Top Belgian brands remain mostly stable despite market challenges in some sectors | Press release

Headquartered in London, Brand Finance has offices in over 20 countries, offering services on every continent. Every year, Brand Finance conducts over 5,000 brand valuations, supported by original market research, and publishes over 100 reports that rank brands across all sectors and countries.

Brand Finance also runs the Global Brand Equity Monitor, conducting original market research on over 5,000 brands annually, surveying over 150,000 respondents across 38 countries and 31 industry sectors. Combining perception data from the Global Brand Equity Monitor with data from the valuation database enables Brand Finance to equip brand leaders with the data and analysis they need to increase brand and business value.

Brand Finance is a regulated accounting firm that is leading the standardization of brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with ISO 10668 and ISO 20671 and officially endorsed by the Marketing Accountability Standards Board (MASB) in the United States.

Brand Definition

A brand is defined as an intangible marketing-related asset including, but not limited to, names, terms, signs, symbols, logos and designs, the purpose of which is to identify goods, services or entities, create distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.

The power of the brand

Brand strength is the effectiveness of a brand’s performance on intangible measures compared to competitors. Brand Finance assesses brand strength in an ISO 20671-compliant process, taking into account marketing investment, stakeholder capital and the impact of these factors on business results. Data used comes from Brand Finance’s proprietary market research program and publicly available sources.

Each brand is given a Brand Strength Index (BSI) score out of 100, which is used to calculate brand equity. Based on the score, each brand is given a Brand Rating of up to AAA+, in a format similar to a credit score.

Approach to brand valuation

Brand Finance calculates brand values ​​in its rankings using the Royalty Relief approach, a brand valuation method that is compliant with the industry standards set out in ISO 10668. It involves estimating the likely future revenues attributable to a brand by calculating the royalty rate that would be charged for its use, in order to derive ‘brand value’, understood as the net economic benefit that a brand owner would achieve by licensing the brand on the open market.

The process is as follows:

1 Calculate brand strength using a balanced scorecard of metrics that assess marketing investment, stakeholder capital, and business performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.

2 Determine the royalty range for each industry, reflecting the importance of the brand to purchasing decisions. For luxury goods, the maximum percentage is high, while in the extractive industry, where goods are often commoditized, it is lower. This is done by reviewing comparable licensing agreements from Brand Finance’s extensive database.

3 Calculate the royalty rate. The BSI score is applied to the royalty range to obtain the royalty rate. For example, if the royalty range for a sector is 0-5% and a brand has a BSI score of 80 out of 100, then the appropriate royalty rate for using that brand in that sector would be 4%.

4 Determine brand-specific revenues by estimating the percentage of the parent company’s revenues that are attributable to a given brand.

5. Determine projected revenues using a function of historical revenues, equity analyst forecasts, and economic growth rates.

6. Apply the royalty rate to the projected revenue to determine brand revenue.

7. Discount the after-tax brand revenues to a net present value equal to the brand value.

Reservation

Brand Finance has prepared this study with independent and impartial analysis. The values ​​obtained and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used when such data was incomplete or unclear. Brand Finance does not accept any responsibility and will not be held liable in the event that the publicly available information relied on proves to be inaccurate. The opinions and financial analyses expressed in the study should not be construed as investment or business advice. Brand Finance does not intend to rely on the study for any reason and excludes any responsibility to any body, government or organization.

The data presented in this study is part of Brand Finance’s proprietary database, is provided for media use and may not be used in part or in whole for commercial or technical purposes without the written consent of Brand Finance.