Most Valuable Cosmetic Brands 2013

18 Apr

 

Brand Valuation Company Releases Listing of “Most Valuable Cosmetic Brands”

Brand valuation and marketing company Brand Finance released its annual study of the top 50 most valuable cosmetics brands. The company calculates brand value using the royalty relief approach. Brand value is essentially the cost that a third party would have to pay to license the use of a brand. Brand strength analysis is used to determine the royalty rate, and brand strength analysis benchmarks the strength, risk and future potential of a brand relative to its competitors. This takes into account financial metrics such as net margins, average revenue per customer, marketing and advertising spend as well as qualitative measures such as brand affection and loyalty. Brands are then awarded a brand rating, a letter grade, similar to a credit rating from AAA+ to D. Having been determined based on the brand strength, the royalty rate is then applied to revenue figures to determine the brand value.

For the 2013 listing, despite a very slight brand value fall, Olay held its dominant position at the top of the BrandFinance Cosmetics 50 table, with a value of $11.7 billion. However, Olay’s lead at the top has shrunk from $4 billion to $3 billion following the growth of L’Oréal. The French giant has continued its progression up the rankings, having moved from fourth to third last year, it is now second. Brand value growth of $952 million, more than any other brand, means its total brand value is now S$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 $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 NeutrogenaNivea and Lancôme, which have all recovered well from brand value falls last year. Sixth place Avon is this year’s biggest casualty. Down from second last year, it lost $2.7 billion of brand value this year. The $2.3 billion lost last year means Avon’s brand value is down $5 billion on 2011 and now stands at just $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 $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.”

Below is the full, 50-place list from Brand Finance for “The World’s Most Valuable Cosmetic Brands”:

 

Rank in Brand Value (USD $ Millions)         

2013 2012 Logo Name Country 2013 2012
1 1 Olay 11,709 11,756
2 3 L’Oréal 8,696 7,744
3 4 Neutrogena 6,940 6,248
4 5 Nivea 5,843 5,574
5 6 Lancôme 5,508 5,095
6 2 Avon 5,169 7,901
7 7 Dove 4,242 5,045
8 8 Estée Lauder 3,870 3,716
9 9 Biore 3,378 3,336
10 14 Christian Dior 2,952 2,540
11 12 Pantene 2,910 2,643
12 18 Chanel 2,813 2,292
13 15 Aveeno 2,793 2,384
14 16 Garnier 2,632 2,340
15 11 Schwarzkopf 2,420 2,682
16 20 Maybelline 2,398 2,016
17 19 Clarins 2,375 2,018
18 10 Shiseido 2,203 2,907
19 21 Clean & Clear 2,196 1,990
20 17 Natura 1,849 2,332
21 23 L’Occitane 1,698 1,611
22 29 Johnson’s 1,513 1,148
23 13 Lux 1,501 2,541
24 27 M.A.C. 1,382 1,258
25 30 Kérastase 1,360 1,138
26 32 Redken 1,285 1,024
27

22 Rexona 1,203 1,752
28

26 Biotherm 1,174 1,277
29 28 Vichy 1,170 1,172
30 25 Oriflame 1,151 1,310
31 36 Matrix 1,133 871
32 Clearasil 1,127
33 42 Rimmel 1,109 615
34 35 Yves Saint Laurent 1,092 915
35 33 The Body Shop 1,063 977
36 Pola Orbis 1,017
37 31 Sunsilk 902 1,135
38 37 Clinique 885 790
39 40 Softsoap 826 754
40 41 Irish Spring 655 715
41 47 Coty 562 409
42 34 Revlon 561 922
43 49 Elizabeth Arden 502 353
44 43 Eucerin 487 557
45 46 RoC 481 472
46 38 La Roche-Posay 456 778
47 45 KOSÉ 452 473
48 Head & Shoulders 423
49 48 Kiehl’s 416 379
50 44 Speed Stick 402 498

 

Source: Brand Finance

 

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