JEREMY SAMPSON: South African corporates miss the marque

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JEREMY SAMPSON: South African corporates miss the marque
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The major assets of companies today are intellectual property and intangibles — brands, in the main. Yet South African companies are largely behind in making the most of the opportunities this offers.

The major assets of companies today are intellectual property and intangibles — brands, in the main. Yet local companies are largely behind in making the most of the opportunities this offersMore than a century ago, John Stuart, chair of Quaker Oats in the US, exclaimed: “If this business were to be split up, I would be glad to take the brands, trademarks and goodwill, and you could have all the bricks and mortar and I would fare better than you.

In addition, as the world recovers for the most part from the Covid pandemic, strong brands are invariably showing themselves to be more resilient, and are recovering more quickly.Strongly branded companies continue to outperform the market. Analysis using both S&P and new data for the FTSE 100 in 2021 demonstrates that the strongest brands deliver much higher shareholder returns.

And, over the years, brands and intangibles have played an increasingly important part in value creation. Back in 1996, global intangible assets were worth an estimated $6-trillion. That’s estimated to have increased to more than $74-trillion by 2021 — 1,145% growth over 25 years, or about 11% a year.

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