Dacia remains Romania’s most valuable brand

Dacia remains Romania’s most valuable brand
By Carmen Simion in Bucharest July 12, 2018

The automotive brand Dacia remains the most valuable Romanian brand in 2018, according to Brand Finance's 2018 Romania 50 report issued on July 12.

Valued at €1.23bn, Dacia is still the only brand worth over €1bn in Romania and is unlikely to be overtaken soon, as its followers, online retailer eMag and DYI retailer Dedeman have brand values of less than half that level at €458mn and €304mn respectively.

Dacia, majority owned by French giant Renault, has a production facility in Romania and is among the country's biggest exporters and employers. Renault acquired a 51% stake in Dacia when it was privatised in July 1999, five years after losing out to Volkswagen in the race to acquire fellow east European carmaker Skoda Auto in the Czech Republic. Now, Renault holds a 99.4% stake in the Romanian carmaker.

The brand’s value has increased by 2% in the year, according to the latest Brand Finance report.

A higher annual rise in brand was registered by online retailer eMag, of 27%. The retailer, which is also present on the Bulgarian, Hungarian and Polish markets, is currently benefitting from Romanians' rising disposable income following a series of wage increases and tax cuts. The company plans investments worth more than €120mn this year, the company’s general manager, Iulian Stanciu, said on June 19, according to News.ro.

The brand value of DYI retailer Dedeman, owned entirely by two Romanian brothers, increased 47% on the year. Dedeman is followed by oil and gas company Petrom with a brand value of €194mn.

Next in the ranking comes Digi (RCS&RDS), which consolidated its brand value with a 24% increase to €186mn, based on turnover growth and improved brand equity following the deployment of the DIGI brand. If it stays on course, it is likely that DIGI may feature in the global Brand Finance Telecoms 300 ranking next year, the report noted.

Banca Transilvania (BT), which ranked sixth, is the most valuable Romanian banking brand (€148mn, +14% up on the year) and is the only Romanian bank to have been included in the Brand Finance Banking 500 2018. BT has been expanding rapidly in the past years. It has acquired the former Volksbank Romania and local peer Bancpost, and bought a majority stake in neighbouring Moldova’s Victoriabank.

Bitdefender, which ranks seventh, remains Romania’s most valuable technology brand, worth €118mn.

The aggregate value of the top 50 Romanian brands has increased 14% to €4.2bn. The rise is twice as high as the record 7% growth of the Romanian economy in 2017, as strong brands tend to outperform the rest of the economy, the report noted.

In terms of sectors, apart from Dacia in the automotive category, the retail sector generated the most brand value, with a total worth of €1bn, 33% up on the year.

The report also analysed the most valuable portfolios of brands, with Ursus Breweries ranking first, with a €139mn value. The company also boasts three brands in the national top 50 including the eponym Ursus brand (€31mn) and Romania's oldest and most valuable beer brand Timisoreana (€60mn).

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