One of the best kept secrets in business, particularly for any thriving and growing business, is the value of a trademark to its product differentiation. With any economic downturn, a strong trademark becomes an effective marketing tool. Where there is a decrease in demand against supply and a scramble for the customer’s attention, a strong trade identity will ultimately influence the purchasing behaviour of customers who are likely to be careful in their buying decisions and revert to familiar and trusted brands.
Trademarks therefore play a vital role in commerce and competition.
The Consumer Trust for any product or service company is fundamentally important and has a direct impact on its shareholder and employee value, so it needs to be considered on the risk-management agenda of the board and the potential loss of it should be monitored as the company would, for any other risk.