McKinsey published this interesting yet not surprising study about how brand visibility drives industrial companies’ performance. While well-known in the consumer goods and retail sector, industrial for a long time focused on patents, technology and know-how, putting brands and thus trademarks on the back seat. This may change now. Of the more than 5,300 industrial brands McKinsey studied, the top 5 percent captured incredible 95 percent of all "public recognition". And the study shows how industrial can increase their ROIC by relying on and exploiting their brands and trademarks, and why conducting a thorough brand and trademark audit and re-assessing the trademark strategy is key to build strong brands. An interesting read!
As with consumer products, the top industrial brands that get more public attention can charge price premiums of 5 to 10 percent, helping the companies that own them generate significantly higher ROIC.