Over the last two decades, brand value has evolved from a concept driven by marketing to a critical, measurable business asset that directly impacts a company’s market capitalisation and overall financial performance.
CEOs recognise brand value as a crucial business asset. This metric, encompassing consumer perception, loyalty, and trust, helps differentiate companies and support long-term success. By measuring and leveraging brand value, CFOs and CMOs can collaborate to enhance both brand strength and financial performance. In a competitive market, understanding brand value offers a vital edge for sustained leadership. Today’s market dynamics are shaped by evolving consumer behaviours, rapid technological advances, and societal changes. CEOs who fail to capitalise on brand equity risk being overtaken by competitors who leverage its power. A strong brand fosters stakeholder loyalty, enables premium pricing, and attracts investor confidence, safeguarding against market volatility and ensuring resilience during economic downturns. This becomes a crucial metric for strategic decisions and sustained market leadership.
Brand value measurement extends beyond corporations: attracting investment and growing exports
Nation branding has emerged as a valuable tool for governments to enhance their global reputation, attract investment, and boost exports. Countries like Singapore, South Korea, Switzerland, New Zealand, and Luxembourg have made significant investments in nation branding, recognising its role underpinning economic growth. The integration of brand strategy into business and investment decisions is no longer optional. Brand value is a powerful financial asset that directly influences a company’s performance, resilience, and ability to thrive in competitive markets. On average companies see a 5.2x shareholder value return for every € spent on brand-building efforts according to the Harvard Business Review. By embracing brand equity as a key metric and aligning it with broader business strategies, CEOs can create sustainable growth, attract investment, and position their companies for long-term success.
Contact our experts to discuss the role of brand as value driver:
- Benedikt Jonas, Strategy& Managing Director, [email protected]
- Rafael Le Saux, Valuations Director, [email protected]
- Grégoire Huret, Leader, Corporate Finance, [email protected]
- Matt Moran, Leader, Strategy& Luxembourg, [email protected]
Visit: www.strategyand.pwc.com/lu
This article was written in partnership with PwC Luxembourg’s strategy consulting business, Strategy&
