Even amidst the pandemic-induced global slowdown, the aggregate value of luxury apparel brands grew 21 per cent this year, reveals a Brand Finance report. The value of sportswear brands grew 10 per cent while fast fashion brands saw a dip in value of 7 per cent.

Luxury brands show more resilience

With consumers once again indulging in luxury purchases, the high-end fashion sector seems to have recovered after over two years of losing value. Luxury brands were more resilient towards pandemic-induced changes in the industry. In fact, brands like Louis Vuitton, Gucci, Armani managed to increase their brand value. Additionally, several new luxury apparel brands entered the list of top 50 apparel brands. These includes Boss whose brand value surged 54 per cent to $1.7 billion and Bottega Veneta, whose brand value increased 25 per cent to $1.7 billion.

A relatively new brand Boss rose out of the split of Hugo Boss into two separate brands: Hugo and Boss. The brand launched its new range of athletic wear during the pandemic with a ‘phygital’ campaign. Leveraging online social media platforms such as TikTok and e-commerce marketplaces, the campaign boosted not just Boss’ social media following but also sales volumes.

Nike tops apparel brand ranking

Nike emerged as the most valuable apparel brand in the ranking. It’s brand value increased 9 per cent to $33.2 billion. Nike was followed by Adidas whose brand value surged 2 per cent to $14.6 billion and Puma which noted a 13 per cent increase in brand value to $4.5 billion. The fastest growing brands in the ranking included smaller sportswear brands like Skechers and Li Ning. The brand value of Skechers increased 68 per cent to $3.2 billion while that of Li Ning surged 68 per cent to $2.0 billion.

Sportswear, athleisure brands see their value grow

In over 100 reports, leading brand valuation consultancy Brand Finance ranks over 5,000 brands across sectors every year. The consultancy includes the apparel industry’s top 50 most valuable and strongest brands in the annual Brand Finance Apparel 50 ranking. The ranking witnessed steady growth in the brand value of sportswear and athlesiure brands over the course of the pandemic. Richard Haigh, Managing Director, Brand Finance says, convenience factor encouraged luxury and sports brands to explore the online sales channels during these trying times.

Fast fashion brands register decline in value

An increase in demand for online shopping disrupted the business model of many fast fashion brands during the pandemic. Many brands could not sell their low-margin products online due to additional logistics and delivery costs. This led to a drop in their brand value during the period. Besides calculating brand value, the ranking also determines the brands’ strength by evaluating their marketing investment, stakeholder equity, and business performance.

Based on this metrics, Dior ranked as the strongest apparel brand with AAA brand rating and a corresponding Brand Strength Index (BSI) score of 88.4 out of 100. In 2022, the brand jumped from its 12th rank in 2021 to become 1st in the list. The luxury fashion brand launched several new collections during the year through socially distanced fashion shows and events to launch new collections. The brand also launched influencer marketing campaigns on YouTube, Tiktok, Douyin, the Chinese version of TikTok and Chinese video sharing mobile application Bilibili.