The total brand value of the World’s top 50 cosmetics brands is up – from $101.5 billion in 2013 to $106.2 billion this year. The #NoMakeupSelfie trend has succeeded in raising thousands for charity, but it seems that despite the involvement of thousands of people and dozens of celebrities, makeup sales haven’t suffered as a result.
L’Oreal, which tops Brand Finance’s list, is the world’s only $10 billion cosmetics brand. Its value is up 24%, growing from $8.7bn last year to $10.8bn in 2014. L’Oreal’s growing brand value is in line with its strong business performance.
Brand Finance Chief Executive David Haigh : “The key to L’Oreal’s success is its unrivalled marketing focus and investment. Its marketing graduates, drawn from the world’s top universities, are well trained and well resourced. With the perfectly constructed and enduring ‘you’re worth it’ slogan, L’Oreal has pulled off the trick of simultaneously capturing the mass market while maintaining an air of exclusivity.”
L’Oreal is the only cosmetics brand, and one of only 11 brands from any sector (including Google, Ferrari, Rolex and Hermes) to have been awarded a AAA+ brand rating. The brand rating is a benchmark of the strength and future potential of the brand, confirming L’Oreal’s brand power.
Second on the list is America’s most valuable cosmetics brand Avon, which has staged a remarkable recovery. A drop in sales and bribery allegations in China had seen brand value fall 35% between 2012 and 2013. However CEO Sheri McCoy’s robust approach, creating $400m savings at the expense of 1,500 staff, has seen the beginnings of a turnaround. Brand value is up 24% to $6.84 billion while the brand has been strengthened, and has been upgraded by Brand Finance from AA to AA+.
American and French brands dominate the list, together accounting for over two thirds of the total brand value. Germany’s most valuable brand is Nivea, which has a brand value of $6.1bn, putting it 4th worldwide. 5th on the list is Dove ($5.9bn), UK’s top Cosmetics brand. Japan’s Shiseido ($2.5bn), Brazil’s Natura ($2.5bn) and South Korea’s Sulwhasoo ($439m) also make the list.
Cover Girl is the highest new entry, with a brand value of $1.24bn. Recent celebrity endorsements include Katy Perry, P!nk and Janelle Monae. The Capitol Collection, a recent tie in with the film ‘The Hunger Games: Catching Fire’ has further strengthened Cover Girl’s appeal to younger consumers. Other new entrants include Max Factor, Sunsilk and Old Spice. David Haigh continues, “Perceptions of the Old Spice brand have been transformed in the last few years, almost entirely thanks to the advertising phenomenon that is ‘The Man Your Man Could Smell Like’. From being regarded with, at best, affectionate nostalgia, Old Spice is now one of the most highly sought after men’s grooming brands.”
Note : The Brand Finance Cosmetics 50 is an annual study conducted by leading brand valuation consultancy Brand Finance. The World’s biggest cosmetics brands are put to the test and evaluated to determine which are the most powerful and most valuable.