H&M, Louis Vuitton and Wal-Mart, respectively, are ranked as the world’s most valuable apparel, luxury and retail brands this year, according to a study by consulting group Millward Brown Optimor.
The group assessed global brands with the highest valuations in 17 sectors, from cars and coffee to technology and personal care. Much like a financial analyst evaluating the prospects of a company’s stock, the Millward Brown study forecast the “intrinsic value” of 100 global brands by estimating their ability to “generate demand.”
The valuations are not based solely on conventional measures, but use both tangible and intangible measurements from Millward Brown, such as earnings directly attributable to sales of a brand and consumers’ views of those brands. In some cases, such as Vuitton, Millward Brown’s valuation for 2009 exceeds the brand’s 2008 revenues, and in other cases, like Wal-Mart, the valuation for this year is far lower than the company’s actual revenues. This points to the aura of the Vuitton brand, for instance, playing a bigger role in purchases of those luxury products than, say, the Wal-Mart brand figuring into shopping the discount giant.
Google was assessed as the number-one brand worldwide, worth $100.04 billion, followed by Microsoft, $76.25 billion; Coca-Cola, $67.63 billion; IBM, $66.62 billion, and McDonald’s, $66.58 billion.
H&M blew by Nike under Millward Brown’s assessment to become the most valuable apparel brand, worth an estimated $12.06 billion, in a sector hit hard by the recession.
The 62-year-old Swedish fast-fashion retailer was fueled by its offer of fashion, value and exclusive designer collections at affordable prices, such as a recent collection by Matthew Williamson and a collaboration with Jimmy Choo, which will launch a collection for women and men in about 200 H&M stores in November, said Pierre Dupreelle, a director at the brand consultant.
H&M’s mastery of the supply chain hasn’t hurt, either. As fashion is fundamentally about the offer of something new, the chain continues to benefit from the frequent deliveries of fresh items to its stores — in intervals of about three weeks, according to The Boston Consulting Group Inc. Its even speedier competitor, third-ranked Zara, gets it done in 14 days.
“They’ve also been helped by ongoing store openings,” Dupreelle acknowledged of H&M’s more than 1,500 locations worldwide. New stores helped H&M to continue to gain market share in the second quarter as the chain reported a better-than-expected 6.4 percent increase in net profits.
Fashion players dominated the 10 luxury brands ranked as the world’s most valuable, led by Louis Vuitton, worth $19.40 billion, up 5 percent from 2008. Wal-Mart was the retail brand with the highest valuation, at $41.08 billion, a gain of 19 percent. Both Vuitton and Wal-Mart far surpassed the second-place brands in their respective categories: Hermès, projected to be worth $7.86 billion, and Tesco, $22.93 billion.
“Louis Vuitton and Hermès control their distribution channel from A to Z and they don’t discount,” Milton Pedraza, chief executive officer of the Luxury Institute, said of the luxury brands’ leading status.
Flexing some marketing muscle has helped Vuitton and Hermès as well, contributing to reports of “[mid]- to high-single-digit profits and tens of millions of dollars of growth throughout this recession,” said Greg Furman, president of The Luxury Council.
On Monday, for instance, LVMH Moët Hennessy Louis Vuitton, the world’s largest luxury goods company, said it will be a main sponsor of New York City’s 2009 Summer Streets event. Summer Streets closes a 6.9-mile route from the Brooklyn Bridge to Central Park to cars, so that people can run, bike, walk and participate in eco-friendly activities on the thoroughfares on Aug. 8, 15 and 22.
In honor the @CFDA’s announcement of @iamnaomicampbell receiving the Fashion Icon Award at the 2018 #CFDAAwards, which will take place on June 4, here’s a #tbt of the supermodel on @michaelkors’ runway in 1991. #wwdfashion #wwdarchive (📷: George Chinsee)
“I was making the guacamole when my scout saw me,” says model @stuckinteenage on being discovered just six months ago while working at @chipotlemexicangrill. Since then Williams has signed with @dnamodels, walked in her first show at @calvinklein and landed on the cover of @vogueitalia – a high point of any model’s career. To read @lisajlockwood’s full interview with the model on her experiences thus far, head to WWD.com – link in bio. (📷: George Chinsee)
“I love the idea of dialogue, period. It’s where I’ve always gotten my inspiration from: hearing other women speak, their journeys and their paths,” said @hereisgina, who delivered the keynote speech during @sxsw for @createcultivate in partnership with @fossil. For her two panels, Rodriguez chose female empowering, female-led and female entrepreneurs to focus on. Head to WWD.com to read more about her thoughts on Time’s Up, growing up in a family of women and why we “need a girls’ club.” #wwdeye #sxsw (📷: @jgreenery)
Leading luxury brand are shaking things up to keep up with streetwear. Case in point: the arrival of @mrkimjones as artistic director of @diorhomme. Jones, who succeeds @Kris_Van_Assche, is seen as one of the handful of designers who can actually straddle the luxury and streetwear worlds — which could lead to even more changes at established brands. What could this mean for the rest of the menswear landscape? Head to WWD.com to find out what experts predict #wwdfashion (📷: @franckmura)
“It’s like buying groceries. You’re going to buy the best mango, the best mozzarella, the best things. You have to, or others are going to take it all,” said @gabrielahearst on why she uses only the finest fabrics. Last week, Hearst received her first @cfda nomination for Womenswear Designer of the Year, and earlier this month she opened a permanent showroom in Paris. To read @jessiredale’s interview with the designer and find out why this is shaping up to be a big year for her, head to WWD.com. #wwdfashion (📷: @francoisgoize)
“It’s an interesting thing, playing a younger version of your mother. It’s an interesting concept. I adore my mom and love her in every capacity, but it was just something that had never crossed my mind,” says @anniemstarke on playing a young Joan Castleman in “The Wife.” The same role will be played by her mother Glenn Close. Read more about her growing up in the film industry as the daughter of producer John H. Starke and Close and what she has planned for the future #wwdeye (📷: @nataliamantini)
@asics is launching a new streetwear sneaker inspired by its latest ambassador, @steveaoki. The Hyper-Kenzen x Aoki, which will launch at @footlocker stores exclusively tomorrow, is a slip-on style that incorporates the brand’s proprietary Gel technology through beads integrated into the midsole for comfort and endurance. Read the full story on WWD.com.