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top 50brands

L’Oréal Paris has taken top honours inBrand Finance’s influential league table50 Most Valuable Cosmetics Brands.SPC asks ‘where did L’Oréal go right?’and takes a look at the winners,losers and newcomers in 2014

The beauty industry continues to beone of the most resilient but also one ofthe most competitive industries around.This year marks the publication of thefourth 50 Most Valuable Cosmetics Brandsleague table, calculated by the world’sleading brand valuation consultancy, BrandFinance. As ever, the findings areilluminating.

“As well as calculating brand values, wealso allocate a brand rating,” says DavidHaigh, founder and CEO of BrandFinance plc. “In the list of the top tencosmetics brands by rating, they all have‘triple A’ ratings, which is quite unusual.You rarely get so many highly rated brandsin one sector. What this shows is thatbeauty is a very highly contested sectorinvolving a lot of brands.

“If you look at banking, insurance orutilities, there are almost no brands that geta ‘double A’ status, let alone a ‘triple A’one.”

But although beauty may be faringbetter than many other categories, thecombined brand value of the beauty top50 has actually decreased since thepublication of the first of Brand Finance’stop 50 league tables. “In 2011, thecombined brand value of the top 50 brandswas US$117.5bn and in 2014 it is only$106.1bn,” says Haigh. This proves that the

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With a brand value of $10.8bn and an AAA+ brandrating, L’Oréal Paris is currently the strongest brandwithin the beauty industry as a whole, according toBrand Finance. L’Oréal Paris’ brand value/enterprisevalue jumped significantly (+29%) in 2014. This, saysHaigh, is the combined result of a good performancefinancially (its enterprise value grew from $26.2bnlast year to $37.6bn) and very heavy investment inNPD, branding and distribution.

“The L’Oréal group invests disproportionatelyhighly in marketing and branding,” notes Haigh. “Itpays very large amounts of money to well knownstars to endorse L’Oréal and then it putssubstantial amounts of money behind theadvertising, which is done very, veryprofessionally.”

A major campaign for L’Oréal Paris in 2013 accompanied thelaunch of its Color Riche Collection Privée, a range of nude lip and nail coloursdesigned to suit every skin tone; it involved a line-up of L’Oreal Paris spokesmodelsacross a wide range of ages, nationalities and ethnicities, including US actors JaneFonda and Julianne Moore, Slumdog Millionaire star Freida Pinto and Chinese actorFan Bingbing.

Investment in NPD is evident in recent launches, which offer novel textures andeffects across a range of categories. New lip product L’Extraordinaire By Color Riche,for example, fuses oils and colour pigments to create a liquid lipstick, while AgePerfect Extraordinary Facial Oil taps the dual trends for nourishing oils and multi-tasking products. According to L’Oréal, it can be used on its own, under face cream,as a face wash, or as a massage oil. It may also be mixed with foundation for addedluminosity.

L’ORÉAL: POLE POSITION

GLOBALTOP50BRANDS2014

TABLE 1: ON THE UP

Brand Rise in brandvalue (US$m)

Garnier 2,178Johnson’s 2,089L’Oréal 2,070Dove 1,643Avon 1,215Estée Lauder 719Natura 616Maybelline 524The Body Shop 451Christian Dior 377

TABLE 2: GOING DOWN

Brand Decline in brandvalue (US$m)

Aveeno 2,450Clean & Clear 1,486Lancôme 1,420Kérastase 1,261Redken 1,098Clearasil 998Pola Orbis 936Schwarzkopf 902Matrix 799Sunlight 786

industry cannot always rely on the oftquoted ‘lipstick effect’ – whereby womenwho’ve cut their spend on big ticket itemscompensate by treating themselves tosmaller discretionary items, like lipstick,during leaner periods.

TAKING THE TOP SPOTRising above the competition in 2014 isL’Oréal Paris, which currently occupies thenumber one spot with a brand value of$10.8bn, significantly ahead of Avon, thesecond placed brand, which is valued at$6.4bn.

Analysing Brand Finance’s findings,Haigh tells SPC that corporate structureand attitudes to spending are key factorspropelling the brand to the top of thechart. “The ownership structure of L’Oréalis unusual in that it is dominated by theBettencourt family and they invest heavilyin the long term,” he says. “You can do thisvery easily when you are a familycontrolled company, because the investorsaren’t looking over your shoulder saying‘we’d rather you make a 20% return than a15% return’. If a short term investor isinvolved, they’d probably say ‘forget aboutputting money into extra advertising, justmake 20%’. The Bettencourt family hastaken the view that ‘this is an asset forever,

and we want to make sure it’s as strong aspossible’. So that is therefore reflected ingrowth in brand value.

“L’Oréal invests very heavily ininnovation and the distribution of products– the stuff which secures ‘the long term’,”continues Haigh. “The probability is, if itwasn’t doing this and it was releasing someof its money back into its profit and lossaccount short term, its share price wouldprobably jump, because its profitabilitywould jump. But it isn’t looking shortterm, and in the long run that would bebad for the business.

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TABLE 3: NEW ENTRANTS

Brand Rise in brandvalue (US$m)

1 Cover Girl 1,2422 Sunsilk 1,2323 SK-II 1,1774 Kanebo 1,1635 Max Factor 1,1446 Old Spice 8537 Pond’s 6968 Pola 6389 TRESemmé 45410 Sulwhasoo 439

TABLE 4: DROPOUTS

Brand Decline in brandvalue (US$m)

1 La Roche-Posay 952 Kiehl’s 1183 RoC 2514 Eucerin 3265 Speed Stick 3326 Revlon 4787 Irish Spring 5008 Softsoap 5179 Sunlight 78610 Matrix 799

Garnier, part of L’Oréal’s ConsumerProducts Division, exhibited the sharpestrise in brand value this year of any namein the top 50 – up by nearly $2.2bn. Itshot to number six on Brand Finance’slist having been placed 12th last year.

This may be in part attributed to thepopularity of Olia, Garnier’s ammonia-free, at home hair colour product, whichuses oil to boost the hair colouringprocess. Reviewing its full year 2013financial performance, L’Oréal says:“Garnier recorded double digit growth inhair colourants, thanks to Olia.”

It also adds: “The brand’s growth in

facial skin care is continuingwith the BB creams.” Garniercontinues to diversify its line-up of BB creams, the mostrecent of which wasGarnier BB Cream Anti-Ageing Miracle SkinPerfector, formulatedwith Pro-Xylane andmineral pigments. Othermajor launches from thebrand include 5sec PerfectBlur, a smoothingcorrecting primer, and DarkSpot Corrector, which evens

skin tone while providing 24hour moisturisation.

L’Oréal recentlyannounced its intention towithdraw Garnier fromChina, in order to focuson its leading brands inthat country (L’OréalParis and Maybelline),but presumably to alsoconcentrate its Garnierstrategy on those

markets in which thebrand is most likely to

thrive.

GARNIER: ON THE RISE

“It’s a very interesting case study of whatworks and what doesn’t work.”

Investment by L’Oréal the company inmaintaining the image of L’Oréal the brandis clearly paying off, according to Haigh.“In the branding world, people are alwaysgoing on about how marketingdepartments are systematically deprived offunds. This is probably true in a lot ofcases – big companies can under invest intheir brands. This is the proof that whenyou do it right, you win.

“The other thing is that although it is amass brand, it gives the impression of being

rank among the biggest brands in theworld. However, the parentcompany with the most valuablebrands in the top 50, collectively, isL’Oréal, with L’Oréal Paris,Garnier, Lancôme, Maybelline, TheBody Shop, Vichy and Biotherm.

quite upmarket. The fact that it is Frenchand endorsed by major personalities makesit appear like a very luxurious product.”

PORTFOLIO BUILDINGThe parent company with the largestnumber of brands in the top 50 in 2014 isProcter & Gamble (P&G) with eightbrands making the cut; its Pantene, Olay,Head & Shoulders, CoverGirl, SK-II, MaxFactor, Old Spice and Rejoice labels all

Haigh comments: “The total brandvalue of those L’Oréal owned brandsin the top 50 is $26bn, whereas thosein P&G’s portfolio [the next largest]are $18bn and Unilever beautybrands in the top 50 have anaccumulated value of $12bn.”

Nor does L’Oréal show any signof reining in its portfolio buildingactivities. It recently finalised thepurchase of Shiseido’s Carita andDecléor brands, and last summerbought Magic HoldingsInternational Ltd, providing itwith the top-selling facial maskbrand in China.

MASS APPEALAside from Estée Lauder and

Lancôme, mass brands dominatethe upper echelons of the top 50

2014. As well as L’Oréal Paris andAvon, there is Pantene, which in thirdposition is the highest placed brandoperating solely in hair care. Originallycreated in Switzerland, Pantene has beenpart of the P&G stable since 1985 but “tapsinto the same cues that L’Oréal does –with a French sounding name”, notesHaigh.

Moreover, Pantene’s premium image issupported by P&G’s R&D efforts. Forexample, at the beginning of this year,Pantene rolled out a damage blockingantioxidant technology called EDDS acrossmost Pantene shampoo formulas. It is

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40 SPC April 2014

The valuation in the Brand Financebeauty brands puts a value on theintangible assets of a certain company,namely its ‘trademarks, logos andassociated intellectual property’ on aspecific date: 1 January 2014.

The royalty relief approach

Brand Finance calculates brand valueusing the royalty relief methodology,which determines the value a companywould be willing to pay to license itsbrand as if it did not own it. Thisapproach involves estimating the futurerevenue attributable to a brand andcalculating a royalty rate that would becharged for the use of the brand. Thesteps in this process are as follows:1. Calculate brand strength on a scale of0-100 based using a balanced scorecardof a number of relevant attributes suchas emotional connection, financialperformance and sustainability, amongothers. This score is known as the brandstrength index. 2. Determine the royalty rate range forthe respective brand sectors. This isdone by reviewing comparable licensingagreements sourced from BrandFinance’s extensive database of licenceagreements and other online databases. 3. Calculate royalty rate. The brandstrength score is applied to the royaltyrate range to arrive at a royalty rate. Forexample, if the royalty rate range in abrand’s sector is 1%-5% and a brand hasa brand strength score of 82 out of 100,then an appropriate royalty rate for theuse of this brand in the given sector willbe 4.1%. 4. Determine brand specific revenuesestimating a proportion of parentcompany revenues attributable to eachspecific brand and industry sector. 5. Determine forecast brand specificrevenues using a function of historicrevenues, equity analyst forecasts andeconomic growth rates.

6. Apply the royalty rate to theforecast revenues to derive theimplied royalty charge for use ofthe brand. 7. The forecast royalties arediscounted post tax to a netpresent value which representscurrent value of the future incomeattributable to the brand asset.

Why use the royalty relief approach?

The royalty relief approach is used forthree reasons:● It is favoured by tax authorities and the

courts because it calculates brand values by reference to documented third party transactions

● It can be done based on publicly available financial information

● It is compliant with the requirement under the International Valuation Standards Authority and ISO 10668 to determine the fair market value of brands.Brand Finance was one of the first

companies in the world to be accreditedto provide ISO 10668 compliant brandvaluations. The ISO 10668 globalstandard provides a consistent, reliableapproach to brand valuation thatemphasises transparency and objectivity.Valuers must take all relevant financial,behavioural and legal information intoconsideration. In order to make itsvaluations of the world’s top brands ISO10668 compliant, Brand Finance usesdata from a range of partners including;Havas, BAV Consulting, Alexa, Bloomberg,Meltwater, VI360, CSR Hub andNovagraaf.

Brand ratings

These are derived from the BrandStrength Index which benchmarks thestrength, risk and future potential of abrand relative to its competitors on ascale ranging from D to AAA. It isconceptually similar to a credit rating.

BRAND VALUATION METHODOLOGY

TABLE 5: TOP BRANDS BY BRANDRATING

Brands Brand ratingL’Oréal AAA+Maybelline AAAGarnier AAAJohnson’s AAALancôme AAAChanel AAAClinique AAA-Neutrogena AAA-Christian Dior AAA-Biotherm AAA- Source: Brand Finance

BRAND RATING DEFINITIONS

Brand rating StrengthAAA Extremely strongAA Very strongA StrongBBB–B AverageCCC–C WeakDDD–D Failing

L’Oréal, the parent company with the mostvaluable brands in the top 50, is expandingits portfolio via the purchase of Carita andDecléor

Bündchen as a global ambassador;Bündchen has representedPantene in Brazil since 2007.

Also flying the flag for mass areNivea (Beiersdorf) and Dove

Collection, described as the “first tomass detoxifying shampoo,conditioner and treatment system”.

Meanwhile, the brand has signedBrazilian supermodel Gisele

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April 2014 SPC 43

claimed to reduce copper build-up on hairto help prevent oxidative damage, forstronger, healthier hair in the long term.

Other recent developments include thelaunch of Pantene’s Damage Detox

TABLE 6: TOP 50 GLOBAL BEAUTY BRANDS 2014

No No No No Brand Parent Domicile Brand Brand Enterprise Brand/ Brand Ent. Brand Ent. Brand Ent.‘14 ‘13 ‘12 ‘11 company value rating value enterprise value value value value value value

2014 2014 value (%) 2013 2013 2012 2012 2011 20111 1 3 4 L’Oréal L’Oréal France 10,766 AAA+ 37,619 29% 8,696 26,205 7,744 22,358 7,630 23,935

2 5 2 2 Avon Avon Products Inc USA 6,384 AA 11,382 56% 5,169 8,186 7,901 11,656 10,171 15,843

3 2 12 13 Pantene Proctor & Gamble Co/The USA 6,163 AA+ 17,875 34% 5,974 15,211 2,643 7,358 2,545 7,197

4 3 5 5 Nivea Beiersdorf AG Germany 6,079 AA+ 16,155 38% 5,843 12,288 5,574 8,522 6,569 10,178

5 6 Dove Unilever PLC UK 5,885 AAA- 12,430 47% 4,242 10,690

6 12 16 14 Garnier L’Oréal France 4,809 AAA 16,760 29% 2,632 7,051 2,340 6,016 2,493 6,440

7 8 8 9 Estée Lauder Estée Lauder Companies-CL A USA 4,589 AA+ 10,815 42% 3,870 8,711 3,716 7,387 3,037 5,095

8 4 6 7 Lancôme L’Oréal France 4,088 AAA 11,649 35% 5,508 13,467 5,095 11,490 5,685 12,300

9 7 1 1 Olay Proctor & Gamble Co/The USA 4,083 AA+ 14,617 28% 3,955 12,439 11,756 36,578 11,066 35,777

10 22 29 28 Johnson’s Johnson & Johnson USA 3,603 AAA 13,749 26% 1,513 5,026 1,148 1,179 4,438

11 10 14 Christian Dior Christian Dior France 3,329 AAA- 5,298 63% 2,952 4,362 2,540 4,191

12 9 47 Head & Shoulders Proctor & Gamble Co/The USA 2,953 AA- 9,995 30% 3,138 8,505 394 1,116

13 11 18 16 Chanel Chanel France 2,949 AAA N/A N/A 2,813 2,292 2,283

14 14 20 23 Maybelline L’Oréal France 2,921 AAA 12,925 23% 2,398 7,076 2,016 6,037 1,568 6,463

15 15 19 19 Clarins Clarins France 2,602 AAA- N/A N/A 2,375 2,018 2,057

16 17 Shiseido Shiseido Co Ltd Japan 2,507 AA 4,421 57% 2,203 3,313 2,907 4,339 2,972 4,818

17 20 17 17 Natura Natura Cosmeticos SA Brazil 2,465 AA+ 10,168 24% 1,849 12,091 2,332 8,191 2,274 12,722

18 19 4 6 Neutrogena Johnson & Johnson USA 2,313 AAA- 6,645 35% 2,127 5,021 6,248 14,308 6,350 14,467

19 24 M.A.C Estée Lauder Companies-CL A USA 1,639 AAA- 4,159 39% 1,382 3,351

20 21 23 22 L’Occitane L’Occitane International SA Luxembourg 1,570 AA+ 3,341 47% 1,698 4,194 1,611 2,776 1,705 4,316

21 25 Rexona Unilever PLC UK 1,563 AA 7,047 22% 1,203 4,856

22 13 11 Schwarzkopf Henkel AG & CO KGAA Vorzug Germany 1,517 AA- 4,650 33% 2,420 5,761 2,682 4,579

23 31 33 35 The Body Shop L’Oréal France 1,514 AAA- 4,801 32% 1,063 2,969 977 2,533 890 2,712

24 28 25 27 Oriflame Oriflame Cosmetics SA-SDR Luxembourg 1,388 AA- 2,224 62% 1,151 1,917 1,310 2,510 1,204 3,830

25 Cover Girl Proctor & Gamble Co/The USA 1,242 AA- 4,784 26%

26 Sunsilk Unilever PLC UK 1,232 AA 5,595 22%

27 29 42 39 Rimmel Coty INC USA 1,188 AA- 2,724 44% 1,109 615 694

28 SK-II Proctor & Gamble Co/The USA 1,177 AA- 3,954 30%

29 27 28 32 Vichy L’Oréal France 1,173 AAA- 3,615 32% 1,170 3,489 1,172 2,977 1,036 3,187

30 23 Lux Unilever PLC UK 1,169 AA 5,275 22% 1,501 5,403

31 Kanebo Kao Corp Japan 1,163 AA- 3,340 35%

32 Max Factor Proctor & Gamble Co/The USA 1,144 AA- 4,463 26%

33 32 37 41 Clinique Estée Lauder Companies-CL A USA 1,077 AAA- 1,941 56% 885 1,564 790 1,326 683 915

34 30 35 37 Yves Saint Laurent Kering France 1,030 AAA- 1,489 69% 1,092 1,924 915 1,641 872 1,757

35 33 9 10 Bioré Kao Corp Japan 964 AA 1,456 66% 792 1,248 3,336 5,858 3,014 5,575

36 Old Spice Proctor & Gamble Co/The USA 853 AA- 3,486 24%

37 26 26 26 Biotherm L’Oréal France 778 AAA- 2,185 36% 1,174 2,886 1,277 2,462 1,393 2,636

38 18 21 21 Clean & Clear Johnson & Johnson USA 710 AA+ 1,697 42% 2,196 5,777 1,990 5,045 1,959 5,101

39 Pond’s Unilever PLC UK 696 AA 3,153 22%

40 Pola Pola Orbis Holdings INC Japan 638 A+ 1,015 63%

41 34 47 Coty Coty INC USA 560 AA 1,122 50% 562 409

42 35 49 49 Elizabeth Arden Elizabeth Arden INC USA 473 AA- 1,415 33% 502 1,489 353 826 342 826

43 TRESemmé Unilever PLC UK 454 AA 2,033 22%

44 Sulwhasoo AmorePacific Corp South Korea 439 AA- 1,021 43%

45 Clear Unilever PLC UK 430 AA 1,911 23%

46 Rejoice Proctor & Gamble Co/The USA 429 AA- 2,438 18%

47 Axe/Lynx/Ego Unilever PLC UK 421 AA 3,005 14%

48 36 45 Kosé Kose Corp Japan 402 A+ 976 41% 452 836 473 1,034

49 Mennen Colgate-Palmolive Co USA 373 AA- 3,365 11%

50 Orbis Pola Orbis Holdings INC Japan 370 A+ 564 66%

*All the figures are shown in US$m

However, this is not to say that luxurybrands are performing poorly. “ChristianDior continues to be a very strong brandand Chanel has gone up quite a bit aswell,” notes Haigh. Christian Dior’s brandvalue is calculated at $3.3bn, putting it in11th place. It is also classified as an AAA-brand, placing it among the top ten brandsby rating for 2014. Chanel, meanwhile, sawits brand value leap from $2.8bn in 2013 tonearly $3bn in 2014. That it slid from 11thto 13th place despite such a strongperformance speaks volumes about thecompetitiveness of the beauty industry.

INS AND OUTSThere were several new labels in this year’stop 50, namely: P&G owned CoverGirl,

(Unilever), placed fourth and fifth,respectively.

“Nivea is the classic German brand,” saysHaigh. “The original Nivea Cremegenerates trust and is a very no nonsensestraightforward product. But it’s very wellengineered. And in recent years Nivea hasdone a good job of going upmarket anddiversifying into men’s products and anti-ageing products.

“By coincidence, the next brand on thelist is Dove, which is doing the same thingas Nivea,” Haigh adds. “It started as a verytechnical product but is constantly pushingthe boundaries. How far can the Dovebrand stretch?” he asks. “Five years ago, nobloke would have expected Dove to be intheir category. But now Dove Men+Care iseverywhere. And its adverts are very funny;they’re like larger ads. Using humourdiffuses any worries men may have aboutcosmetics being un-manly.”

As well as a solid footing at the top ofthe brand value rankings, mass brands alsodominate the top brands by rating table,and the list of biggest risers is likewisetopped by Garnier, Johnson’s, L’Oréal and Dove.

SK-II, Max Factor, Old Spice and Rejoice;Unilever’s Sunsilk, Pond’s, TRESemmé,Clear and Axe; Kao Corp’s Kanebo; Polaand Orbis, owned by Pola Orbis HoldingsInc; AmorePacific Corp’s Sulwhasoo; andColgate-Palmolive’s Mennen, best knownfor its Speed Stick deodorants.

Brand Finance’s Haigh explains that theinclusion of CoverGirl at number 25 andSunsilk at 26 isn’t due to a dramatic leap inbrand value between 2013 and 2014, butbecause Brand Finance was provided withmore comprehensive data than in previousyears, which allowed the consultancy toevaluate certain brands for the first time.

That CoverGirl has debuted above massmake-up competitors Rimmel andstablemate Max Factor, however, is

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TOP 50 BRANDS: NEW ENTRANTS

CoverGirl

1,242* 1,232* 1,177*

*Change in brand value. All the figures are shown in US$m

Sunsilk SK-11

TOP 50 BRANDS: DROPOUTS

La Roche-Posay Kiehl’s RoC

-95* -118* -251*

*Change in brand value. All the figures are shown in US$m

Make-up brandCoverGirl (below),owned by P&G, andUnilever’s Sunsilk haircare label (below left)are both included inthe Brand Finance top50 for the first time

Back in 2011, Avon’s enterprise value was$15.8bn – a figure which steadilydeclined to $8.2bn in 2013. This in turnaffected Avon’s brand value. “In terms ofscale, Avon is big. But as a company it’sgoing through the wars,” observes Haigh.

That said, Avon’s enterprise value hasrallied over the past 12 months and isnow calculated at $11.4bn, meaning thatAvon has climbed from fifth place in2013 to second place in this year’sranking. It has also been upgraded froman AA- brand rating to AA.

It is likely that the company willcontinue to rebound on the strength ofCEO Sheri McCoy’s ongoing cost savings

initiative, initially outlined in late 2012. Todate, this has included the restructuring oreven closure of operations in under-performing markets (most notably in theROI and France), the divestment ofAvon’s Silpada Designs jewellerybusiness and the rebuilding of itsmanagement team.

“Avon is a very American proposition.It’s very much about pyramid sellingand door to door selling – that’s whatit’s famous for. And sometimes amarketing concept from one regiondoes not translate well into otherregions,” says Haigh. While this wascertainly the case in China, Avon

enjoys a high degree of popularity in LatinAmerica, which accounted for $4.8bn of its

$10.0bn 2013 revenue. Avon clearly has further growth in

Latin America in its sights. It recentlyentered into an agreement with Greekskin care brand Korres, granting Avonexclusive rights to develop,manufacture and market Korresproducts in Latin America. It alsoentered into a commercialarrangement with Coty in February,under which Avon Brazil will sell select

Coty fragrances throughits Sales Representativesin Brazil.

AVON: BOUNCING BACK

something of a coup. The iconic UScolour cosmetics brand has long been afavourite with young women, with itscurrent roster of CoverGirls includingsingers Katy Perry, P!nk and JanelleMonáe. In recent months, the brandstrengthened its youth market credentialswith the launch of the Capitol Collection,a tie in with The Hunger Games: CatchingFire - part two of the hugely popular filmfranchise staring Oscar winning actressJennifer Lawrence. It also launchedCoverGirl + Olay CC Cream Tone RehabFoundation and CoverGirl + Olay CCCream Eye Rehab Concealer, ‘crossover’products with P&G’s Olay, which containOlay serum.

Similarly, the list of dropouts, whichincludes La Roche-Posay, Kiehl’s andRoC, does not necessarily reflect very

according to Brand Finance, was classicbody and skin care label Aveeno, whosebrand value slipped by $2.5bn. OwnerJohnson & Johnson is clearly banking on afamous face to reverse its fortunes,

poor performances, merely that the top 50is becoming more and morecomprehensive.

The brand which exhibited the mostdramatic decline between 2013 and 2014,

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April 2014 SPC 47

TABLE 9: L’ORÉAL

Brand Brand Brand Enterprise Brand/ Brand Enterprise Brand Enterprise Brand Enterprisevalue rating value enterprise value value value value value value2014 2014 2014 (%) value (%) 2013 2013 2012 2012 2011 2011

L’Oréal 10,766 AAA+ 37,619 29% 8,696 26,205 7,744 22,358 7,630 23,935

Garnier 4,809 AAA 16,760 29% 2,632 7,051 2,340 6,016 2,493 6,440

Lancôme 4,088 AAA 11,649 35% 5,508 13,467 5,095 11,490 5,685 12,300

Maybelline 2,921 AAA 12,925 23% 2,398 7,076 2,016 6,037 1,568 6,463

The Body Shop 1,514 AAA- 4,801 32% 1,063 2,969 977 2,533 890 2,712

Vichy 1,173 AAA- 3,615 32% 1,170 3,489 1,172 2,977 1,036 3,187

Biotherm 778 AAA- 2,185 36% 1,174 2,886 1,277 2,462 1,393 2,636


TABLE 7: PROCTER & GAMBLE


Pantene 6,163 AA+ 17,875 34% 5,974 15,211 2,643 7,358 2,545 7,197

Olay 4,083 AA+ 14,617 28% 3,955 12,439 11,756 36,578 11,066 35,777

Head & Shoulders 2,953 AA- 9,995 30% 3,138 8,505 394 1,116

Cover Girl 1,242 AA- 4,784 26%

SK-II 1,177 AA- 3,954 30%

Max Factor 1,144 AA- 4,463 26%

Old Spice 853 AA- 3,486 24%

Rejoice 429 AA- 2,438 18%


TABLE 8: UNILEVER


Dove 5,885 AAA- 12,430 47% 4,242 10,690

Rexona 1,563 AA 7,047 22% 1,203 4,856

Sunsilk 1,232 AA 5,595 22%

Lux 1,169 AA 5,275 22% 1,501 5,403

Pond's 696 AA 3,153 22%

TRESemmé 454 AA 2,033 22%

Clear 430 AA 1,911 23%

Axe/Lynx/Ego 421 AA 3,005 14%


FIGURE 1Brand value historical trend, by country

GOING GLOBALWhen it comes to the number of brands bycountry and the value of brands bydomicile, the US is ahead by quite someway, being home to 19 of the top 50brands, totalling nearly $41bn. Butalthough only 11 of the countries in theleague table hail from France, these amountto $36bn, indicating the majority of Frenchbrands in the top 50 are in higher placedpositions.

“It’s not surprising that most of thebrands in the top 50 are American,” says

however. Friends star Jennifer Aniston wasannounced as an ambassador for Aveeno atthe beginning of last year and featured in anumber of advertising campaigns for thebrand throughout 2013.

Haigh. “The US is the biggest market andhas the most money – and make-up is verypopular there. As for the French, it is oneof their traditional industries. What isinteresting is that Japan, which is a verydeveloped market, doesn’t have manybrands on this list. I expect it is becausemost of its brands are very much restrictedto Japan. They are very expensive and veryspecific culturally.”

It is no coincidence that the leadingJapanese brand – with a value of $2.5bnand ranked number 16 – is Shiseido, which

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TABLE 12: KAO


Kanebo 1,163 AA- 3,340 35%

Bioré 964 AA 1,456 66% 792 1,248 3,336 5,858 3,014 5,575


TABLE 11: JOHNSON & JOHNSON


Johnson’s 3,603 AAA 13,749 26% 1,513 5,026 1,148 1,179 4,438

Neutrogena 2,313 AAA- 6,645 35% 2,127 5,021 6,248 14,308 6,350 14,467

Clean & Clear 710 AA+ 1,697 42% 2,196 5,777 1,990 5,045 1,959 5,101


TABLE 10: ESTÉE LAUDER


Estée Lauder 4,589 AA+ 10,815 42% 3,870 8,711 3,716 7,387 3,037 5,095

Mac 1,639 AAA- 4,159 39% 1,382 3,351

Clinique 1,077 AAA- 1,941 56% 885 1,564 790 1,326 683 915


France 11

Brazil 1

Germany 2Luxembourg 2

Japan 6

UK 8

US 19

South Korea 1

FIGURE 2Number of brands by country

US 40,955France 35,960

UK 11,850

Germany 7,596Japan 3,935Luxembourg 2,958Brazil 2,465South Korea 439

FIGURE 3Value of brands by domicile

This year, Sulwhasoo, part of AmorePacific’s portfolio, isincluded in the Brand Finance top 50 for the first time.Debuting at number 44 and valued at $439m, the skin carebrand – which means ‘snow flower’ in Korean – has been inthe US market since 2010, when it debuted in BergdorfGoodman. It is now also available in America via in NeimanMarcus and Amore shop, and has gained popularity thanks toits luxury aesthetic and recipes using traditional Korean herbs,most notably ginseng.

Last year, the brand grew its international presence byincreasing the number of stores in Singapore and Malaysia.

Meanwhile, domestically, 2013 saw Sulwhasoo increase itsmarket share and strengthen its position as South Korea’snumber one brand with new product launches. Among the newproducts launched in recent months was Microdeep IntensiveFilling Cream and Patch, a 30 day, duo cream and patch whichcombines hyaluronic acid cones with acupressure, to hydrateskin and fill deep lines instantly.

SULWHASOO: KOREA TO THE FORE

has long had a strong internationalpresence. The same is true of Kanebo,which debuted at number 31, despite arocky 2013 during which it faced legalaction over recalled skin whiteningproducts and was absorbed into parentcompany Kao.

The danger regarding ‘restriction’ ispertinent for any brand, whatever theirdomicile; those that are leading the pack in2014 are the ones which have branchedout globally, adapting their strategies andoutputs to the needs of each new market.The best performing brands are likewiseinvesting heavily in carefully thought outNPD and branding to keep them ahead ofthe game.

As Haigh concludes: “In order to survivein the cosmetics category you’ve got to beextremely good, which is why so many of

these brands are very highly rated. It is avery competitive industry and it’s hard tostay on top. Any brand included in thebeauty top 50 should congratulatethemselves.”www.brandfinance.com

top 50brands

April 2014 SPC 51

TABLE 13: COTY


Rimmel 1,188 AA- 2,724 44% 1,109 615 694

Coty 560 AA 1,122 50% 562 409


TABLE 14: POLA ORBIS


Pola 638 A+ 1,015 63%

Orbis 370 A+ 564 66%


While Estée Lauder, M.A.C and Cliniquewere included in the top 50, BobbiBrown – also part of The Estée LauderCompanies – missed out. However,Haigh suggests that the ‘Princess Kate’effect (the Duchess of Cambridge isrumoured to be a fan) might see BobbiBrown included in the top 50 in 2015.

“We do quite a lot of work withbrands that have Royal endorsementsand, for good or ill, we know that RoyalWarrants of Appointment make adramatic difference. Royal Warrants ofAppointment are obviously formal, butin the case of Kate it’s like aninformal version, where anythingshe touches goes through the roof.”

One Kate who is officiallyendorsing Bobbi Brown – however –is Hollywood actor Katie Holmes. Shewas announced as the brand’s firstever celebrity ambassador in 2012,when she was described byfounder/make-up artist Bobbi Brownas “a classic natural beauty,entrepreneur and mother… a naturalfit for my brand”. In September 2013,Brown and Holmes collaborated on thelimited edition Bobbi & Katiecollection, and Holmes continues to beat the front of Bobbi Brown’s branding,including that for new its new Nectar& Nude Collection.

In addition to leveraging star power,Bobbi Brown looks set to reap the

rewards of several recently launchedinitiatives designed to maximiseconsumer engagement. In the UK, itintroduced Bobbi’s Makeup Lessons,where consumers can choose fromeight lessons and schedule one on onesessions with professional make-upartists. Lauder estimates that in the UKnearly 60% of Bobbi Brown make-upsales are now linked to these lessons.The brand also launched a dedicatedbrand page on ‘visual discovery’ sitePinterest to offer fans “engaging,educational and personalised” content.

BOBBI BROWN: A ROYAL BOOST

Kanebo, whose lines include Impress (above), isincluded in the top 50 for the first time in 2014; itis one of only six Japanese owned brandsfeatured in the listing

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