The results are in: Nike still the most valuable brand in apparel
According to valuation and strategy consultancy Brand Finance, athleisure market-leader and iconic footwear maker Nike is still the most valuable apparel brand in the world. Other notable results include the continued presence of H&M and Inditex in the second and third positions respectively, a “remarkable” run by Chinese sportswear giant Anta Sports, and outperformance from Adidas, which has been a continual challenge to Nike throughout the year.
Nike’s share price is up by 23% over the last 12 months
SOURCE: Yahoo Finance
The consultancy defines brand value like this: “equal to a net economic benefit that a brand owner would achieve by licensing the brand,” and notes that brand strength is “used to determine what proportion of a business’s revenue is contributed by the brand."
Nike’s brand saw a “significant” (12%) drop in value from the previous year to $28 billion – but this was not enough to knock it off the top spot. In fact, the world’s second-most valuable apparel brand, H&M (which saw a 1% drop itself) is valued at $19 billion. Adidas, which outperformed, gaining 41% from the previous year, is still nowhere near Nike: its brand is worth $14.3 billion. Anta Sports has been increasing impressively for years (this year, its brand value grew by 29%) – but is still “only” worth $2.6 billion.
Speaking about the results, Brand Finance’s manaing director, Richard Haigh, said:
“The top four brands in apparel are here to stay. However, steep competition to maximize on the sporting apparel trend, coupled with increased choice and information for the consumer could threaten Nike’s future position in the rankings. This year, Adidas’ brand value is further encroaching on the incumbent champion, which has suffered significant loss to brand value. Empowerment to the consumer is having a wide-spread impact on the industry, allowing fast-fashion retailer Zara to reign supreme on the high street, challenging H&M and leveraging both online and offline sales platforms to meet consumer demands for variety, fashion, and low prices.”
Dominion holds Nike and Adidas, as well as a number of other brands mentioned in the rankings, in its Global Trends Luxury Fund.
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