THE BUSINESS OF INTIMATE BRANDS
INTIMATE BRANDS OUTPERFORM LEADING FINANCIAL INDICES
Intimate brands are based on emotion, designed for today’s complexity and built to foster decision-making. In addition, intimate brands make strong business sense. The Top 10 Most Intimate Brands continue to outperform established financial indices for both revenue and profit growth over the last 10 years. In addition, these brands command a price premium, enjoying more financial resilience than brands in the same industries that are not intimate.
We compiled the top 10 companies from the Brand Intimacy Rankings, Standard & Poor’s 500, and Fortune 500 lists. For each brand, our teams gathered the reported revenue and profit/(loss) for the years 2005 through 2015 from their annual reports and/or Form 10-Ks. From the data, we then calculated the average year-over-year growth rates for both revenue and profit for the 10-year period.
In order to demonstrate the potential total dollar value of growth, we compounded the total profit for the Top 10 Most Intimate Brands by applying each of our calculated average year-over-year growth rates from the respective indices. We then compared the calculated total dollar value of growth for Standard & Poor’s 500 and Fortune 500 to the total dollar value of growth for the Top 10 Most Intimate Brands and took the average.
The following demonstrates the relationship between intimacy and price resiliency. In general, as consumers move from non-intimate to most intimate (fusing stage), so does their willingness to pay a premium for a brand. The figures below show that 21 percent on average of intimate consumers are willing to pay 20 percent more. By comparison, the figures on the right show the comparable data for consumers most intimate with Amazon (who achieved the highest price resilience score), one-thrid of which are willing to pay a premium for the brand.
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