The attractiveness and value derived from Italian brands has strengthened compared to January 2022 and January 2020. This is underlined by the analysis of Financial Business which revealed that after 2020 suffering from Covid, 2021 in a gradual recovery, 2022 brought consolidation and a peak of an average increase of 12% recorded in January 2023.
Compared to other European markets
Looking at the global European context, even if Italian brands have recorded growth in recent years, their value has remained low because it reflects the small average size of Italian companies. If, in general, their value is nearly double that of Spain, it is also true that they are worth half or less than those of England and France, and less than a third of those of Germany.
“To increase sales and margins, Italian companies should try to increase the monetary value of the brand by strengthening the level of logical and emotional appeal”, said Massimo Pizzo, senior consultant at Brand Finance. “On the one hand, he continued, they should further improve the quality and quantity of investments related to products, advertising, distribution and prices; on the other hand, to identify and invest in social purposes that go beyond profit and not only to extreme environmental sustainability in order to better involve key stakeholders”.
Who grows and how
According to the study, Gucci has been confirmed as the first Italian brand in terms of value generated directly from image and reputation, exceeding 17 billion euros this year due to an increase of 10%. Gucci, with a score of 86 out of 100, and the same Business Rating AAA, is one of the 5 strongest Italian brands.
On average, luxury brands are the ones with the biggest growth compared to last year. Among these stands the 149% growth of Lamborghini, which brings the value of this brand to 4.1 billion euros, and the 50% increase in the value of Prada, which this year reaches 4.6 billion euros.
Ferrari, with a score of 91/100 and the same AAA+ brand rating, proves itself to be the strongest Italian brand and thanks to a 3% growth reaches a value of 7.2 billion euros.
Along with Lamborghini and Prada, A2a, Illy, Aperol and Iliad are also among the Italian brands that have maximized value for money based on image and reputation.
How important is the image of the nation
The level of attractiveness of commercial brands is also affected by the national brand and vice versa: on the one hand, the good image and reputation of Italy favors the purchase of Italian products and investments in Belpaese; on the other hand, strong Italian brands such as Ferrari, Gucci and many others contribute to strengthening the image of the nation, thus promoting the growth of the country.
The Italian brand is also growing
The Italian brand improved year-on-year by 2 points. After a collapse in 2021 that made Italy 19th, following the perception of poor Covid management, in 2022 it rose to 10th, and then placed itself in 9th place in the Global Soft Power Index of Business, a list of countries with the greatest ability to impose conditions on other nations’ elections without any military or economic coercion.
Italy gained one place due to a slight year-on-year consolidation and the fall of Russia. The good performance of Italy is above all due to the great knowledge of our nation among the population of the world, its good reputation and the perception of its great influence on the population and governments of other countries.
“Italy is very strong in areas where other countries cannot improve significantly, such as historical and cultural heritage and population and values, while it still has a lot of room for growth in areas such as administration and education and science, a field in which . the most possible for development”, Pizzo said in this regard. “To strengthen the image and reputation of the Italian brand and therefore support economic growth, it is important to develop a single brand strategy for the country with a strong focus on direct communication to Italians , the main rivals of the Italian brand.”