Uzbekistan introduces brand valuation to boost business growth

In today’s market, the concept of a brand is indispensable. When consumers choose a product, they often consider not only its functionality but also its brand. For many, certain products immediately bring to mind market-leading brands — think iPhone for phones, Dyson for hairdryers, or Nike for sneakers.

Perceptions of a brand are shaped by quality, opinions, advertising, and customer service. A strong brand garners more attention, boosts customer loyalty, and provides a competitive edge. It also allows for premium pricing, as consumers are willing to pay more for trust and reliability.

Today, a brand is more than just a logo — it represents a clear, appealing strategy for a company and its products’ development in the coming years, one that resonates with consumers. Brand value, in turn, is the tangible profit a business gains from a loyal audience. People trust a brand, repeatedly choose it, recommend it to others — all of which directly impacts a company’s revenue.

Have you ever wondered how much a brand is worth? Investments in brand development — time, money, and expertise — must yield real results. It turns out that a business’s value can indeed be quantified, not just as a number but as the actual profit derived from a loyal customer base.

How can brand value be calculated?

In 2025, the organizers of the prestigious “Brand Awards International” — the Uzbekistan Marketing Association and the Committee for Competition Development and Consumer Rights Protection of the Republic of Uzbekistan — will, for the first time, offer brands the chance to determine their value.

The valuation will be conducted by experts with extensive experience from the “Big Four” firms, using the “Royalty Relief” method to estimate a brand’s indicative worth.

“This opportunity is being provided to Uzbekistani brands for the first time, making it deeply symbolic that ‘Octobank’ became the first brand in Uzbekistan to undergo this valuation,” said Diyor Mirzaakhmedov, Chairman of the Uzbekistan Marketing Association. “Based on 2024 results, the bank has achieved significant milestones, establishing itself as a dynamic, innovative player in the market, offering convenience and high-quality service in product integration for customers.”

The valuation results will allow Octobank to assess its marketing effectiveness, evaluate its current worth, and understand the extent to which its brand contributes to its overall value.

According to the expert panel’s calculations and conclusions for the “Brand Awards International,” as of February 2025, the estimated value of the Octobank brand stands at $30,000,000 — or, based on the Central Bank’s exchange rate on March 17, 2025, approximately 388,143,186,543 UZS.

The calculation factored in the company’s long-term revenue forecast, the average market royalty rate for the relevant industry, and a discount rate accounting for individual risks.

How can brand valuation impact business development?

1. Aids in investment valuation
2. Brand value goes beyond assessing current worth — it provides insight into how a brand influences a company’s overall value. Knowing this figure supports decisions related to strategic investments, acquisitions, or sales.
3. Attracts investors and partners
4. Companies with strong brands can showcase their financial potential and competitive advantages. Brand valuation helps attract investors and partners, as a brand is a critical asset that can significantly enhance a business’s worth compared to other assets.
5. Evaluates marketing effectiveness
6. Brand value offers a lens to measure how well marketing and advertising campaigns are performing. Rising brand value indicates effective marketing strategies, while a decline compared to the previous year may signal issues with positioning or reputation.
7. Boosts competitiveness
8. The higher a brand’s value, the stronger its market position and the greater its ability to earn consumer trust.
9. Manages reputation and risks
10. Understanding brand value helps identify potential reputation-related risks. For instance, a drop in value could reflect a crisis or negative audience sentiment. Spotting such issues early enables quicker responses and minimizes fallout.