Brand value, or brand equity, is the value that a company can garner from a product because of its name recognition. Many factors contribute to a product becoming a household name such as the brand’s logo, advertising, culture, position, price, quality, differentiation, and etc.

 

In terms of distribution, Natuzzi has the highest value with 69 stores in 45 Chinese cities. Second is Stressless, then Rolf Benz, followed by La-Z-Boy. Multiple distribution channels increase brand value as it makes the furniture products more accessible to consumers. Having a strong presence in China is pivotal during this period as the middle class becomes more affluent and their spending power is increased.

 

A wider array of product line by Rolf Benz and La-Z-Boy is why these two companies generate higher revenues than Stressless and Natuzzi. Stressless and Natuzzi offer mainly just recliners, sofas, and ottomans. Rolf Benz and La-Z-Boy go as far as offering chairs, sectionals, coffee tables, end tables, dining room furniture, and other products and accessories. This increases brand equity because consumers satisfied by one product, increases the likelihood that they will purchase a different product from the same brand because of the trust they have in the brand.

 

The four companies’ mission statements vary as well. Stressless, La-Z-Boy, and Natuzzi all have a one line mission statement regarding their goal to satisfy customers with quality products and experiences. Rolf Benz’s mission statement is, “Always different, always surprising, always individual, and always amazing. With us, you will find your own personal living space, so that you can live in perfect harmony with the way you feel.” That statement is very thorough and it signifies a dedication to their ambition for providing the highest standard of living by producing high quality furniture with contemporary design and providing a world-class customer service experience. Not all mission statements prove to be accurate, as some companies do not deliver on their words. In this case, Rolf Benz has the reputation and revenue to show for which boosts their brand equity.

 

Although La-Z-Boy and Natuzzi are premium brands, they charge a price that is slightly higher than average for mid range furniture. Stressless charge a premium price compared to generic brands because they brand themselves as “the world’s most famous furniture brand” providing the ultimate comfort. Rolf Benz charges an ultra high price for their furniture because of consumer recognition of the cutting edge and very posh designs. Stressless’ main brand value derive from its heritage in furniture making from Scandinavia and its patented Glide®, Plus®, and ErgoAdapt™ technology incorporated into the sofas and recliners. The Norwegian brand has adopted the perception to consumers that Stressless furniture is tied to maximized comfort and high prestige. Brand equity may be difficult to quantify as it is mostly about consumer associations and opinions of the brand’s language versus other competitors in the market. With the decline of sales in China, it shows that Ekornes Stressless has lost some of its brand value because of the decrease in quantitative sales and possibly qualitative metric as well.