The value of brands
"Valuing Brands in the UK Economy"
Valuing Brands in the UK Economy, a study into the economic contribution of branding to the UK, was published in December 2008. It was commissioned from Westminser Business School by the British Brands Group to help build understanding of the wealth generated by branding and to quantify the contribution it makes to the economic health of the country.
Watch a short introductory video clip (1min)
• An estimated 1 million people are employed in the UK in the creation and management of brands, equivalent to 4% of all those employed and double the number of primary and secondary school teachers
• The value of branding to companies is well understood. [The most valuable brand domiciled in the UK is HSBC at $33,742 million, followed by Vodafone ($26,668 million) Source: Brand Finance]
• Brands are simply not being counted in the UK’s measures of economic activity. The knowledge economy is not being valued, and branding is an important element of this
• While brands are recognised as a driver of economic growth, there remain significant gaps in the evidence base
• Approximately £32.55 billion is invested in creating and managing brands in the UK annually. This equates to 2.3% of GDP
• This represents an annual investment to the UK economy of £15.85 billion, representing around 12% of all intangible investment and 6% of all investment in the UK
• The creation and management of brands is becoming an increasingly important component of the UK’s overseas earnings
• The investment in building a strong trust relationship between firm and consumer yields a number of returns to the wider economy:
- providing a surety that new products, ventures or markets are “safe” for consumers;
- the quicker adoption of new technologies and ways of living and working;
- aligning business with society, allowing firms to offset side effects of consumption;
- a means of regulating large global firms with extensive influence;
- a spur to innovation as companies strive to maintain their reputational asset;
- enhancing the reputation of British products and services abroad, supporting exports.
A full copy of the study is available for download here.
A two-page Brand Briefing on the study's key findings and the policy implications is available for download here.