eMAG (brand value up 29% to €1,027 million)has overtaken Dacia (brand value down 28% to €815 million) to become the most valuable Romanian brand according to a new analysis by Brand Finance, the leading brand valuation consultancy. The e-commerce brand rode a favourable wave as consumers’ buying patterns switched to online during pandemic, which combined with a drop in revenues for Dacia facilitated the historic switch at the top of the ranking.
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the world’s biggest brands to the test, and publishes around 100 reports, ranking brands across all sectors and countries. The top 50 most valuable and strongest brands in Romania are included in the annual Brand Finance Romania 50 ranking.
eMAG’s brand value continues to increase due to forecast increased revenues as it continues to transform to meet changing consumer demands. As consumers become increasingly familiar with online shopping across its key markets of Romania, Hungary and Bulgaria, eMAG’s brand has potential to achieve further growth in the hotly contested and continually changing online retailing sector. eMAG has the potential to benefit from both macro economic changes as consumers spend more online, and micro changes as it delivers on its brand purpose to its key stakeholders.
Banca Transilvania is strongest Romanian brand, now rated AAA+
In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 100,000 respondents in more than 35 countries and across nearly 30 sectors. By this measure, Banca Transilvania (brand value up 6% to €397 million) is the strongest Romanian brand, achieving an elite AAA+ brand ranking with a brand strength rating of 90.0. The banking brand is now amongst the top ten strongest banks globally, and the brand is the 5th most valuable Romanian brand overall.
Mihai Bogdan, Managing Director, Brand Finance Romania, commented:
“Until very recently, Dacia seemed to be glued forever to the first position in the Romanian ranking. The fast ascent of eMag to the top marks a symbolic ‘torch passing’ from an old and well-known brand to a ‘new economy’ brand invented less than 30 years ago. Looking forward, it would be healthy development for Romania if more technology and ‘new economy’ brands challenged the top 50 ranking.”
Dedeman (up 24%) and Altex (up 31%) lead Romanian retail surge
Dedeman (brand value up 24% to €504 million) and Altex (brand value up 31% to €123 million), alongside eMag, represented very fast brand value growth for Romanian retail brands. Despite operating mainly in brick-and-mortar DIY stores –a sector severely hit by the pandemic restrictions – Dedeman is bouncing back and it remains the most valuable brand held entirely by Romanian shareholders, defending the 3rd position in the ranking. These brands are well placed to capture a re-alignment of the Romanian economy as consumers demand more goods and less services in the wake of the pandemic.
Overall, the combined value of Romania’s top 50 brands is up 5.6% from previous year, in line with the whole Romanian economy’s rebound of 5.9%.
The research underlying this sixth annual report by Brand Finance on the most valuable and strongest Romanian brands was completed before the Russian invasion in the neighbouring Ukraine, and as such it marked a rebound from the uncertainty induced by the global Covid pandemic; while the Romanian economy has not had significant connections with Russia and Ukraine, it is expected that further research would measure the potential disruption from the war shockwaves
Over 60% of brands and brand value in the top 50 ranking have been created by the private sector over the past 30 years
New brands – created and developed by entrepreneurs and private companies over the past 30 years – account for over 60% of the Brand Finance Romania 50 2022 – both in number of brands and in brand value.
The high value ranking list has recorded a low churn rate over the past years, with only a couple of brands moving in and out of top 50 every year. This year has seen only two new entrants in the top 50: BILKA (brand value up 56% to €20 million) re-entered the Top 50 ranking after missing in 2021, and Ciuc (brand value up 29% to €18 million).
The two brands sliding out of the ranking in 2022 are COCORICO and Blue Air which is now facing insolvency following pandemic restrictions.
Mihai Bogdan, Managing Director, Brand Finance Romania, commented:
“There is no shortage of challenges and trials for the local brands nowadays, as globalisation brings about greater exposure, even for businesses that do not stray outside their home country. However, it is this combination and alternance of opportunities and threats that inspire brands to continuously evolve and build upon their equity”.
Next to analysing individual brands, the Brand Finance Romania 50 report also ranks the 10 most valuable brand portfolios, calculated for those businesses that deploy more than one brand into the market. These portfolios encompass over 40 well-known local brands, the most valuable of which are also featured individually in the main top 50 ranking. The top 10 portfolios list has been virtually the same since 2017, with smaller contenders not growing fast enough to overtake the incumbents.
Note to Editors
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the world’s biggest brands to the test, and publishes around 100 reports, ranking brands across all sectors and countries. The top 50 most valuable and strongest brands in Romania are included in the Brand Finance Romania 50 ranking.
Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors.
About Brand Finance
Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance, Brand Finance evaluates the strength of brands and quantifies their financial value to help organisations of all kinds make strategic decisions.
Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.
Brand Finance is a regulated accountancy firm, leading the standardisation of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671, and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.
Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.
The data presented in this study form part of Brand Finance's proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.