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L’Oréal Paris - Once, Twice, Three Times a Winner

04 May 2016
This article is more than 4 years old.

· L’Oréal Paris is the most valuable cosmetics brand for the third consecutive year

· The brand has reached a record value of US $13.7 billion

· Avon drops 11 places to 21st with brand value down over 50%

· Brazilian Brand, Natura, fell 67%, more than any other

· Lynx loses laddish image to increase brand value by 69%

Every year, leading brand valuation and strategy consultancy Brand Finance analyses thousands of the world’s top brands to determine which are the most powerful and most valuable. The top cosmetics brands grouped in the Brand Finance Cosmetics 50.

L’Oréal Paris remains the world’s most valuable cosmetics brand. A 22% increase on its 2015 brand value brings the total to US $13.7bn, a record for the industry. It also has the strongest brand; Brand Finance creates a Brand Strength Index (BSI) score out of 100 for each brand based on indicators such as familiarity, consideration, loyalty, investment, social responsibility and preference. L’Oréal Paris’ score is 91.5, making it not just the strongest cosmetics brand, but the third strongest from any industry, beaten only by Disney and Lego.

Commenting on the label’s strong performance, Brand Finance’s Cosmetics Analyst Emilie Milton-Stevens stated, “L’Oréal Paris continues to impress: bettering itself and raising its game the whole time. It is performing well in three key respects: it is investing in trends and technology; it is innovating digitally; and it continues to inspire trust. Across the Brand Finance Cosmetics 50, brands based outside the US have been negatively impacted by foreign exchange rate changes, but L’Oréal revenue and brand performance was so strong that it not only counteracted that impact but actually grew 22%.”

Brazilian brand Natura did not experience the same good fortune this year. 81% of the brand's revenue comes from the domestic market and the combined effects of recession, inflation and the depreciation of the Real against the dollar have contributed to a 67% decline in brand value.

Brazil is also the biggest market for American cosmetic brand, Avon. It too has seen a severe decline in brand value, which is down 54% to US$1.8 billion. Avon’s problems stem as much from its home market in North America as from Brazil however. The brand has admitted that eroding relevance, a declining base of representatives and profitability are serious problems in the US.

One of the best performers of the year was Unilever’s Lynx (Axe) deodorant brand. It has pursued a concerted strategy to shed its ‘laddish’ image as more nuanced portrayals of masculinity are popularized. In January, Lynx launched its ‘Find Your Magic’ brand campaign, which encourages men to break free from assumptions about how they should behave and express themselves, a particularly suitable message for a brand seeking to redefine itself. Its brand value is up 69% to US$1.7 billion.

ENDS

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