Commercial Services 50 2020 report

Brand Finance Commercial Services 50 2020

  • Commercial services sector moderately impacted by COVID-19 pandemic, brands could lose up to 10% of brand value, equating to a US$34 billion loss
  • Deloitte retains title of world’s most valuable and strongest commercial services brand - brand value US$32.5 billion and Brand Strength Index (BSI) score 91.4/100
  • Deloitte, Accenture and PwC claim podium positions in professional services sub sector
  • Human resources brands suffer, brand values down 10% on average
  • Moody’s leads way for rating agencies, brand value US$2.6 billion
  • American Express overtakes Visa following 6% brand value growth
  • TRANZACT acquisition pays off for Willis Towers Watson, brand value up 15%

Top 50 commercial services brands could lose over $30bn from COVID-19

The world’s top 50 most valuable commercial services brands could lose up to US$34 billion worth of brand value as a result of the COVID-19 pandemic, according to the latest Brand Finance Commercial Services 50 2020 report. Brand Finance’s analysis shows that the commercial services sector is a moderately impacted industry globally and could face a potential 10% loss in brand value.

Looking beyond the commercial services sector, the value of the 500 most valuable brands in the world, ranked in the Brand Finance Global 500 2020 league table, could fall by an estimated US$1 trillion as a result of the Coronavirus outbreak.

Brand Finance has assessed the impact of COVID-19 based on the effect of the outbreak on enterprise value, compared to what it was on 1st January 2020. The likely impact on brand value was estimated for each sector. The industries have been classified into three categories – limited impact (minimal brand value loss or potential brand value growth), moderate impact (up to 10% brand value loss), and heavy impact (up to 20% brand value loss) – based on the level of brand value loss observed for each sector in the first quarter of 2020.

“The sheer size, diversification and complexity of the commercial services sector undoubtedly means that brands are going to be affected differently from COVID-19. On the one hand, navigating the regulatory, ethical and legal responsibilities of this pandemic drives business for many consultancies, law firms, accounting and assurance brands. However, this additional work may not offset or compensate for the extensive losses that these brands are likely to endure. Commercial services firms are amongst the first to take hits as many clients' priorities are shifting, projects are being cancelled or delayed, and cost avoidance and reductions measures are being put into place.”

Alex Haigh, Valuation Director, Brand Finance

Deloitte dominates sector

Deloitte has retained the title of the world’s most valuable commercial services brand, following a 10% brand value increase to US$32.5 billion. Strong revenue growth is the key driver behind the international giant’s brand value increase, with all five of Deloitte’s business segments recording strong results.

In addition to measuring overall brand value, Brand Finance also evaluates the relative strength of brands, based on factors such as marketing investment, customer familiarity, staff satisfaction, and corporate reputation. Alongside revenue forecasts, brand strength is a crucial driver of brand value. According to these criteria, Deloitte is also the world’s strongest commercial services brand with a Brand Strength Index (BSI) score of 91.4 out of 100 and a corresponding elite AAA+ rating.

The brand has invested considerably in its workforce through learning and development initiatives enabling Deloitte to deliver high quality, consistent services to clients. Above and beyond developing its workforce, Deloitte is committed to helping communities through its societal impact initiative, WorldClass, which prepares people and clients for the technological changes of the Fourth Industrial Revolution. The brand’s increased CSR scores are a testament to this. Deloitte is the only brand in the Big Four to record an increase in brand strength this year.