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Norway’s Biggest Brands Suffer in Difficult Times

23 May 2016
This article is more than 4 years old.

· Statoil is Norway’s most valuable brand, valued at 55.8 billion NOK

· SpareBank 1 is Norway’s fastest growing brand, with 19% year on year growth

· Storebrand’s brand has lost a significant amount of value, it is down 37%

Every year, leading brand valuation and strategy consultancy Brand Finance puts thousands of the world’s top brands to the test. They are evaluated and ranked to determine which are the most powerful by country, by industry and against all other brands worldwide. Norway’s most valuable brands can be found in the Brand Finance Norway 10.

Statoil tops the table with a brand value of 55.8 billion NOK. Plunging oil prices have caused sector wide revenue cuts and uncertain times lies ahead, however Statoil recently delivered strong exploration results and added significantly to its resource base, helping to offset the impact of falling prices and deliver a 2% increase in brand value.

Second-placed Telenor also experienced mediocre brand value growth (a 1% increase to 55 billion NOK). While the international mobile operator achieved record high revenues in 2015, rising costs and increased competition in some key markets stifled progress. For the first time, over 50% of annual revenue came from their Asia-Pacific operations and future success is likely to depend on increased penetration in the region.

Norway’s banks have been the success stories this year. SpareBank 1’s recent acquisition of Oslo-based mobile payment network, mCash demonstrates its awareness of the increasing challenges retail banks are facing. Nimble competitors that rely heavily innovative digital technology are snapping at the heel of the larger players. Chair of the SpareBank 1 Alliance, Jan Frode Janson, commented, “We have the attitude that we are more afraid to stagnate than to fail”. Brand value is up 19% to 4.9 million NOK.

On the other hand Storebrand, has suffered significantly this year. Brand value is down 37% to 3.9 billion NOK. Its brand equity has been damaged and Weighted Average Cost of Capital (WACC), has increased significantly, indicating investors’ uncertainty about the brands prospects and making financing (of all operations including marketing) significantly more difficult and expensive.

ENDS

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