Nike has just been announced as the world’s most valuable brand in 2022, according to Brand Finance. Every year, brand valuation consultants Brand Finance gather 5,000 of the biggest brands and put them to the test in order to create a ranking across sectors and geographies. The annual Brand Finance Apparel 50 ranking is then released, revealing the strongest and most valuable brands in the world.
As most of us have noticed, consumer behavior towards the fashion industry has changed in recent years. The brand value of sports and high-end luxury brands, such as Louis Vuitton, Armani, and Bottega Veneta has increased as a result of the post-COVID consumer sentiment.
All the while, the value of fast fashion brands are in a continuous decline. It makes sense. After all, during the pandemic, athleisure and sportswear brands saw a steady increase in brand value, as people spent more time at home — and chose goods based on comfort, rather than style.
The increased demand for sportswear lead to the brand value growth of Nike by up to 9% (or $33.2 billion according to Brand Finance), putting it at the top of the list, followed by adidas at 2% (or $14.6 billion), Puma at $4.5 billion, and rounding out with Lululemon.
But this ranking does not end with sportswear and athleisure brands. The findings conclude that fast fashion brands, such as ZARA and H&M, actually went down in value, and high-end luxury brands such as Louis Vuitton (brand value up 58% to $23.4 billion), GUCCI (brand value up 16% to US$18.1 billion) and Armani (brand value up 9% to $3.3 billion) went significantly up in value. BOSS, Bottega Veneta, and luxury jewelry brand Van Cleef & Arpels were also high up on the list.
Brand Finance assesses the relative strength of brands using a balanced scorecard of measures that evaluate marketing investment, stakeholder equity, and business performance, in addition to determining brand value. The strongest apparel brand in the ranking turned out to be Dior. In 2022, the brand did exceptionally well, rising from 12th place in 2021 to first place in 2022. To promote new collections, the luxury fashion brand continued to host socially distant fashion shows and events.
Dior also engaged in a variety of digital campaigns in order to keep their customer base strong online. Most notably, the brand made extensive use of the online media through influencer marketing initiatives on YouTube and TikTok, among other platforms.
In other news, Nike is looking to fight climate change.