Firms that build brand value will be recession survivors
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 equipment. Today, intangible assets account for over 70% of the value of the Fortune 500. Of these intangibles, brand is one of the most valuable, according to Millward Brown Optimor's analysis, accounting for around 30% of global corporate value (see Figure 1, right).