Brand Finance has released an update of its much publicised valuation of the Monarchy to coincide with the birth of the latest member of the Royal Family. The leading brand and intangible asset valuation agency predicts that William and Kate’s son will boost Britain’s economy by £521m (US$800m) over the long term. A combination of; a short term boost to souvenirs, memorabilia, food and drink; a longer lasting uplift to related products such as pushchairs and clothing; and the benefit of improved consumer sentiment is behind the impressive figure.
The overall contribution of the Monarchy to the British economy this year is £1.5bn (US$2.3bn). Though the Jubilee year of 2012 provided a slightly bigger boost through commerce and PR value to ‘Brand Britain’, the additional economic cost of a bank holiday reduced the net benefit to £925m (US$1.4bn).
Meanwhile the value of the Monarchy as a whole, which includes economic benefits (net of costs) into the future, plus the tangible assets of the Crown Estate and Duchies of Cornwall and Lancaster, has risen from £43bn (US$68.5bn) last year to £53.6bn (US$83.8bn).
Brand finance chief executive David Haigh commented, “The Monarchy is one of the most valuable of all British brands. Whatever one thinks about the constitutional principle, there seems little doubt that the institution of Monarchy adds significant annual earnings and long term economic value to the UK. The Monarchy is a powerful endorsement for individual and company brands and the latest Windsor will be an effective and lucrative ambassador for Brand Britain, making a significant contribution to the task of driving Britain out of the recession.”
The Royal Baby Boost (£m) (US$m)
sentiment & PR for ‘Brand Britain‘ 208 319
Food 25 38
Drink 62 95
Souvenirs 56 86
Toys 24 37
Books 40 61
DVDs and other media 36 55
Exported memorabilia 37 57
Pushchairs effect (related products) 33 51
Total Benefit 521 800
Source: Brand Finance plc