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Speaker 1: The Money Show Explainer twenty three, after six news this

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Speaker 1: week that the top brand in the country still EMPTN.

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Speaker 1: Capy Tech has finally gotten to the top ten and

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Speaker 1: checkers have seen its brand strength improved dramatically. Jeremy Sampson

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Speaker 1: is the chair of Brand Finance Africa. Jeremy, good evening.

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Speaker 1: You assess a huge range of brands. How do you

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Speaker 1: assess their value? I mean I see the MTN logo everywhere.

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Speaker 1: How do you know it's the best one?

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Speaker 2: Hello, Stephen, very good to be with you. Look, this

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Speaker 2: has been going on for about thirteen years. We've done

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Speaker 2: the rankings. But Brand Finance, which is London based, it's

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Speaker 2: thirty years old this year in fact. And what we

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Speaker 2: do is use international standards for both brand valuation that's

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Speaker 2: the financial value and the brand strength. So this is

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Speaker 2: where often we're all for the most part, we're looking

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Speaker 2: at companies that are quoted on stock exchange et cetera,

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Speaker 2: where we have data and on top of it, we

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Speaker 2: have lots of research and we do our own research

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Speaker 2: as well, and that's how we can monitor what's going on.

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Speaker 2: As you're saying, MTN is the number one brand, has

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Speaker 2: been all along and it's got a value of just

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Speaker 2: over fifty billion. Number two is Vodicon breathing down its neck.

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Speaker 2: And this year we've got a third brand and that

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Speaker 2: Standard Bank. It's closing in on them as well. So

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Speaker 2: this is where we can assess their financial value, assess

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Speaker 2: the brand value and the contribution of that brand to

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Speaker 2: their business.

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Speaker 1: We also see obviously it's really a kind of mass

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Speaker 1: consumer game. So communicators, retailers, I mean banks, I mean

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Speaker 1: Capitech a brand used by millions of people and that

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Speaker 1: obviously helps it stand out and it's making a lot

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Speaker 1: of progress.

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Speaker 2: Well absolutely, you know, it's amazing. What is it. It's about

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Speaker 2: twenty three years old, but this year it's got a

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Speaker 2: brand value of about twenty four million, you know, which

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Speaker 2: is incredible, and the way it's growing is very well,

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Speaker 2: very fast. Indeed, the bank sector is very interesting because

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Speaker 2: for a long time historically we've talked with the big

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Speaker 2: four and that's changing. As you say, Capitec now is

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Speaker 2: in the top ten. But when you actually think below Capitec,

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Speaker 2: you know, there are quite a few banks coming up

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Speaker 2: that discoveries the bank zero go time and I probably

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Speaker 2: missed out someone, but it's a sector that also in

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Speaker 2: the last year, just the banking sector has grown in

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Speaker 2: value by nearly seventeen eighteen percent, which is incredible.

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Speaker 1: I saw Central the South African National Roads Agency Limited

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Speaker 1: is now in the ranking. This is a government entity.

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Speaker 1: How they done that.

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Speaker 2: Steven, I'm going to ask you why you're laughing, because

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Speaker 2: we were asked to work with them to assess what

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Speaker 2: their brand is actually achieving. And it is an incredible

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Speaker 2: success story. Know what they do, what they've been doing

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Speaker 2: now for quite some years, the momentum they've built up,

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Speaker 2: improved our roads, working with the communities around them, and

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Speaker 2: this is where states owned enterprises are very, very interesting.

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Speaker 2: They're going way way back. I was involved in the

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Speaker 2: brand valuation, but Escom probably twenty five years ago, and

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Speaker 2: Escomb in those days had huge value. We've done work

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Speaker 2: with say Airways as well. And this is where when

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Speaker 2: stain owned enterprises and listen to your previous interview with

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Speaker 2: the minister, get them out of loss making situations, get

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Speaker 2: them into profit and make sure their brands grow in

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Speaker 2: value as an intangible asset. And I think there are

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Speaker 2: success stories, and Sandrell is a huge success story.

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Speaker 1: When you're building a brand, Jeremy, is it all really

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Speaker 1: about how much money you have. I mean, I would

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Speaker 1: like to think it's a bit more subtle and cleverer

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Speaker 1: than that.

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Speaker 2: In many cases, Look, it's much more subtler and kevl Look,

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Speaker 2: you've got people with deep pockets obviously, and we've mentioned

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Speaker 2: some of them now, But sometimes you have a small

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Speaker 2: brand that builds up over time. The one that's exploded

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Speaker 2: into activity this last year has been Pepcre, which has

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Speaker 2: been around and I'm guessing but it's probably been around

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Speaker 2: forty years or so, but on a very very slow burn.

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Speaker 2: But now it's really taken off. And also one of

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Speaker 2: the reasons it's moved into the financial sector as well.

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Speaker 2: But then Boxer, you know, I don't know how much

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Speaker 2: money is being spent on marketing Boxer, but you know

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Speaker 2: it's a subsidiary of pick and Pay. Again, a huge

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Speaker 2: success story. And I don't know that they're spending that

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Speaker 2: much marketing. I'm not in their target audience, but again,

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Speaker 2: an incredible success story. So this is where if you

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Speaker 2: build a brand brick by brick, you can grow and

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Speaker 2: then if you're in the right place, the right positioning,

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Speaker 2: and if you stay relevant with your customers over time,

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Speaker 2: you're going to grow. Some brands have got it wrong

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Speaker 2: at the moment, and the Multi Choice is one of those.

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Speaker 2: SPA is having a very very difficult time as well,

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Speaker 2: and this is where their brands can go up and

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Speaker 2: they and go down as well. They get out of

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Speaker 2: kilter if they forget to keep their finger on the

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Speaker 2: pulse of their consumer. It's so competitive out there today

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Speaker 2: that they consume disappear.

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Speaker 1: Jeremy Samson, good to talk to you again. Thank you

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Speaker 1: so much. Share of Brand Finance Africa