LONDON – Big tech could top the 2021 Interbrand Best Global Brands report, which was released on Wednesday, but LVMH Moët Hennessy Louis Vuitton stole the show – and made history – with five of its companies listed. in the top 100.
Interbrand’s 22nd annual report, titled ‘The Decade of Possibilities’, examines how the world’s biggest brands weathered the COVID-19 crisis and how they are navigating the post-pandemic landscape.
LVMH is the first group in the history of the ranking to have such a large number of companies from sectors as varied as fashion, luxury goods, distribution and spirits.
The biggest increase this year was Tesla, which saw its brand value increase by 184% after returning to the Top 100 list in 2020. It now ranks 14th. Among the drops was Zara, who fell from 35 to 45 in this year’s rankings, and saw her brand value drop by 9%.
Sign of the times, LVMH-owned Sephora was the only new entrant this year, reaching 100 with a brand value of $ 4.63 billion. Sephora, like so many beauty companies, saw its e-commerce sales skyrocket during the lockdown when its physical stores were closed.
Interbrand noted that the fastest growing companies this year “significantly outperformed” other brands on three main factors: leadership, agility and participation.
He said the elevators “are setting a clear direction, ensuring the whole organization knows where they are going and is working towards the same ambition.” These companies have also evolved rapidly “by bringing new products and services to market and, where necessary, turning to meet changing customer needs.”
They also emphasize participation. “These brands ultimately take people on a journey with them and integrate them into the movement to create an engaging brand world,” said Interbrand.
Charles Trevail, Global Managing Director of Interbrand, said: “Not surprisingly, given the ever-changing business landscape, employee buy-in, adaptation to change and a strong customer base have helped some brands thrive.
He noted that the triple-digit increase in Tesla brand value was “unprecedented” over the past 22 years of the ranking. “Tesla is a brand that embodies the importance of leadership, agility and brand involvement,” said Trevail.
Interbrand calculates its valuations by examining the financial performance of a brand’s products or services; the role of the brand in purchasing decisions; competitive strength and the ability to create lasting loyalty, demand and profit.
It collects data from the public domain, customers and key stakeholders and uses a specially designed assessment methodology to perform its calculations. The research covered the period between July 1, 2020 and June 30, 2021.
Technology dominates the top 10, and there has been no change in the top three companies this year, with Apple number one; Amazon number two and Microsoft number three. Interbrand said those three companies made up a third of the table’s total value.
The rest of the top 10 includes Google, Samsung, Coca-Cola, Toyota, Mercedes, McDonald’s and Disney at numbers 4-10, respectively.
Together, the total value of the 100-brand list is $ 2.67 trillion, 15% more than last year. Interbrand said 2021 marks the highest growth rate for the table since the rankings were created in 2000.
Average brand value increased 10% in 2021, which was “much larger” than the 1.3% increase in 2020.
“This is due in large part to the economic disruption caused by COVID-19. Technology is the fastest growing industry, with an average change in brand value of 23% year over year. It is also the most valued industry by average brand value, followed by beverages and sporting goods, ”the company said.
LVMH reached a milestone with the entry of Sephora and the acquisition of Tiffany & Co. at age 92, earlier this year. Louis Vuitton at 13; Hennessy, 95, and Dior, 77, were already in the rankings.
Antoine Arnault, in charge of the image and the environment at LVMH, declared having five companies in the last Interbrand list, “represents a magnificent reward for the group and its 170,000 talented employees, and shows our ability to support and increase the success of our houses over the long term. ”
Interbrand noted that Louis Vuitton is one of only two luxury fashion brands to consistently rank in the top 100. The other is Gucci. Louis Vuitton made its way into the top 20 in 2005, and Interbrand said it remained the most valuable luxury fashion brand in the study.
Rebecca Robins, global head of learning and culture at Interbrand, said in an interview that Sephora was the first omnichannel retailer to make the top 100.
Its success, she said, is due to “relentless investments in e-commerce and logistics. The brand continues to lead the way in innovation by launching digital initiatives that make shopping online easier and by leveraging technology that gives offline customers a personalized shopping experience.
Robins said another success factor was Sephora’s early commitment to the 15 percent commitment in June 2020, which saw the company devote 15 percent of its storage space to black-owned brands. She said the commitment aligns with Sephora’s vision to become “the champion of diversity, inclusion and equity in the retail industry.”
Sephora has also focused on the transition to renewable energy: as of 2019, all Sephora stores, headquarters and distribution centers in the United States are powered 100% by renewable energy.
While the 2021 report did not specifically measure companies’ ESG (environmental, social and corporate governance) or DCI (diversity, equity and inclusion) initiatives, Robins said these brand commitments are becoming increasingly important. for consumers.
She added that “there is more to come” from Interbrand when it comes to ESG and DEI issues and their impact on the ranking.
Commenting on the 2021 report, Gonzalo Brujo, Global President of Interbrand, hinted at the importance of ESG and DCI for the future.
“As we continue the Decade of Possibility, many of the world’s best brands are actively expanding their possibilities by fostering breakthrough innovation, developing more effective business models and taking uncompromising positions,” he said.
Zara slipped in this year’s rankings due to a variety of factors, including ESG concerns, according to Interbrand. Asked specifically about Zara, Robins noted that it has been a difficult year for the Spanish company.
“COVID-19 store closures, capacity limitations and movement restrictions have had a significant impact on Zara,” Robins said, adding that these headwinds were “only partially offset by the dramatic increase in trade. electronic”.
She added that “the super-fast fashion boom has been another challenge, as e-commerce remains a small part of Zara’s business, compared to native competitors online. Although the brand’s goals are aligned with greater sustainability, Zara is only ranked 44th in the Fashion Transparency Index 2020, a review of 200 of the world’s top fashion brands and retailers.
Robins added that transparency is becoming increasingly important “as consumers seek more tangible goals and more accountability” from brands.