Nike ranked most valuable apparel brand

NIKE’S NUMBER ONE: Nike has outstripped rivals and been ranked as the most valuable apparel brand at $32.4 billion, according to Brand Finance, the brand valuation and strategy consultancy.

The consultancy has determined Nike’s brand value by assessing its marketing investment, stakeholder equity, business performance, royalty rates and forecast revenues.

The annual report, “Brand Finance Apparel 50,” which categorizes apparel, watches and jewelry brands, valued Nike above competitor Adidas, whose value rose by 17 percent to $16.7 billion. Nike’s 16 percent increase compared with last year comes from its sales growth in key markets such as China, Europe, Middle East and Africa. 

RELATED: Take a look at some of the most valuable brands in the world:

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10 most valuable brands in the world

10. Target

Brand value: $13.67 billion

Percentage change from last year: -20%

Last year's rank: 7

Target is losing value fast as it struggles to keep up with ecommerce focused brands, but is adding new initiatives like same-day delivery of online orders to become more competitive. Even though it's value is down, Target reported same-store sales were up 6.5% in the second quarter.

(REUTERS/Brendan McDermid)

9. Lowe's

Brand value: $14.02 billion

Percentage change from last year: +1%

Last year's rank: 9

Lowe's hold's onto the same spot it held last year. Itrecently closed the Orchard Supply Hardware chain it aquired last year to focus on the Lowe's brand.

(Photo by Michael Brochstein/SOPA Images/LightRocket via Getty Images)

8. Walgreens

Brand value: $15.54 billion

Percentage change from last year: -3%

Last year's rank: 8

Walgreens value is down -3% from last year. The company recently reported same-store sales were down by 1.2% at Walgreens in the most recent quarter

(Photo by Joe Raedle/Getty Images)

7. JD.com

Brand value: $19.62 billion

Percentage change from last year: +47%

Last year's rank: 11

JD.com, a Chinese online retail giant, is growing extraordinarily fast — last year, the company didn't even hold a spot in the top 10 most valuable brands. In June, Google announced it would be investing $550 million in JD.com.

(Photo by Zhang Peng/LightRocket via Getty Images)

6. CVS Health

Brand value: $20.6 billion

Percentage change from last year: -12%

Last year's rank: 6

CVS Health's value is down, but the company, which is in the midst of a merger with Aetna, recently reported same-store sales were up by 1.6%.

5. Ikea

Brand value: $24.35 billion

Percentage change from last year: +1%

Last year's rank: 5

Ikea remains consistent with the almost the same value as last year. The brand was ranked fifth last year as well.

4. Home Depot

Brand value: $33.74 billion

Percentage change from last year: +12%

Last year's rank: 4

Home Depot holds onto the fouth spot from last year. Home Depot has 2,284 stores in North America, and appears to be the store of choice for millennials. In a Bank of America survey of 1,000 millennials, reported by US News, 64% said Home Depot was their top choice for home-improvement shopping.

(Photo by Justin Sullivan/Getty Images)

3. Alibaba.com

Brand value: $54.92 billion

Percentage change from last year: +58%

Last year's rank: 3

The Chinese company Alibaba.com is ranked in the same spot as last year, but the e-commerce giants value is up nearly 60%.

(REUTERS/Bobby Yip)

2. Walmart

Brand value: $61.48 billion

Percentage change from last year: -1%

Last year's rank: 2

While Walmart defends the number two ranking, its value remains roughly the same as last year.

1. Amazon

Brand value: $150.81 billion

Percentage change from last year: +42%

Last year's rank: 3

Up 47% from its 2017 value, Amazon is the largest online business by market capitalization and revenue. Beyond being an online retailer, it produces cloud infrastructure and electronics and is present in music and video streaming. In addition, the 2017 $13.7 billion Whole Foods acquisition took Amazon from the digital to the physical realm.

(REUTERS/Pascal Rossignol)

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“Nike’s bold marketing makes it stand out in a busy marketplace of sportswear apparel brands. In a time when customers look for experiences and emotional connection, Nike’s offering comes with unambiguous messages and values that people can rally behind,” said Richard Haigh, managing director of Brand Finance.

According to the consultancy, every Nike campaign makes front-page news, such as the controversial ad featuring Colin Kaepernick, the quarterback who “took a knee” during a football season to protest police brutality.

Elsewhere, fast-fashion retailers such as Uniqlo and Zara saw a year of strong growth. Uniqlo’s brand value increased by 48 percent to $12 billion as a result of growing international sales in the U.S. and China, as well as exposure from its collaboration with tennis player Roger Federer.

Zara knocked high-street retailer H&M to fourth place as it climbed into second place with a valuation of $18.4 billion. Brand Finance said the increase was due to Zara’s successful integration of its online and off-line businesses. Meanwhile, Brand Finance said H&M faced struggles with unsold inventory and sizing complaints.

According to Brand Finance, Rolex remains the strongest brand in the industry. The consultancy firm has awarded it with their elite AAA++ rating and a score of 90 out of 100, which they determine by looking at a brand’s marketing investment, stakeholder equity and business performance.

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