Heavy losses for Swiss brands due to Covid-19
Heavy losses for Swiss brands due to Covid-19
Fintech

Heavy losses for Swiss brands due to Covid-19

By Marco Cavicchioli - 6 Aug 2020

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The 50 most valuable Swiss brands could lose more than CHF 15 billion due to Covid-19

In fact, focusing on those in the Brand Finance Switzerland 50 2020 ranking, a cumulative loss of up to 11% of the brands’ value is estimated, corresponding to a loss of more than CHF 15 billion compared to January 1st, 2020. 

The estimate was published in the same Brand Finance report, which also reveals that Nestlé still ranks first in brand value, at CHF 20.2 billion, while Sika is the fastest growing brand, up 64%, and Rolex is the strongest, with a Brand Strength Index (BSI) of 89.8 out of 100. 

In addition, Global Finance 2020, also from Brand Finance, reveals that among the 500 most valuable brands in the world, the loss could be as much as 1 trillion francs. 

Brand Finance calculates the value of the world’s 5,000 largest brands each year, and the 50 largest Swiss brands are included in the Brand Finance Switzerland 50 report. 

By brand value is meant the net economic advantage that brand owners would gain by licensing the brand on the open market. Whereas the brand strength measures the effectiveness of a brand’s performance compared to its competitors in terms of immaterial measures. 

The impact of Covid on Swiss brands

This year, Brand Finance also estimated the impact of Covid-19 on the value of brands compared to the situation on January 1st, 2020. 

As far as Swiss brands are concerned, Nestlé is still in the lead, even with a 6% increase in value, while the second, UBS, is worth less than half (CHF 9.1 billion).

Brand Finance’s Director of Valuation, Alex Haigh, commented:

“Nestlé’s response and resilience to the COVID-19 outbreak has demonstrated why the brand is truly a leader both on home soil and globally. Posting solid growth in a time of turmoil is testament to the agility and strength of the brand. With Brand Finance calculating that the food industry is one of the few sectors that should see limited impact from the pandemic, Nestlé certainly seems to be in a strong position to weather the storm”.

As far as Sika is concerned, the brand has risen from 39th to 29th in Switzerland, reaching CHF 1.4 billion in value. 

The company even set a new sales record and completed several acquisitions without showing any signs of slowing down.

Rolex remains the strongest Swiss brand, with a value of CHF 7.8 billion and a Brand Strength Index (BSI) rating of 89.8 out of 100 and a corresponding AAA+ elite rating.

In particular, the brand achieved excellent results in several key metrics, such as familiarity and recommendations. The brand continues to position itself at the forefront of consumer sentiment, thanks to high-profile sponsorship of sporting events followed by millions of people, including Wimbledon and Formula 1.

During the lockdown, the company was forced to close its factories for 60 days, with a loss of production of around 160,000 watches.

 

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 25 thousand subscribers.

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