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Swarovski loses brand value - tirol.ORF.at

Swarovski loses brand value – tirol.ORF.at

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The Swarovski Tyrolean crystal collection continues to lose its value. After a 21 per cent drop in the previous year, this year the brand’s value has fallen by 25 per cent to €2.1 billion. This is the result of the current study of brand value conducted by the European Trademark Institute.

Wattens-based Swarovski has repeatedly made headlines in recent years due to the coronavirus-related downturn in business and job cuts as well as internal family feuds – more on this at New Managing Director of Swarovski And the Swarovski: Job cuts are less.

“The transformation has not materialized here,” said the head of the European Brand Institute and author of the brand value study, Gerhard Hrybczyk, on Wednesday at a press conference in Vienna. Continuing strong competition in the crystal component space reinforces the downtrend.

Red Bull is the most valuable domestic brand

According to the Vienna-based European Brand Institute (EBI) Brand Value Study, the highest growth among the 10 most valuable companies was for OMV’s domestic brands at more than 15 percent to 1.4 billion euros. In 2021, the value of the OMV brand declined by 16 percent.

The most valuable brand undisputedly remains Red Bull, with the energy drink manufacturer’s brand value increasing by six per cent to nearly €17 billion. According to study author Hrebicek, the reasons for the increase in value include successful expansion strategy and sales development as well as continued brand investments.

In Austria only Swarovski with low brand value

The study by the European Trademark Institute only looked at companies in which Austria owns more than 45 percent. That is why savings competitor Rewe (including Billa), Bank Austria and Telekom Austria are not included in the rating. Games group Novomatic ranked second in the ranking with a brand value of €3 billion (+2 per cent) and supermarket chain Spar came third (€2.4 billion or +4 per cent).

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With the exception of Swarovski, all companies surveyed recorded an increase in brand value. According to the study, the 10 companies with the most valuable Austrian brands together are worth more than 34.6 billion euros.

Consumers have higher expectations

Consumer expectations for brand companies have increased in recent years. Brands must provide an answer to the themes of climate change, diversity and inclusion as well as “social impact,” according to IAA Austria Vice President Christine Hanusch-Lenser. “Now brands have to show their stand and demonstrate their social contribution in times of change.” Brand trust goes “beyond the product” and social rating is “crucial,” according to Hanusch Lincer.