DISPATCHES: Brand Value boosts profit margins

Dispatches recently featured the Sports Direct story of profit and success.  Whilst arguably some areas might need further clarification what is truly fascinating about the Sports Direct story is the extent to which the business is built on the premise of Brand Value.

Many of our best loved High Street retailers understand the value in the name of a Brand.  Brand names are traded, without trading the content for example the champagne makers who might sell the label to fellow champagne competitors but not sell the vineyard.  In contrast high street ‘own’ brand products are often made by other lesser known companies who don’t have a shop window of their own.

There is no surprise in the statement that a Brand name can leverage extra profit margin. What is interesting in the Sports Direct strategy is that perceived ‘falling’ brand labels can also still pull punches on profits.

Could your business, through a different perspective find greater profit margins with a brand strategy?

If you would like to continue the discussion then join ‘Creating Value through Margin Management’ on 19th May.

Clear here for further course information.

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