Brand Finance has released its 12th annual brand valuation survey, which reveals that Brexit is proving to be an opportunity and stimulus for many British brands.
Total brand value of the top 150 brands, at the start of 2018, increased by 3% from $327 billion to $337 billion, despite uncertainty surrounding Brexit as negotiations move forward.
On average, 14% of the top 150 UK branded businesses’ enterprise value was contributed by their brands.
By January 2018, the value date for the report, all UK macroeconomic indicators had significantly improved from January 2017.
Economic growth forecasts for 2018-2020 were revised upwards to 1.8%, while the pound bounced back and recovered much of its 18% fall following the Brexit vote.
Inflation also fell from 3% to 2.5% and unemployment hit an all-time low of 4.3% while averages wages began to rise.
The Government has also managed to just about balance the books and the UK can now begin to start paying down its debt.
Against this increasingly favourable macroeconomic environment, many British brands are thriving.
David Haigh, CEO of Brand Finance, commented: “Project Fear predicted that Brexit would be the end of the world as we know it, with catastrophe for UK businesses and UK brands.
“It is becoming clear that the UK economy is far more resilient than predicted and that UK brands are responding well to the challenge posed by Brexit.
“Demand is high for British brands, both by B2C consumers, B2B customer trading partners, and as takeover targets. Brexit will only increase this frenetic activity of world-beating UK brands.”
The stand out result comes from British car brands that are powering ahead in world markets:
Land Rover’s brand value has increased from £5.5 billion to £8.9 billion, a 61% increase, moving up from 13th to 7th place in the table.
Aston Martin, favoured by James Bond and the younger members of the Royal Family, has seen its brand value grow from £0.7 billion to £2.7 billion, a 261% increase, and has leapt from 103rd to 33rd place in the table.
Mini’s brand value has grown from £2.1 billion to £2.5 billion, a 20% increase, moving from 45th to 37th in the table.
Jaguar’s brand value has increased from £1.1 billion to £2.3 billion, a 101% increase, moving from 77th to 41st in the table.
Bentley’s brand value has increased from £1.5 billion to £1.9 billion, a 27% increase, moving from 63rd to 48th in the table.
The McLaren brand value is stable at £0.6 billion while only the Rolls Royce brand has declined in value from £1.0 billion to £0.8 billion.
David Haigh said: “The outperformance of British luxury and premium auto brands is the result of great design, great marketing, strong manufacturing quality, and a competitive pound.
“All these brands have brand strength scores between AA+ to AAA and all are sold worldwide to discerning customers, particularly in Asia and America. This will only increase post-Brexit.”
Outside of the auto industry, other British brands continue to thrive, with a diverse range of companies making up the UK top 150 table.
These include Shell (Oil & Gas £29.7 billion AAA-), Sky (Media £7.7 billion AAA-), BBC (Media £4.3 billion AAA-), BHP (Mining £3.8 billion AA), Burberry (Luxury Fashion £3.5 billion AAA-), Johnnie Walker (Alcoholic Drinks £3.2 billion AAA-), GSK (Pharmaceutical £2.3 billion AA), and EY (Professional Services £12.9 billion AAA+).
As the Brand Finance UK 150 focuses on the leading publicly-quoted brands, it does not reflect the wide range of brands in the architecture, accounting, actuarial, advertising, design, legal and many other professional services sectors.
It also excludes many of the small specialist manufacturing and engineering brands which are thriving across the UK.
But a proxy for the strength of this middle economy is NatWest (Banking £4.9 billion AA+, up from £2.5 billion AA, a 96% increase in one year) which serves a vast number of small and medium enterprises across the UK and is thriving as they thrive.
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