2017南非50强品牌报告（英文版）_9页_474kb

Summary of South Africa 50 2017 Annual Report

Core Content

The South Africa 50 2017 annual report provides an analysis of the most valuable South African brands, highlighting their performance, growth, and valuation. It emphasizes the importance of brand value in the context of a rapidly evolving global economy, particularly in emerging markets where brand strength is increasingly linked to financial and emotional performance.

The report also addresses the growing significance of intangible assets, especially in the digital age, and the challenges associated with their measurement and recognition in financial reporting. It discusses how brands are not only essential for consumer engagement and trust but also play a pivotal role in attracting investment and driving long-term value.

Main Points

Brand Performance

• South African brands outperformed the economy by 3%, growing in value from R384bn in 2016 to R395bn in 2017.
• The top sectors by brand value are:
  • Banks (R100bn – 25%)
  • Telecoms (R73bn – 19%)
  • Retail (R49bn – 12%)
• The most brands per sector are:
  • Banks & Retail (9 brands each)
  • Insurance (6 brands)
  • Apparel (5 brands)

Top Gainers and Losers

• Top Gainers:
  • Capitech (Banks): +25% in brand value, new to the top 50
  • Foschini (Apparel): +25% in brand value
  • Growthpoint (Real Estate): +17% in brand value
  • MultiChoice (Media): +16% in brand value
  • Spar (Retail): +15% in brand value
  • RMB (Banks): +12% in brand value
• Top Losers:
  • SAA (Airlines): -24% in brand value
  • Mediclinic (Healthcare): -22% in brand value
  • Bidvest (Retail): -20% in brand value
  • Momentum (Insurance): -19% in brand value
  • Life Healthcare (Healthcare): -16% in brand value

Brand Ratings

• Strongest brands:
  • Woolworths (AAA-)
  • FNB (AAA-)
  • Capitech (AAA-)
• Biggest increases in rank:
  • Capitech (+5)
  • Netcare (+3)
  • 8 other brands increased by 2 places
• Biggest decreases in rank:
  • Mediclinic (-6)
  • Life Healthcare (-5)
  • SAA (-4)
  • Momentum (-4)

Brand Valuation Methodology

• Royalty Relief Approach is used to calculate brand value:
  • Brand Strength Index (BSI): Measures brand strength on a scale of 0 to 100.
  • Royalty Rate: Applied to forecast revenues to derive brand value.
  • Net Present Value (NPV): Discounted post-tax brand revenues to determine brand value.

Commentary Highlights

• Jeremy Sampson (Director, Brand Finance Africa) discusses the role of political stability in EMs and the importance of investing in brands that offer growth and risk management.
• Michael Avery (Anchor, Classic FM Business) highlights the growing importance of intangible assets and the need for consistent metrics to evaluate brand value.
• Zeona Jacobs (Director, JSE) emphasizes that brands are more than just logos; they are perceptions that drive consumer behavior and investor confidence.
• Chris Gilmour (Chairman, Investment Analysts Society of South Africa) argues that brand value is crucial for companies to maximize their long-term potential and that it should be measured even if not fully recorded in financial statements.

Key Information

• Brand Value (BV): The value derived from a brand's strength and market impact.
• Enterprise Value (EV): The total value of the company, including tangible and intangible assets.
• BV/ EV Ratio: Indicates the proportion of brand value to enterprise value, with higher ratios suggesting stronger brand influence.
• Intangible Assets: Include brand value, intellectual property, and social license to operate, which are increasingly important in the digital economy.
• Brand Strength Index (BSI): A critical tool for evaluating brand equity and influence.
• Royalty Rate: Reflects the percentage of revenue that would be paid for the use of a brand.
• Digital Transformation: Is reshaping the business landscape, making intangible assets more central to value creation.

Conclusion

Despite socio-political challenges and a weak economy, South African brands continue to show resilience and growth. The report underscores the need for continued investment in branding and intangible assets to sustain and enhance long-term value. It also calls for a rethinking of how these assets are measured and reported, especially in the context of the fourth industrial revolution.