The Italian manufacturer has increased its brand value 15 times in just nine years.
MILAN , 6th July 2015 – Alcantara S.p.A., the Italian company internationally acknowledged for the unique, extraordinary properties of its material, tasked Interbrand, the world’s leading brand consultancy, to conduct a valuation of the Alcantara® brand. The results of the analysis, conducted on the company’s key markets, show the brand’s value totalling 100 million Euros and above all, highlight a 15-fold increase compared to the previous valuation conducted by Interbrand in 2006 (6.5 million Euros).
With this result, Alcantara® certifies its capacity to generate value, both for its direct customers and final consumers. Indeed, one of the most significant quality factors emerging from the study is the brand’s capacity to positively influence the image of the applications the material is used for by its partners, orientating the choices of final consumers. A textbook example of ingredient branding.
Since 2005, consolidation of the brand has been absolutely central to the company’s competitive strategy. Over the years, the Alcantara® brand has not only been strengthened in Europe, but has gradually affirmed itself outside the EU, particularly in China, the USA and Japan.
International brand consolidation has been the driving force of the company’s optimal overall economic and financial performance: since 2009, the company has almost doubled its turnover (from 64.3 million Euros in 2009 to 123.8 million Euros in 2014) and tripled its operating income (from 7.9 million Euros in 2009 to 23.6 in 2014). And that’s not all: brand consolidation on the international market has also led to a gradual shift in the geographical distribution of sales: now 90% of company turnover is generated by exports alone.
We are very pleased with the results of this study”, stated Andrea Boragno, Chairman and CEO of Alcantara S.p.A. “The increased brand value certainly confirms the choices we’ve made and is coherent with our increased turnover and market globalisation. Moreover, in terms of the distinctive factors for Alcantara’s success, the study highlighted exactly the assets we’ve invested most in over the years: Made in Italy excellence, serious commitment to sustainability, the infinite possibilities for customisation, the sensorial aspect of the product and the privileged relationship we have with the world design community.”
“The project we developed with Alcantara embraces two perspectives”, noted Manfredi Ricca, Chief Strategy Officer EMEA & LatAm for Interbrand. “On one hand, the company’s desire to give due value to the exceptional work achieved in recent years has made it indispensable for many of the world’s most admired brands. On the other hand, these results represent just a fraction of the brand’s potential. Our analysis identifies clear opportunities for future development of the brand: Alcantara is an objectively extraordinary Italian product, but its real significance goes way beyond that.”
Over the last decade, Alcantara has consolidated its brand equity through solutions capable of communicating its all-encompassing values. Through innumerable initiatives along these lines, the Alcantara brand today has become a new paradigm for the contemporary lifestyle.
To support its assessment, Interbrand conducted a quantitative study on Alcantara’s key markets (Italy, Germany, France, the USA, China and Japan). In addition to providing a precise analysis of the brand risk profile and identifying the major drivers of choice in the target sectors, the study confirmed the effectiveness of the investments Alcantara has made in the international market, where the competitive strength of the brand – especially in Asia – has proven higher than in other countries.
The Interbrand valuation method is widely recognised by the world’s major stock exchanges, financial institutions, and many in the academic community. The methodology is also used when developing Interbrand’s annual Best Global Brands report, which ranks the world’s top 100 brands each fall. Published since 2000, it is considered one of the three most influential business rankings in the world..
The Interbrand methodology
Interbrand was the first company to have its methodology certified as compliant with the requirements of ISO 10668 (requirements for monetary brand valuation) and has played a key role in the development of the standard itself. There are three key components in all of our valuations:
Financial Analysis: this measures the overall financial return to an organization’s investors, or its “economic profit.” Economic profit is the after-tax operating profit of the brand minus a charge for the capital used to generate the brand’s revenue and margins.
Role of Brand: Role of Brand measures the portion of the purchase decision attributable to the brand, as opposed to other factors (for example, purchase drivers like price, convenience, or product features). The Role of Brand Index (RBI) quantifies this as a percentage. RBI determinations for Best Global Brands derive, depending on the brand, from one of three methods: primary research, a review of historical roles of brands for companies in that industry, or expert panel assessment.
Brand Strength: Brand Strength measures the ability of the brand to create loyalty and, therefore, sustainable demand and profit into the future. Brand Strength analysis is based on an evaluation across 10 factors that Interbrand believes make a strong brand. Performance on these factors is judged relative to other brands in the industry and relative to other world-class brands. The Brand Strength analysis delivers an insightful snapshot of the strengths and weaknesses of the brand and is used to generate a road map of activity to enhance the strength and value of the brand in the future.