The economic downturn has lopped off US$67 billion, or 4.2 per cent, from the brand valuation of the 100 top global brands, according to an updated report by Brand Finance, a UK-based brand valuation firm.

Asian and Singaporean brands have not been spared - customers are reining in excessive spending in favour of essential items. Greater emphasis is also being placed on the concept of value for money.

Worldwide, the financial services sector has, not surprisingly, seen a diminution in brand value across the board. Citi fell out of the top 10 to 15th place with a brand value of US$24.1 billion (14 per cent decrease), while HSBC managed to retain 7th spot with a brand value of US$33.7 billion.

'This crisis has perhaps awakened the need for Asian companies not to be complacent and to readily assume that brands will grow in value and generate returns,' said Brand Finance Singapore managing director Lucy Gwee.

Sectors which have seen a rise in brand value include the petrochemical industry, in tandem with increasing oil prices. These include: ExxonMobil (19.4 per cent), BP (18.3 per cent), Chevron (17.9 per cent) and Shell (12.8 per cent). Healthcare is another sector which recorded a sizeable increase in overall brand value, indicating that customers are emphasising health and well-being despite a contraction in spending.

Singapore Airlines is the top airline representing Asia, and ranks 23rd overall in terms of Brand Rating.

While Asia is faring comparatively better than the West on brand valuation scores, Ms Gwee says that 'this is a boardroom issue, not simply a marketing problem'.

The study is based on the 'Royalty from Relief' methodology, which assumes that a company does not own its brand name, and subsequently computes how much it would have to pay to license it from a third party.

This article was first published in The Business Times on September 17, 2008.