Nike Takes Out Top Spot Of 2019’s Most Valuable Fashion Brands In The World
When it comes to brands, you don’t get bigger or more recognisable than Nike.
The phrase, “Just Do It” is one that’s known universally, instantly conjuring an image of the sportswear giant’s swoosh. Not surprisingly, the brand had no difficulty in dominating the list of most valuable apparel brands in the world, outstripping rivals with a cool $32.4 billion value.
The list, compiled by brand valuation and strategy consultancy Brand Finance, determines a brand’s value by assessing marketing investment, stakeholder equity, business performance, royalty rates and forecast revenues.
The annual report, “Brand Finance Apparel 50,” categorises apparel, watches and jewellery brands.
Nike was valued above competitor Adidas, whose value rose by 17 per cent to $16.7 billion. Nike however, boasts a 16 per cent increase compared to last year, which is largely attributed to sales growth in key markets such as China, Europe, Middle East and Africa.
As Richard Haigh, managing director of Brand Finance suggests, “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.”
It’s certainly true when you consider Nike’s latest advertising campaigns. There was the controversial ad featuring Colin Kaepernick, the quarterback who “took a knee” during a football season to protest police brutality, that many saw as a bold move in an industry prone to pandering to consumer behaviour.
More recently however, their ad featuring Serena Williams and Caster Semenya speaks to women in sport, challenging them to ‘Dream Crazier’ whilst also calling for gender equality in sport ahead of International Women’s Day.
Other notable brands on the list include fast fashion retailers Uniqlo and Zara, which saw a strong year of growth. Uniqlo’s brand value increased by 48 per cent to $12 billion as a result of growing international sales in the U.S. and China, as well as exposure from its collaboration with tennis player Roger Federer.
Zara also toppled high-street retailer H&M to earn second place in the listing, with a valuation of $18.4 billion. Brand Finance said the increase was due to Zara’s successful integration of its online and off-line businesses. Meanwhile, Brand Finance said H&M, which was knocked to fourth place, struggles with unsold inventory and sizing complaints.
But when it comes to the strongest brand in the industry, Brand Finance is quick to point the finger at Rolex. The consultancy firm award the company their elite AAA++ rating and a score of 90 out of 100.
Notably, luxury brands account for seven out of the top 10 strongest apparel brands, showing the importance of brand strength in the segment as seen with Louis Vuitton and Gucci, which grew by 29 per cent and 19 per cent, respectively.
If there is to be one takeaway from the findings, it’s that brand value growth has been particularly strong among brands who are aware that consumers who shop both in-store and online spend significantly more than those who buy in brick-and-mortar boutiques alone.
“It pays to create a robust omnichannel shopping experience for clients,” says Haigh.
“Collaboration with celebrities, the digital age, and an ability to feed fast-fashion habits whilst being ethically aware will continue to benefit brand value.”
Here are the top 10 brands in the world. For the full list, download the report here.