The brand value of UK companies such as BT, Burberry and the BBC has grown over the last year according to the Brand Finance Global 500 annual study, released on Tuesday by Brand Finance, a brand valuation consultancy.
Brand Finance conducts the study on the world’s biggest brands, which are evaluated to determine which are the strongest and most valuable.
Figures from the Brand Finance Global 500 study show that the brand value of telecommunications services company BT has increased 70% to a total of GBP9.3bn, while British fashion brand Burberry’s brand value is currently GBP2.5bn, following a growth of 22%. Broadcasting company BBC has also seen a rise of its brand value, which now stands at GBP3bn. The Mini brand has also performed well with a rising of 40% to GBP4.6bn.
UK listed leisure travel company Tui Travel, which controls the Thomson and First Choice brands, is reportedly the most valuable travel brand worldwide and its value has increased by 25% to GBP2.4bn.
Telecoms operator Vodafone is the UK’s most valuable brand, worth GBP17.9bn. Another UK telecoms brand, EE, is now valued at GBP3.2bn.
Postal service company Royal Mail is a new entry following its market debut has one of the highest brand values to enterprise value ratios (50%) at GBP3.3bn.
British banks brands have also seen a successful year, with HSBC, the UK’s most valuable bank brand, growing by GBP2.4bn. However, RBS group brands have not been so successful, as NatWest and RBS itself are both down this year to a total of GBP£2.4bn.
Supermarket brands such as Tesco have seen a fall in brand values, down to GBP157m, with its brand strength being downgraded from AAA- to AA this year. ASDA’s brand value was also down to GBP4.7bn following a loss of GBP12m. However Sainsbury’s brand value has grown by 33% and its brand strength has been rated up to AAA-, from AA+. Morrisons brand value has also increased and is up over GBP0.6bn to GBP3.9bn, following the development of an online shopping service and an expansion of network of convenience stores.
Brand Finance was reportedly one of the first companies in the world to be accredited to provide ISO 10668 compliant brand valuations. It draws on expertise in strategy, branding, market research, visual identity, finance, tax and intellectual property to help clients make the right decisions to maximise brand and business value. Brand values are calculated by determining the royalties a corporation would have to pay to license its brand if it did not own it, known as the ‘royalty relief’ method. Each of the 500 brands in the table is also given a brand rating, expressed as a letter code from AAA+ to D, which is recognised as a benchmark of the strength, risk and potential of a brand relative to its competitors.