Recession hurting brands as consumers lose trust

Bangalore, Sep 19: Despite the recession's caustic effect on brands, biggies like Coca Cola and IBM have managed to sustained their spots as the world"s two most valuable brands, says an industry report.

As per the ranking by Interbrand, a branding agency, this is the first time combined value of the world"s top 100 brands has fallen in the 10 years the agency has assessed them.

The report released on Thursday, Sep 17 says that list"s total value, including brands like Google, Nintendo and Sony, fell 4.6 per cent to 1.15 trillion dollars.

“That says something about the environment that we"re in, especially when you consider that brands are by nature less volatile than business valuations," said Interbrand CEO Jez Frampton.

Pointing out that the company"s brand its most valuable asset, Mr Frampton said that the world's worst financial crisis seen in decades has reduced the trust factor in people when it comes to specific brands.

Consumers have begun questioning the retail brands as stores slashed prices to get sales. They are wondering about why they had to pay so much earlier.

OneIndia News