PwC Germany and Prof. Dr. Henrik SattlerStudy on the Importance of Branding

22 January 2025

Photo: University of Hamburg

Dr. Claudia Höck and Prof. Dr. Henrik Sattler worked on the study

PwC Germany and Prof. Dr. Henrik Sattler publish a fifth brand study on the significance of brands in the context of corporate sustainability and technological change. Since 1999, the auditing firm PricewaterhouseCoopers (PwC) have been collaborating with Prof. Dr. Henrik Sattler and his team to investigate the relevance of brand valuation from the perspective of companies. The most recent survey focused particularly on the effects of sustainable corporate management on brand communication, the brand promise, and consumer behavior. Key findings were presented at PwC’s headquarters in Frankfurt am Main on 4 December 2024.

Brands are one of the most valuable assets of companies. In this context, the auditing firm PwC Germany and Prof. Dr. Henrik Sattler, professor of marketing and branding, conducted their first joint study on the practice of brand valuation in German companies 25 years ago, which they repeated in 2005, 2012, 2019, and 2024. Over the course of time, this revealed important findings about central topics of brand valuation, particularly about the general significance of brands and the purposes and instruments used to valuate brands. However, the current wave also examined the effect of the changed framework conditions, such as advancing digitalization, growing awareness of sustainability, global crises, on the relevance and value of brands.

The evaluation of the 2024 brand study included responses from 207 managers at German companies from the areas of marketing, finance/controlling, accounting/tax and others (in particular management / CEO). Around 75 representatives from the field attended the presentation of results on 4 December 2024 at the PwC Experience Center in Frankfurt am Main. Another 80 joined online.

Brands are still very important to consumers, but the willingness to switch continues to increase

The results of the analysis show that brands remain an important intangible asset and will continue to be one of the most important factors influencing corporate success in the future— hence the need for a monetary valuation of brands, e.g., for internal reporting, or controlling brand investments. Respondents recognize the significance of assessment, but choosing the right process is challenging. Well-founded brand evaluations often require the expertise of external institutions, such as market research agencies or management consultancies.

For consumers, brands are among the most important criteria for purchasing decisions in 2024 alongside product quality, although there are significant differences depending on the industry: In the automotive industry, brands have always been very relevant in contrast to the infrastructure sector, for example.  However, companies are struggling with declining brand loyalty and brand switching. It is thus essential to understand what drives the value of brands from the consumer’s perspective.

Sustainability as a central component of brand communication

A key outcome of the current wave is that sustainability and the associated values have a powerful impact on the willingness switch and must therefore be a central component of brand communication: “A growing awareness of sustainable corporate management is has an increasing influence on consumer purchasing decisions,” says Prof. Dr. Henrik Sattler. “Brands that authentically communicate sustainable values have a higher chance of gaining customer trust. At the same time, ‘greenwashing’ based on false promises jeopardizes the credibility of brands. Digital brand strategies can help increase brand visibility, but they also harbor risks, as false or incomprehensible brand promises can be uncovered more quickly through digital networking.

Brands remain a relevant factor for business success

Overall, the results and the great interest among participants in Frankfurt prove that it is still essential that companies build a value-oriented brand management: “Brands are an intangible asset that will continue to play an increasing role for business success.

Corporate management to control this asset,” says Dr. Rainer Jäger, Partner Advisory at PwC Germany.

Further details on the brand study 2024 and the full report are available on the PwC Germany website: PwC brand study 2024.