eMAG, the biggest online retailer in Romania, has overtaken carmaker Dacia as the most valuable brand in Romania, according to the latest report by Brand Finance. Founded in 2001, eMAG has been one of the fastest-growing Romanian brands in recent years. Meanwhile, Dacia was founded in 1966. Both brands are owned by international investors: eMAG by Naspers/Prosus and Dacia by Renault.

eMAG’s brand value went up by 29% in the last year, to EUR 1.027 billion whereas Dacia’s brand value dropped by 28% to EUR 815 million, according to the report.

The e-commerce brand rode a favorable wave as consumers’ buying patterns switched to online during pandemic while Dacia recorded a drop in revenues, is Brand Finance’s explanation for the historic switch at the top of its ranking.

“Until very recently, Dacia seemed to be glued forever to the first position in the Romanian ranking. The fast ascent of eMag to the top marks a symbolic ‘torch passing’ from an old and well-known brand to a ‘new economy’ brand invented less than 30 years ago. Looking forward, it would be a healthy development for Romania if more technology and ‘new economy’ brands challenged the top 50 ranking,” commented Mihai Bogdan, Managing Director, Brand Finance Romania.

The consultancy firm explained that eMAG’s brand value has continued to increase due to forecast increased revenues as it continues to transform to meet changing consumer demands. “As consumers become increasingly familiar with online shopping across its key markets of Romania, Hungary and Bulgaria, eMAG’s brand has the potential to achieve further growth in the hotly contested and continually changing online retailing sector. eMAG has the potential to benefit from both macroeconomic changes as consumers spend more online, and micro changes as it delivers on its brand purpose to its key stakeholders,” Brand Finance said in a press release.

Local retailers benefit from post-pandemic recovery

Besides eMAG, the do-it-yourself retailer Dedeman (up 24% to EUR 504 million) and the electro-IT retailer Altex (up 31% to EUR 123 million) also recorded significant leaps in brand value in the last year.

Despite operating mainly in brick-and-mortar DIY stores –a sector severely hit by the pandemic restrictions – Dedeman is bouncing back and it remains the most valuable brand held entirely by Romanian shareholders, defending the third position in the ranking. These brands are well placed to capture a re-alignment of the Romanian economy as consumers demand more goods and less services in the wake of the pandemic, according to Brand Finance.

Overall, the combined value of Romania’s top 50 brands went up 5.6% from the previous year, in line with the whole Romanian economy’s rebound of 5.9%.

Over 60% of brands and brand value in the top 50 ranking have been created by the private sector over the past 30 years. New brands – created and developed by entrepreneurs and private companies over the past 30 years – account for over 60% of the Brand Finance Romania 50 2022 – both in the number of brands and in brand value.

Banca Transilvania is strongest Romanian brand

In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance.

By this measure, Banca Transilvania (brand value up 6% to EUR 397 million) is the strongest Romanian brand, achieving an elite AAA+ brand ranking with a brand strength rating of 90 (out of 100). The banking brand is now amongst the top ten strongest banks globally, and the brand is the 5th most valuable Romanian brand overall.

The research underlying this sixth annual report by Brand Finance on the most valuable and strongest Romanian brands was completed before the Russian invasion of neighboring Ukraine, and as such, it marked a rebound from the uncertainty induced by the global Covid pandemic. While the Romanian economy has not had significant connections with Russia and Ukraine, it is expected that further research would measure the potential disruption from the war shockwaves.

editor@romania-insider.com

(Photo source: company photo)