New Brand Finance Global 500 report also reveals brands across apparel stand to lose up to 20% of their brand value due to pandemic.
Nike has once again been named ‘most valuable’ apparel brand for the sixth consecutive year by the Brand Finance Global 500 report.
However, the report also sounded a note of warning, saying that brands across apparel could stand to lose up to 20% of their brand value due to the impact of COVID-19.
Fashion United reported that the world’s 500 biggest brands are potentially set to lose up to an estimated 1 trillion US dollars as a result of the outbreak, with the report stating that the apparel sector would be one of the most affected.
“The COVID-19 pandemic is undoubtedly going to hit the apparel sector hard, Brand Finance has predicted that apparel brands could face up to a 20% drop in brand value,” said Richard Haigh, md at Brand Finance. “As these brands negotiate store and factory closures, broken supply chains and a customer base that is facing unprecedented economic uncertainty, they will have to prepare for a tough and turbulent journey ahead.”
However, brands such as Nike, adidas and Levi’s – referred to as ‘agile brands’ – will fare better, while, as with most sectors, the damage will greatly depend on how long the pandemic lasts across the globe.
Meanwhile, Nike recorded a 7% increase in brand value to $34.8 billion (as of January 1, 2020). Gucci, adidas, Louis Vuitton and Cartier made up the rest of the top five, with all but adidas increasing their spots in the ranking from the previous year.
Retail brands such as Zara, H&M and Uniqlo dropped however, to numbers six, seven and nine respectively.
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