Apple tops a list of the most valuable brands, putting the Cupertino, Calif.-based consumer technology company on track to become the top trillion-dollar brand, followed by Google, Amazon, Microsoft and Chinese technology and media conglomerate Tencent. As technology companies dominate the top spots in the Kantar BrandZ Most Valuable Global Brands 2022 report, which ranks companies based not only on financial results, but also on their intangible assets (including brands) and consumer perception of their brands, fashion and luxury names have also secured significant positions on the 2022 Brand Rating List, with Louis Vuitton, for example, landing in the top 10 for the very first time – and Cartier topped the list of the fastest growing brands of the year.
Drawing on input from millions of global consumers and tens of thousands of brands to measure how “meaningful, different and salient” brands are to consumers, Kantar found that the total value of names on the list of 2022’s most valuable global brands rose 23 percent to nearly $8.7 trillion, which he said is “reassuring, given the backdrop of high inflation and a global economy unpredictable”. Among the strongest brands (i.e. those that benefit from the power of demand – or the predisposition of consumers to choose one brand over another in their category, from pricing power, etc.) the year include those that fall into the luxury sphere, according to Kantar, who notes that luxury brands, in particular, “performed exceptionally well” year-over-year.
Louis Vuitton, which landed in 10th place with a brand valuation of $124.3 billion, is the first luxury brand to reach the Global Top 10, according to Kantar, which “reflects the growth of the luxury market in the world and in China in particular. (Luxury brands were among the fastest growing, up 45%, in this year’s rankings, just behind consumer tech brands, which grew 46%) .
Elsewhere in the luxury space, Richemont-owned Cartier was named the fastest growing brand across all categories, increasing its value by 88% to $10 billion since last year’s report. Other brands that have doubled in value over the past year include: YouTube (#24, $86 billion), Google (#2, $819 billion), Tesla (#29, $75 billion) and Hermès (#27, $80 billion). ). Regarding Cartier, in particular, Kantar said the company “is seen as a particularly smart buy when it comes to offering products that retain their value over time”, presumably a nod to demand for durable resale of the brand’s offerings, including in second-hand condition.
Resale and sustainability
Kantar specifically addresses the resale effect as part of the larger picture of brand valuation, stating that “the notion of ‘resale value’ has long informed brand value in the car category. , reinforcing brands’ reputation as ‘good buys'”. That impact has since extended beyond cars, with the help of “a variety of resale startups, [which] applied the same financial calculus to luxury, streetwear and footwear brands, as consumers can see in real time which products can best “hold their value” in the secondary market. The result, according to Kantar, has been “a boon for brands with more classic and iconic ‘hero products’ in their stables – as well as those who manage to bring out the hottest, hard-to-find viral sensation. seasons”.
(Kantar further asserts that “iconic brand codes can prove especially important in turbulent times. For brands like Louis Vuitton, Chanel, and Hermès, iconic heritage offerings like Speedy, 2.55, and Kelly handbags are much more than just marketing mascots. They “are crucial revenue drivers in volatile economic climates. This is when consumers turn away from risk and instead turn to heritage products that are proven sources. of value, comfort and continuity.”)
The booming resale market is perfectly linked to a way for brands to increase their value: sustainability initiatives. While Kantar says consumer expectations vary by category, brand and market when it comes to sustainability, he notes that “one of the ways brands can advance sustainability is to make products that last longer. “. Kantar goes on to say that “the opposite of planned obsolescence is the concept of durability: finding ways to build, maintain and care for assets that last beyond typical product lifestyles”, the “service” being the key here, as it “enables brands to continue to generate profits”, while allowing brands to increase brand value in the eyes of consumers.
Microsoft, Zara and IBM are leading the way in the new Kantar Sustainability BrandZ Index, which the London-based company says shows that sustainability already accounts for 3% of brand equity and is expected to grow further, according to Kantar.
In terms of other fashion and/or luxury entities in the Top 100 ranking, Nike took 13th place with a brand valuation of $109.6 billion and a 31% year-over-year increase. last ; Hermès came in at 27th with a brand valuation of $80 billion (up 73% year-on-year); Chanel arrived at 45 with a valuation of $53 billion (up 13%); Gucci landed at number 58 with a valuation of $37.9 billion (up 12%); Spanish fast fashion company Zara entered the Top 100 at #83 with a valuation of $25.4 billion (up 19%); and finally, adidas took 89th place with a valuation of $23.8 billion (up 6%).
China, data privacy and metaverse
As for other key points in this year’s report, Kantar highlighted the expansion of Chinese brands, saying that as US and European brands “remain dedicated to expanding their operations in China, they will increasingly need to in addition to face competition from mature and differentiated Chinese brands”. in their national markets. While Kantar cites Chinese tech companies, including smartphone makers like Xiaomi, Oppo and Viva, as key examples of this, fashion and sportswear companies also come to mind. For example, Kantar highlights brands like Anta and Li-Ning, which it says have made “significant market share gains in recent years through their cultural mastery and heritage appeal.” Non-native brands can still succeed in the Chinese market, of course, Kantar argues, but “their engagement with the Chinese market needs to evolve into a ‘better quality’ approach,” which means they need to demonstrate that they” truly understand Chinese society and are committed to improving China as a long-term partner for ‘quality growth’.”
Beyond that, Kantar highlighted the importance of the “post-cookie era,” which has been “accelerated by a combination of regulatory pressures from jurisdictions like Europe and China, as well as strong pro- privacy of hardware manufacturers like Apple”. Kantar says it’s certainly likely that in the absence of third-party trackers, “the benefit will go to the brands and platforms that consumers are most willing to share their own first-party data with,” and he cites brands like Nike, which has created a suite of content including fitness tools, fan communities and the SNKRS shopping app, “all of which should work together to provide the brand with rich consumer profiles and dynamic marketing”.
“Companies have long aspired to create interactive ‘brand universes’,” according to Kantar, who states that “now it really pays to have one.” In a similar vein, Kantar says the rise of the metaverse may have “all sorts of outward implications for categories like fashion, home furnishings, and beauty — not to mention immersive marketing experiences for all-time products.” It could prove exciting for brands and consumers, but for now he says “the greatest test for the metaverse will be to see if it can prove useful in a much more mundane corner of life. : the routine business meeting.”
Finally, a “big story in branding today,” Kantar says, is the use of collaborations as a “shortcut to creating a cultural moment around a product.” This could include creative partnerships between a brand and a celebrity (eg McDonald’s and BTS) – or between two big brands, in different but adjacent categories (eg Gucci and Adidas). “But even more striking is the upward trend of collaborations between two equal-sized competitors,” such as Kering-owned brands Gucci and Balenciaga, as well as Fendi and Versace, which Kantar rightly notes as more unusual since the two brands do not share a parent company.
