The top four brands in apparel are here to stay. However, steep competition to maximize on the sporting apparel trend, coupled with increased choice and information for the consumer could threaten Nike’s future position in the rankings.
Richard Haigh, Managing Director of Brand Finance
The world’s most valuable apparel brands in 2018 and what you can learn from them. `
Every year, leading valuation and strategy consultancy Brand Finance values the world’s biggest brands with the world’s 50 most valuable apparel brands included in the Brand Finance Apparel 50 (2018) league table.
This year, Nike Does it Again as World’s Most Valuable Apparel Brand, retaining its top spot despite brand value dropping to US$28.0 billion.
Although defending second place, H&M is feeling Zara hot on its heels. The brand value of H&M is down 1% to US$19.0 billion with significant pressure upon its bricks and mortar retailing strategy from online competitors. Zara is up 21% to US$17.5 billion – a successful year significantly narrowing the gap.
“The top four brands in apparel are here to stay. However, steep competition to maximize on the sporting apparel trend, coupled with increased choice and information for the consumer could threaten Nike’s future position in the rankings,” commented Richard Haigh, Managing Director of Brand Finance.
“This year, Adidas’ brand value is further encroaching on the incumbent champion, which has suffered significant loss to brand value. Empowerment to the consumer is having a wide-spread impact on the industry, allowing fast-fashion retailer Zara to reign supreme on the high street, challenging H&M and leveraging both online and offline sales platforms to meet consumer demands for variety, fashion and low prices.”
The top four luxury brands, Hermès (up 36% to US$11.3 billion), Louis Vuitton (up 17% to US$10.5 billion), Cartier (up 45% to US$9.8 billion), and Gucci (up 25% to US$8.6 billion) each recorded very strong brand value growth as consumers in emerging markets are increasingly reaching for luxury products over commoditised ones.
While each of these four luxury brands grew in value, Hermès has taken a leadership role with a brand focus on product and independence. In doing so, Hermès has developed a brand perception that is impossibly exclusive but still widely available, subsequently enhancing capabilities of strong revenue growth.
What can small businesses take from this? Luxury is alive and well. The modern customer wants choice and expects information on everything from a products’ origin to its effect on the planet and the people behind it. Exclusivity is king – yet make it modifiable for all.