Brand Finance, the leading global brand valuation and marketing experts, have released their annual study of the top 50 most valuable cosmetics brands. Despite a very slight brand value fall, Olay holds its dominant position at the top of the BrandFinance® Cosmetics 50 table, with a value of US$11.7 billion.
However, Olay’s lead at the top has shrunk from US$4 billion to $3 billion following the growth of L’Oréal. The French giant has continued its progression up the rankings, having moved from 4th to 3rd last year, it is now 2nd. Brand value growth of US$952 million, more than any other brand, means its total brand value is now US$8.7 billion. L’Oréal’s success hinges on shrewd exploitation of its French heritage. France’s nation brand is synonymous with luxury, helping to drive US$26 billion worth of luxury goods exports in 2012. L’Oréal has contributed to this trend, targeting emerging markets such as Brazil and China to achieve revenue growth of 12% last year.
L’Oréal is followed in the BrandFinance® Cosmetics 50 by Neutrogena, Nivea and Lancôme (3rd, 4th and 5th respectively) which have all recovered well from brand value falls last year. 6th placed Avon is this year’s biggest casualty. Down from 2nd last year, it has lost US$2.7 billion of brand value this year. The US$2.3 billion lost last year means Avon’s brand value is down US$5 billion on 2011 and now stands at just US$5.2 billion. The particularly dramatic brand value falls suggest low levels of investor confidence following a revenue drop of 5% and a loss of US$42.5 million in 2012.
Commenting on the results, Mary-Ellen Field, Chairman of Brand Finance Australia stated “The global beauty industry continues to do, well, beautifully. With the increasing wealth of women in developing economies we have not surprisingly seen the sales of beauty products in these countries growing. Cosmetic halls in department stores throughout the world continue to be exciting places despite growing competition from Internet sales.”