With a global recession looming on the horizon most brands would be expected to start cost-cutting, batten down the hatches and look to ride out the storm with minimal damage.
However, BrandZ’s study of the top 100 most valuable global brands suggests that heavy discounting can be counter-productive, damaging to brand equity and, ultimately, a company’s bottom line.
Global head of media for the insights division at BrandZ, Jane Ostler, says that our notions of what premium actually means have changed. Today they go beyond the traditional idea of luxury goods and lean more towards the everyday treat, which can mean everything from the groceries we order to the cinemas we visit.
“There’s always a premium version of every category,” she explains. “One thing that we’ve found over the years is that being able to charge that price premium is really important, but it’s also overlooked by brands, in particular when it comes to building brand equity.”
All of BrandZ’s top 100 enjoy strong equity and are described as trusted, innovative brands.