The brand value of the world’s biggest companies could lose about $1 trillion due to the coronavirus outbreak, but the sector is suffering less than others such as aviation.
This is according to the latest analysis by brand valuation consultancy Brand Finance, which assessed the impact of the Covid-19 outbreak on brand value as of March 18 compared to January 1 this year.
Brand value is defined by the company as “the net economic benefit that a brand owner would achieve by licensing the brand in the open market,” with brand strength being “the efficacy of a brand’s performance on intangible measures relative to its competitors”.
Pressure testing
David Haigh, CEO of Brand Finance, commented, “The telecoms sector can be seen as much more resilient in the face of Covid-19, while it experiences a faster revolution in data handling as a result of the remote working revolution we are seeing all around the world.
“Telecoms brands are in essence already being pressure tested, having seen an immediate spike in demand and now is the time to engage with customers and promote their offerings during this crisis.”
Help desk
However, Haigh noted that telcos may still need “a call to the help desk” as most saw their brand value decline over the past year. Brand Finance calculated that the combined brand value of the world’s top telecoms companies declined by 11% to $692 billion, compared to $777 billion in 2019 – while all other major sectors recorded significant increases.
Despite its 14% drop in brand value, Deutsche Telekom retains its place as the top European telecoms brand in the latest Brand Finance Telecoms 150 report, with a brand value of $40 billion.
Verizon is ranked highest among telcos by Brand Finance, with a brand value of $63.7 billion.