Nike has retained its position as the world’s most valuable apparel brand despite dips in brand value from slower revenue growth this year. Nike beat out luxury fashion houses Louis Vuitton, Chanel and Gucci in the ranking which came in second, third and fourth respectively.
These were the findings of brand valuation firm Brand Finance’s annual Brand Finance Apparel 50 2023 rating, which also showed that Adidas has moved up to the fifth most valuable apparel brand position with a brand value of US $ 15.7 billion, an increase of 7 per cent over last year.
In fact, the study found that there is still a strong consumer demand for athletic wear and athleisurewear, with companies like Lululemon, Under Armour, and New Balance reporting double-digit brand value growth this year.
The report’s analysis of Nike’s success revealed that, behind distinctiveness, innovation is one of the most significant variables influencing consumer choice among garment manufacturers. Its ongoing investments in technology and e-commerce to support its digital and direct-to-consumer sales approach are a major contributor to success.
According to the report, by employing this method, the brand can better manage the customer experience, lessen its dependency on physical distribution, and increase sales by leveraging the attraction and consumer loyalty of the brand.
On the other hand, Bvlgari, an Italian luxury brand, experienced the biggest decline in brand value this year, falling by 29 per cent. Among other brands, the brand value of H&M has dropped by 26 per cent, that of Levi’s by 18 per cent, and that of Uniqlo by 13 per cent. According to the analysis, H&M’s decline in brand value can be ascribed to ambiguous messaging and a lack of sustainability transparency.
