Interbrand Study Shows Major Jump in Alcantara Brand Value

Italian Lifestyle Brand Achieves 15-Fold Gain in Global Valuation

MILAN -- oCT. 8, 2015: Alcantara has achieved a dramatic jump in brand value led by growing awareness for the Italian-made material in the United States, China and Japan, according to a study by Interbrand, a leading brand consultancy.

“Our commitment to the environment is a core brand value that has been recognized by customers in the automotive, consumer electronics, fashion and interior design industries around the world”

Interbrand’s analysis shows that Alcantara’s brand value now totals more than $100 million euros, a 15-fold increase from an Interbrand valuation of $6.5 million euros in 2006.

Andrea Boragno, Alcantara’s chairman and CEO, notes that brand awareness has been central to Alcantara’s competitive strategy over the past decade, adding that the Interbrand study clearly demonstrates the company’s ability to generate value for its customers and consumers in today’s highly competitive global marketplace.

He points out that the company’s sales have nearly doubled from 63.3 million euros in 2009 to 123.8 million euros in 2014. Operating income has tripled from 7.9 million euros to 23.6 over the same period. Exports now account for 90 percent of the company’s turnover compared to 82 percent in 2009.

Alcantara, an Italian-made luxury material well-known throughout Europe, also has gained a solid foothold among auto enthusiasts in North America, as well as with millennials who value environmentally responsible lifestyles.

“We are very pleased with the Interbrand study,” says Boragno. “The increase in Alcantara’s brand value certainly supports the choices we’ve made and is consistent with our increased sales and global reach.

“The study highlights the assets we’ve invested the most in over the years: ‘Made in Italy’ excellence; a strong commitment to sustainability and improving the environment; a privileged relationship with the world’s design community; the material’s almost infinite applications and opportunities for customization, and the aesthetic qualities of the material itself.”

Manfredi Ricca, Interbrand’s chief strategy officer for Europe, the Middle East, Asia and Latin America, notes that “Alcantara’s desire to give due value to the exceptional work achieved in recent years has made it indispensable for many of the world’s most admired brands.

“On the other hand, the results of our most recent study represent just a fraction of the brand’s potential. Our analysis identifies clear opportunities for future development of the brand. Alcantara is an objectively extraordinary Italian product, but its real significance goes way beyond that.”

Interbrand’s study was based on an analysis of Alcantara’s brand value in the company’s key markets – Italy, Germany, France, the United States, China and Japan and confirms the effectiveness of the investments Alcantara has made in the international marketplace where competitive brand strength, especially in Asia, has become a paradigm for contemporary lifestyles.

The global auto industry today accounts for a high percentage of Alcantara’s annual sales, while the fashion industry contributes 13 percent and interior design and consumer electronics provide for seven and six percent, respectively.

Boragno notes that the company has expanded its global presence with a lifestyle message keyed to improving the environment. Alcantara was a major participant in Earth Day activities in Washington D.C. this year; recently helped organize a ground-breaking automotive conference on sustainability, and was one of the first European companies to be certified as carbon neutral in 2009.

“Our commitment to the environment is a core brand value that has been recognized by customers in the automotive, consumer electronics, fashion and interior design industries around the world,” he explains.

Interbrand’s method for establishing brand valuation is widely recognized by the world’s major stock exchanges, financial institutions and many in the academic community. The methodology also is used when developing Interbrand’s annual Best Global Brands report, which ranks the world’s top 100 brands each fall. Published since 2000, it is considered one of the three most influential business rankings in the world.

The Interbrand methodology

Interbrand was the first company to have its methodology certified as compliant with the requirements of ISO 10668 (requirements for monetary brand valuation) and has played a key role in the development of the standard itself. There are three key components in all of our valuations:

Financial Analysis: this measures the overall financial return to an organization's investors, or its "economic profit." Economic profit is the after-tax operating profit of the brand minus a charge for the capital used to generate the brand's revenue and margins.

Role of Brand: Role of Brand measures the portion of the purchase decision attributable to the brand, as opposed to other factors (for example, purchase drivers like price, convenience, or product features). The Role of Brand Index (RBI) quantifies this as a percentage. RBI determinations for Best Global Brands derive, depending on the brand, from one of three methods: primary research, a review of historical roles of brands for companies in that industry, or expert panel assessment.

Brand Strength: Brand Strength measures the ability of the brand to create loyalty and, therefore, sustainable demand and profit into the future. Brand Strength analysis is based on an evaluation across 10 factors that Interbrand believes make a strong brand. Performance on these factors is judged relative to other brands in the industry and relative to other world-class brands. The Brand Strength analysis delivers an insightful snapshot of the strengths and weaknesses of the brand and is used to generate a road map of activity to enhance the strength and value of the brand in the future.