MTN has been the number one brand in South Africa for some time, according to the latest report from Brand Finance. Both Standard Bank and First National Bank have also created valuable brands, taking third and fourth place respectively. Old Mutual is the most valuable insurance brand in the country, rising one place to fourth despite a 7% drop in brand value. The Woolworths brand has seen a surge in popularity due to its strong support from South African consumers and stakeholders.
This increase in brand value reflects a positive outlook for the future, with less disruption from COVID-19 and a reduction in civil unrest. Checkers is well-positioned to take advantage of its increased brand value and drive further growth. Each brand is assigned a score of 100 on the Brand Strength Index (BSI), which is incorporated into the brand value calculation. Jeremy Sampson, Managing Director of Brand Finance Africa, commented that South African brands are helping to boost the economy.
As the world looks to life after Covid-19, MTN has solidified its position as the most valuable local brand. Brand Finance takes into account what customers are willing to pay for the use of brands through royalty agreements, which are found in almost every sector of the world. BrandZ has collected data from 4 million consumers on 18,000 brands in 51 markets, including 31,335 South African consumers on 660 brands in 47 categories. Brand Finance is a regulated accounting firm that sets the standard for brand valuation.The total value of South Africa's top 50 brands grew 15% this year, from R452 billion last year to R$519 billion this year.
The brand value is calculated by applying a royalty rate to the revenue expected to be earned by the brand and applying appropriate valuation assumptions to obtain a discounted present value after tax.