Hermès, Zara, and Sephora surge in the ranking of world's most valuable brands
Led, just like in 2022, by Apple, Microsoft, and Amazon, the 2023 ranking of the world's most powerful brands has been unveiled by the strategic consultancy firm Interbrand. The primary insight? The growth of these 100 companies is slowing down, as the total value of the ranking increased by 5.7% this year (reaching $3.3 trillion), compared to a 16% surge recorded last year. Explaining this phenomenon, Interbrand cited "a lack of growth-oriented mindset, conservative brand leadership, and uncertain economic global forecasts."
"After several years of robust brand growth, we've entered a period of stagnation," explained Interbrand's CEO, Gonzalo Brujó. "Companies that manage to leverage their brand in new pools of potential consumers will reap the benefits of robust brand growth."
The most pronounced increase in valuation within the ranking this year comes from Airbnb, soaring by 21.8%, placing it at 46th (a gain of eight positions). Besides this meteoric rise, the best performing sectors are automobiles and luxury, with respective average growths of 9% and 6.5%. Within the luxury portfolio, French houses Hermès (23rd) and Dior (76th) showcase the most substantial growths in their brand value in 2023, at 10.2% and 8.4% respectively.
The robust health of luxury brands is explained, in part, by their resilience "and their ability to transcend categories to create luxury experiences such as restaurants, hotels, and pop-up stores," stated Interbrand. Leading the luxury sector is the French label Louis Vuitton, holding the 14th position (up 5% compared to 2022), followed by compatriot Chanel (22nd, up 6%). It's noteworthy that the Italian house Gucci (34th) saw its value decline by 2% in one year. It is the only luxury brand in the top 100 to regress in 2023.
In the fashion retail sector, the Spanish brand Zara stands out, securing the 43rd spot, along with a 10% increase in valuation this year, advancing four ranks. Following Zara is H&M, maintaining its 56th position with a more modest progression of 5%.
Another champion in retail, the beauty chain Sephora (part of the LVMH group), experienced one of the most significant advancements in 2023, with a growth of 15%, moving from the 100th to the 97th position.
Methodology: Interbrand compiles its ranking by considering several indicators across three levels: the company's financial analysis, the influence of the brand name on purchasing decisions, and finally, the company's competitive strength within its sector.
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