H&M and Zara: world’s best fashion brands?
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H&M and Zara: world’s best fashion brands?

Brand consultancy, Interbrand, has released its up-to-date ranking of world fashion brands – and the names in the top two spots will be familiar to investors in Dominion’s Luxury Fund. So, we decided to take a look at the figures.

According to the Fox Business Network, Interbrand “uses an ISO-certified methodology that looks at how a business delivers on customer expectations compared with what it does to drive economic value, with the rankings based on a brand’s cumulative value in three key areas: the financial performance of the branded products and services; the role the brand plays in influencing customer choice; the strength the brand has to command a premium price or secure earnings for the company.”

The world’s top six fashion brands

SOURCE: Fox Business

H&M and Zara have easily outperformed all other fashionable clothing brands this year to hit the top two spots on Interbrand’s list. This shouldn’t be too surprising: they’re the two biggest clothing fashion retailers in the world, with Inditex (Zara’s parent company) bringing in a massive $23.3 billion in global annual sales (up 15%, year-on-year) and H&M bringing in $21.2 billion (up 19% in the same period).

They’re also both pioneers in two of the hottest trends in fashion right now: fast-fashion, and accessible luxury. These two trends combined give the companies a fast turn around time to get new, high-demand, clothes into store; they let them cling very closely to what’s hot with customers right now; and they let them price themselves competitively, meaning customers return more often to buy their products. 

Disclosure
Dominion holds both Inditex, the parent company of Zara, and Hennes & Mauritz in its Global Trends Luxury Fund.



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The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.