Erik Saelens discusses risks facing energy brands from "space invaders" like tech companies entering the energy market. He notes that consumers, especially younger consumers, increasingly trust brands like Apple and Samsung more than their energy suppliers. Many consumers would be willing to switch to their preferred tech brands for energy if offered. This poses major risks to traditional energy brand values as deep-pocketed tech companies could leverage lower prices and superior online services to attract customers. Saelens believes this collision of factors has potential to cause massive disruption in the industry through a loss of customers and brand value for existing energy companies.

1. Erik
SAELENS
Executive strategic director
Brandhome

2. CHARGE ENERGY
REYKJAVIK, ICELAND | 10 - 10 - 2017
ERIK SAELENS

3. We ensure profitable growth
for our customers’ brand(s).

4. ENERGY BRANDS AT RISK
WHAT IS YOUR BRAND WORTH
MA$$IVE VALU€ DE$TRUCTION
TAKEAWAYS
TOPICS

5. RISKS ON THE HORIZON

6. A.
B.
C.
CONSUMER CHOICE SPACE INVADERS
NEW WAYS OF
CONSUMPTION

7. COCKTAIL FOR DISASTER
3 THINGS COLLIDE

8. BANKRUPTCY GOVERNMENT
PROTECTION
EVOLUTION SPACE INVADERS
MY VISION ON OUTCOME OF THIS

9. LOOKING CLOSER AT THE NUMBERS

10. € 52.383.522.889
€ 50.832.831.607
€ 37.262.339.695
€ 29.661.620.583
€ 25.786.998.022
€ -
€ 10.000.000.000
€ 20.000.000.000
€ 30.000.000.000
€ 40.000.000.000
€ 50.000.000.000
€ 60.000.000.000
2012 2013 2014 2015 2016
TOTAL
- 26.500.000.000 EUR
ON THE PAPER BRAND VALUE

11. VALUE BRAND ~ LIFETIME VALUE CUSTOMER
CHURN = 10% - 20%
END CONSUMER OOP PRICE ~ 30% ENERGY SUPPLIER
~ 5% BRAND PRICING POWER
BRANDHOME DIGITAL BRAND EQUITY CALCULATOR

12. BRANDHOME DIGITAL BRAND EQUITY CALCULATOR
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Eneco Vattenfall Endesa Eni Centrica E.on Engie
Brand Value 2016 Brandhome digital brand equity calculator ® 2016

13. ON THE PAPER
BRAND VALUE
OFF THE PAPER
BRAND VALUE <<<

16. Space invaders
Energy brands

17. what if these “space invaders”
enter our industry?

19. 1-15 September 2017

21. 61% of people change energy supplier
because of a cheaper offer

22. Samsung (23%), Google and Apple (both 18%)
are the most preferred brands

23. 58% of people trust their preferred brand
more than their energy supplier

24. 78% of people between 18-34 trust their
preferred brand more than their energy supplier

25. 59% of people are willing to switch to their
preferred brand if it were to enter the energy
market

26. 36% of Apple fans are willing to
pay more for ‘Apple Energy’

28. TAKEAWAYS

29. TAKEAWAYS

30. TAKEAWAYS

31. TAKEAWAYS

32. TAKEAWAYS

33. TAKEAWAYS
PRICE VS. DEEP POCKET (TECH) BRANDS VS. PRICE DROP
SUPERIOR CUSTOMER SERVICE & ONLINE TOUCH POINTS
NEW SERVICES (CLAIM & HOLD THE DOMAIN)
REVERSE INTEGRATION & MASSIVE DISRUPTION

35. THANK YOU