If local brand owners were hoping the new Abbott government would “implement policies to protect Australian brands they’re in for a big shock”.
Retail brands face the biggest challenge with increased competition from big-name international brands, according to a whitepaper from brand valuation consultancy Brand Finance.
“Australian retail brands must invest not only in marketing but also in overhauling how they operate in order to compete with super-efficient foreign brands.”
Internet-based businesses could be challenged down the line by the Abbott Government’s decision to downgrade the National Broadband Network (NBN) and “affect Australia’s capability to thrive in the age of the internet”.
“The absence of super-fast broadband also makes it that much harder for new brands that depend on internet speed to flourish.”
According to the company’s Global Intangible Finance Tracker (GIFT) 58% of the value of companies listed on the Australian stock exchange were made of intangibles including brands.
“This highlights the danger of mismanaging home grown brands and the effect it could have on the economy. Australia needs strong, well managed brands capable of competing successfully with foreign companies.”