Royal Baby Adds Princely Sum to UK Economy

Britain Royal Baby 4Brand 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)

Improved consumer 

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

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