Dubai: What is a “Trump” branding worth? More so now that he is the President of the US of A?
Investors in Dubai’s real estate markets will surely want to know what sort of premium the brand will carry in his new role. And also looking on quite carefully would be the developer Damac Properties, which has multiple Trump-branded options coming close to completion.
There is a golf course and clubhouse and so are pricey luxury mansions at its Akoya master-development. Damac is not telling and sticking to its previous statement of not commenting on “comment on matters relating to the US political environment, or indeed the US Presidential Elections.”
But the rule of thumb in the branding industry, especially related to real estate, is that it usually carries a premium in the range of 30 per cent compared with those that do not have one. But a “presidential” stamp on a property is unchartered territory until now. And especially with someone who has not been shy of making extremely polarising statements while on the campaign stump.
According to Suneesh Menon, Managing Director of BPG, the ad agency, “The election of Trump brings in an interesting quandary for marketers as buildings and monuments are generally named after personalities after they have left office.
“The closest comparison is what are called Royal Warrants where the [office of the] monarchy of the UK endorses brands that they use. There have also been other business people who have become politicians [Shinawatra in Thailand or Berlusconi in Italy] but no one that has built his/her empire around a franchiseable name.
“Therefore, to a large extent, brands are entering into uncharted territory. In this case you could technically be buying something that a ‘sitting’ president endorses.
“Will it help the brand” Yes.
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