing,” said Alex Haigh, director of Brand Finance. “Michelin has started direct sales of tires to customers through retail outlets and the internet, a move that helps build a direct relationship with consumers, and allows the company to collect valuable data. It is also widening its sub-brand portfolio, allowing it to sell price-competitive tires and premium ones without cannibalizing market share.”
Michelin is the official tire of the NCM Motorsports Park and the National Corvette Museum.
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