The annual report BrandZ Top 100 Most Valuable Global Brands 2021, released by Kantar Insights, highlights the exponential growth of Tesla, the influence of TikTok, and the power of luxury brands. ULTIMZ Journal had the opportunity to speak with Amélie Debaye, Head of Luxury and Beauty, and Pierre Gomy, Head of Marketing for Central and Southern Europe, at Kantar Insights to gain more insights.
Kantar’s methodology for the report combines financial and consumer insights. The financial approach involves collecting public data from agencies like Bloomberg to analyze the global performance, profitability, and financial capacity of companies. The focus is on intangible assets that contribute to the company’s value, such as patents and intellectual property. These calculations are multiplied by a brand multiple to reflect sustainability over time. In addition to the financial calculation, Kantar adds a consumer component by surveying 200,000 people in around fifty countries. This consumer data is analyzed based on criteria like emotional connection, uniqueness, and trend-setting abilities, ultimately leading to the BrandZ Top 100 ranking.
Tesla stands out as the fastest-growing brand with a 275% increase in value in one year. According to Amélie Debaye, Tesla excels in functional, well-designed products and services, providing a superior experience through various touchpoints and strong communication. These factors account for 70% of a brand’s success.
TikTok also experienced significant growth, with a 158% increase. Luxury brands, on the other hand, took their time to establish a presence. Amélie Debaye explains that luxury brands have typically been focused on creative control. However, brands like Gucci have successfully embraced TikTok by creating content that resonates with their audience. Instagram remains a safe base for luxury brands, while platforms like Twitch, despite their unique characteristics, could be interesting due to their close-knit community.
Luxury brands have showcased their resilience and responsiveness during the pandemic. For example, LVMH carried out solidarity actions, while Hermès integrated TV studios into its stores to provide personalized remote sales via social media platforms. Sustainability has also gained prominence, with brands like Gucci and Hermès introducing eco-friendly materials. Brands have successfully reinvented themselves and surprised their audience, such as with the Manufacto Hermès program.
In the beauty industry, self-care brands have experienced significant growth, thanks to the rise of e-commerce. The self-care segment has become one of the biggest trends, while perfume remains stable due to innovation and consumer engagement. Brands like Estée Lauder and Lancôme have been active in targeting young Chinese generations through platforms like TikTok and Weibo.
The growth prospects for the luxury industry are promising, with brands needing to invest in the environment, technology, inclusivity, and experiential aspects. Differentiation is key, and French brands like Hermès, Chanel, and Dior are well-positioned due to their strong differentiating elements. Craftsmanship, second-hand markets, and product sustainability are important consumer trends to leverage. The quality of advertisements and experiences across touchpoints will be crucial for success in the future.
Useful links:
1. The Rise of TikTok: Should Brands Jump on Board?
2. The Effects of COVID-19 on Luxury & FMCG Brands in China
