Fashion companies rise 21 percent in brand value despite coronavirus pandemic
New York - The retail sector has been the fastest growing in terms of brand value in recent months. According to a recent study by market research firm Kantar, overall, retail companies have risen 21 percent, despite the ravages of the global coronavirus pandemic.
This sector boost is largely due to the pull of e-commerce brands like Amazon, JD.com, or Alibaba. According to this study, Amazon, Alibaba and JD (the latter grew 24 percent, ranking 52nd with a brand value of 25.5 billion dollars) "demonstrated innovation and agility in tough times." Meanwhile, more traditional retailers like Walmart (+ 24 percent, ranking 27th with a brand value of 45.8 billion dollars), owe their leadership to heavy investment in their online sales channel.
Fashion and textile brands have reinvented themselves, gaining value during the pandemic
Kantar experts also point out that many brands in the fashion and textile sector have found new and creative ways to interact with consumers, build trust and create a level of intimacy, particularly in health and wellness. This is the case, for example, of Lululemon - which grows 40 percent, with a 9.7 billion dollars valuation of its brand), has become one of the fastest growing brands in the period in question thanks to a change in strategy that has led the Canadian company to expand its offer to incorporate work uniforms and offer virtual classes to its customers and fans.
Commenting on the results of this ranking, Doreen Wang, Global Head of BrandZ at Kantar, said: “Innovation has proven to be a key driver for growth in this year's Top 100, and a way to avoid decline. Creativity is also an important trait for the world's most valuable brands. Companies like Amazon, Apple and Google, the technology giants that keep innovating, successfully combine both to remain relevant to the lives of consumers and make it easier for them to choose a brand. "
Similarly, David Roth, CEO of The Store WPP EMEA and Asia and President of BrandZ, highlighted that "The continued growth in the value of the BrandZ Top 100 shows that strong brands are in a much better place than in the 2008 global economic crisis- 9) We see a significant improvement in brand value now compared to 10 years ago because companies understand the importance of investing in brand building and are stronger and more resilient as a result. While the impact of Covid-19 has impacted every business, regardless of size or geography, continued investment in marketing can and will help you overcome a crisis. "
More than half of the brands included in the ranking are American
US brands accounted for more than half of the top 100 brands, followed by Asian ones (25 percent) that top several positions in the top 100 with 17 Chinese brands like Alibaba and Tencent and two Japanese companies.
A significant change seen in this report is the rise of sustainability as a new luxury, as younger consumers expect the qualities associated with luxury, but with sustainable materials and less packaging. Thanks to this change in trend, four luxury brands have entered the Top 100 this year, led by Louis Vuitton, which grows 10 percent closing the top 20 with a brand valued at more than 51.8 billion dollars.