Brand Finance published an annual report to evaluate brands based on their value on the market. In 2018 UPS retains its position as the most valuable logistics brand in the world, while German DHL places itself in the fourth position.
UPS brand value is estimated at US$22.0 billion despite decreased profits. The company invests in technological advances, such as ORION project, a navigation system offering updated routes for drivers, which generates around US$400 million in savings.
“The top six brands collectively had a stagnant year, with aggregate brand value growth of just 0.2percent between them, despite increased online retailing and the consequent demand for delivery services. In effect, it appears that the big logistics brands are being squeezed on both ends, by both customers and competitors. This is because local delivery brands are providing increased competition, and the large online retailers are able to demand lower prices.” – reads the report.
Source: Brand Finance
European mail services push the envelope
In terms of value, European brands recorded a significant value growth. DHL places itself on the fourth position (up 5 percent to $10,7 billion), followed by Poste Italiane (up 20 percent to $4,8 billion) on the seventh position and Deutsche Post (up 29 percent to $4,4 billion) on ninth position.
The report indicates that Poste Italiane owes its success to an improved structure. Almost 90 percent of its revenue comes from insurance or financial services and the company seems to have a bright future ahead. Likewise, Deutsche Post included more parcel services thanks to a partnership with DHL, which is part of the same corporation.
Royal Mail continues to struggle
UK’s letters and parcels delivery company experienced its largest drop in brand value in the sector (down 20 percent to US$2.2 billion). The report indicates that Royal Mail’s letter delivery decreased due to a fierce competition from global parcel delivery services such as UPS.
Source: Brand Finance
Overall, the US has the biggest share of the logistics market in terms of brand value with 52 percent of the total. Germany places itself on the second position with 14 percent, and France and Italy on fifth and sixth positions, each taking 4 percent of the market.
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