Rising Brand Lustre Amidst Post-Recession Ruins

As we are emerging from the Great Recession of our times, the salient question that is often asked, how important is the brand proposition. BrandZ Research shows as the S&P declined, the value of illustrious brands increased. Over the past 5 years the value of BrandZ Top 100 Global brands have appreciated by 40%. This is striking. To be more analytical, measured against the S&P 500 during the same five-year period, the BrandZ Top 100 Portfolio has grown by 18.5 percent in value compared with a decline of 11.5 percent for the S&P 500. What is it about indestructible brands that transcends price and perception even during the challenging times? Of the various features below, the heritage factor comes across strong to me. To illustrate the Legacy factor, I could not find a better example than the Reichstag Building in Berlin.

With the proclamation of the German Empire in the Hall of Mirrors at Versailles on Jan. 18, 1871, Berlin acquired a new role as capital of the Empire. The Reichstag, the Imperial Parliament, (dates back to the Roman times), needed a larger, imposing building. The new Reichstag, an elegantly proportioned Neo-Renaissance palace, was designed by Paul Wallot; the foundation stone was laid by the Emperor himself in 1884 and the building completed in 1894. After a century of tumultuous history, it is now the permanent seat of German Bundestag.

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