Amsterdam, The Netherlands – Royal Philips Electronics (NYSE:PHG, AEX:PHI) today announced another significant increase in brand value in the ranking of the top-100 global brands as compiled annually by leading brand consultancy Interbrand. The total estimated value* of the Philips brand in 2010 was USD 8.7 billion, representing a 7% increase in value over the previous year. Philips’ ranking as the 42nd most valuable brand in the world remained stable in 2010.
Since the launch of its "sense and simplicity" brand promise in 2004, Philips has doubled its brand value from USD 4.4 billion at the time to USD 8.7 billion today.
“Philips has undergone a significant transformation in recent years, from a mainly consumer electronics and semi conductor company to a brand that is focused on delivering sense and simplicity in the area of health and well-being,” said Gerard Kleisterlee, President and Chief Executive Officer of Philips. “We consistently focused on building customer loyalty to our brand amongst both professionals and consumers. Our performance this year illustrates the truly balanced nature of the Philips portfolio that Philips has achieved today, with close to 60% of our brand value generated by our professional businesses and continued stability of brand strength in our consumer health and wellness businesses.”
Jez Frampton, CEO of Interbrand said "2010 was a year of cautious recovery for many global brands. For Philips however, it has been a year of healthy growth. The strength of the Philips brand in generating demand has been demonstrated among professional clients as well as private consumers. Strong brands are the result of vision, commitment and persistence and Philips is an impressive showcase to this testament. The doubling of Philips' brand value within 6 years is a tremendous achievement within the industry, and truly stands out even in the context of the Best Global Brands”.
With a 7% increase in value in 2010, Philips outpaces the average value increase of 4% shown by brands measured in the 2010 Interbrand ranking. The growth in brand value has been led by the increasing role of the brand in Philips’ strategic growth businesses such as Professional Luminaires and Home Healthcare.
* Brand valuation by Interbrand
Brand value was determined using the method Interbrand pioneered more than 20 years ago and has since used this approach in over 5,000 brand valuations worldwide. Brand value is calculated as the net present value of the earnings the brand asset is expected to generate and secure in the future. To be considered for the Best Global Brands ranking, brands must have a minimum brand value of USD 3 billion, achieve at least one-third of their earnings outside of their home country, have publicly available marketing and financial data, and have a wider public profile beyond their direct customer base in all main global markets.