Lets take a closer look at the top 10 apparel brands ranked as the most valuable in the world. This year the rankings are based on brand finance’s in-house valuation methodology. Which to put in simple terms, doesn’t base a brand’s value solely on revenues, but also considers the brand’s strength and royalty rate.
I’m not going to bore you with all the calculation details, but if you would like to learn more about the valuation method you can look at the Brand Directory report below.
So, let’s get started with the rankings
Sitting in the number 10 spot, with a brand value of approximately $11.9 billion is HERMES. The french luxury goods maker well known for its bags and accessories, has a loyal customer base full of shoppers who have no issues spending a few thousand at once. Prior to the current public health situation HERMES was continuing to expand internationally. An expansion that included the opening of its first ever store in Poland late last year.
Next up in ninth place with a brand value of $12.8 billion is the japanese retailer UNIQLO. The vast retailing subsidiary has a robust supply chain that supports the production of quality affordable clothing for all ages and genders.
Collaborations with the likes of cause, that had fans going crazy or longer-term deals such as the partnership with tennis super star Roger Federer have both added greatly to the brand’s value.
The business would hope to be the world’s largest clothing retailer by the end of 2020. Through increased sales in the US and China, but due to the current circumstances this is unlikely.
Ranked in eighth place is Chanel. Another high-end french brand that features on this year’s list. The businesses continue to have a dominant presence in the luxury market across multiple divisions, including but not limited to leather goods, fragrances and jewelry.
Still privately owned the brand isn’t legally required to reveal its revenues, but the last time it did which wasn’t too long ago, total sales exceeded $11 billion. And with figures like that it would be hard to argue against their inclusion on the list.
H&M and ZARA
Ranked 7th and 6th in this year’s most valuable apparel brands list are H&M and ZARA respectively. The fast fashion giants which rely on using trend replication and rapid production to bring inexpensive styles to consumers, have fallen to combined seven places from the 2019 finishes.
As with all brands in the industry, the recent store closures and customers staying at home have negatively affected profits, but the future of fast fashion in particular has come under intense scrutiny. As markets gradually regain some kind of normality, both H&M and ZARA will be focused on reaching their previous levels of financial success.
In number five spot is Cartier. The French manufacturer and designer of jewelry and watches has been valued at just over an impressive $15 billion dollars. This year up 10 percent from last year’s valuation. Also French and finishing one spot above Cartier is Louis Vuitton valued at almost $16.5 billion dollars.
Before economies began to shut down Louis Vuitton was enjoying another extremely successful year. The brand opened new boutiques, had a new factory opened by US president Donald Trump.
And presented another well-received runway show, courtesy of Virgil Abdullah, the brand’s success was also a driving factor behind its parent company’s share price reaching an all-time high back in january.
Next up and only just managing to hang on to its third place finish is Adidas. Brand finance’s report summarises the german sportswear brand’s performance over the last 12 months as average. Relative to that of its biggest rival in 2020 his first quarter performance felt far short of analyst expectations, but the sheer size and strength of the brand means it still ranks highly on the list.
Just a quick update, a collaboration with sneaker giant Adidas. The luxury Italian fashion house took to the Instagram account earlier to post a photo and promotional picture, two Adidas boxes, one being Adidas Originals one and the other being a black Adidas mainline brand. Both inside a product shopping bag, and the caption reads hashtag Prada for Adidas.
The announcement confirms the rumors and speculation which was floating around last month, and it shouldn’t really come as that much of a surprise to us. Well known for collaborating even when it comes to the higher end luxury brands as you’ll know, they’ve done collaborations in the past with the likes of Stella McCartney, Ruff Simmons, Chanel, Pharrell Williams and the NMD.
There has been a lot of different collaborations, and the Prada one is the latest ones to come about. So what can we expect to see from the upcoming Adidas and product collaboration. Well so far other than the promotional image that we looked at, no official information has been released. This means we can’t say for sure what the products will be, what they look like, how much they’ll cost and when they’ll be released.
In second place moving up three places is Gucci. With an estimated value of $17.6 billion dollars, not many would have expected the Italian luxury brand to be the runner-up on this list.
Especially as its yearly sales growth has dropped from the astronomical levels seen a few years ago. Despite the drop, the current growth rate is still impressive for a business of Gucci’s size and brand finance’s calculations placed the brand firmly in the number 2 spot.
Finally way out in front and claiming the title of the world’s most valuable apparel brand for the sixth consecutive year is Nike. And judging by the difference in brand value between second and first place, it doesn’t look like the title is going to be going anywhere anytime soon.
The sports giant has focused on implementing a distribution strategy, drastically reducing the number of retailers selling its products. With the aim of regaining control over the brand customer relationship and improving profit margins, the company’s dealings in the professional sports world along with regular and exclusive sneaker releases continue to add value to the brand.
Those are 2020’s top 10 most valuable brands. If a brand you thought would be on the list didn’t quite make it be sure to check out the full top 50 list at the Brand Directory report.