Documente Academic
Documente Profesional
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50
2019
The annual report on the world's most valuable and strongest apparel brands
February 2019
About Brand Finance. Contents.
Brand Finance is the world’s leading independent About Brand Finance 2
brand valuation and strategy consultancy.
Get in Touch 2
Brand Finance was set up in 1996 with the aim of ‘bridging
the gap between marketing and finance’. For more than
Request Your Brand Value Report 4
20 years, we have helped companies and organisations of
Brand Valuation Methodology 5
all types to connect their brands to the bottom line.
Foreword 6
We pride ourselves on four key strengths:
Executive Summary 8
++Independence ++Transparency
++Technical Credibility ++Expertise Brand Finance Apparel 50 (USD m) 12
We put thousands of the world’s biggest brands to the Definitions 14
test every year, evaluating which are the strongest and
most valuable. Consulting Services 16
Brand Finance helped craft the internationally Brand Evaluation Services 17
recognised standard on Brand Valuation – ISO 10668,
and the recently approved standard on Brand Evaluation Communications Services 18
– ISO 20671.
Brand Finance Network 20
Get in Touch.
For business enquiries, please contact:
Richard Haigh
Managing Director
rd.haigh@brandfinance.com
twitter.com/brandfinance
www.brandfinance.com/events
facebook.com/brandfinance
2 Brand Finance Apparel 50 February 2019 Brand Finance Apparel 50 February 2019 3
Request Your
Brand Value Report. Brand Valuation Methodology.
Brand Finance calculates the values of the
A Brand Value Report provides a complete Each report includes expert recommendations for growing brands in its league tables using the Royalty
breakdown of the assumptions, data sources, and brand value to drive business performance and offers a Relief approach – a brand valuation method
calculations used to arrive at your brand’s value. cost-effective way to gaining a better understanding of compliant with the industry standards set in
Brand Strength
your position against competitors. ISO 10668.
Index (BSI)
This involves estimating the likely future revenues that Brand strength
are attributable to a brand by calculating a royalty rate expressed as a BSI
that would be charged for its use, to arrive at a ‘brand score out of 100.
What is a Brand Value Report? What are the benefits of a Brand
value’ understood as a net economic benefit that a
Value Report?
licensor would achieve by licensing the brand in the
Brand Valuation Summary
open market.
+ Internal understanding of brand
+ Brand value tracking The steps in this process are as follows:
+ Competitor benchmarking Insight Brand
+ Historical brand value 1
Calculate brand strength using a balanced scorecard
Royalty Rate
of metrics assessing Marketing Investment,
Stakeholder Equity, and Business Performance. Brand BSI score applied to an
Brand Strength Index
strength is expressed as a Brand Strength Index (BSI) appropriate sector
+ Brand strength tracking royalty range.
score on a scale of 0 to 100.
+ Brand strength analysis
+ Management KPIs Strategy 2
Determine royalty range for each industry, reflecting
+ Competitor benchmarking the importance of brand to purchasing decisions. In
luxury, the maximum percentage is high, in extractive
Royalty Rates industry, where goods are often commoditised, it is
+ Transfer pricing lower. This is done by reviewing comparable licensing
+ Licensing/franchising negotiation agreements sourced from Brand Finance’s extensive
+ International licensing Benchmarking database. Brand Revenues
+ Competitor benchmarking 3
Calculate royalty rate. The BSI score is applied to the Royalty rate applied to
royalty range to arrive at a royalty rate. For example, if forecast revenues to
Cost of Capital the royalty range in a sector is 0-5% and a brand has derive brand value.
+ Independent view of cost of capital for internal a BSI score of 80 out of 100, then an appropriate
valuations and project appraisal exercises royalty rate for the use of this brand in the given sector
Education will be 4%.
Customer Research
4
Determine brand-specific revenues by estimating a
+ Utilities + Tech proportion of parent company revenues attributable
+ Insurance + Auto to a brand. Brand Value
+ Banks + Hotels
5
Determine forecast revenues using a function of Post-tax brand
+ Telecoms + Beers
Communication historic revenues, equity analyst forecasts, and revenues discounted to
+ Airlines + Oil & Gas
economic growth rates. a net present value (NPV)
which equals the brand
6
Apply the royalty rate to the forecast revenues to
value.
For more information regarding our derive brand revenues.
Brand Value Reports, please contact: 7
Brand revenues are discounted post-tax to a net
present value which equals the brand value.
enquiries@brandfinance.com Understanding
Disclaimer
Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions produced in this study are based only on publicly available information
and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available
information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the report are not to be construed as providing investment or business advice.
Brand Finance does not intend the report to be relied upon for any reason and excludes all liability to any body, government or organisation.
4 Brand Finance Apparel 50 February 2019 Brand Finance Apparel 50 February 2019 5
Foreword. Nike Just
Did It Again
What is the purpose of a strong brand: to attract customers, to build loyalty, to
motivate staff? All true, but for a commercial brand at least, the first answer must
always be ‘to make money’.
Huge investments are made in the design, launch, and ongoing promotion of
as World’s
brands. Given their potential financial value, this makes sense. Unfortunately, most
organisations fail to go beyond that, missing huge opportunities to effectively make
use of what are often their most important assets. Monitoring of brand performance
should be the next step, but is often sporadic. Where it does take place, it
frequently lacks financial rigour and is heavily reliant on qualitative measures, poorly
Most Valuable
understood by non-marketers.
David Haigh
As a result, marketing teams struggle to communicate the value of their work and
CEO, Brand Finance
boards then underestimate the significance of their brands to the business. Sceptical
finance teams, unconvinced by what they perceive as marketing mumbo jumbo,
Apparel
may fail to agree necessary investments. What marketing spend there is, can end up
poorly directed as marketers are left to operate with insufficient financial guidance
or accountability. The end result can be a slow but steady downward spiral of poor
communication, wasted resources, and a negative impact on the bottom line.
Brand.
Brand Finance bridges the gap between marketing and finance. Our teams have
experience across a wide range of disciplines from market research and visual
identity to tax and accounting. We understand the importance of design, advertising,
and marketing, but we also believe that the ultimate and overriding purpose of
brands is to make money. That is why we connect brands to the bottom line.
6 Brand Finance Apparel 50 February 2019 Brand Finance Apparel 50 February 2019 7
Executive Summary.
Executive Summary.
Whilst Zara’s acclaimed integrated store and online Top 10 Most Valuable Brands
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 1 01
pay off. Brand value has risen by a massive 48% to 2019: $16,669m +17%
US$12.0 billion. A robust supply chain and high- 2018: $14,295m
quality, innovative, affordable clothes that transcend
remains colossal as Nike’s brand value is nearly double customers look for 2019: $13,576m +29%
2018: $10,487m
that of Adidas.
experiences and emotional
Nike’s iconic status is confirmed every time the
brand’s marketing campaigns make front-page
connection, Nike’s offering 30
7 29
news. Last year’s “Dream Crazy” ad featuring Colin comes with unambiguous 2019: $11,991m +48%
2018: $8,099m
USD bn
Kaepernick sparked a social media backlash in the
messages and values that
8
US with some customers going as far as to burn their 20
15
Nike products. Despite controversy, Nike’s sales
were reported to go up in the weekend following
people can rally behind.
2019: $10,920m -4%
the ad’s release. More recently, the Oscars’ night 2018: $11,333m
saw the premiere of a powerful follow-up, “Dream Richard Haigh 10
9
Crazier”, which celebrates inspirational female Managing Director, Brand Finance
athletes.
0 18
10
Spanish fast-fashion retailer Zara, (brand value
up 6% to US$18.4 billion) has moved into second ● Nike ● Zara ● Adidas 0 10
position supplanting H&M which falls down to fourth ● H&M ● Cartier 2019: $8,047m
place (brand value down 16% to US$15.9 billion). +27%
2018: $6,360m
8 Brand Finance Apparel 50 February 2019 Brand Finance Apparel 50 February 2019 9
Executive Summary. Executive Summary.
Brand Value Change 2018-2019 (%) The apparel sector continues Top 10 Strongest Brands (luxury brands in gold)
to thrive. Brand value growth
Christian Dior +56.7%
has been particularly strong 1 0 1
Uniqlo +48.1% 2019: 90.0 AAA+
among brands aware that 2018: 89.3 AAA
+0.7
Anta +47.2%
consumers who shop both
Moncler
+42.2%
in-store and online spend 2 0 2
Calvin Klein
+36.9%
+35.7%
boutiques alone. It pays to 3 2 5
7
performance. Along with the level of revenues, brand
strength is a crucial driver of brand value. 2 8
9
brands continue to dominate the lineup. 7 of the
● Spain 22.2 8.0%
top 10 strongest brands are luxury, demonstrating 2 11
● Switzerland 16.2 5.8% the importance of brand strength in the segment.
2019: 84.0 AAA- +1.7
● Others 48.1 17.3% Although Bottega Veneta’s brand value has 2018: 82.3 AAA-
decreased by 11% to US$1.6 billion, its arrival in the
Total 278.6 100.0%
10
top 10 list of strongest apparel brands is noteworthy.
The brand has tapped into a new approach towards 2 12
the affluent consumer, namely the idea of selling an 2019: 83.9 AAA-
aspirational existence. +1.8
2018: 82.1 AAA-
10 Brand Finance Apparel 50 February 2019 Brand Finance Apparel 50 February 2019 11
Brand Finance Apparel 50 (USD m).
12 Brand Finance Apparel 50 February 2019 Brand Finance Apparel 50 February 2019 13
Definitions.
Definitions.
Brand Value Brand Strength
+ Enterprise Value Brand Strength is the efficacy of a brand’s Each brand is assigned a Brand Strength Index
The value of the entire enterprise, made performance on intangible measures, relative to its (BSI) score out of 100, which feeds into the brand
up of multiple branded businesses. competitors. value calculation. Based on the score, each brand
[Inditex]
is assigned a corresponding rating up to AAA+ in a
Where a company has a purely mono-
Enterpr In order to determine the strength of a brand, we look format similar to a credit rating.
ise branded architecture, the ‘enterprise value’
Val is the same as ‘branded business value’. at Marketing Investment, Stakeholder Equity, and the
ue
impact of those on Business Performance. Analysing the three brand strength measures helps
+ Branded Business Value inform managers of a brand’s potential for future success.
Brand
ed B The value of a single branded business
us operating under the subject brand.
ine [Zara]
ss
V A brand should be viewed in the context of Marketing Widely recognised factors deployed by marketers to create brand loyalty and
between marketing investment, brand- Stakeholder Perceptions of the brand among different stakeholder groups, with customers
n
tracking data, and stakeholder behaviour. Equity being the most important.
+ Brand Contribution
Brand The overall uplift in shareholder value
that the business derives from owning Business Quantitative market and financial measures representing the success of the
Value [Zara]
the brand rather than operating a Performance brand in achieving price and volume premium.
generic brand.
14 Brand Finance Apparel 50 February 2019 Brand Finance Apparel 50 February 2019 15
Consulting Services. Brand Evaluation Services.
How are brands perceived in my
1. Valuation: What are my intangible 2. Analytics: How can I improve category?
assets worth? marketing effectiveness?
Valuations may be conducted for technical Analytical services help to uncover drivers Brand Finance tracks brand fame and perceptions
purposes and to set a baseline against of demand and insights. Identifying the across over 30 markets in 10 consumer categories. Clear,
which potential strategic brand factors which drive consumer behaviour insightful signals of brand performance, with data mining
scenarios can be evaluated. allows an understanding of how brands options for those who want to dig deeper – all at an
N 2. A create bottom-line impact. accessible price.
+ Branded Business Valuation IO NA
+ Trademark Valuation AT Market Research Analytics +
What if I need more depth or
U
LY
AL
TIC
1. V
S
Brand Scorecard Tracking +
Brand &
Business Our bespoke brand scorecards help with market
S
4. Transactions: 3. S 3. Strategy: How can over time, against competitors, between market
Is it a good deal? I increase the value of
T
TR
Can I leverage my NS
AT my branded business? database of brand KPIs enables us to benchmark
intangible assets?
EG
4. TR
A Y Strategic marketing services enable performance appropriately.
Transaction services help buyers, brands to be leveraged to grow
sellers, and owners of branded businesses businesses. Scenario modelling will Do I have the right brand
get a better deal by leveraging the value of identify the best opportunities, ensuring architecture or strategy in place?
their intangibles. resources are allocated to those activities which
have the most impact on brand and business value. Research is conducted in addition to strategic
+ M&A Due Diligence
Brand Governance + analysis to provide a robust understanding
+ Franchising & Licensing
+ Tax & Transfer Pricing Brand Architecture & Portfolio Management + of the current positioning. The effectiveness
+ Expert Witness Brand Transition + of alternative architectures is tested
Brand Positioning & Extension + through drivers analysis, to determine which option(s)
will stimulate the most favourable customer behaviour
and financial results.
16 Brand Finance Apparel 50 February 2019 Brand Finance Apparel 50 February 2019 17
Communications Services.
How we can help communicate your brand’s performance
in brand value rankings
SERVICES
• Research and Insights
• Integrated Communications Planning
• Project Management and Campaign Execution
• Content and Channel Strategy
TOP 50 MOST VALUABLE STRONGEST • Communications Workshops
APPAREL APPAREL APPAREL
BRAND BRAND BRAND
For more information, contact enquiries@brand-dialogue.co.uk or visit www.brand-dialogue.co.uk
We also offer aVideo
variety of other services to help communicate
Endorsement – record video with Brand Finance CEO or Director
your brand’s performance
speaking about the performance of your brand, for use in both internal and
Brand Dialogue is a member of the Brand Finance plc group of companies
external communications.
MEMBERS' CLUB
personally signed by Brand Finance CEO to recognise your brand’s
performance.
18 Brand Finance Apparel 50 February 2019 Brand Finance Apparel 50 February 2019 19
Brand Finance Network.
For further information on our services and valuation experience, please contact your local representative: