A new report on the value of Indian brands suggests that a good run of gains is about to be thwarted by the corona crisis. To stem losses, firms should invest in their bonds with people In essence, a brand is a symbol of a set of values that its owner upholds for the consumer to invest his or her trust in.
It is, of course, an asset. It generates returns and therefore has financial value. Among various ways to calculate it, the “royalty relief" method employed by the UK-based Brand Finance has gained global traction over the past decade or so.
Taking into account such metrics as the current value of future earnings, the consultancy arrives at the money a company would pay as royalty to license its use if it did not own it.