Testing times: Singapore’s 100 largest brand portfolios slump in 2014

It’s a far cry from 2013’s stellar growth.

Brands are among a company’s most valuable assets, as a brand’s intangible value can increase the financial gains of a firm. This is why it is quite alarming that the portfolios of Singapore’s biggest brands contracted in 2014, according to Brand Finance’s seventh Top 100 Singapore Brands Report.

The report also showed that 58% of the country’s brand value is vested in the Top 10 brands, while the bottom 50 accounted for only 60%.

According to the report: “The total value of Singapore’s 100 largest brands and brand portfolios is US$40.20 billion, marginally down from 2013 value of US$40.24 billion. 58% of the brand value is vested in the Top 10 brands with a combined worth is US$23.18 billion. This is up from 54% in 2013. The top 50 brands account for over 94% of the combined brand value in 2014.”

Here’s more from the report:
It is alarming to see that the brand value of the bottom 50 brands has hardly changed as compared
with 2013 and is reduced to a mere 6%. Unless something is done to continuously improve the
brand investment and value growth at the lower end of the market, we will likely see this percentage
decline further in the coming years.

The ten most valuable brands and brand portfolios of Singapore are worth US$23.18 billion, a mere 6.3% increase over 2013. This is significantly lower compared to a 14% increase at the top value in 2013.

They represent 58% of the total brand value of the Top 100 Singapore brands. This is an increase from 54% in 2013. The overall brand value average remains at US$0.40 billion which is same as the 2012 average.

Brand Ratings are critically important because they are a leading indicator of future performance. Some very large and valuable brands may have deteriorating ratings. This ultimately leads to destruction in brand value, and vice versa.

The Brand Rating delivers insight into the underlying equity and performance of each brand. It illustrates how valuations require robust analysis of each brand’s performance in order to determine its value.

This information is useful for both marketing and finance departments in brand strategy formulation and financial forecasting.