Incite by Design

Caustic visions and shared thoughts on design, marketing, creativity, philanthropy, pop culture and business philosophy by Toronto design firm, Ricksticks Inc.

2005-03-15

I Can't Believe I Missed This...

Ground breaking study shows direct relationship between use of design and corporate financial performance

A new study published today (Thursday 4 March 2004) has demonstrated for the first time the direct relationship between the effective use of design and financial performance.

The study, which examined UK quoted companies over a ten-year period between 1994 and 2003, found that a group of 63 companies identified to be effective users of design outperformed the FTSE 100 index over the full period by 200%, and also surpassed their peers in the recent bull and bear markets.

David Kester, Chief Executive of the Design Council, which funded the study, said: 'The research shows that design is an important indicator of good management, and that this feeds directly through to the financial performance of these companies. Any investors who backed this group over the last ten years, through the bull and bear markets, will have seen a consistent and significant outperformance in their portfolio versus the FTSE All-Share index.

It would be cool to find a similar study of North American brands...anyone?

To steal Jon's great summary of what void marketing fills -

Just as nature abhors a vacuum, so too does the human mind. Where there is a lack of information, the imagination will rush to fill a void. ~ Carl Jung

People prefer to be able to explain things, they want a logical explanation for everything that occurs. That includes all the details about the goods we purchase. If you don't provide people a story, they'll make one up - and more than likely, it won't be as good as one that you could come up.
I believe this study attests to the power of symbolism and story in creating your brand... Anyone care to throw out some examples of N. American companies that have successfully harnessed design?
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