2017南非50强品牌报告（英文版）_11页

Summary of South Africa 50 2017 Annual Report

Core Content

This document is the 2017 Annual Report on the Most Valuable South African Brands, published by Brand South Africa in partnership with Brand Finance. It provides an overview of the top 50 most valuable brands in South Africa, highlighting their performance, sector contributions, and the broader implications of brand value on the national economy and reputation.

Main Points

• Brand South Africa's Role: As the official marketing agency, it aims to enhance the country's global reputation and competitiveness by supporting commercial brands.
• National Reputation Improvement: South Africa's reputation improved from 49 to 45 out of 100 in 2017, based on the Reptrak study, which includes both internal and external perspectives.
• Brand Value Growth: South African commercial brands outperformed the economy, growing by 3% in value from R384 billion in 2016 to R395 billion in 2017.
• Sector Contributions: The top sectors by brand value are:
  • Banks (R100 billion, 25% of total value)
  • Telecoms (R73 billion, 19%)
  • Retail (R49 billion, 12%)
• Brand Performance:
  • Top Brands: Woolworths, FNB, and Capitech were rated as the strongest brands with AAA- ratings.
  • Biggest Gainers in Brand Value:
    • Capitech: +25%
    • Foschini: +25%
    • Growthpoint: +17%
  • Biggest Losers in Brand Value:
    • SAA: -24%
    • Mediclinic: -22%
    • Bidvest: -20%
    • Momentum: -19%
• Rank Changes:
  • Capitech and Netcare saw the biggest increases in rank (+5 and +3 respectively).
  • Mediclinic, Life Healthcare, SAA, and Momentum had the biggest decreases in rank (-6, -5, -4, and -4 respectively).

Key Insights

• Brand Value vs. Enterprise Value: The report distinguishes between brand value (BV) and enterprise value (EV), with BV representing the value of the brand itself and EV the total value of the company.
• Importance of Intangible Assets: The report emphasizes that intangible assets, particularly brands, are becoming increasingly significant in the context of the fourth industrial revolution, where innovation and brand equity drive value.
• Brand as a Strategic Asset: Brands are not just marketing tools but are crucial for long-term value creation, trust, and customer loyalty. They can significantly influence financial performance and market perception.
• Brand Finance Methodology: The Royalty Relief approach is used to calculate brand values, which involves:
  • Estimating future sales attributable to the brand.
  • Applying a royalty rate to these forecasted revenues.
  • Discounting the post-tax brand revenues to a net present value (NPV) to determine the brand value.

Brand Valuation Approach

• The Brand Strength Index (BSI) is used to evaluate brand strength on a scale of 0 to 100, considering factors like emotional connection, financial performance, and sustainability.
• The BSI score is then applied to a sector-specific royalty rate range to derive brand value.
• The brand value is calculated by applying the royalty rate to forecast revenues and discounting the result to NPV.

Conclusion

The report underscores the importance of brand value in South Africa's economic and social landscape. It highlights the positive impact of strong brands on the country's global competitiveness and the need for continued investment in branding despite socio-political challenges. It also stresses the relevance of intangible assets in the evolving business environment, suggesting that companies must adapt to digital transformation and global market dynamics to maintain and enhance their brand value.

Key Brands in the Top 50

Additional Notes

• New Brands: EOH (Technology), SASKO (Food), HiFi Corp (Retail), and OUTsurance (Insurance) were added to the list in 2017.
• Dropped Brands: SABMiller (Beverages), Imperial (Holding company), Nampak (Packaging), and Game (Retail) were removed.
• Brand Finance's Role: The report is a collaboration with Brand Finance, a global brand valuation firm, and is part of a broader movement to recognize the importance of intangible assets in business valuation and economic performance.

Final Thoughts

The report serves as a benchmarking tool for South African brands, highlighting their growth, strength, and strategic importance in the global market. It calls for greater awareness of brand value as a key driver of economic and social development, and encourages continued investment in branding to maintain market leadership and consumer trust.