What is Brand Equity?
I regularly use the term “brand equity” in my Tiktok videos. And I figured I should probably explain what it means rather than make assumptions.
Because to me brand equity is the foundation of this entire beautiful and sometimes horrifying industry.
So firstly. What is it? Well brand equity is simple: It’s the value your brand holds in the mind of the customer.
Not your logo or even your product. But what people are willing to pay… how quickly they buy… and how strongly they prefer you over alternatives.
That’s brand equity.
Now an important area to consider is how brand equity is seen. Because you can't measure brand equity in theory. You'll see it in behaviour.
So for example: when a Rolex customer pays over retail on the secondary market — that’s brand equity.
When Chanel raises prices by over 60% on a classic bag and demand still holds — that’s brand equity.
When Hermès can make customers wait years for a Birkin — and they still queue! — that’s brand equity.
Brand equity shows up in pricing power… in waiting lists… and in resale value.
So how is it built? Well it's definitely not built through marketing alone. Instead. It’s built through consistency. A business needs to have clear identity. Controlled distribution. Disciplined pricing.
And product that people recognise instantly.
Obviously over time, those decisions will compound.
So to summarise. Brand equity is demand that exists before the product is even available.
And once you have that, everything gets easier believe me. You can price higher. You can sell faster.
And you can even scale with control.
Without it, sadly you’re just competing on product. And that’s a race you don’t want to be in.
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What is Brand Equity?
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