THE BRAND ECONOMY
“Brands are the backbone of a nation’s economy. They are engines of growth and wealth creators.”
The world’s economy has revolved since early times. We started with an agriculture based economy, then moved on to industrialisation, knowledge and now brand economy. Brand economy or B- Economy is what drives the success of many countries in this era. Brands are powerhouses of wealth and countries that possess strong brands have rich economies as these brands contribute significantly to their GDP. Strong brands make strong nations. However, it is important to note that these brands did not become successful overnight. They invested in their brands and are reaping the fruits of success now.
A good example is the United States of America. More than half of the global brands originate from the USA. Think Apple, Coca Cola, Starbucks, Procter & Gamble, McDonalds and many more; these brands are billion dollar entities and together they contribute to the trillion dollar economy of their country, USA. These brands create millions of jobs globally and are at the forefront of technology and innovation. They generate economic advancement and make USA the superpower that it is today.
A good comparison of how brands propel a nation’s economy is that of South Korea and North Korea. South Korea’s economy is thriving.with global brands such as Samsung, LG, Kia and Hyundai while North Korea has none to show.
Samsung, the market leader in semiconductors, electrical and electronic products and mobile telecommunications produces one fifth of South Korea’s exports with its revenue larger than many countries GDP. In contrast, North Korea with no known brands is at the lower league of economic development in the world and suffers from a negative country brand perception.