Most valuable brands report: Nike in top ten, Lululemon rises
The third annual Top 75 Most Valuable Global Retail Brands report from brand equity database BrandZ showed strength and resilience in major sports brands including Nike, adidas and Lululemon.
Nike was among the top ten most valuable brands, placing sixth with a valuation of $50bn. According to the report, the sports brand leads the rankings’ apparel category with its e-commerce, product customisation and high-profile collaborations resulting in strong sales.
The report, presented by British companies WPP and Kantar, used valuations data that incorporated stock price performance from April 2020 to reflect the impact of covid-19 on each brand’s value.
Athletic company Lululemon was the list’s highest riser, growing 40% to hit the 25th spot with a valuation of $9.7bn. The report highlighted Lululemon’s current efforts such as offering online training programmes, to keep the brand in customers’ minds during the pandemic. A similar tactic, said the report, has been adopted by Adidas, which was ranked 18th and valued at $14.8bn.
The ranking takes into account analysis of retailers' financial performance combined with millions of consumer surveys taken in more than 50 markets around the world. BrandZ said that historical data shows brands with the strongest brand equity recovered nine times faster after the financial crisis of 2008.
"The coronavirus crisis underscores the essential role that retail plays in both our daily lives and the overall global economy; we are seeing some heroic examples of retail companies stepping up to meet consumer need and keep the world turning,” said David Roth, who is CEO of WPP’s global retail practice The Store (EMEA and Asia) and chairman of BrandZ.
“While this is a fast-moving and ongoing story, the report allows us to show the businesses that, having invested in becoming a strong brand, are potentially better able to withstand the current shock. Twenty-two years of BrandZ data analysis consistently confirms that strong brands help their businesses to survive turbulent times."
