Publication of Dutch Top50 sheds light on financial value of the biggest Dutch brands for the first time.
Brand Finance is publishing its ranking of the financial brand values of the Netherlands’ fifty biggest listed companies. A combined investigation of the financial values of all these trading names or corporate brands had not been conducted before in the Netherlands. The financial brand values have been determined in euros as at 30 June 2009, taking into account both the relative brand strength and the financial performance of the organisations. Another special aspect of the study is the fact that, for the first time, both the value of the corporate brand and that of the product brands have been calculated, providing an insight into the influence of the brand architecture on the value of product and corporate brands.
A number of the study results are presented below:
- The company with the highest financial brand value was Unilever, with a brand value of EUR 17.6 billion, whilst Philips came out on top in the market research.
- Midway through 2009 the brand value amounted, on average, to approximately 20% of the market capitalisation of the companies studied, with the combined brand value of these fifty stocks totalling EUR 68 billion.
- Six of these fifty brands had already been included in previous global studies by Brand Finance. Compared with our study at the end of 2007, the financial value of these brands fell by between 30 and 50%, as a result of, amongst other things, the credit crisis.
- In general, the study reveals a strong relationship between the value or aspiration that people attach to a brand and their positive behaviour when it comes to purchasing or recommending it.
- In addition, the market research shows that the power of the brand not only influences the development of sales (by influencing customers), but can also lead to considerable cost savings. If the corporate brand is valued highly by stakeholders like suppliers, (potential) employees and investors, this can result in better purchasing conditions and more favourable financing being obtained.
The study was conducted on behalf of Brand Finance by Ferdy de Smeth. In order to measure brand strength, research was carried out by Motivaction within the ‘young professionals’ target group (highly educated with two to three years’ work experience) and amongst financial analysts, securities dealers and credit rating professionals.
“In previous international studies by Brand Finance the share of reputations in the market capitalisation of organisations was higher than the current figure of 20% on the Dutch market. Nevertheless, 20% obviously remains a clear indication of the importance of brands and reputations. In fact, it is not the monetary value of the brands that is important, of course, but the analysis of the causes of rises or falls; these are generally derived from market research in combination with financial analysis”, says Marc Cloosterman, Managing Director of Brand Finance Netherlands.
Brand Finance Netherlands is a subsidiary of NykampNyboer. To download the report please go to the
Brand Finance website.