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ASB MAGAZINE: Nike has maintained and strengthened its position as the world’s most valuable apparel brand, according to the latest report by Brand Finance, the world’s leading independent brand valuation and strategy consultancy. Nike’s brand value has increased by 16% since last year to US$32.4 billion on the back of healthy sales growth in China, Europe, the Middle East and Africa during the course of the year. Rival Adidas, meanwhile has bitten into some of Nike’s North American market, with brand value rising by 17% to US$16.7 billion. Nevertheless, the gap between the two remains colossal as Nike’s brand value is nearly double that of Adidas.

Nike’s iconic status is confirmed every time the brand’s marketing campaigns make front-page news. Last year’s “Dream Crazy” ad featuring Colin Kaepernick sparked a social media backlash in the US with some customers going as far as to burn their Nike products. Despite controversy, Nike’s sales were reported to go up in the weekend following the ad’s release. More recently, the Oscars’ night saw the premiere of a powerful follow-up, “Dream Crazier”, which celebrates inspirational female athletes.

According to Richard Haigh, Managing Director of Brand Finance; “Nike’s bold marketing makes it stand out in a busy marketplace of sportswear apparel brands. 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.”

Zara wins online as H&M struggles

Spanish fast-fashion retailer Zara, (brand value up 6% to US$18.4 billion) has moved into second position supplanting H&M which falls down to fourth place (brand value down 16% to US$15.9 billion). Whilst Zara’s acclaimed integrated store and online business has seen it gain access to a further 106 countries, H&M has struggled with a mounting stack of unsold inventory. It is also changing its UK womenswear sizes after repeated complaints from customers that the clothes are smaller than expected. The effects of Zara’s controversial rebranding on customer loyalty remain to be seen in next year’s valuation.

According to Richard Haigh, Managing Director of Brand Finance “The apparel sector continues to thrive. Brand value growth has been particularly strong among brands aware that consumers who shop both in-store and online spend significantly more than those who buy in bricks-and-mortar boutiques alone. It pays to create a robust omnichannel shopping experience for clients. Collaboration with celebrities, the digital age, and an ability to feed fast-fashion habits whilst being ethically aware will continue to benefit brand value.”

Surge in sales for Uniqlo

Japanese Uniqlo’s international expansion and recent collaboration with tennis ace Roger Federer pay off. Brand value has risen by a massive 48% to US$12.0 billion. A robust supply chain and high-quality, innovative, affordable clothes that transcend gender, age and ethnicity are also supporting sales growth.

Uniqlo aims to be the world’s largest clothing retailer by 2020 by increasing sales in the US, China and online; it has already managed this in Asia.

Rolex is strongest apparel brand

Aside from calculating overall brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Along with the level of revenues, brand strength is a crucial driver of brand value.

Rolex is the only brand in the Brand Finance Apparel 50 ranking to post the elite AAA+ brand rating. With a Brand Strength Index (BSI) score of 90.0 out of 100, the luxury watchmaker is the strongest brand in the industry. Although second place for brand strength is held by Nike, and Inditex-owned Zara and Bershka also make the top 10, luxury brands continue to dominate the lineup. 7 of the top 10 strongest brands are luxury, demonstrating the importance of brand strength in the segment. Although Bottega Veneta’s brand value has decreased by 11% to US$1.6 billion, its arrival in the top 10 list of strongest apparel brands is noteworthy. The brand has tapped into a new approach towards the affluent consumer, namely the idea of selling an aspirational existence.

 

Key Points:

  • Nike continues to dominate as the world’s most valuable apparel brand, with a brand value of US$32.4billion
  • Zara and Adidas move up the ranks as H&M’s brand value decrease pushes it down to 4th place
  • Uniqlo is the fastest-growing apparel brand in the top 10, up a whopping 48% year on year
  • Rolex is the strongest brand in the sector, posting an elite AAA+ brand strength rating
  • Luxury brands account for 7 out of the top 10 strongest apparel brands, showing importance of brand strength in the segment

 

View the report HERE

 

ABOUT BRAND FINANCE REPORT:

Every year, leading brand valuation and strategy consultancy Brand Finance values the world’s biggest apparel brands. The 50 most valuable apparel brands in the world are included in the Brand Finance Apparel 50 2019 report. Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Additional insights, more information about the methodology, as well as definitions of key terms are available in the Brand Finance Apparel 50 2019 report. Brand Finance helped craft the internationally recognized standard on Brand Valuation – ISO 10668, and the recently approved standard on Brand Evaluation – ISO 20671.