We welcome, MA Audit LLC, our new full member firm in Azerbaijan, together with its affiliate, MA Consulting LLC to the global accountancy network UHY, extending our coverage within the Eurasia region. The firms are in the process of adopting the UHY branding and will soon be known as UHY Audit LLC and UHY LLC.

Established in 2009, a team of 19 staff including five partners are based in the capital Baku.  The team brings wide-ranging experience in audit, accounting, consulting and tax to a portfolio of domestic and international clients primarily represented in the aviation, Fast-Moving Consumer Goods (FMCG), oil and gas and tourism sectors.

Managing partner, Teymur Naghiyev comments: “The UHY network’s collaboration, combined with the reputable UHY brand, will give our firm a competitive edge in Azerbaijan and the wider region. The global presence of the network combined with the expertise and knowledge of UHY’s 8,200 people around the world, not only strengthens our own capabilities, locally and internationally, but also these of our clients and their operations.  We look forward to elevating our business through a successful cooperation with other firms operating within the UHY network.”

Rick David, chairman of UHY comments: “We are delighted to welcome UHY Audit LLC and its affiliate to the UHY network. Azerbaijan, a member of the Commonwealth of Independent States (CIS), continues to embrace economic change with the energy sector still being one of their main sources driving economic growth.  UHY MA Audit LLC’s membership extends our footprint in the Eurasia region and strengthens UHY’s regional market expertise and capabilities to serve our international clients who have investments and a business presence in this country and the wider region.”

Liaison office for

UHY liaison office for UHY Audit LLC and UHY LLC

Contact: Teymur Naghiyev, Managing Partner, +994 12 480 13 62, +994 55 215 53 33,

teymur.naghiyev@uhy.az ,  W: https://www.ma-consulting.az/

Notes for Editors

UHY global press contact: Dominique Maeremans on +44 20 7767 2621

Email: d.maeremans@uhy.com – www.uhy.com

The cost of customs duties in G8 countries rose 4% last year from $99 billion to $103 billion, even ahead of the global ‘trade wars’, shows a new study by UHY, the international accounting and consultancy network.

The G8 countries’ import duties now amount to 1.24% of their approximately $8.3 trillion in annual imports.

UHY studied 20 countries around the world, calculating the value of their imports and the cost of duties on those goods and services (see chart below).

There is potential for the cost of tariffs to rise even further in the coming years due to the effects of global trade wars. In 2018, the United States introduced tariffs on a range of imported goods including steel, aluminium, washing machines, solar panels, and 818 categories of goods from China.

Several US trading partners have since responded by imposing retaliatory tariffs on imports from the United States. This has raised fears of a trend towards protectionism, which would increase costs for businesses and consumers worldwide.

UHY’s research shows that the biggest rise in the revenue from duties among major economies was seen in China, which registered a 26% increase from $37.8 billion in 2017 to $47.7 billion in 2018. China is one of the countries that levied retaliatory tariffs on US imports in mid-2018. However, the two countries agreed to postpone planned mutual increases in tariffs from 10% to 25% following talks in December.

US duties cost increased by 6.7% from $62.3 billion in 2017 to $66.5 billion in 2018. On several occasions, President Donald Trump has raised the prospect of the ‘Trump Tariffs’ policy being extended further. This could affect US car manufacturers who build vehicles in Mexico, as well as European carmakers.

Rick David, Chairman of UHY, comments: “In an increasingly globalised economy, a trade war could affect both businesses and consumers.”

“If trade disputes cannot be resolved by negotiation and result in substantially increased tariffs, there could be an impact not only on the cost of goods, but also economic growth and employment.”

Clive Gawthorpe, Partner at UHY Hacker Young in the UK, comments: “The UK is in a very precarious position when it comes to trade deals and tariffs, as it prepares to leave the European Union, the world’s largest trading bloc.”

“Some politicians had suggested that the UK would have dozens of trade deals already in place by the time it leaves the EU, but that seems to have been challenging to deliver in reality.”

“A no-deal exit from the EU could prompt the Government to waive customs duties on some imported goods, to prevent businesses and consumers from being exposed to a steep rise in costs.”

UHY says that Israel is one country that is seeking to decrease the impact of customs duties, following a 14% increase in the cost of duties from $2.5 billion in 2017 to $2.9 billion in 2018.

Kobi Shtainmetz, Partner at UHY Shtainmetz Aminoach & Co in Israel, says: “Israel is looking to buck the global trend towards increased barriers to trade that has emerged in recent years. The Israeli Finance Ministry plans to abolish customs duties entirely on a range of household items, at a cost of around $1 billion per year.”

“That is in addition to expanding trade deals, such as an exemption on customs duties for vegetable imports from Turkey.” 

Thomas Wahlen, Partner at UHY Wahlen & Partner in Germany, says: “There is a lot of uncertainty in the EU about potential future tariffs with the UK.”

The biggest rise in the cost of duties among major economies was seen in China, which registered a 26% increase from $37.8 billion in 2017 to $47.7 billion in 2018

Notes for Editors

UHY global press contact: Dominique Maeremans on +44 20 7767 2621

Email: d.maeremans@uhy.com – www.uhy.com

Nick Mattison or Peter Kurilecz

Mattison Public Relations

+44 20 7645 3636, +44 7860 657 540 or email peter.kurilecz@mattison.co.uk

About UHY

Established in 1986 and based in London, UK, UHY is a leading network of independent audit, accounting, tax and consulting firms with offices in over 300 major business centres across 100 countries.

Our staff members, over 8,200 strong, are proud to be part of the 16th largest international accounting and consultancy network. Each member of UHY is a legally separate and independent firm. For further information on UHY please go to www.uhy.com.

UHY is a member of the Forum of Firms, an association of international networks of accounting firms. For additional information on the Forum of Firms, visit www.forumoffirms.org

We welcome, Malik Hamid Jamal Chartered Accountant, our new member firm in Afghanistan, to the global accountancy network UHY, extending our coverage within the Asia-Pacific region. The firm is in the process of adopting the UHY branding and will soon be known as UHY Malik Hamid Jamal Chartered Accountant.

Malik Hamid Jamal Chartered Accountant, with a team of 58 staff including five partners, is based the capital city of Kabul and was established in 1967. The partners bring wide-ranging experience in audit, accounting, tax, and management consultancy combined with the necessary technologies, methodologies and specialist resources to a portfolio of domestic and international clients primarily represented in the construction, education, not-for-profit and transport sectors.                      

Managing partner, Malik Hamid Jamal of Malik Hamid Jamal Chartered Accountant says: “We are based in an economy with a huge potential for future growth. The UHY network’s collaboration, combined with the reputable UHY brand, will give our firm a competitive edge in Afghanistan and the wider region. Our local capabilities and knowledge of UHY’s 8,200 colleagues around the world, not only strengthens our own market position, locally and internationally, but also will be of great value to our current and potential clients and their operations.

Rick David, chairman of UHY comments: “We are delighted to welcome Malik Hamid Jamal Chartered Accountant to the UHY network. The mineral rich Afghanistan, strategically located as a trade route between Central and South Asia, continues to pursue its ambitious economic reforms. Malik Hamid Jamal’s membership extends our footprint in the Asia-Pacific region and strengthens UHY’s regional market expertise and capabilities to serve our international clients who have a business presence in this country and the wider region.”

Liaison office for Malik Hamid Jamal Chartered Accountant             

Contact: Managing partner, Malik Hamid Jamal on +93 782 886 313

Email: mhjamal@smmcokabul.com Website: www.smmcokabul.com

Notes for Editors

UHY global press contact: Dominique Maeremans on +44 20 7767 2621

Email: d.maeremans@uhy.com – www.uhy.com

New member firm in Iran joins the UHY network

We welcome, Hadi Hesab Tehran, our new member firm in Iran, to the global accountancy network UHY, extending our coverage within the Middle Eastern region.

Hadi Hesab Tehran is based in the capital city of Tehran. Established in 2003, a team of 40, including five partners, provide audit and advisory, tax, insolvency and recovery, corporate finance and management consultancy services to a diverse portfolio of clients from principally operating in the following sectors: industry, finance, shipping, steel and mining and telecommunications.

Managing partner, Hamid Reza Keyhani of Hadi Hesab Tehran comments: “Our country, considered an energy superpower, is a frontier market with a strong performing stock exchange.  Our firm has joined the UHY network for many reasons and is committed to provide the necessary resources to help our clients operate more efficiently in a global market place. The global presence of the network combined with the expertise and knowledge of UHY’s 8,100 colleagues around the world will support our clients’ requirements and not only strengthens our own commitment and capabilities, locally and regionally, but will also enhance those of our clients and their operations.”

Rick David, chairman of UHY comments: “We are delighted to welcome Hadi Hesab Tehran to the UHY network. Iran, the second largest economy in the Middle East and North Africa (MENA) region after Saudi Arabia, coupled with a noticeable state presence in manufacturing and financial services, reinforces our regional footprint and strengthens UHY’s international market expertise. We very much support the capabilities Hadi Hesab Tehran bring to serve our clients’ international needs and opportunities.”

Liaison office for Hadi Hesab Tehran

Contact: Hamid Reza Keyhani, on T: +98 21 88443634, M: +98 912 17 27501,

Email:  keyhani@hadihesab.com, Website:www.uhy-ir.com

Notes for Editors

UHY global press contact: Dominique Maeremans on +44 20 7767 2621

Email: d.maeremans@uhy.com – www.uhy.com

32% of all global patents for blockchain technology were filed by Chinese businesses last year, with 99 patents from a total of 314 filed with the World Intellectual Property Organisation (WIPO) in 2017, shows a new study by UHY, the international accounting and consultancy network.

The study shows that US businesses are close behind with 92 global patents (29%), followed by Australian businesses with 40 patents (13%). UK businesses filed 34 patents related to blockchain (11%) with WIPO in 2017 (see table below).

UHY says that Chinese businesses have invested heavily in blockchain technology in recent years, with the Chinese central bank supporting the development of a blockchain-based trade finance platform to help SMEs access finance. Bank of China also announced in August 2018 that investment in technology, including blockchain, would be 1% of the bank’s annual operating income.

UHY adds that the biggest filer of global blockchain patents last year was nChain, a blockchain-focused research firm based in London and Vancouver, which filed 48 patents for blockchain technology at WIPO in 2017.

In the United States, the largest filer of global blockchain patents was credit card provider Mastercard, which filed patents for developments including a system for offline blockchain exchanges.

UHY explains that while European businesses have only filed a limited number of patents at the global level through WIPO, many have been more active at a local level. For example, while German businesses have filed no patents for blockchain technologies with WIPO in the last year, there have been six filed with the DPMA, the German Patent and Trademark Office.

Chinese businesses are ahead in patenting new blockchain technology, but US is close behind

Chinese businesses also lead the world in developing Artificial Intelligence technology

The study also shows that Chinese businesses lead the way in the development of Artificial Intelligence (AI) technology, filing 473 from a total of 649 AI patents (31%) with WIPO last year.

China is ahead of its global competitors by some distance in the race to build portfolios of intellectual property in AI. Its closest competitor is the United States, which filed 65 AI patents with WIPO last year (10% of the total). Only two global patents for AI technology were filed in the UK in 2017 (see table below).

UHY says that Chinese businesses like Baidu – often described as the ‘Google of China’ – and technology and social media conglomerate Tencent are among the world’s leading developers of AI technology. Baidu filed the most AI patents at WIPO in 2017, with 183.

In October 2018, Baidu launched an AI-powered translation tool which can translate spoken English into Chinese or German almost instantly. It also recently launched an AI-themed park in Beijing, which features self-driving buses and ‘smart walkways’ which track users’ exercise performance through facial recognition.

The United States’ largest filer of AI patents with WIPO in 2017 was Berkeley-based startup Bonsai AI with seven. Microsoft announced its acquisition of the business in June 2018.

Global competition over AI technology has heated up in recent years, with many national governments putting in place programmes to support businesses and universities in developing AI clusters and bringing technology to market.

For example, Canada has introduced the CAD125 million Pan-Canadian Artificial Intelligence Strategy, which aims to increase the number of AI researchers in Canada, and develop AI clusters in Toronto, Montreal and Edmonton. In the US, the Trump administration announced in its 2019 Budget Request that artificial intelligence and autonomous and unmanned systems were Administration R&D priorities.

New AI technology developments dominated by Chinese companies

Rick David, Chairman of UHY, comments: “Blockchain and Artificial Intelligence could unlock significant economic growth over the coming decades, and businesses across the world are investing in making sure they benefit from that.”

“Where countries are lagging behind in areas such as these, governments should consider tax incentives to encourage increased research and development.”

“Developing Artificial Intelligence technology is also going to be critical in determining which businesses will emerge as leaders from the next industrial revolution. The businesses that are positioned best in the long term are those that benefit from private enterprise and government both investing to bring Artificial Intelligence technology to mass markets.”

Kurt Lee, partner at UHY member firm ZhongHua Certified Public Accountants LLP in Shanghai, China says: “Development of blockchain and AI technologies are an important part of the China’s economic plans for the next two decades, as they could significantly enhance productivity. Both businesses and the government have made substantial investments in laying the groundwork for blockchain to play a central role in financial services in China.”

Koko Yamamoto, Partner at UHY member firm UHY McGovern Hurley LLP in Toronto, Canada says: “Canada now has one of the highest concentrations of AI researchers anywhere, and Canadian universities like Toronto, Waterloo and Alberta have some of the world’s most advanced AI programmes. That rich environment has also translated into major investments in Canadian AI development by businesses including General Motors and Thomson Reuters.”

Notes for Editors

UHY global press contact: Dominique Maeremans on +44 20 7767 2621

Email: d.maeremans@uhy.com – www.uhy.com

Nick Mattison or Peter Kurilecz

Mattison Public Relations

+44 20 7645 3636, +44 7860 657 540 or email peter.kurilecz@mattison.co.uk

About UHY

Established in 1986 and based in London, UK, UHY is a leading network of independent audit, accounting, tax and consulting firms with offices in over 320 major business centres across more than 95 countries.

Our staff members, over 8,100 strong, are proud to be part of the 16th largest international accounting and consultancy network. Each member of UHY is a legally separate and independent firm. For further information on UHY please go to www.uhy.com.

UHY is a member of the Forum of Firms, an association of international networks of accounting firms. For additional information on the Forum of Firms, visit www.forumoffirms.org

The sandy beaches and sunny climates of Mediterranean Europe are well known for attracting foreign investment, often in the form of tourist dollars spent in shady tavernas. But now the hotspots of Spain, Portugal, Greece, Cyprus and Malta are becoming renowned for luring a more upmarket clientele.

In May this year, Greece announced an expansion of its hugely popular golden visa programme, widening the types of investments available to applicants. Golden visa schemes allow wealthy foreign nationals to fast-track residency – and often citizenship – in return for investment. In Greece, residency can be bought for an investment of EUR 250,000 (around USD 295,000) in real estate. The new rules will allow would-be residents to invest their money in more diverse ways.

The Greek scheme is now the biggest in Europe, and – perhaps not coincidentally – also among the cheapest. Between the scheme’s inception in 2013 and August 2018 Greece issued 8,367 golden visas to main applicants, bringing a much needed investment of EUR 1.5 billion (over USD 1.76 billion) to a stagnating economy.

PAYING FOR A PASSPORT

A boat ride across the Mediterranean sea, Malta’s inviting climate and relaxed way of life also attract individuals looking for citizenship-by-investment, or CIP. Pierre Galea Musù, partner at Maltese member firm UHY Pace, Galea Musù & Co in Ta’ Xbiex, is unequivocal about the scheme’s success: “Is it working? It certainly is!”

Pierre explains that Malta actually runs two popular schemes, one of which is a residency scheme in which individuals guarantee their own health cover and access to housing and agree to pay a minimum tax rate of EUR 15,000 (USD 17,650). The other – the Individual Investor Programme (IIP) – is about citizenship. It requires a EUR 675,000 (USD 794,300) donation to the national development fund and a EUR 350,000 (over USD 411,800) property purchase.

“I am not a believer in the theory that the Maltese economy is buzzing at full steam ahead because of the IIP scheme,” says Pierre. “But there is obviously an indirect side effect as high-net-worth individuals who come here and purchase high-end property, dine at the best restaurants, berth luxury yachts here, all act as a catalyst to the economy, accelerating its velocity. So yes, IIP is a contributor to economic wellbeing, albeit indirectly.”

Malta is clearly an attractive option for those who need a parking spot for the yacht; indeed, the very concept of golden visas started in 1984 on the poor but similarly sun-dappled Caribbean island of St Kitts and Nevis. But sunshine is not the only reason a wealthy individual might covet a second or even third passport. While the Maltese climate, culture and history are important, Pierre agrees that “some come because of the European Union (EU) – a Maltese passport as an EU member is very attractive to people from other continents.”

FREEDOM TO ROAM

At least 24 countries around the world now run CIP schemes, including some – like the UK, New Zealand, Canada and the Netherlands – not blessed with a Mediterranean climate. The US CIP scheme, called EB-5, is the most popular in the world, and is estimated to deliver USD 1 billion to the economy every quarter.

In the Netherlands, individuals must invest EUR 1.25 million (USD 1.47 million) in a Dutch-based company or qualifying fund to receive a temporary, though extendable, residence permit. After five years, the investor can apply for permanent residence or Dutch citizenship through naturalisation.

The Dutch scheme is aimed squarely at economic regeneration, and a points system applies that promotes investments in innovation and job creation, favouring individuals who can bring specific knowledge, networks, clients and active involvement to the Dutch economy.

So with 23 other schemes to choose from, why choose the Netherlands? Maarten van der Steen, tax advisor at UHY member firm Govers Accountants/Consultants in Eindhoven, the Netherlands, believes the country’s appeal is multifaceted.

Maarten says: “The Netherlands is known for its tax facilities for foreign investors. There are several tax incentives for innovative start-ups and for R&D activities. Also, geographically there is access to Europe, and in terms of infrastructure the Netherlands is an attractive option.”

Like the US, the EU is a huge draw for individuals who can afford to pay between EUR 250,000 (around USD 294,000) and EUR 5 million (USD 5.9 million) for a passport. Tax breaks and lifestyle play a part, and Western education is especially coveted. Mobility is also important: a US or EU passport allows visa-free travel to upwards of 160 countries.

A CHINA SYNDROME?

Applicants for golden visa schemes tend to come from Russia, India, the Middle East and – most of all – China. Chinese nationals are the biggest applicant group in all major CIP schemes, and have spent a combined USD 24 billion on golden visas across the globe. Unlike applicants from other countries, who tend to be very wealthy, Chinese investors also come from the middle classes, with individuals regularly selling property or businesses to buy a golden visa.

And yet China has enjoyed decades of economic growth, lifting millions of Chinese out of poverty. Cities are booming. So why do some members of the Chinese middle class want to move away?

Of course, only a tiny minority of the huge Chinese middle class want to buy overseas residency or citizenship, and among those that do the reasons are complex. An Associated Press analysis in 2017 found that some beneficiaries of China’s economic boom still feel insecure about the future, with one applicant for the US EB-5 scheme commenting that “someone in the middle class can become poor in one second.” Other Chinese applicants may want to escape China’s rigid and competitive school system, rocketing property prices and urban smog.

STABILITY IN AN INSECURE WORLD

For super-wealthy and middle-class applicants alike, golden visas can be a safety net, a way of replacing insecurity with stability. Looking from the outside, Canada appears one of the most stable bets around, and until recently operated one of the most popular investor immigrant programmes of all. The federal scheme closed in 2014 – a victim of its own success – but the province of Quebec runs a regional scheme which will accept up to 1,900 applicants in 2018/19.

who are required to invest CAD 1.2 million (around USD 929,400) with a Quebec crown corporation for a period of five years at no interest, and be worth at least CAD 2 million (USD 1.55 million). Interestingly, applicants are favoured if they have experience of running a business and, unlike some other golden visa programmes, they must intend to settle in the province.

Ken Shemie, partner at UHY Victor, Montreal, Canada, says: “The benefits of the programme are not only to attract educated and affluent immigrants to reside in the province, but also to put their money to work helping small businesses in Quebec.”

When Canada closed its federal programme, it did so because it believed the scheme undervalued Canadian citizenship and created little economic benefit, but Ken believes the Quebec scheme is having the opposite effect. “A well-managed programme offers large revenue potential to the government and private sector,” he says. “During the period from 2001 through 2016, for example, the Quebec IIP program generated more than CAD 700 million (over USD 542 million) from immigrant investors, and this sum was allocated to nearly 5,000 Quebec businesses. That has to have helped the economy.”

A POTENTIAL BACKLASH?

Still, the Canadian federal government is not the only authority having second thoughts about golden visa schemes. In the US, axing the EB-5 scheme has been discussed in Washington, with senator Dianne Feinstein saying: “It is wrong to have a special pathway to citizenship for the wealthy while millions wait in line for visas.”

In Europe, fears have centred on who might be exploiting these back doors to EU citizenship, and where their money might originate. Questions have been asked in the European Parliament about whether member states can always accurately identify the origins of these substantial investments. In October 2018, Malta and Cyprus were named on an Organisation for Economic Co-operation and Development (OECD) blacklist of nations whose golden visa schemes are deemed to pose a high risk of tax evasion.

Cyprus is, like Malta, a popular destination for wealthy individuals looking for an EU passport, not least because of its extremely favourable tax regime for both companies and individuals. Its golden visa scheme has not only come under fire from the OECD, but also from some members of the European Parliament.

Antonis Kassapis, director of Cyprus member firm UHY Antonis Kassapis Limited, says: “Applicants are mainly from China, India, Russia and the Middle East, and what draws them to Cyprus is the very favourable tax regime, the fact that Cyprus is in the EU and the excellent lifestyle. The Cyprus government is well aware of EU concerns and aims to have a scheme that is both attractive to investors and acceptable to the EU.”

To that end, Cypriot authorities recently introduced more stringent controls on the programme and capped it at 700 passports per year.

Across the Mediterranean, Pierre believes Malta’s CIP has been singled out for unfair criticism. “The criticism of the system, pushed at EU Commission level, was aimed at demonising it. In reality, the process of verification and due diligence is very rigorous and highly professional. Getting a residency permit or a passport is no mean feat. It is a lengthy process, it is rigorous and the authorities are unflinching. The rate of refusal is not negligible.”

The countries that operate golden visa schemes insist they are secure and tightly controlled. What is not in doubt is their success, especially for small nations with more limited economic options. In Cyprus, Antonis is convinced of the scheme’s worth: “It brings capital into the economy. It brings employment. It helps many sectors of the economy, including the construction and land development sector, the services sector, tourism and banking.” For an increasing number of countries around the world, benefits like these are the most important considerations of all.

Notes for Editors

UHY press contact: Dominique Maeremans on +44 20 7767 2621

Email: d.maeremans@uhy.com – www.uhy.com

Ask five people to define the concept of brand in a business context and you may hear five different answers.

Is it simply a product manufactured by a company under a particular name, as one definition has it? Is it a logo, symbol or design feature? Is it, as somebody suggests, ‘the emotional and psychological relationship’ a business has with its customers?

In reality, it is all those things and more. Most brand experts liken it to a business’s personality. It is what a company is called, what it looks like, how it positions itself, what its values are, and even who it associates with (its partners and customers), all rolled into one. All businesses, big and small, need to be aware of their brand image and work to promote it.

Interbrand is widely recognised as one of the world’s leading brand consultancies. Speaking at the UHY 2018 EMEA regional meeting in Barcelona, Jorge Camman, director of innovation and verbal identity at Interbrand Iberia, explained why brand has never been more important.

“In a rapidly changing world, globalisation, standardisation, technology and deregulation have created more players, more products and more options. It is confusing, and people have less time to manage it all.”

For that reason, consumers look to brands to simplify their lives. If they know that a brand represents qualities they admire or aspire to, they can make quicker, easier purchasing decisions. On the flipside, brands can easily be associated with negative events. Toxic brands also simplify the lives of their customers, by removing themselves as an option for consideration.

AUTHENTIC, RELEVANT, DIFFERENT

How do businesses create brands their customers recognise and want to associate with? “Inside the business, there has to be clarity, commitment, protection and responsiveness,” says Jorge. “Outside, the brand has to meet many criteria. I would say it must be authentic, relevant, different and consistent. Above all it has to be present (visible), and understandable.”

It is easy to see how big global names leverage that kind of brand identity to drive sales. Do you want sneakers, or Nike sneakers? Do you want a burger, or a Big Mac? But brand is not the preserve of huge global names. Small businesses can have incredibly strong brands, and that is often most true at the top end of the market.

There is a historic perception that luxury brands weather economic storms better than non-luxury brands, because they attempt to satisfy desires rather than simply solve problems. In a rapidly globalising, hyper-consumerist age, the best luxury brands provide timeless authenticity in a volatile world. They are beacons of stability and consistency, cutting through the confusion of endless choice. Their approach provides lessons that all businesses can learn.

BRAND IS THE RESPONSIBILITY OF EVERYONE

Hotel d’Angleterre is a luxury hotel in Copenhagen, Denmark, and the only hotel in the country with the five star superior classification. It is also a client of Danish UHY member firm inforevision. As a small player in a market dominated by large luxury chains like Marriott and Radisson, Hotel d’Angleterre leverages brand to stay ahead of competitors.

“Hotel d’Angleterre works with branding in all imaginable areas,” says William Dixon, the hotel’s financial director. “For example, we offer training classes in ‘Luxury Behaviour’ for all staff. Both the interior and exterior of the hotel underline the fact that the brand only uses upscale products in all areas of the hotel. Of course branding is a great part of the communication across all platforms – what we are communicating, to whom and on which channels. Together all these points create a very strong brand – probably the strongest luxury brand in Denmark.”

To Hotel d’Angleterre, brand is not a logo, colour scheme, website design or staff uniform (though all these things are part of it). Brand is about experience and communication. Guests are submerged in the brand from the moment they contact the hotel to make a booking, to the moment they check out at the end of their stay. Creating a strong and positive perception is not a function of the marketing department: it is a core function of the entire business.

William says: “First and foremost it is important to us that our guests get a world-class experience during their stay with us, that we meet their expectations – or even better, that they feel they got great value for money. Prestige is nothing we deliberately pursue, but in our opinion comes naturally with the luxurious product we offer to our guests.”

Guests of Hotel d’Angleterre want more than a nice hotel room. They want a great experience, with personal service that feels unique. They want something they cannot readily find anywhere else, something William summarises as, “the legacy, the long history, the exquisite location and the staff’s deep passion for hospitality and service.”

THE EVOLUTION OF BRAND

This chimes with the evolving definition of a luxury brand, which strives to build a perception beyond the utility of the product or service on offer. Malinda Sanna, founder and CEO of brand consultancy Spark Ideas, puts it like this. “True luxury today is experiential; it is having the inside track that not everyone knows about. It is highly personal and intuitive. It never copies, it leads. It surprises and takes risks. And it makes you see the brand as the only solution to your desire in a sea of sameness.”

The House of Gübelin is a Swiss, family-run fine jewellery, gemstone and watch institution with a 160-year heritage; the business is a client of UHY member firm Balmer-Etienne AG. The carefully nurtured luxury brand, Gübelin Jewellery, speaks softly of craftsmanship, expertise and gemmology as much as unique jewellery and design philosophy. Boutiques in Switzerland and a private salon in Hong Kong provide an extraordinary luxury experience and excellent services, creating precious moments for their guests. They nurture a reputation for virtuosity that feeds into a strong and resilient brand image.

Raphael Gübelin, President, explains how this is achieved: “The House of Gübelin possesses a sensibility for luxury based on our Deeply Inspired philosophy. With a unique combination of beauty and knowledge, we provide a deeper sense of luxury. The creations by Gübelin Jewellery are based on the inner world of gemstones, so there is an authentic inspiration – the soul of the gemstone.”

Sharing this passion and inspiration is at the heart of the House of Gübelin. For example, the Gübelin Academy has been founded to share its knowledge about gemstones with connoisseurs and professionals. And in order to increase transparency and traceability to the whole gemstone industry, the Provenance Proof initiative has been created, which provides technologies such as the Emerald Paternity Test and the Provenance Proof Blockchain, offering more information about a gem’s history.

Today’s consumers, and particularly millennials, demand this kind of interaction, and that is increasingly true even when they are in the market for less exclusive goods and services. Forward thinking businesses in all sectors – aided by technology – try to build personal relationships and emphasise authentic company values. They offer consistency, difference and relevance. Luxury branding norms trickle down to the mainstream.

In truth, there is very little difference between mass market smartphones, but the Apple brand speaks of craftsmanship and difference in a way some of its competitors struggle to match. Airbnb rents rooms or apartments of all kinds – from the luxurious to the basic – but builds its brand around the idea of an authentic travel experience. These companies are not selling exclusivity, but they are meeting millennial expectations of what brands should be.

The trickle-down effect is everywhere. Personalised marketing speaks directly to individual customers. Authentic experiences and artisan products are not necessarily luxuries, but are branded in a way that cuts through Malinda Sanna’s ‘sea of sameness’. According to research by customer intelligence agency Vision Critical, by 2020 customer experience will overtake price and product as the key brand differentiator.

In other words, it is increasingly true that it does not matter whether your product or service is considered a luxury or not. Consumers care less about price and more about the experience – personal, real, different – your brand offers. That’s a little bit of luxury brand wisdom every business can employ.

UHY AND BRAND

UHY member firms around the world can help companies put the systems and processes in place that help to create positive brands, from advising on intellectual property to addressing the accounting challenges of brand valuation and other intangible assets such as people and reputation. But it is also true that the UHY brand itself is increasingly recognised around the world as representing value for money, peace of mind and a proactive advisory culture (see our Cogs & Wheels feature on page 11 to find out more). Member firms understand the need to offer clients the best experience.

Increasingly, UHY firms – which are independent accounting and advisory businesses operating as members of the global UHY network – are themselves using the UHY brand to substantially increase awareness, enquiries and engagement. Whether this is through considered use of digital communication platforms, bringing together previously disparate parts of the business to help clarify the offer for clients, or even using communication channels like WhatsApp and face-to-face workshops to increase engagement with clients and colleagues, the brand and what it stands for empowers UHY member firms to continuously create and offer better customer experiences.

Most importantly, clients themselves regularly comment on the personal service they receive from UHY member firms around the globe, regardless of their size or spend. By getting to know client businesses in detail, UHY member firms are able to offer a service that goes far beyond core accountancy functions. Instinctively, UHY member firms fulfil the main criteria for positive branding in 2019, by offering clients a professional services experience they will not easily find elsewhere.

Notes for Editors

UHY press contact: Dominique Maeremans on +44 20 7767 2621

Email: d.maeremans@uhy.com – www.uhy.com