After taking into account the various components above, we value Tiffany & Co’s brand to be worth SGD 256,669,413 in Singapore, using a discount rate of 6.85%. We feel that Tiffany & Co. has a strong potential in increasing its brand value if they are able to successfully increase brand strength components such as Responsiveness and Presence.
As stated by Mr. Samir Dixit, Brand Finance Singapore Managing Director, “There are a lot of misconceptions about brand valuation as just a technical tool but it can actually be a strategic tool as well”. Therefore, our team understands that in order for a company like Tiffany & Co. to be highly successful, it cannot be too focused on the numbers on the balance sheet. Instead, intangibles such as brand value makes up the company’s enterprise value, is one of the most important component of strategic branding.