Let me start with a confession.
I didn’t set out to become a branding expert. Like most people in the communications world, I stumbled into brand strategy somewhere between a deck, a deadline, and a desire to make sense of why we say what we say.
And if I’ve learnt one thing, it’s this: branding loves buzzwords.
Purpose. Promise. Positioning. Personality. Architecture. Affinity. Advocacy. Some of it sounds profound, some of it sounds like an interior design brief, and most of it – if we’re honest – sounds suspiciously similar to something we just discussed in the last meeting.
There’s a lot of beautiful chaos in the world of branding – and somewhere within it lies a jungle of jargon that even seasoned marketers and communication professionals sometimes pretend to understand with a well-practiced nod.
So with this column, I’m hoping to do one thing: make branding make sense.
Not in theory. Not in textbooks. But in the way I’ve come to explain it to myself, and to others. With the help of the world’s oldest teaching tool: analogy. Because nothing beats saying, “Think of it like two people…” when you’re trying to decode abstract concepts with real-life clarity.
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Brand Equity vs. Brand Value
Let’s begin with a classic confusion: Brand Equity vs. Brand Value.
They’re often used interchangeably. But in reality, they play very different roles in the brand ecosystem.
So imagine this with me:
Two people walk into a room.
Meet Equity and Value.
Brand Equity is the popular one at the party.
They walk in, and people smile. Heads turn. There’s trust, familiarity, even affection. They’re not loud, but their presence is felt. They’ve shown up consistently over the years – delivered what they said they would, made people feel something, and left a good impression.
Brand Equity is built over time – through memory, reputation, and emotional connection. It’s the sum total of experiences people have had with your brand, and how they feel about you because of it.
Now enter Brand Value – the accountant of the duo.
Practical, precise, and obsessed with numbers. While Equity is busy charming the room, Value is sitting in a corner calculating what that charm is actually worth. They’re the one who tells the CFO, “Based on brand preference, loyalty, and premium potential, this person could bring in INR 500 crores over the next five years.”
Brand Value is the financial worth of the brand – what it contributes to business, balance sheets, and shareholder decisions. It takes what Equity has built emotionally and assigns it a commercial number.
In short:
- Equity makes people like you.
- Value tells the business why that matters.
- One is earned in hearts, the other is counted in spreadsheets.
They’re not at odds. In fact, one feeds the other. Strong equity often leads to higher value.
For example, a legacy brand like Amul has immense Brand Equity – built through decades of trust and reliability. That emotional capital contributes to its value, but the value itself is a number, often hidden in investor presentations. On the other hand, a new-age tech brand might raise funding at a sky-high valuation (Brand Value), but still be working on building true affinity and recognition in the market (Brand Equity).
Understanding the difference helps brand builders balance emotional storytelling with commercial outcomes. It also helps answer questions like:
- Are we investing enough in experiences that deepen equity?
- Are we leveraging that equity in ways that grow value?
- And if the value is high but equity is low, how long can that really last?
And if you’re wondering who to invite first, I’d suggest Equity 🙂
The views and opinions published here belong to the author and do not necessarily reflect the views and opinions of the publisher.
