Brand values in the fashion industry have continued to rise despite the challenges brought by the COVID-19 pandemic. ASOS, a prominent online fashion retailer, has made its mark as one of the world’s most valuable apparel brands, with a value of $2.8 billion, according to Kantar’s BrandZ Most Valuable Global Brands 2021 report released on Monday. ASOS is the only UK brand to have achieved a top 10 ranking, and this is its first time achieving such recognition on a global scale.
While many fashion companies and retailers have suffered declines in revenue and profits due to the pandemic, apparel brands have experienced growth over the past year. The Kantar report highlights that the apparel category saw a growth rate of 53%, second only to consumer technology. This surge in growth was driven by the increasing popularity of athleisure wear, as consumers prioritized comfortable clothing such as loungewear. Brands like Lululemon, Nike, Puma, and Adidas have thrived as a result of this trend.
Among the top apparel brands, Nike claimed the first position with a brand value of $83.7 billion, marking a 68% increase from the previous year. Adidas followed closely behind in second place with a value of $22.3 billion, reflecting a 51% rise. Zara, Lululemon, and Uniqlo also secured spots in the top five, seeing substantial increases in their brand value.
The success of apparel brands can be attributed to various factors outlined in Kantar’s report. The diversification of channels, such as the incorporation of live-streaming content and subscription models, played a significant role in driving growth. Additionally, differentiation was key, particularly within the athleisure category. The top athleisure brands distinguished themselves with an average score of 130 on the Difference Index, while the top global fashion brands scored an average of 111. Fashion brands, on the other hand, relied on salience and ubiquity to drive their growth.
In the luxury fashion ranking, European brands emerged as the leaders despite restrictions on international travel. Louis Vuitton maintained its position as the most valuable luxury brand, experiencing a 46% year-on-year growth. Kantar attributes Vuitton’s success to its strong consumer relationships, cultural relevance, innovative partnerships, and expanding online presence.
Chanel, Hermès, Gucci, and Rolex are among the luxury brands that also performed well. These brands capitalized on their global exposure and invested in their corporate reputation. It is notable that Burberry dropped one place in the rankings, but its brand value still increased by 2%.
Overall, the fashion industry has exhibited resilience and adaptability throughout the pandemic. Despite the challenges faced, brands that focused on enhancing their image, differentiating themselves in the market, and tapping into emerging trends like athleisure and digital channels have seen success. As the world gradually recovers from the pandemic, these brand values are expected to continue to flourish, shaping the future of the fashion industry.
Useful links:
– Business of Fashion: Most Valuable Global Brands 2021
– Kantar: BrandZ Most Valuable Global Brands 2021
