Nike remains the world’s most valuable apparel brand despite a significant drop in brand value down 12% to US$28.0 billion, according to a new report by Brand Finance, the world’s leading independent brand valuation and strategy consultancy. Nike experienced a tough year, especially in the North American market correlated with reduced popularity among teenagers. In addition, Adidas (up 41% to US$14.3 billion) played a key role in the struggles faced by Nike, with the German-based apparel brand growing rapidly across both sporting and casual categories.
H&M Struggles As Zara Closes The Gap
In second place, the brand value of H&M (down 1% to US$19.0 billion) remained relatively stagnant over the last year, with significant pressure upon its bricks and mortar retailing strategy from online competitors. What is more, in the past few months, the brand has struggled to maintain a positive image which may jeopardise its brand performance in the future. In January, a children’s hoodie listing on the retailer’s website was criticised for racist undertones, sparking a global social media backlash and street protests in South Africa. While in March, H&M was engulfed in a controversy surrounding intellectual property rights of street artists as it decided to pursue a court case against the author of a graffiti used in one of the brand’s adverts. If the Swedish giant’s problems continue, it can be overtaken by Spanish Zara (up 21% to US$17.5 billion), which significantly narrowed the gap between the two brands, following a successful year.
Richard Haigh, Managing Director of Brand Finance, commented:“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. 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.”
Hermès Overtakes Louis Vuitton In Luxury
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 as a consequence of its brand focus on product and independence. Cartier (up 45% to US$9.8 billion) was the biggest brand value winner among the four, climbing to 7th place from 10th.
