reveals that Nike is the brand that is best resisting the coronavirus crisis, thanks to a strong online sales strategy and customer engagement, that Levi’s is the fastest growing and that Rolex is the strongest.
The luxury brands stalked by sharks
Seven of the top 10 strongest brands in the ranking belong to the luxury segment: Rolex, Gucci, Louis Vuitton, Hermés, Moncler, Botega Venetta and Prada. Only Nike and Adidas sneak in as sports fashion brands and the Irish Primark.
The luxury agenda has been wiped out by the spread of the virus. The coronavirus has hit Italy, one of the cradles of luxury fashion and accessory firms, particularly harshly. Firms like Armani or Burberri have postponed the presentation of their collections but others like Chanel or Gucci have already canceled them. The stock market crashes of companies such as Burberry, Capri, Farfetch, Kering, LVMH, Moncler, Ralph Lauren, Ferragamo, Tods or Tapestry, which have lost up to 30 percent of their value and fear purchase operations by sharks financial.
International panorama
Nike, the most valuable fashion brand in the world
For the sixth consecutive year, Nike is once again crowned the most valuable clothing brand in the world, registering a 7% increase in brand value that now amounts to €31.4 billion. The sports giant has focused on implementing a selective distribution strategy move, drastically reducing the number of retailers that sell its products, with the aim of regaining control of the brand’s relationship with the customer and improving profit margins.
Nike’s perennial rival Adidas, at number three, has had a less successful year, posting a 1% decline in brand value to now €14.9bn.
Both brands will need to bet on their e-commerce channels to protect themselves as much as possible. , but also puts it in a strong position to meet the challenge of the current global crisis.
Levi’s is the fastest growing brand in the industry
Iconic jeans brand Levi’s is the fastest growing brand in the ranking this year, with an impressive increase of 38% and a brand value of €3.7 billion. 2019 has been a strong year for the brand as it celebrated the highest growth rate in the last 25 years and embarked on a highly successful IPO after operating privately for over 30 years. The brand, which has traditionally relied heavily on its menswear range, now boasts womenswear as the fastest growing segment of its business, further testament to the brand’s stupendous diversification strategy.
Valentino and Gap in free fall
Valentino (brand value of 1.3 billion) and Gap (brand value of 1.5 billion) are the two brands that have experienced the fastest drops in the ranking. Both register this year a 39% drop in brand value.
Valentino has been weathering slowing revenue and sales over the past year, particularly in parts of China, its key market, which accounts for about 30% of the brand’s sales, in the face of civil unrest in Hong Kong and slowing overall Chinese economy. Similarly, the Gap’s fortunes have been less than favourable. With sales falling, the abrupt departure of CEO Art Peck and the decision to close 230 of its stores, the brand is taking steps to try to offset the sharp drop in profits.
Rolex, the strongest brand in the sector
In addition to measuring overall brand value, Brand Finance also assesses the relative strength of brands, based on factors such as marketing spend, familiarity, loyalty, staff satisfaction, and corporate reputation. Along with revenue forecasts, brand strength is a crucial driver of brand value. According to these criteria, Rolex (despite losing 2% in brand value to now €7.1 billion) is the strongest apparel brand in the world with a Strength Index score of (BSI) mark of 89.8 out of 100 and its corresponding AAA+ mark elite rating.
Even though the brand only launched one new model last year, Rolex saw strong sales around the world. Rolex, along with other luxury clothing brands, now has to prepare for a sharp decline in sales as travel restrictions, unemployment and global economic uncertainty caused by COVID-19 increase.
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