By Daniel Hunter
'Brand Britain' enjoyed another surge in Nation Brand Value following the 'No' vote in the Scottish independence referendum.
Brand Finance, which compiled the Nation Brand Value list, said the GREAT Britain nation brand campaign continues to pay dividends as economic growth in the UK outstrips most other European states.
By far the biggest factor however, has been the outcome of the Scottish independence referendum. The growth in the value of Brand Britain has been somewhat muted over the last two or three years in the run up to the referendum. Some investors had been put off by the uncertainty around the result and analysts attached a greater risk premium to the country’s growth. Had Scotland voted 'Yes', the centuries of brand equity built up around the UK Nation Brand would have been lost.
Scotland has developed a robust nation brand even within the greater UK, however, what was left of the UK would have had a tricky task to stabilise its international reputation and to re-establish a credible identity.
The UK total brand value has risen 20% to $2.8 trillion (£1.8 trillion). Of the ‘four pillars’ the UK’s biggest improvements have come from ‘Goods & Services’ and ‘Tourism’. The UK has actually fallen back slightly (from 75 to 74) on the ‘Talent’ segment as efforts to curb immigration from outside the EU have made attracting the world’s brightest students more difficult for the UK’s world leading universities and most critically, its businesses.
Brand USA continues its domination of the Brand Finance Nation Brands report. Its $19.3 trillion brand value is more than three times that of second placed China, whose brand value comes in at $6.4 trillion. Though the actions of the US on the international stage are frequently in question and polarisation and deadlock beset domestic politics, decades as the preeminent force in finance, entertainment, democracy and technology means the US should continue to top the ranking for years to come.
Brand Finance CEO David Haigh, said: “The states of the 21st century are participants in a global marketplace, with intense competition for tourists, students, the best workers and investment. The results of this year’s Brand Finance Nation Brands report show the advantages that a strong nation brand can confer; the effect of a country’s image on the brands based there and the economy as a whole makes a nation brand the most important asset of any state. Governments, trade bodies and businesses must take steps to ensure that their nation brand is strategically appropriate, well-managed and regularly monitored in order to maximise the benefits.”