bloom consulting country brand ranking trade 2013

Bloom Consulting © Since 2003

Afghanistan, Albania, Algeria, Angola, Antigua and Barbuda, Argentina, Armenia, Aruba, Australia, Austria, Azerbaijan, Bahamas,

Bahrain, Bangladesh, Barbados, Belarus, Belgium, Belize, Bosnia and Herzegovina, Botswana, Brazil, Brunei Darussalam, Bulgaria,

Burkina Faso, Burundi, Cambodia, Cameroon, Canada, Cape Verde, Cayman Islands, Chad, Chile, China, Colombia, Congo Dem.

Rep., Congo Rep., Costa Rica, Côte d'Ivoire, Croatia, Cuba, Cyprus, Czech Republic, Denmark, Djibouti, Dominica, Dominican

Republic, Ecuador, Egypt, El Salvador, Equatorial Guinea, Estonia, Ethiopia, Fiji, Finland, France, Gabon, Gambia, Georgia, Germany,

Ghana, Gibraltar, Greece, Grenada, Guatemala, Guinea, Guinea-Bissau, Guyana, Haiti, Honduras, Hong Kong SAR China, Hungary,

Iceland, India, Indonesia, Iran, Iraq, Ireland, Israel, Italy, Jamaica, Japan, Jordan, Kazakhstan, Kenya, Korea Rep., Kuwait, Kyrgyzstan,

Lao P.D.R., Latvia, Lebanon, Lesotho, Liberia, Lithuania, Luxembourg, Macao SAR China, Macedonia, FYR, Madagascar, Malawi,

Malaysia, Maldives, Mali, Malta, Mauritania, Mauritius, Mexico, Micronesia, Moldova Rep., Mongolia, Montenegro, Montserrat,

Morocco, Mozambique, Myanmar, Namibia, Nepal, Netherlands, New Zealand, Nicaragua, Niger, Nigeria, Norway, Oman, Pakistan,

Palestine, Panama, Papua New Guinea, Paraguay, Peru, Philippines, Poland, Portugal, Qatar, Romania, Russian Federation, Rwanda,

Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Samoa, Saudi Arabia, Senegal, Serbia, Seychelles, Sierra Leone,

Singapore, Slovakia, Slovenia, Solomon Islands, South Africa, Spain, Sri Lanka, Swaziland, Sweden, Switzerland, Syrian Arab Republic,

Taiwan, Tajikistan, Tanzania, United Rep., Thailand, Togo, Tonga, Trinidad and Tobago, Tunisia, Turkey, Uganda, Ukraine, United Arab

Emirates, United Kingdom, United States of America, Uruguay, Uzbekistan, Vanuatu, Venezuela, Viet Nam, Yemen, Zambia, Zimbabwe,

Bloom Consulting Country Brand Ranking © TradeEdition 2013

[email protected] / +34 91 308 0286 (CET)Bloom Consulting © Since 2003 Page 01

Development of CountriesHuman Asset ManagementBusiness Strategy

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CountryBrand Ranking ©

During the last decade, Bloom Consulting has developed Nation Brand, City Brand and Place Brand strategies for clients around Europe, Latin America, and the U.S.A. We have worked with political leaders and ministers with a clear objective in mind: to manage the Country Brand as a strategic asset from an economic and political point of view.

Bloom Consulting has offices in Madrid (HQ), Lisbon, Sao Paulo, and Los Angeles.

We have gained the respect of international media such as , , and , who have interviewed Jose Filipe Torres, the CEO of the company.

Mr. Torres is considered one of the top 3 experts in Nation Branding (source: Country Branding Central) and he participates in world-class conferences and forums as a keynote speaker.

Bloom Consulting publishes annually the Bloom Consulting Country Brand Ranking © for Trade and Tourism. It is the most comprehensive Brand Index of its kind, analyzing the brand performance of 187 countries and territories worldwide.

The Bloom Consulting Country Brand Ranking © incorporates unique variables such as the revolutionary Online Search Demand (OSD ©), which measures the online appeal of a country and the Country Brand Strategy Rating (CBS Rating ©), which assesses the effectiveness of a country's communication efforts.

These variables allow us to classify and measure a country brand performance from a new point of view based on hard data rather than perceptions, surveys or expert opinions.

Bloom Consulting Brief Introduction

I proudly present to you our third edition of the Bloom Consulting Country Brand Ranking ©!

This year is a special year, as it marks one decade of Bloom Consulting working in the field of Nation Branding,City Branding and Place Branding.

Each year has brought exciting challenges and projects and I am confident that all the work we have done has prepared us to meet any new future challenges.

As a consultancy firm, we find ourselves at the forefront of big changes - we are now in the digital era of Country Branding.

According to a recent report from The Economist Intelligence Unit (Economist IU - Assessing and explaining risk: Investors’ expectations after the financial crisis) more than 58% of investors assess investment risk online, against 49% who consult directly with their financial advisors. The same study also indicates that 55% of private investors and 53% of corporate investors say that the financial press is a major influence on their investment decision. This is a clear indicator that Countries, Regions and Cities, regardless of their size, can impact investors and decision makers in a completely new way, compared to 5 years ago

As a reference, in 2012 alone, investor made around 63.000.000 online searches related to investment activities at a country level. Imagine the insight you can gain from this data and the conclusions you can draw.

With this in mind, Bloom Consulting has developed a proprietary tool, the Online Search Demand (OSD ©), in order to understand the online behavior of potential investors (see page 7, for more details about OSD ©) and included it in the Ranking Algorithm

I hope this brand ranking can provide you with valuable information and I encourage you to use it as an asset and further evidence of the impact a strong country brand may have on the national economic performance.

Although we would like to go into more detail on each country’s performance, it is impossible to do so in this overview. However, if you are interested to find out more information on your country brand’s performance, please do not hesitate to contact us.

Welcome to the Bloom Consulting Country Brand Ranking © 2013. We hope you appreciate the great results and findings as much as we did!

José Filipe Torres – CEO Bloom Consulting

An introductory note from the CEOWelcome


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A Country Brand or a Place Brand is an asset for nations, cities or regions to be managedin order to achieve different objectives.

According to our Methodology, there are 6 different Country, Region and City Branding (CRC) objectives or dimensionsrepresented in the Bloom Consulting CRC Brand Wheel (see figure 1):

1 – Attraction of Investment (Trade) 2 – Attraction of Tourism 3 – Attraction of Talent 4 – Increase in Pride 5 – Improvement of Public Diplomacy 6 – Increase in Exports

Each of these six objectives, or dimensions, have different target audiences that have different needs. In other words, what attracts each particular target audience to opt for any country, region or city is completely different (see figure 1).

Therefore, Bloom Consulting methodology is used to isolate each objective or dimension and to develop specific strategies for each one of them.

One may ask why the objectives must be isolated if they refer to the same country brand? The reason for this is that a single strategy most probably cannot satisfy the needs of investors and tourists simultaneously. If it does, it becomes a very general message that most probably will not have enough content to make the difference. According to Bloom Consulting theory, only very few countries can satisfy all needs under an umbrella strategy. Therefore each country, with a professionalized Country Brand, Region Brand, or City Brand strategy, should select the target audience and attend to their needs. By strategies, Bloom Consulting does not refer to logos. You can have the same logo for all six dimensions or no logo at all. The brand is not the logo.

Figure 1. Bloom Consulting CRC Brand Wheel objectives, target audience and respective needs


Bloom Consulting's CRC Brand WheelA different approach to Country and Place Branding

Companies General public

Nation

als

Inv

estor

s

Tourists

Workforce

Inv

estm

ent

Tourism Talent Country, Region, City

BrandExports Diplomacy

Prid

eUniqueness

Respect

Adm

iratio

n

Adv

antag

e

Experience

Life Style

There are 6 objectives or dimensionsfor every Country, City and Region

Each dimension has 6 different target audiences

Each target Audience has a specific need


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Another important aspect that reflects Bloom Consulting's approach is its performance measurement system. Bloom Consulting has developed a set of performance dashboards that allows us, for the first time, to measure the impact of Nation Branding in the 6 dimensions. Traditionally, the results were measured only by public perceptions, opinion surveys and interviews with experts. However, with new proprietary tools, Bloom Consulting is now able to measure the impact of the brand strategy with new variables such as Online Search Demand (OSD ©), which measures the appeal of a country for each target audience (see explanation of OSD © in page 7) and the economic impact caused by FDI (Foreign Direct Investment).

However, not all 6 dimensions can be measured in the same way. Inside the 6 dimensions there are 3 that can be measured in a more tangible way and 3 that can be measured only in an intangible way. Trade (Investment), Tourism and Talent, repre-sented at the top part of the sphere in figure 2, are the ones that can be measured in a more tangible way. See figure 2 to understand the current measurement system.

Although we do not discard the importance of the 3 intangible dimensions, Bloom Consulting’s objective is to make Nation Branding Strategy as tangible as possible. Therefore, we focus on the three tangible dimensions and we call it “The 3T approach © ”: 1- Trade (Investment), 2- Tourism and 3- Talent.

Based on these explanations, Bloom Consulting should create 3 independent rankings. One for Trade (Investment), one for Tourism, and one for Talent. For the time being only 2 have been developed - Trade and Tourism.

This ranking deals only with the Trade dimension (Investment).

Figure 2. Current measurement system for each dimension. Trade (Investment) is the dimension selected for this Ranking


Bloom Consulting's CRC Brand WheelA different approach to Country and Place Branding

Companies General public

Nation

als

Inv

estor

s

Tourists

Workforce

Inv

estm

ent

Tourism Talent Country, Region, City

BrandExports Diplomacy

Prid

eUniqueness

Respect

Adm

iratio

n

Adv

antag

e

Experience

Life Style

Present Ranking Current measurement systems

These 3 Dimensions can bemeasured in a more tangible way using metrics such asOSD © and “Revenues”

$

? !

:)

Perceptions OSD ©

Revenue Happiness

These 3 Dimensions can onlybe measured in an intangibleway using metrics such as“Perceptions” and “Happiness”

$

? !

:)

Perceptions OSD ©

Revenue Happiness


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The Bloom Consulting Country Brand Ranking © is derived from the Bloom Algorithm.

This ranking contemplates the Trade (investment) dimension, therefore the Bloom algorithm will only consider investment related figures. This ranking does not try to measure solely country brand perception. The objective of this ranking is to classify how well each and every country is doing in terms of branding, that is, to measure how effective their brand is in the most tangible and realistic manner. For Bloom Consulting to classify the effectiveness of each Country Brand, we analyzed 4 key variables for each of the 177 countries included in this Brand Ranking (see figure 3).

Through statistical modeling, Bloom Consulting was able to rank the countries to compare them with one another. The Algorithm takes into consideration each country’s economic level of development. The result is an accurate and objective Brand Ranking based on hard and soft data. Moreover, the Bloom Algorithm takes into consideration a country's performance in Bloom Consulting's rankings from previous years in order to leverage Country Brand equity.

Figure 3. Bloom Consulting Country Brand Ranking © algorithm variables


The Methodology Understanding how Bloom Consulting developed the ranking

Net Foreign Direct Investment inflows Net Foreign Direct Investment growth 1st VariableThese results demonstrate

a country’s appeal and is animportant variable of the ranking

OSD ©: Business Environment Country Characteristics Sectorial Expertise 2nd VariableIf investors search online about a

country it is a clear indicator of its appeal and is the most important variable of the ranking

Country Brand Strategy Rating (CBS Rating ©) 3rd VariableIf each country is using the mostaccurate country brand strategyis a key variable of the ranking

CountryBrandRanking ©

Official website and Social Media performance 4th VariableIf each Investment Promotion Agency is performing well online, is the least

important variable of the ranking, but still relevant.

1st Variable 2nd Variable 3rd Variable 4th Variable

Trade (Investment)


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Net Foreign Direct Investment inflows

Average Net FDI inflowsbetween 2007-2011

Net Foreign Direct Investment growth

Average growth of Net FDI between 2007-2011

1st Variable

The Foreign Direct Investment (FDI) performance is a very important variable in the ranking. Good economic results, whether achieved by a carefully planned strategy or not, are in part a consequence of good country branding. If one applies common sense to this variable, it is easy to understand that investors prefer to invest in a country with a good reputation rather than to a country for which this is not the case.

Moreover, all information was calculated based on official UNCTAD international FDI statistics as Nation Brandingis aimed at each country’s international audience, rather than the domestic one.

As illustrated in figure 4, Trade (Investment) economic performance is based on:

a) Net Foreign Direct Investment inflowsStrategies and economic returns do not have an immediate impact, therefore the ranking looks at a country’s medium-term (5 years) historical economic performance in FDI revenues. This way, the ranking reflects more consistent trends rather than volatile changes that may occur in the recovering economic climate or due to political instability.

and

b) Net Foreign Direct Investment growthThe growth in FDI of each country is also an important indicator when measuring the economic performance of a country’s brand. Therefore, the Brand Ranking computes the growth rate of FDI over the last five years for more consistent trends, rather than brief volatile changes.

Figure 3. Bloom Consulting Country Brand Ranking © algorithm variables


The Methodology - Continued Details of the first variable




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Traditionally, the only way to understand the appeal of a country to international investors is through market research and opinion studies based on extensive research. Now, for the first time, Bloom Consulting introduces a new measurement system as a variable in the Algorithm that is more accurate, more scientific, regularly updated and reaches a broader audience - the Online Search Demand (OSD ©). By using its proprietary OSD © Tool, Bloom Consulting is able to measure the total global online searches performed specifically for investment and assess international investors’ online behavior and decision-making process when selecting a country. The more online investment related searches a country has from international investors, the more appealing it is, regardless of its size or the type of investment it attracts.

Why is this so relevant?

According to a recent report from The Economist Intelligence Unit (Economist IU - Assessing and explaining risk: Investors’ expectations after the financial crisis) more than 58% of investors assess investment risk online, against 49% who consult directly with their financial advisors.

Bloom Consulting has been able to define and gather all country characteristics (selling propositions and strategic positioning of all 177 countries) and messages or "Brand Tags" used by all the Investment Promotion Agencies. In total, 1.188.250 investment-specific keywords were classified into 50 investment “Brand Tags”, which allows us to understand selling propositions and strategic positioning of all 177 countries in the world. This information was gathered in eight different languages: Chinese, English, French, German, Japanese, Portuguese, Russian and Spanish, and it was used in the 2nd variable (see figure 4).

NOTE: OSD © information for every country cannot be presented in this document but can be ordered. If you are interested in a full OSD © report for a specific country or a group of countries, please contact us at: [email protected] or call us directly at +34 913 080 286 (CET), we can provide you with a cost estimate for a “Basic” or “Premium” report.

Figure 4. “Brand Tags” analyzed via OSD © and used in the 2nd Variable


The Methodology - Continued Details of the 2nd Variable



2nd Variable1. Access to Consumer Markets2. Ease of Doing Business3. Entrepreneurship Ecosystem4. FDI Records5. Government Support6. Investment Incentives7. Labor Market Policy8. Legal System9. Monetary Policy10. Open Market Economy11. Tax Policies12. Workforce

13. Corruption Level14. Cost of Living15. Growing Economy16. Infrastructure & Logistics Facilities17. Natural Resources18. Political Stability19. Quality of Life20. Security & Safety21. Social Welfare22. Strategic Location23. Strong Economy24. Utilities

25. Advanced Sciences Industry26. Agriculture Sector27. Automotive Industry28. Chemical Industry 29. Construction Industry 30. Creative Industry31. Education Sector32. Energy Sector33. Financial Services Sector34. Food Processing Industry35. IT Industry36. Manufacturing Industry37. Wood Industry 38. Mining Industry

39. Medical Care Sector 40. Metal Industry 41. Logistics and Transport Industry42. Oil & Gas Industry43. Pharmaceutical Industry 44. Professional Services Sector 45. Real Estate Industry46. Renewable Energy Sector47. Research & Development Industry48. Retail Industry49. Tourism Industry50. Aerospace and Military Industry

(1) Economist IU - 2010


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OSD ©: Business Environment Country Characteristics Sectorial Expertise

Almost every country listed in the Bloom Consulting Country Brand Ranking © has a Investment Promotion Agency (IPA). The IPA is the official state agency responsible for positioning their respective Country Brand (from a Investment Strategy perspective). The IPA effectiveness can impact the Country Brand performance.

The 3rd Variable is about the accuracy of each strategy set in place by each IPA. This accuracy is measured through the value each “Brand Tag” produces to the country. The value provided to each “Brand Tag” is given by the popularity it has from the OSD © perspective and also from an economic perspective.

A country receives a higher rating if it uses the most searched and valuable “Brand Tag”. If a country receives a poor rating, it means it is focusing on the least searched and valuable “Brand Tags” or not using “Brand Tags” in demand and high value. What is particularly interesting about this rating is that a country rating will not be better if the IPA simply uses all available “Brand Tags”. If they do so and they are not the “correct ones” they will have a poorer rating. The final result is a live snapshot of the supply and demand for information in the international investment market. For example, how much value is the “Brand Tag” “Workforce” bringing to Sweden? What other “Brand Tags” are not being used that could have a positive impact? Or, even more importantly, which are the “Brand Tags” that are being promoted that do not bring value to the Country Brand Strategy? This 3rd Variable is the Country Brand Strategy rating and it is shown in figure 5. For reference, it is used throughout the Ranking next to each country. Exceptions may apply to countries that recently (last year) implemented a new Country Brand Strategy, with an objective to move away from specific perceptions. In this case, the rating does not mean a country is doing poorly but rather the results are not visible yet.

One may question why “Brand Tags” are used to measure the effectiveness of Country Brand Strategies, as they are simply promotional messages or products of a country and not the Country Branding Strategy itself? Bloom Consulting assumes that tourists’ interest for the “product” is the most tangible way to assess Country Brand appeal and, subsequently, the effective-ness of a Country Brand Strategy.

Figure 5. 3rd Variable CBS Rating © and respective scores used in the ranking


The Methodology - Continued Details of the 3rd Variable



Country Brand Strategy Rating (CBS Rating ©) 3rd VariableScore

Description

AAA Very Strong AA Strong A Slightly Strong BBB Very Good BBB

Good Slightly Good

CCC Slightly Weak CC Weak C Very Weak D Poor


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We believe it is essential to consider how well a Country Brand is positioned digitally. In order to do that, we have used“Website Analytics” and “Social Media” to evaluate each country’s efforts to make it visible.

The official Investment Promotion Agency (IPA) website is one of the most important sources of information and it serves as an online gateway to each country. Nevertheless, it is not the only one by far, therefore this variable has less importance compared to other variables in the Algorithm.

In order to assess the performance of each country’s website we used the “Website Analytics” tool where we examined each country’s IPA website and analyzed the number of visits and the average time spent on the web page. The Bloom Algorithm values websites with more visitors, richer content and a higher digital reach.

Additionally, a country’s presence in online communities, such as Twitter and Facebook, has been taken into account, because online social networking is an efficient and a cost-effective way to interact with the public and promote what a country offers. As each social media network has different purposes and a varying degree of popularity, the ranking has treated the two independently.

The assessment criteria are simple. The more “likes” a country’s IPA has on Facebook and the more followers there are on Twitter, the better. If an IPA is not active in social networks or if it does not have an account, the Bloom Algorithm penalizes its online performance, however the country is still included in the ranking.

Both online performance indicators, Website Analytics and Social Media, are shown in the figure 6. While a country’s Online Performance is a relevant variable, it holds less importance compared to the other variables in determining a country’s position in the ranking.

Figure 6. Website and Social Media performance correspond to the 4th variable


The Methodology - ConclusionDetails of the 4th Variable



Official website and Social Media performance 4th Variable


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Bloom Consulting Country Brand Ranking ©2013 TRADE (INVESTMENT) EDITION - WORLD Ranking


World Rank CBS Rating ©

Due to the historical brand equity and the fact that all have strong country brand strategies, China, Hong Kong and Macao have been considered as separate countries in this ranking.

1. United States of America

10. India

8. Brazil

AA

AA

A

A

AAA

A

AA

AAA

A

A

9. Singapore

2. China

3. United Kingdom

4. France

5. Hong Kong SAR, China

6. Canada

7. Germany


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25. United Arab Emirates

11. Australia

18. Luxembourg

20. Thailand

23. Norway

A

BBB

A

BBB

A

A

AA

AAA

AAA

AA

AA

BBB

AA

BBB

BBB

World Rank CBS Rating ©

16. Mexico

24. Poland

22. Italy

17. Netherlands

21. Saudi Arabia

15. Turkey

12. Spain

13. Belgium

19. Sweden

14. Russian Federation

The top 25 includes 8 Asian countries too, with Singapore (9) getting into the top 10 for the first time. This can be attributed to a hugely improved FDI in the past five years and a very strong Online Search Demand. As an improvement, they should turn to Social Media as the way to continue this strong trend.

Additionally, there is a strong presence from the BRIC nations powered by a historically strong economic growth and optimistic vision of the future, causing China Brand (2), Brazil Brand (8) and India Brand (10) all to improve on last year’s results in the Country Brand Ranking. Nonetheless, all these Nation Brands will suffer a decrease in ranking in the medium run, with the Russian Federation (14) displaying the first sign of this trend, having lost 4 positions compared to last year.

At 8th place, Brazil Nation Brand leads Latin America thanks to its strong Online Search Demand performance. However, this is also surprising as it also registered its lowest FDI in five years. Mexico (16) has also had a very impressive increase in its FDI while also providing a very exciting Social Media presence.

Once again, Australia (11) finishes strongly despite their geographical disadvantage, thanks to very strong increases in FDI and Online Search Demand.

Finally, Turkey (15), Saudi Arabia (21) and the United Arab Emirates (25) lead the Middle Eastern countries, but they have all decreased in the ranking since last year as a result of very poor online presence in Social Media and Website Analytics.

For the third year in a row, the United States of America are the winners of the ranking. This is no surprise though, having registered their strongest level of FDI for the past three years and also the largest online appeal in the world.

The rest of the top 5 most successful Nation Brands is split between Europe with the United Kingdom (3) and France (4) and Asia with China (2) and Hong Kong (5). China and Hong Kong have both increased due to their best year ever in terms of FDI Strategy.However, they have been penalized as neither utilizes an active Social Media platform as a component of their Country Branding Strategy. This would be the way forward if they were to challengethe United States at the top of the Brand Index.

The United Kingdom Nation Brand leads Europe, partly due to its improved FDI, but also, thanks to their hugely impressive Social Media use in promoting themselves as a profitable destination for trade. We also see France Nation Brand (4) improv-ing from last year due to another improvement in their FDI and their promising online presence.

Furthermore, Europe is strongly represented in the top 25 with 12 countries making an appearance. Strong performances from the rest of the European economies of Germany (7), Spain (12) and the Neth-erlands (17) actively demonstrate their consistent positioning as the safest region thanks to the European Union. Spain Nation Brand, de-spite such economic turmoil and corruption scandals, maintains the 4th position in the ranking as last year.

Luxembourg (18) has lost 80% of its FDI figure since last year as a result of a revision of the international investment position manual by the World Bank, as Special Purpose Entities and other financial intermediaries have been excluded.

Bloom Consulting Country Brand Ranking ©Top 25 - Highlights


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The top 25 includes 8 Asian countries too, with Singapore (9) getting into the top 10 for the first time. This can be attributed to a hugely improved FDI in the past five years and a very strong Online Search Demand. As an improvement, they should turn to Social Media as the way to continue this strong trend.

Additionally, there is a strong presence from the BRIC nations powered by a historically strong economic growth and optimistic vision of the future, causing China Brand (2), Brazil Brand (8) and India Brand (10) all to improve on last year’s results in the Country Brand Ranking. Nonetheless, all these Nation Brands will suffer a decrease in ranking in the medium run, with the Russian Federation (14) displaying the first sign of this trend, having lost 4 positions compared to last year.

At 8th place, Brazil Nation Brand leads Latin America thanks to its strong Online Search Demand performance. However, this is also surprising as it also registered its lowest FDI in five years. Mexico (16) has also had a very impressive increase in its FDI while also providing a very exciting Social Media presence.

Once again, Australia (11) finishes strongly despite their geographical disadvantage, thanks to very strong increases in FDI and Online Search Demand.

Finally, Turkey (15), Saudi Arabia (21) and the United Arab Emirates (25) lead the Middle Eastern countries, but they have all decreased in the ranking since last year as a result of very poor online presence in Social Media and Website Analytics.

Bloom Consulting Country Brand Ranking ©Top 25 - Highlights - Continued


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For the third year in a row, the United States of America are the winners of the ranking. This is no surprise though, having registered their strongest level of FDI for the past three years and also the largest online appeal in the world.

The rest of the top 5 most successful Nation Brands is split between Europe with the United Kingdom (3) and France (4) and Asia with China (2) and Hong Kong (5). China and Hong Kong have both increased due to their best year ever in terms of FDI Strategy.However, they have been penalized as neither utilizes an active Social Media platform as a component of their Country Branding Strategy. This would be the way forward if they were to challengethe United States at the top of the Brand Index.

The United Kingdom Nation Brand leads Europe, partly due to its improved FDI, but also, thanks to their hugely impressive Social Media use in promoting themselves as a profitable destination for trade. We also see France Nation Brand (4) improv-ing from last year due to another improvement in their FDI and their promising online presence.

Furthermore, Europe is strongly represented in the top 25 with 12 countries making an appearance. Strong performances from the rest of the European economies of Germany (7), Spain (12) and the Neth-erlands (17) actively demonstrate their consistent positioning as the safest region thanks to the European Union. Spain Nation Brand, de-spite such economic turmoil and corruption scandals, maintains the 4th position in the ranking as last year.

Luxembourg (18) has lost 80% of its FDI figure since last year as a result of a revision of the international investment position manual by the World Bank, as Special Purpose Entities and other financial intermediaries have been excluded.

AfricaNigeria... Fueled by oil

















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The continent is transforming - slowly but steadily, with some countries experiencing high

growth rates, thanks to natural resources richness as well as the significant changes that are

happening in the global economy. This can help Africa to find a new advantage and gradually

become the new focus on investors’ radars. Our prediction is that Africa will become the new

Asia in 20 years time.

Three countries managed to make it to the world top 50 this year, which is an improvement

from last year. Nigeria (1), Egypt (2) and South Africa (3) stand out from the rest of the

African countries with Morocco (4) slightly behind. The four countries received high Online

Search Demand (OSD ©) scores, meaning that their trade brand equities have much more

value than the rest in the continent. In terms of net FDI inflows, Egypt is an outlier, showing

weaker performance, which may compromise its 2nd position in the future.

South Africa really excels among the African states for its active engagement with the public

online. Morocco received the highest CBS Rating ©, reflecting its efforts to make it more

competitive internationally.

After the aforementioned four key players in Africa, the gap widens however the following

countries - Ghana (5), Tunisia (6), Algeria (7), the Democratic Republic of Congo (8th) and

Zambia (9) – are on an equal footing in terms of their ranking scores. Ghana (5) received the

highest OSD © results from the bottom 6.

Algeria has higher net FDI growth but it was not enough to overcome Tunisia (7) which is

much more focused in promoting itself online. Compared to last year, Zambia declined four

places and the Democratic Republic of the Congo made it to the top 10 for the first time.


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Africa Rank CBS Rating ©World Rank

1. Nigeria BBB

A

BBB

BBB

BBB

BBB

AA

BBB

AA

BBB

A

A

BB

BBB

CCC

A

AA

BB

BBB

BBB

C

B

B

A

A

7. Algeria

3. South Africa

9. Zambia

5. Ghana

6. Tunisia

12. Madagascar

23. Congo, Rep.

8. Congo, Dem. Rep.

4. Morocco

22. Namibia

21. Mali

20. Mauritius

25. Ethiopia

13. Uganda

11. Tanzania, United Rep.

14. Botswana

15. Kenya

18. Chad

24. Liberia

19. Senegal

2. Egypt

16. Cameroon

17. Niger

10. Mozambique

35.

80.

114.

117.

120.

71.

38.

111.

65.

50.

97.

100.

62.

125.

90.

39.

113.

84.

88.

118.

119.

122.

129.

74.

116.


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27. Zimbabwe

26. Rwanda

BB

BB

CC

CCC

CC

BBB

B

CCC

BB

CCC

CCC

BB

BBB

BB

B

CC

BBB

B

BBB

A

28. Gabon

29. Burkina Faso

30. Equatorial Guinea

31. Guinea

33. Mauritania

34. Swaziland

35. Seychelles

36. Djibouti

37. Malawi

38. Sierra Leone

39. Cape Verde

40. Togo

32. Côte d’Ivoire

41. Lesotho

42. Gambia

43. Burundi

44. Guinea-Bissau

45. Angola

133.

152.

165.

173.

146.

135.

161.

141.

137.

158.

160.

138.

157.

136.

163.

154.

155.

176.

150.

167.

Africa Rank CBS Rating ©World Rank
















The AmericasThe U.S.A. first in the North, Brasil first in the South... for how long?


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The Americas region scores well for trade, with three countries making it the world top 10.

There has not been much change between the 2012 and 2013 rankings of the top 10 countries

in the Americas, with the top 6 countries, the leaders in the trade domain, remaining in the

same positions.

The U.S.A., unsurprisingly with no rivals, came 1st, with a Trade Ranking score consider-

ably higher than that of the other top 10 countries. It is seen to have a perfect Online Search

Demand (OSD ©) result, a very impressive social media output (beaten only by Colombia)

and strong online performance. Canada stayed in 2nd place. Its online performance was

extremely impressive and a lot higher than that of all other countries in the top 10. Brazil

ranked 3rd, demonstrating its resoluteness to be seen as the top investment destination.

It ranked second after the U.S. for its OSD ©.

Mexico remained in 4th place in 2013, however its CBS Rating © greatly improved from

CCC to A. Chile ranked 5th, unchanged from last year. Its CBS Rating © improved, but its

social media performance was quite weak. Colombia’s (6) position stayed unaltered,

however its social media performance is the best in the world.

Peru’s (7) position and CBS Rating © improved while Argentina moved down one place

to number 8, with both countries completely ignoring social media.

Uruguay (9) and the Cayman Islands (10) received very similar ratings to one another,

with their ranking scores quite a lot lower than that of Argentina’s.

The Cayman Islands is a new country to appear in the top 10 and the only

country representing the Caribbean.


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Americas Rank CBS Rating ©World Rank

AA

A

BBB

BBB

BB

B

B

BB

B

BB

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CC

BBB

AA

CC

CC

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CCC

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A

1.

64.

102.

107.

127.

34.

6.

93.

29.

16.

82.

86.

28.

130.

79.

8.

94.

67.

73.

108.

109.

128.

140.

45.

106.

1. United States of America

25. Haiti

18. Ecuador

16. Trinidad and Tobago

14. Dominican Republic

10. Cayman Islands

3. Brazil

4. Mexico

5. Chile

6. Colombia

7. Peru

8. Argentina

9. Uruguay

12. Costa Rica

13. Panama

17. Jamaica

19. Honduras

20. Nicaragua

21. Bahamas

22. Barbados

23. El Salvador

2. Canada

24. Paraguay

15. Guatemala

11. Venezuela


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CBS Rating ©Americas Rank World Rank

CC

CC

CCC

BB

CC

BB

BB

B

B

CCC

B

32. Grenada

33. Antigua and Barbuda

27. Saint Lucia

26. Aruba

30. Belize

34. Saint Vincent and the Grenadines

35. Dominica

29. Guyana

28. Saint Kitts and Nevis

31. Cuba

36. Montserrat

143.

168.

159.

144.

156.

149.

153.

147.

169.

174.

166.

AsiaUnsurpringly, China comes first

















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It is no surprise that many Asian countries have become more involved in international trade

and commerce. In 2013, there were two new entrants into the top 10 positions in the World

Ranking. Strikingly, the majority of the countries in the Asian top 10 have very limited

presence in social media, a point that should be addressed in order stay in touch with the

reality characterized by increasing digitization.

China remained in 1st place and outpaced others with a very high Online Search Demand

(OSD ©) and the highest amount of net FDI. However, it did not use social media to promote

itself and its online performance score was weak. Hong Kong remained in 2nd place. Its

online performance score was better than China’s, however its use of social media is very

limited. Singapore’s (3) ranking improved by 5 places, ranking second for online perfor-

mance. India received a very similar Ranking score to Singapore and remained in 4th place.

Turkey dropped to 5th place from 3rd but kept its CBS Rating © of AAA. Thailand’s

position improved by 5 places, moving it into the top 10. Its online performance was better

than China’s and it was powered by its excellent CBS Rating ©. Saudi Arabia’s position,

compared to last year, worsened to 7th place. It received the worst (OSD ©) score out of the

top 10 countries.

The United Arab Emirates dropped to 8th place. Its OSD © score was the same as China’s,

but it scored badly for online performance and social media and its net FDI growth is the

weakest in the top 10. Japan, remaining at 9th place and very close behind the U.A.E., and

Indonesia (10th), which came 13th in 2012, both stood out from the top 10 as they leveraged

on social media.


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AAA

A

BBB

AA

AA

A

AAA

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A

BBB

BBB

AAA

AAA

A

A

A

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A

AA

AA

A

AAA

AA

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AA

12. Malaysia

19. Lebanon

14. Kazakhstan

8. United Arab Emirates

2. Hong Kong SAR, China

1. China

18. Taiwan

22. Iran

23. Cyprus

25. Georgia

3. Singapore

4. India

5. Turkey

6. Thailand

7. Saudi Arabia

9. Japan

10. Indonesia

11. Israel

13. Korea, Rep.

15. Viet Nam

17. Pakistan

20. Iraq

21. Jordan

24. Macao SAR, China

16. Qatar

2.

26.

49.

54.

58.

21.

5.

42.

20.

10.

36.

37.

15.

60.

33.

9.

46.

27.

30.

56.

57.

59.

63.

25.

53.

Asia Rank CBS Rating ©World Rank


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A

A

B

A

BB

CCC

BB

BB

CC

BB

BB

BB

BB

CCC

BBB

BB

A

BB

A

BB

BB

BBB

42. Lao P.D.R.

44. Maldives

45. Kyrgyzstan

43. Nepal

29. Oman

33. Syrian Arab Republic

35. Sri Lanka

36. Palestine

39. Yemen

28. Philippines

27. Bahrain

37. Brunei Darussalam

26. Bangladesh

30. Mongolia

31. Uzbekistan

32. Cambodia

34. Myanmar

38. Armenia

40. Afghanistan

41. Kuwait

47. Azerbaijan

46. Tajikistan

70.

104.

132.

139.

172.

95.

76.

123.

91.

78.

115.

121.

89.

112.

77.

126.

105.

110.

148.

151.

99.

134.

Asia Rank CBS Rating ©World Rank

Europethe United Kingdom rules

















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Europe has been experiencing troublesome economic times for several years now and the

future still remains rather unclear, marked by slow decision making. In spite of that, the

established European country brands have withstood the economic challenges and continue

to bring value to their nations.

The U.K., the only country in the top 5 not using the Euro, took the lead and rose to number

1 with a stronger CBS Rating © than last year. It was boosted by impressive Online Search

Demand (OSD ©) results, indicating its continuous popularity among investors, and very

good social media presence.

France ranks 2nd, which is an improvement from last year. It has a better Rating than the

U.K. and a better net FDI index, but the U.K. significantly overshadows its net FDI growth.

Germany earned the 3rd place with dramatically improved brand strategy performance.

Germany has a higher OSD © score than France. Both France and Germany are a lot less

active in online communities than the U.K.

Spain and Belgium were in an intense fight for the 4th place, although Spain took the lead in

the end, owing to a better CBS Rating © and being more active in promoting itself online.

Luxembourg, a high-scoring performer last year, slipped to the 8th place this year showing

weaker OSD © results compared to the rest of the top 10. Additionally, Luxembourg has lost

80% of its FDI figure since last year as a result of a revision of the international investment

position manual by the World Bank; as Special Purpose Entities and other financial interme-

diaries have been excluded.

Russia held on to its 6th position, same as last year, while the Netherlands finished 7th. Both

countries need to dramatically improve their digital strategies in order to stay in touch with

investors who are becoming more active at looking for opportunities online.

Sweden (9) and Italy (10) are ranked very closely. Both countries have good net FDI

indicators, although weaker FDI growth inhibits their performance in the European ranking.


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AA

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A

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A

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24. Slovakia

23. Bulgaria

21. Denmark

20. Czech Republic

13. Switzerland

9. Sweden

7. Netherlands

6. Russian Federation

17. Hungary

18. Romania

1. United Kingdom

3. Germany

2. France

4. Spain

5. Belgium

8. Luxembourg

11. Norway

12. Poland

10. Italy

14. Ukraine

16. Austria

19. Ireland

22. Finland

25. Greece

15. Portugal

3.

19.

43.

47.

55.

17.

4.

40.

14.

12.

31.

32.

13.

66.

24.

7.

41.

22.

23.

48.

51.

61.

68.

18.

44.

Europe Rank CBS Rating ©World Rank


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AA

BB

B

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B

C

B

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B

A

39. Moldova, Rep.

37. Bosnia and Herzegovina

36. Montenegro

40. Gibraltar

26. Iceland

27. Serbia

28. Malta

29. Croatia

30. Lithuania

31. Belarus

32. Estonia

33. Latvia

34. Albania

35. Slovenia

38. Macedonia, FYR

69.

96.

87.

72.

164.

85.

81.

124.

131.

83.

103.

75.

98.

101.

92.

Europe Rank CBS Rating ©World Rank

OceaniaUndisputedly Australia

















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Australia (1) and New Zealand (2) are the reference points in Oceania, with the most

developed economies and robust business climate, while other Pacific nations and territories

still have to improve their economic performance and enhance their brands. The region’s

geographic isolation makes it challenging to compete in the international arena, especially

for the small island nations.

Australia’s brand is the undisputed leader in trade with the largest economy and investment

in the region, achieving 11th position in the world brand ranking. That said, New Zealand

has a very strong CBS Rating © and a competitive online presence to match, nearly making

it to the world top 50.

Fiji ranks 3rd and the Solomon Islands (4) follow a similar pattern. Compared to 2012, Fiji

improved its standing and rose two places, although the Solomon Islands still demonstrate a

stronger net FDI growth.

Papua New Guinea is ranked 5th, with its strongest indicator being the Online Search

Demand (OSD ©) results. It must concentrate on promoting what it offers using various

online channels to ensure that this interest from potential investors materializes into growing

net FDI. Other brands in the region lag behind the top 5, with weaker CBS Rating © and

poor economic performance.

.


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2. New Zealand

9. Micronesia

7. Vanuatu

5. Papua New Guinea

4. Solomon Islands

1. Australia A

BBB

CCC

CCC

B

B

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C

CCC

Oceania Rank CBS Rating ©

3. Fiji

6. Tonga

8. Samoa

11.

177.

171.

52.

170.

145.

162.

142.

175.

World Rank

Who is this Ranking meant for? The Bloom Consulting Country Brand Ranking © is for anyone interested in Nation Branding and Place Branding from every perspective, whether you are in government, academia, industry, finance, or for anyone who just finds it interesting.

Why did Bloom Consulting create the Ranking?Bloom Consulting created the Ranking to evaluate the impact of country brand strategies in economic terms and, above all, to answer the important question of how countries can become more attractive.

How does Bloom Consulting’s Ranking differ from other rankings? Other rankings measure perceptions, this ranking measures reality. Thanks to statistical models and the Online Search Demand (OSD ©) tool, we were able to measure how effective each Country Brand is in a more tangible way. Moreover, this ranking isolates Trade (investment) as a separate dimension, analyzing investors as a separate target audience. Please see the tourism edition of the ranking as well here: http://bloom-consulting.com/en/tourism-ranking

What is new in the 2013 edition of the Ranking? First of all, it is the third “World Edition” of Bloom’s Country Brand Ranking. Secondly, Bloom has improved its methodol-ogy, in comparison to past editions, in order to deliver more accurate and objective results.

What is the Online Search Demand (OSD ©)?The Online Search Demand (OSD ©) is a Bloom Consulting proprietary measurement system used to assess all global online searches performed specifically for trade (investment).

How can a country have a poor rating but still do well in the Ranking?If a country has a poor CBS Rating ©, its brand strategy is not actively reflecting what the country has to offer (from the investment demand perspective). Therefore, even though its economic performance may be strong, the investment strategy is not taking full advantage of the country’s selling propositions.

What if a country does not have social media accounts, does it still feature in the ranking?Yes, it still appears but it receives a lower ranking than it would have done otherwise.

Does Bloom Consulting provide different services from the Ranking?Yes, Bloom Consulting provides Nation Branding and Place Branding integrated strategies and Online Search Demand (OSD ©) tailored reports for every country, region and city in the world.

What criteria was used to define the geographical distribution of countries? We used the official United Nations classification of countries by region.

Bloom Consulting Country Brand Ranking © FAQs


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OSD ©Online Search Demand Measurement of all global online searches performed specifically for investment

CBS Rating ©Country Brand Strategy RatingRates the accuracy of each strategy set in place by each IPA

“Brand Tag”Unique selling propositions and strategic positioning of all 177 countries (used by all the Investment Promotion Agency).

“3T approach”The three tangible dimensions 1- Trade (Investment), 2- Tourism and 3- Talent

Bloom AlgorithmIt is an equation that consists of 4 key variables and calculates each country’s position in the ranking.

IPAInvestment Promotion AgencyIt is the official state agency responsible for positioning their respective Country Brand (from an investment perspective).

Web AnalyticsIs an online tool that measures the performance of each country’s website, where each country’s IPA website is analyzed by the number of visits and the average time spent on the web page.

Bloom Consulting Country Brand Ranking © Glossary


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For ranking related queries please contact:

Methodology:

Press:

For any other queries please contact Bloom offices

Spain - (WORLD HEAD QUARTERS)

Brazil

Portugal

U.S.A.

Bloom Consulting Contacts


2013TradeEdition



Gonzalo Vilar - Partner and Global Strategy [email protected]

[email protected]

José Filipe Torres - Founding Partner and [email protected]

Monte Esquinza 14, 6 D ext28010 Madrid, Spain+34 91 308 0286 Office

Marcello Pastore - Partner and Brazil General [email protected]

Rua Pedroso Alvarenga 1254, 4º andar - Conjunto 42 Itaim Bibi São Paulo - SP - CEP 04531 004, Brazil+55 11 3044 6219 Office

Filipe Roquette - Partner and Portugal General [email protected]

Avda. Joao XXI, 43, 1 Esq1000-303 Lisboa, Portugal+351 210 936 819 Office

Timothy Roberts - Partner and USA General [email protected]

5808 Denny Ave.North Hollywood, CA 91601Los Angeles, USA+1 888 576 0065 Office

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