Branding agency Millward Brown Optimer recently released their 2011Top 100 Most Valuable Global Brands report. Now in its 13th year, the report ranks the world’s leading brands taking into account consumer sentiment and the brands’ economic impact and competitive dynamics when compiling the list.
Amongst the top 100 brands two luxury brands: Louis Vuitton and Hermes and two fast fashion retailers: H&M and Zara were present. When it comes to China, these four brands are already well established in the market with Vuitton, H&M and Zara being present in over 30 cities. Hermes, who takes a more subdued approach to expansion is already present in 15 Chinese cities. These four fashion brands already have such strong brand value in China that they can draw large crowds of consumers to any mall where they are present. Therefore, they are in constant demand by shopping mall developers across China and are able to use their brand value to leverage the best deals in terms of location and leasing terms etc.
The top ranked global brand in the world in all categories was Apple, who’s products, retailing prowess and target customers often parallel with those of luxury brands, and in China Apple products are definitely at positioned the high-end of electronics category.
In the luxury category alone, the top ten valued global luxury brands are all present in China and most seeking to increase their presence and appeal through rapid expansion of stores and global marketing initiatives taking place in China. In April, Burberry opened their biggest store in Asia in Beijing, with an unprecedented holographic fashion show streamed globally. Starting May 31 Louis Vuitton will hold a three month exhibition of their historic trunks at the National Museum of China in Beijing.
Luxury conglomerate LVMH clearly stamped their mark on the Luxury Top Ten list with the group brand’s Louis Vuitton, Fendi, Moet & Chandon and Hennessy all making the cut. Since the 2010 study Vuitton’s value has increased by 23 percent and is know worth USD 24.3 billion. According to the BrandZ study, Hermes (who is 20 percent owned by LVMH) posted the biggest increase in luxury brand value with a 41 percent jump to USD 11.9 billion.
For the first time a Chinese fast fashion brand Metersbonwe made a significant performance and is now placed 10th in the list of Top Apparel brands. With over 4000 stores country wide, Shanghai based Metersbonwe’s products feature a strong international aesthetic, which has helped them gain strong popularity amongst Chinese teenagers. In fact when questioned, many Chinese when questioned fail to identify Metersbonwe as a Chinese brand. The fact that Ralph Lauren is treated as an apparel brand rather than a luxury brand reinforces the issues Ralph Lauren is facing in re-positioning themselves in China, previously covered on The Maosuit
Altogether and across all industry segments 12 Chinese brands were including on the global brands top 100 list equating to a total value of USD 259 billion in brand value; this represents 11 percent of the total brand value of the Top 100.