RBC is top of the mountain in terms of brand value, but Kantar numbers reveal discount retailers are thriving in a value-seeking environment.

The Kantar BrandZ Top 40 Most Valuable Canadian Brands 2023 ranking draws on the opinions of more than 49,000 respondents of 840 brands spanning 64 categories. The ability of any brand to power business growth relies on how it is perceived by customers.

The data sees RBC at number one, with a brand value of USD $34.7 billion, a top position its maintained since rankings began in 2019.

TD Bank is nipping at its heels with a value of USD $25.4 billion, with TD and RBC receiving a nod in June’s Kantar most valuable global brand value survey.

Lululemon is in third place, having earned its spot amongst the top three for the first time. The athleisure brand increased its brand value by 8% on the back of strong financial results and international expansion. Its success, Kantar notes, reveals the importance of having a strong purpose – in this case, an environmental focus that includes a pledge to manufacture all of its clothes from sustainable materials by 2030.

However, according to Kantar, the top three fastest-growing brands in the new Canadian brand ranking are discount retailers HomeSense (number 30; +38%), Winners (number 28; +32%) and Dollarama (number 10; +19%). And this phenomenon reflects Canadian shoppers’ need for greater convenience and value (see, Top 10 below).

“Much of the movement in this year’s report involved value retail brands, reflecting the significant behavioural shifts among Canadian shoppers,” says Scott Megginson, presiden of Kantar Canada. “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.”

New-entrant Maxi (number 34; USD $669 million) and re-entrants No Frills (number USD $580 million) and Food Basics (number 40; USD $520 million) demonstrated the retail category’s positive contribution to the Top 40 ranking, as it grew 9% year-on-year.

The total value of the ranking dropped slightly this year by -7% to USD $186 billion, compared to last year’s “phenomenal” post-pandemic recovery of 49%.

According to Kantar, Canadian financial services brands continue to play a dominant role, despite global pressures and recession threats. Twelve brands accounted for over half (52%) of the total ranking’s value, and five brands appeared in the Top 10.

Finally, Maxi, Tim Hortons (number 14; USD $2.9 billion) and Shoppers Drug Mart (Number 20; USD $2.2 billion) 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, Kantar notes, has “invested heavily in customizing content for different digital platforms and tops the brand purpose index, helping it to reach a younger audience.”