The megabrands are powering ahead. 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.
Exclusive: @isabelmarant and @lorealmakeup have teamed up to create a capsule makeup collection. "She is rather natural in the day but doesn't have time to go back home before going out [in the evening] and redo her entire beauty look," said Marant on the 5 products included in the collection, which will launching in September. Read @jenniferbethweil's interview with the designer on WWD.com. #wwdnews #wwdbeauty
After 17 years, Tomas Maier is leaving @bottegaveneta. “I am deeply grateful to him and I personally thank him for the work he accomplished, and for the exceptional success he helped to achieve,” said François-Henri Pinault, head of parent company @kering_official. Head to WWD.com for more on his departure. #wwdnews #wwdfashion (📷: Davide Maestri)
@shaymitchell is no stranger to teaming up with beauty brands, but she’s made her latest partnership official: She’s signed with @buxomcosmetics as global creative brand ambassador, WWD learned exclusively. Mitchell and Buxom will collaborate on campaign development, social media strategy and content and new product and shade development. Read more on WWD.com. #wwdbeauty (📷: @clint_spaulding)
Today we’re at the WWD Retail 20/20 Forum where industry leaders will be talking about the future of shopping for fashion, footwear and beauty. Tune in on Instagram Live at 9 am and 3:30 pm to hear from two of our speakers –– @therealreal’s Rati Levesque and @bandier’s Stephen Ippolito. #wwdsummits (📷: @elizaflorendo)
Seen last night at @coach’s launch party for “Life Coach,” an interactive pop-up in Soho: @joansmalls. Open now, visitors of the pop-up can engage in themes of “creativity and self-expression,” through tarot, carnival games, live performances and art. See the rest of the party pics on WWD.com. #wwdeye (📷: @vnina)
“We figure there’s enough cynicism to go around the world right now let’s go out there and be ourselves, let’s be enthusiastic, let’s have positive energy, which is something I think a lot of people really want and need right now,” said musician @joshgroban ahead of hosting the Tony Awards with @sarabareilles. Read @leighn’s interview with Groban on how he picked his look for the night, his next record and more on WWD.com. #wwdeye #tonyawards (📷: @vnina)
“Rock as an attitude and not a uniform. Street as a style and not just clothing. Sportswear as the new normality,” @paul_surridge said of his first @roberto_cavalli men’s wear collection, previewed here. The British designer joined the brand as the creative director in May 2017, and is gearing up to unveil his debut for the label with a runway show at the Florence Charterhouse on June 13 at #PittiUomo. Head to WWD.com to read more about his collection and see more sneak peek photos. #wwdfashion (📷: @simonelezzi)