Source : https://www.forbes.com
Nike is placed first in a list of the world’s most valuable apparel brands, according to the latest annual report from Brand Finance, a global business valuation and strategy consultancy.
The activewear giant was given a brand valuation of $32.4 billion, a 16% increase compared with last year, partly due to sales growth in markets like China, Europe, Africa, and the Middle East.
“Nike’s bold marketing makes it stand out in a busy marketplace of sportswear apparel brands,” explained Richard Haigh, the managing director of Brand Finance. “In a time when customers look for experiences and emotional connection, Nike’s offering comes with unambiguous messages and values that people can rally behind.” Indeed, Nike’s campaigns are some of the most talked about online and are typically made up of heavyweight names and athletes in all kinds of fields.
Other brands in the top 10 include Zara and Adidas, which moved up in the rankings while H&M dropped a few spots. The Swedish fast fashion company fell to number 4 as its brand valuation decreased, following a year of store closures and unsold inventory. Uniqlo had the biggest jump in the top 10, landing at number 7 thanks to a brand valuation that grew 48% year over year. In fact, Uniqlo aims to be the largest clothing retailer in the world by 2020 (it has already managed this in Asia).
Brand Finance determines the rankings and brand value through several different metrics, such as past and forecasted revenues, the value of a brand’s trademark and associated marketing IP.
In addition to the brand valuation list, the report also includes a list of the ‘Top 10 Strongest Brands’. This list measures other metrics such as marketing investment, stakeholder equity and business performance. Interestingly, luxury brands make up 7 of the top 10 strongest brands, including Cartier (#5), Louis Vuitton (#6), and Hermes (#8). While luxury analysts were wary of certain economic factors that could have slowed growth, most luxury fashion brands performed very well and had a strong year overall. Both Kering and LVMH reported record numbers for 2018, and many of their brands are ranked in this list as a result. Rolex, however, proved to be the strongest brand in the sector (with a score of 90 out of 100), posting the list’s only AAA+ brand strength rating.
The top brands featured in the rankings have several things in common, one being their overall omnichannel efforts. Those that make the purchasing experience seamless for customers, both online and offline, have a higher brand value than their competitors, according to Haigh. “It pays to create a robust omnichannel shopping experience for clients,” he says. “Collaboration with celebrities, the digital age, and an ability to feed fast-fashion habits whilst being ethically aware will continue to benefit brand value.”
You can download the “Brand Finance Apparel 50” report here for the full list as well as further explanation on the ranking methods.