Oregon (US)-based sportswear giant Nike has emerged as the most valuable apparel brand in the world in a report by Brand Finance, the world’s leading independent brand valuation and strategy consultancy.
Despite a 12 per cent drop in the brand value to US $ 28.0 billion, Nike remained at the top position. It was a tough year for Nike as it experienced a decline in popularity among teenagers, especially in North America.
Inappropriate behaviour among executives and managers of Nike has also emerged as challenge for the retailer. The solutions in place to deal with the situation are also likely to result in further decrease in brand’s strength and value next year, the report added.
According to Richard Haigh Managing Director, Brand Finance, the steep competition to maximise on the sporting apparel trend, coupled with increased choice could threaten Nike’s future position. Boom in retail industry trends via online platforms and the strongly increasing popularity of competitors such as H&M and Zara would create a challenging environment for Nike.
Swedish fashion brand H&M, which faced controversies this year including racism headlines that it made, ranked second, ahead of its Spanish rival Zara which grabbed the third position on the annual list.
Adidas, Hermes Paris, Louis Vuitto, Cartier owned by the Richemont Group, Gucci, Japan-based Uniqlo and Rolex were among top ten brands in Brand Finance Apparel 50 league table, the “Brand Value”.
This year, Hermes which overtook Louis Vuitton, Cartier and Gucci – the top four luxury brands, witnessed a very strong brand value growth due to consumer’s rising inclination towards luxury products.
Victoria’s Secret, Under Armour, Prada, Burberry and Calvin Klein were also named in the top 50 list.
Brand Finance was set up in 1996 with an aim of ‘bridging the gap between marketing and finance’. For more than 20 years, it has helped companies and organisations of all types to connect their brands to the bottom line.
