Firms that build brand value will be recession survivors

The author argues for the importance of brand valuation. Brands with high values or strengths are proved to be the best survivors in recession: they not only generate higher sales and price retention, but also enable companies to negotiate better terms with suppliers and retain good employees; thus they command higher share prices.

Firms that build brand value will be recession survivors

Joanna Seddon

A Change is occurring in attitudes towards branding and marketing. The traditional view – that brands are about logos and packaging, and only meaningful for consumer products' businesses – is on its way out.

Behind this shift lies an evolution in the structure of global business. Over the past 25 years, the move from manufacturing to a service and information-based economy has been accompanied by a dramatic rebalancing of corporate assets.

As recently as 1980, the majority of corporate value was tangible value – contained in property, plant and...

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