IKEA’s brand value decreased by 4% in 2024 to EUR14.7 billion, resulting in a drop to second in the ranking, according to a new report from Brand Finance, the world’s leading brand valuation consultancy. IKEA’s Brand Strength Index (BSI) score has also declined to 79.1 out of 100. Brand Finance research found that IKEA’s consideration and recommendation amongst stakeholders experienced the most significant decline.
Circular business in the making
Last month Swedish furniture retailer IKEA revealed that it is branching out into the online resale market with the launch of its IKEA Preowned platform. The marketplace, which aims to rival online resale platforms like eBay and Facebook Marketplace, will let sellers list their preloved furniture and homeware by uploading photos and setting a price. The initiative is part of IKEA’s aim to become a circular business by 2030.
The same report points that Norwegian oil and gas producer Equinor has overtaken IKEA to become the most valuable brand in the Nordic region. This is the first time Equinor has claimed the top spot, which IKEA had held since 2013. Equinor’s brand value increase of 24% to 15.6 billion Euros is largely attributed to rising revenues and positive forecasts, fuelled by production increases in 2023 and the brand’s strategic shift towards expanding its renewable energy portfolio.
“Equinor stands at a crucial juncture, balancing its oil and gas heritage with a rising focus on renewable energy. While fossil fuel output is expected to remain steady until 2035, the company’s renewable power production jumped by 34% in Q4 2023, spurred by projects like the Dogger Bank wind farm,” says Cristobal Pohle Vazquez, Regional Manager of Brand Finance in Scandinavia.
LEGO came up as the strongest brand in the Nordic region, achieving a BSI score of 87.9 out of 100, up by 1.9 points year-on-year, earning it an AAA brand rating. In Brand Finance’s research, LEGO excels in familiarity, satisfaction, and consideration, bolstered by decades of brand equity and nostalgia that resonate globally.
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