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Over the past year we have watched global markets repeatedly decline, mainstay businesses fail, and unemployment rates approach record highs. To say it has been a difficult year is a huge understatement. We are only now seeing the first signs of improvement. Although many questions remain unanswered as to whether this is the start of something long-term, or simply a temporary respite, one thing is for certain: There is still a long and unknown road to prosperity ahead.
The world is changing and we are collectively resetting our priorities. These changes are presenting for many, the most potent opportunities in living memory. Indeed, it is an exciting time. It seems that on a daily basis we are redefining our expectations, setting new standards of transparency, and increasing our ability to interact with one another globally. Our tolerance for both companies and individuals to say one thing and do another is rapidly diminishing.
While this year has been a difficult one for brands and entire categories, the fundamental purpose of brands; to create loyalty and preference over the long-term, has never been more important. Well positioned brands create value by driving demand, thus providing a degree of security in times of economic instability.
In the face of economic turmoil around the world, Taiwanese companies have proven themselves to be very resilient.
From Interbrand’s Best Global Brands study, it can be seen that brands have shown themselves to be important vessels that retain value. The overall decline of aggregate brand value from 2008 to 2009 is 4.6%, whereas the NYSE Composite Index fell over the same period at an annualised rate of 34%. Similarly, the aggregate value of the top 20 Taiwanese brands mirrors this trend with a fall of just 2.5%.
Smart brand owners manage value by building strong brands that secure future revenue over time. For those with robust balance sheets and an eye on the future, economic downturns present unique opportunities for innovation and leadership. Innovator brands such as Acer and Asus are moving ahead simply because they challenge the market, and find ways to deliver more, often for less.
Trust, transparency and reputation are increasingly important components of a brand. Taiwanese brands are thus well-positioned to compete on delivering value in the global arena and will no doubt continue to think long-term and seek opportunities in high-potential overseas markets.
I would like to congratulate each and every brand in our study. I wish you all every success in your future brand-building efforts.
Sincerely,
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