Design-led businesses do better than the FTSE
The headline
Our Design Index – an index of 61 design-led businesses – has out-performed the FTSE 100 by more than 200% over the past decade.
This proves that businesses using design effectively do better than their peers, by a long way, and over a long time.
And it’s clear evidence of a relationship between design investment, business performance and long-term stock market value.
The details
Design Index is a comparative study, not an actual investment vehicle*. But if it was, this is what would happen to £1,000 invested for ten years…
Not only has the Design Index out-performed the FTSE 100, but that out-performance has been constant. The Index rose more in good times, and fell less in bad times. The difference hasn’t been fleeting or fluctuating, but solid over a decade.
‘Without effective design solutions businesses will be denying their shareholders a full return on their investment.’
The Engineer, 10 December 2005
‘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
If you want to know more, you can get the complete report here.
Who’s in Design Index?
The Design Index contains household names, such as Barclays, Egg, Tesco, Marks & Spencer, Boots, British Airways, EasyJet, Rolls-Royce, BP and Unilever.
A sustained track record in design and innovation awards was the key criterion for inclusion. These robust requirements translate into a good external indication of the way a business uses and values design.
The Index tracked the share prices of these businesses. We regularly re-calculate the Index to take account of mergers and de-listings.
* This report is for information purposes only. It is not an invitation or inducement to engage in investment activity, nor does it constitute financial advice or a personal recommendation. You should seek independent financial advice as to the suitability of any investment.