The Brand Finance Cosmetics 50 is an annual study conducted by leading brand valuation and strategy consultancy Brand Finance, released in partnership with SPC Magazine. The world’s biggest cosmetics brands are put to the test and evaluated to determine which are the most powerful and most valuable.
L’Oréal Paris tops the table with a record brand value of US$11.2 billion. Its brand value is up 15 per cent from US$9.8 billion in 2014. Brand Finance, chief executive, David Haigh comments: ‘L’Oréal has pulled off the trick of simultaneously capturing the mass market while maintaining an air of exclusivity. The key to L’Oréal’s success is its unrivalled marketing focus and investment.’
Procter & Gamble (P&G) takes honours as the conglomerate with the greatest number of beauty brands listed, namely Gillette, Pantene, Olay, Head & Shoulders, Clairol, SK-II, Cover Girl, Max Factor, Old Spice and Wella. P&G’s brands are also, collectively, the most valuable brands in the top 50, totalling US$27.46 billion, compared with L’Oréal’s US$27.11 billion.
The Brand Finance Cosmetics 50 is dominated by brands from the US, France, UK and Germany. However Brazil’s Natura stands out as the most valuable non-western brand. It is growing quickly, capitalising on Brazil’s increasing affluence and insatiable demand for beauty products. Though Brazil’s economy is somewhat troubled at present, Natura looks set to build on the momentum it has built over the last few years, as in any country but in particular in Brazil, cosmetics clearly benefit from the ‘lipstick effect’.
The total brand value of the World’s top 50 cosmetics brands is up 13 per cent from US$106 billion to US$123 billion this year. Clearly the industry as a whole is continuing to thrive, but certain brands have not fared so well. Major brands from the top 5 of the table such as Dove, Pantene and Nivea have lost brand value this year; others include Garnier, Olay and Lancôme.
Avon is the worst performer however; its brand value has dropped by 39 per cent to US$3.9 billion.
