Retail rises to the top in top 40 most valuable Canadian brands ranking

• Fastest-growing retailers include HomeSense, Winners, and Dollarama
• lululemon lunges into the Top 3 for the first time
• Financial Services brands RBC and TD remain resilient, retaining the top two positions

TORONTO, Oct. 19, 2023 /CNW/ - Canadian retail brands have demonstrated their resilience in the new Kantar BrandZ Top 40 Most Valuable Canadian Brands ranking, revealed today, despite ongoing economic challenges. The top three highest growing brands in the new Canadian brand ranking are discount retailers HomeSense (No.30; +38%), Winners (No.28; +32%) and Dollarama (No.10; +19%), reflecting Canadian shoppers' need for greater convenience and value. New-entrant Maxi (No.34; US$669m) and re-entrants No Frills (No.37; US$580m) and Food Basics (No.40; US$520m) demonstrated the Retail category's positive contribution to the Top 40 ranking, as it grew 9% year-on-year.

lululemon (No.3; US$17.3bn) also showed exceptional performance, as it entered the top 3 for the first time and increased its brand value by 8% on the back of strong financial results and international expansion. Having pledged to manufacture all its clothes from sustainable materials by 2030, the multinational athletic apparel retailer showed why having a strong purpose – the concept that brands should contribute to the greater good of society beyond just selling products – is an essential part of its DNA and its success.

Fellow apparel brand Aritzia (No.29; US$1.3bn) achieved the status of being the most different brand in the ranking, and its still-limited footprint leaves it plenty of room for expansion in the future.

The total value of the ranking dropped slightly this year by -7% to US$186 billion, compared to last year's phenomenal post-pandemic recovery of 49%. Canadian Financial Services brands, despite global pressures and recession threats, continue to play a dominant role, with twelve brands accounting for over half (52%) of the total ranking's value, and five brands appearing in the Top 10. RBC (No.1; US$34.7bn) remains the most valuable Canadian brand in 2023 has retained the number one position since the rankings began in 2019. RBC saw positive movement across all metrics, driven mostly by being perceived as more salient and meaningful to customers.

"We're honoured to once again be named Canada's most valuable brand and grateful for the continued trust of those we serve. For over 150 years, RBC has been committed to supporting our clients and communities by bringing them the advice and support that help make ideas and dreams happen—no matter how big or small. This incredible recognition is a testament to the work and dedication of our employees, who make our best moments possible every day," said Dave McKay, President & Chief Executive Officer, RBC.

Scott Megginson, President, Kantar Canada, said: "Much of the movement in this year's report involved value retail brands, reflecting the significant behavioural shifts among Canadian shoppers. Research showed that value, convenience and word-of-mouth resulted in brand value growth for the fastest risers and new entrants compared to the remaining brands in this year's Top 40.

"While shoppers continued to exercise prudence during difficult economic times, they also continued to pay for premium brands that differentiated themselves from their competitors by being innovative, different, offering great customer experience, and trying to improve consumers' lives with a genuine sense of purpose."

The Kantar BrandZ Top 10 Most Valuable Canadian Brands 2023

Rank 2023	Brand	Category	Brand Value 2023 (US$M)
1	RBC	Financial Services	34,701
2	TD	Financial Services	25,447
3	lululemon	Apparel	17,318
4	Bell	Telecom Providers	16,335
5	Telus	Telecom Providers	10,363
6	Bank of Montreal	Financial Services	9,060
7	Rogers*	Telecom Providers	7,243
8	Scotiabank	Financial Services	7,039
9	CIBC	Financial Services	5,089
10	Dollarama	Retail	3,523

Building demand in Canada

Over the last five years, top Canadian brands have demonstrated a downward trend in Demand Power, a metric used by Kantar to measure demand for a brand based on consumer perception. The four drivers of Demand Power are Distinctiveness, Convenience, Purpose and Advanced.

Clothing retailer Winners and Dollarama are bucking this trend, relying on Demand Power to drive sales. Maxi, Tim Hortons (No.14; US$2.9bn) and Shoppers Drug Mart (No.20; US$2.2bn) lead the way in terms of their Distinctiveness, which means having great advertising, a clear look and feel, and well-designed products and services. Tim Hortons has invested heavily in customizing content for different digital platforms and tops the Brand Purpose Index, helping it to reach a younger audience.

Second overall in the Canadian Top 40 ranking is TD (No.2; US$25.4bn) and is one of the Advanced brands that excels in the quality of its mobile experience, along with several other brands across different categories, notably Telecom Providers Bell (No.4; US$16.3 bn) and Telus (No.5; US$10.4bn), Financial Services brands Bank of Montreal (No.6, US$9.1bn) and Scotia Bank (No.8; US$7.0bn) and airline Air Canada (No.23; US$1.6bn).

Other key trends highlighted in the Kantar BrandZ Top 40 Most Valuable Canadian Brands report include:

• Green Fashion: With a focus on using sustainable materials, ethical methods of production, and circular business models, Canada is emerging as a clear leader in this fast-growing area, one which is expected to reach $12.1 billion in 2027. Home to numerous green fashion start-ups, Canadian brands are manufacturing clothes using low-impact fabrics and have achieved notable success such as lululemon.
  
  
• Inclusive design: 22% of the Canadian population is living with disabilities which outpaces other wealthy countries. Brands should think carefully about inclusive design – the practice of creating products that are accessible to as many people as possible – as this can be a powerful avenue for innovation.
  
  
• Health and wellbeing: Studies show that Gen Z in Canada (and elsewhere) is easily the most stressed-out of generations. The de-stigmatization of mental health issues has led to more people seeking treatment. Canadian brands have been leading the way on this issue. For example, Bell's 'Let's Talk' campaign, which has been running for more than a decade, seeks to mainstream discussions of mental health. Smaller brands are also giving a percentage of every sale to mental health organisations.
  
  
• Electric mobility: Significant investments by the Canadian Government into electric vehicles (EVs) and infrastructure, along with access to raw materials such as lithium, places the country in prime position for automotive and technology brands to take advantage of a more widespread adoption of electric mobility as it becomes more affordable.

The Kantar BrandZ Most Valuable Canadian Brands ranking, report and extensive analysis are available now at www.kantar.com/campaigns/brandz/canada

For an overarching view of brand performance, Kantar has launched a new, free interactive tool powered by BrandZ's wealth of data and Meaningful Different Salient framework. Kantar BrandSnapshot delivers intelligence on 10,000 brands in 40+ markets, offering a quick read on a brand's performance in a category. Explore for free on Kantar Marketplace today. 

NOTES TO EDITORS

*This year's brand valuation reflects the financial merger and acquisition activity of Telecom Providers Rogers and Shaw. Roger's acquired Shaw and all four brands (Roger's, Fido, Chatr and Shaw) and were valued as a part of parent company Roger's. Brand value year-on-year growth is not organic therefore due to the acquisitions. For each of the individual brands, Kantar BrandZ has separate financial information available from Roger's financial report and consumer opinions available through Kantar BrandZ data.

About Kantar BrandZ: Kantar BrandZ is the global currency when assessing brand value, quantifying the contribution of brands to business' financial performance. Kantar's annual global and local brand valuation rankings combine rigorously analysed financial data, with extensive brand equity research. Since 1998, BrandZ has shared brand-building insights with business leaders based on interviews with 4.2 million consumers, for 21,000 brands in 54 markets. Discover more about Kantar BrandZ here.   

The Kantar BrandZ Top 40 Most Valuable Canadian Brands report is the most definitive and robust ranking of the country's brands available. The 2023 ranking draws on opinions of more than 49,000 respondents about 840 brands across 64 categories. The ability of any brand to power business growth relies on how it is perceived by customers. Grounded in consumer opinion, Kantar BrandZ analysis enables businesses to identify a brand's strength in the market and provides clear strategic guidance on how to boost value for the long term. To be eligible for inclusion, brands must meet on of the following criteria:

• The brand must originate in Canada.
• The corporate parent is listed on a stock exchange in Canada.
• Canadian origin privately owned brand with its complete financial statements available in the public domain.

About Kantar: Kantar is the world's leading marketing data and analytics business and an indispensable brand partner to the world's top companies. We combine the most meaningful attitudinal and behavioural data with deep expertise and advanced analytics to uncover how people think and act. We help clients understand what has happened and why and how to shape the marketing strategies that shape their future. Find out more: www.kantar.com

SOURCE Kantar Canada Inc.

Priscilla Dixon, Kantar, Mobile: [phone], Email: [email protected]