The world’s top 25 most valuable toy brands – a list that includes the likes of LEGO, Barbie, and Bandai – could lose up to $3 billion worth of brand value as a result of the Covid-19 pandemic, according to the latest report to emerge from the independent brand valuation consultancy, Brand Finance.
Analysis by the firm shows that the toys sector is a heavily impacted industry globally and could face as much as a 20 per cent loss in brand value. Looking beyond the toys 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 $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 per cent brand value loss), and heavy impact (up to 20 per cent brand value loss.
While according to the analysts, the toys industry is predicted to suffer a heavy impact to its brand value, it has highlighted a few clear leaders in the sector. One such is LEGO, whose strong marketing strategy and customer loyalty may allow Covid-19 to be an opportunity for the brand to reach new customers who are looking for ways to stay busy at home, states the firm.
“However, marketing and brand awareness campaigns will only take the brand so far, as it is most likely to be faced by manufacturing and distribution issues heavily impacting both the toys and retail sectors,” said Richard Haigh, managing director, Brand Finance.
In fact, the report suggests that LEGO remains the world’s most valuable toy brand by a long way, despite its brand value dropping marginally by 3 per cent to $6.6 billion.
Meanwhile, Nerf has been billed as the fastest growing toy brand this year, following an impressive 43 per cent brand value growth to $587 million. Nerf has made strong progress with its new product lines including Nerf Fortnite and Nerf Ultra. New product launches, paired with greater innovation across the brand, are supporting Nerf in rising to the challenge of increased competition in the sector.
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. According to these criteria, My Little Pony is the world’s strongest toy brand with a Brand Strength Index (BSI) score of 89.8 out of 100 and a corresponding elite AAA+ brand strength rating.
My Little Pony has celebrated an impressive 20 per cent brand value increase to $302 million. The brand’s cartoon series hit the headlines last year as it featured the show’s first same-sex couple, with the episode airing on US television in time for Pride Week.
Following delays in the production of the 2021 My Little Pony feature film, due to Coronavirus, animation work has restarted on the movie, which is being created under Hasbro’s global entertainment studio, eOne. The 2017 My Little Pony: The Movie grossed over US$61 billion in the box office globally.
The Top 10 Most Valuable Toy Brands, according to Brand Finance: