What’s the benefit of good design?
How do you know that brand design is worthwhile? Well we can show you. Here are some stats about the impact of design on business. You might be surprised.“If you think good design is expensive, you should look at the cost of bad design” Dr Ralf Speth. CEO JaguarThe fact is, that great design is not cheep. But the benefit to your business cannot be understated. It is hard to quantify in numbers: What is “Apple’s” brand worth? A better question might be: What is “Apple” without its brand?
Statistics based on the economic impact of design nationally (UK)
(the following statistics are sourced from the UK Design Council)
This is how design is boosting business growth in the UK:
- Design increases turnover: For every £1 invested in design, businesses can expect over £20 in increased revenues
- Design is linked to profit: For every £1 invested in design, businesses can expect over £4 increase in net operating profit
- Design boosts exports: For every £1 invested in design, businesses can expect a return of over £5 in increased exports
- Almost half (47%) of the UK’s rapidly growing businesses see design as crucial to business success.
There is also a relation between the size of the business and the value given to design as a success factor.
- Only 5% of businesses with a turnover of under £250,000 rank design first, in contrast to 23% of businesses with a turnover of over £2million.
- Almost all (93%) of UK businesses agree with the principle that it’s important to have a reputation for design and innovation.
The Design Council has created what they called Design Index (see left). an index of 61 design-led businesses. This report shows that businesses who value design and invest in it had outperformed the FTSE 100 by more than 200% over a ten-year period (1995–2004). This demonstrates the long term benefit that design has on businesses. And it’s clear evidence of a relationship between design investment, business performance and long-term stock market value.
“The Design Index proves that companies which make effective use of design out-perform their peers, and it confirms design to be an integral part of good management. ”
-Sir George Cox, Chairman, Design Council