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