New world order for global brands
Since the shock of the 2008 economic collapse, many people feel their foundations have been eroded. Correspondingly, there has been profound questioning of things that were previously accepted as gospel, such as globalisation. Now, some of the key features of globalisation are being called into question, particularly those that affect the future of global brands.
Although many beliefs about global brands feel more fragile than ever, there are many beliefs about branding and marketing that are increasingly sure.
In 2010, the Credit Suisse Research Institute published a report documenting the returns enjoyed by companies that focus on branding. Companies consistently spending at least 2% of sales revenue on brand marketing have substantially outperformed the S&P 500 since 1997, according to Credit Suisse's analysis, while the top one-fifth of these businesses outperformed the market by a huge 17% per year. While questions about globalisation are rife, global brand-building continues to deliver unquestionable value.