L’Oréal Paris is the world’s most valuable personal care brand for the fifth consecutive year, according to the 2017 BrandZ™ Top 100 Most Valuable Global Brands ranking announced today by WPP and Kantar Millward Brown. It increased its brand value +2% to $23.9 billion over the last year following successful strategies to build loyalty and become more customer-centric. Lancôme (the fourth most valuable personal care brand) and Shiseido (no. 13, up from no.14 in 2016) were the fastest risers, both increasing their value +10% to $9.4bn and $2.7bn respectively.
The total value of the BrandZ™ Personal Care Top 15 has increased +1% in the last year, as brands tackled challenges including disruption from new niche brands, currency fluctuations, and pressured margins owing to couponing and price promotion. The sector’s total brand value remained unchanged between 2015 and 2016.
In a commoditized category with extensive choice, brands attempted to differentiate themselves by responding to more diverse needs and ideas of beauty with personalized products and customized advice. L’Oréal, for example, launched its True Match range of 33 foundations at the Golden Globe Awards. Brands also aligned themselves with customers’ values. The Strong is Beautiful campaign from Pantene Pro-V (+5%), featuring martial artist Ronda Rousey among others, continues to celebrate diversity and the idea that beauty is more than skin deep, while Shiseido reinforced its purpose and reputation as a brand that does right by its customers and its employees. In the US, Dove (+6%) employed political satire in its Alt Facts campaign, which listed ‘alt facts’ about its deodorant such as its ability to increase the user’s IQ.
Many brands sought to expand their reach by extending their appeal, diversifying into new sub-categories and targeting new audiences. For instance Lancôme, a classic brand generally preferred by an older audience, introduced Juicy Shaker lip gloss to appeal to younger women, while Gillette (-1%) developed products aimed at the growing older consumer demographic.
As consumers became less brand-loyal, and social media became even more influential, beauty brands took steps to become more customer-focused. L’Oréal Paris, for example, teamed with five online beauty bloggers in the UK to form the L’Oréal Beauty Squad, with the aim of forging deeper connections. Brands used technology innovation to make consumers’ lives better and improve product accessibility: L’Oréal Paris and Lancôme both developed ways for consumers to buy directly from a mobile ad, blog or YouTube tutorial, for instance.
The BrandZ Personal Care Top 15 are facing threats from innovative niche start-ups, such as Too Faced, which are benefiting from people’s willingness to switch brands and have the ability to move nimbly and meet expectations of greater personalization. Local brands such as Boots No.7 (UK), Wardah (India), Avene (France), Fair and Lovely (India) and O Boticário (Brazil), along with retailers’ own brands, also pose a threat to global brands due to their precise understanding of local needs.
The BrandZ™ Top 15 Most Valuable Personal Care Brands 2017
Country of origin
Brand value 2017 ($M)
Brand value change
Head & Shoulders
As the largest and definitive brand-building platform in the world, BrandZ reflects the brands that are integrated into today’s consumer lifestyles. It is the only brand valuation study to combine interviews with over three million consumers globally with analysis of the financial and business performance of each company (using data from Bloomberg and Kantar Worldpanel).
Doreen Wang, Global Head of BrandZ, says: “Growing as a brand in today’s crowded and diverse personal care marketplace means understanding your position in the sector, and who your consumers are. Luxury brands need to find innovative ways to emphasize their difference, which consumers value highly, to build connections. Mass brands should create affinity by focusing innovation around their ability to meet needs and make consumers’ lives better. All brands can foster loyalty by using data and technology to communicate the right message at exactly the right time, for example contacting consumers with incentives to buy again when they’re about to run out of a product.”
Summary of headlines from the 2017 BrandZTM Top 100 Most Valuable Global Brands:
· Amazon is now one of the world’s Top 5 most valuable brands. It rose to no.4 in the Top 100 after increasing its brand value +41% to $139.3bn. The retail giant has continue to focus on its technology ecosystem honed to meet multiple consumer needs, as well as introducing new artificial intelligence-enabled services including grocery delivery and personal assistant Alexa.
· Google, Apple and Microsoft retain the top three positions, growing their brand value +7% to $245.6bn, +3% to $234.7bn and +18% to $143.2bn respectively over the past year, while Facebook, at no. 5, grew +27% to $129.8bn.
· Strong brands continue to outperform their competitors. Compared against key benchmarks over the past 12 years, the portfolio of BrandZ Top 100 brands grew 50% more in value than the S&P 500 and 3.5 times the MSCI All Country World Index.
· Consumer-centric technology ecosystems are making brands indispensable. Consumers can increasingly carry out a variety of activities, from online shopping to watching television, under the banner of one brand and across multiple devices. This convenience for consumers also allows the most powerful brands to minimise the risk of consumer switching.
· New brands are increasingly born global, allowing them to grow rapidly. Technology allows businesses to provide their offerings globally from day one. This is fostering a new breed of entrepreneur, who is not restricted by the geographical or sector boundaries that have traditionally limited the speed and scale of growth.
· Traditional non-tech brands are adopting technology to innovate and increase consumer appeal. Fastest riser Adidas has introduced 3D printing to produce its footwear, for example, while fast food brand Domino’s Pizza offers customers a real-time tracker for their order.
· The BrandZ Top 100 is getting younger. The average age of a brand is now 67 years, compared with 84 years in 2006, reflecting the entry of the newer technology brands and the emergence of brand China.
· Brands that make it clear how they will make consumers’ lives better, such as Huawei and Toyota, have grown three times more on average over the last 12 years (the top third grew +170% compared to the bottom third which was +57%).
· Great communications puts a brand at an advantage. The top third in terms of strongest communications (including McDonald’s and L’Oréal Paris) have grown 196% in value, compared with 47% for the bottom third. This is because they have successfully amplified the difference they have built.
The BrandZ Top 100 Most Valuable Global Brands report and rankings, and a great deal more brand insight for key regions of the world and 14 market sectors, are available online here. The Global report, rankings, charts, articles and more can also be found via the BrandZ app. The BrandZ app also contains the same features and functionality for all BrandZ regional reports and is free to download for Apple IOS and all Android devices from www.brandz.com/mobile or search for BrandZ in the respective iTunes or Google Play app stores.