The report has classified the Covid-19 effect into three categories: limited impact (minimal brand value loss or potential brand value growth), moderate impact (up to 10 per cent brand value loss), and heavy impact (up to 20 per cent brand value loss), based on the level of brand value loss observed for each sector in the first quarter of 2020. Household products, utilities, telecom brands are among those impacted the least, in the list of moderates are tech, auto, beverages and others while the worst hit will be hotels, auto components, tourism and others. David Haigh, CEO, Brand Finance said, “Worldwide, brands across every sector need to brace themselves for the Coronavirus
to massively affect their business activities, supply chain and revenues in a way that eclipses the 2003 SARS outbreak. The effects will be felt well into 2021.”
For brands to battle the crisis, size will matter and according to Savio D’Souza, Director, Brand Finance, this could help the Tata group
weather the crisis better than most. “The size and diversity of the group could mean that it emerges from the pandemic, relatively speaking, unscathed,” he said.
Also on the list is insurance giant LIC, keeping its second rank and at third spot is Reliance Industries
whose brand value grew sharply by 25.2 per cent. The report believes that Reliance’s strategic decision to shift its focus from oil and gas to retail, media and telecoms sectors has paid off.
Apart from measuring overall brand value, the report also evaluates the relative strength of brands, based on factors such as marketing investment, familiarity loyalty, staff satisfaction, and corporate reputation. According to these criteria the Tata group’s Taj brand of hospitality chains (brand value $309 million) is India’s strongest brand. Reliance’s Jio that held the position last year has moved to second rank, followed by public sector company HP that made it to the third spot (from 12 last year).
Interestingly HDFC Bank
that is on the top 10 list of most valuable brands has seen its strength being dented, climbing down to be the fifth strongest brand this year from second last year.