Resilience and innovation drive double-digit brand value growth in the apparel sector

• Louis Vuitton reigns as the most valuable apparel brand ranked, valued at $32.2 billion
• Rolex continues its dominance as the strongest apparel brand in the sector
• Dolce & Gabbana emerges as the fastest-growing apparel brand, with a 52% increase in brand value
• China’s Bosideng shines by blending heritage with innovation
• Louis Vuitton leads the way in sustainability with the highest Sustainability Perceptions Value of $3.8 billion
• Chanel has the highest positive gap value of $746 million

European fashion brands have surged ahead in the latest Brand Finance Apparel 50 2024 report, showcasing remarkable growth in brand value. Leading the charge are iconic brands like Louis Vuitton, Rolex, and Dolce & Gabbana, which have not only maintained their market positions but have also achieved significant gains in a year marked by challenges and opportunities.

Louis Vuitton (brand value up 23% to USD32.2 billion) has claimed the top spot as the world’s most valuable apparel brand ranked by Brand Finance in 2024. The brand’s strong performance is driven by a robust recovery in the Chinese market and innovative collaborations, including a high-profile partnership with Japanese artist Yayoi Kusama. Louis Vuitton’s sustained growth is further supported by its exceptional brand loyalty and consumer willingness to pay a premium for its products.

Annie Brown, General Manager of Brand Finance UK, commented,

[i"The post-pandemic boom set the stage for Louis Vuitton to not only regain but expand its market leadership. This success is attributed to the brand’s ability to capture renewed consumer enthusiasm, particularly in the vital Chinese market.  The brand’s commitment to craftsmanship and creativity, as showcased in the recent Paris Olympic brand campaign, continues to elevate its status and protect its lasting allure"[/i]

Rolex (brand value up 29% to USD13.8 billion) continues to be the strongest brand ranked in the apparel sector, maintaining its AAA+ brand strength rating from the past year. With a Brand Strength Index (BSI) score of 90.16, Rolex’s dominance is bolstered by its exceptional performance across key metrics such as ‘promotion’, ‘familiarity’, and ‘price premium’. The brand’s financial success, coupled with innovative new product launches, reinforces its leadership in the luxury watch market.

Dolce & Gabbana has emerged as the fastest-growing apparel brand ranked by percentage, with a remarkable 52% increase in brand value to USD2.1 billion. This growth marks a significant turnaround for the brand, which has successfully rebuilt its reputation and expanded its portfolio, including its foray into luxury real estate.

Meanwhile, Chinese apparel brand Bosideng (brand value up 13% to USD2.1 billion) continues to make strides in the global market by fusing traditional craftsmanship with cutting-edge technology. Bosideng’s commitment to innovation and quality has earned it strong consumer ‘loyalty’ and a high ‘reputation’ score, particularly in its home market of China.

Other highlights from the report:

• Despite a luxury apparel downturn, Hermès, Louis Vuitton, and Dior showed resilience, with Hermès increasing its brand value by 18%, while Gucci and Burberry faced declines but maintained strong innovation and quality scores.
• Women’s sportswear gets a boost from the Paris 2024 Olympic Games, driving a 6.4% growth in global sportswear sales amid rising demand.
• The wristwear sector shows perseverance as Rolex dominates with a 29% increase in brand value, and Omega and TAG Heuer adapt with successful product launches and marketing initiatives.

The 2024 Sustainability Perceptions Index finds that Louis Vuitton tops the ranking in the apparel sector, with a value of USD3.8 billion and Chanel has the highest positive gap value of USD746 million among brands in the rankings.

Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance for more than 25 years, Brand Finance evaluates the strength of brands and quantifies their financial value to help organizations of all kinds make strategic decisions.

Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.

Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on over 5,000 brands, surveying more than 150,000 respondents across 38 countries and 31 industry sectors. Combining perceptual data from the Global Brand Equity Monitor with data from its valuation database enables Brand Finance to arm brand leaders with the data and analytics they need to enhance brand and business value.

Brand Finance is a regulated accountancy firm, leading the standardization of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671 and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.

Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.

Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.

Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.

Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.

The steps in this process are as follows:

1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.

2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.

3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.

4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.

5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.

6 Apply the royalty rate to the forecast revenues to derive brand revenues.

7 Discount post-tax brand revenues to a net present value which equals the brand value.

Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.

The data presented in this study form part of Brand Finance’s proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.