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Some good news for the household and personal products industry.
March 20, 2020
By: Happi Staff
Everyone knows that the household and personal products industry is recession-resistant. Turns out, it's pandemic-resistant, too, according to one market research study. Brand Finance, a European consultancy, published the Europe 100 report on Europe’s top 100 most valuable and strongest brands. With a current Combined Value of EUR 1,163,937m, all the top 100 European brands are estimated to drop 13% in value following the impact of COVID-19. The brand value of the world’s biggest companies is set to lose up to €1tn in brand value as a result of the Coronavirus outbreak, with the aviation sector being the most affected, according to the latest analysis by Brand Finance, the world’s leading independent brand valuation consultancy. The 2003 SARS outbreak, which infected over 8,000 people and killed 774, cost the global economy an estimated US€50 billion. As of March 18, 2020, there were 218,663 cases and 8,943 deaths of COVID-19 confirmed worldwide. Global spread has been rapid, with 146 countries now having reported at least one case. Brand Finance has assessed the impact of the COVID-19 outbreak based on the effect of the outbreak on Enterprise Value, as at 18 March 2020, compared to what it was on January 1, 2020. Based on this impact on Business Value, Brand Finance estimated the likely impact on Brand Value for each sector. Each sector has been classified into 3 categories based on the severity of Business Value loss observed for the sector in the period between January 1 and March 18, 2020. “The COVID-19 pandemic is now a major global health threat and its impact on global markets is very real,” noted David Haigh, CEO, Brand Finance. “Worldwide, brands across every sector need to brace themselves for the Coronavirus to massively affect their business activities, supply chain and revenues in a way that eclipses the 2003 SARS outbreak. The effects will be felt well into 2021. “However It is not all doom and gloom. Some brands will fare better under COVID-19: Amazon, Netflix, WhatsApp, Skype, BBC and BUPA are all booming.” Brand Finance predicts household products, cosmetics and personal care, food and pharma will see limited impact. Tech, logicistics, and engineering and construction could see moderate impact (up to a decline of 10%), while retail, hotel and travel face high impact (-20%).
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