L’Oreal Paris named most powerful and valuable cosmetics brand


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L’Oreal Paris named most powerful and valuable cosmetics brand

Related tags Brand value Procter & gamble

L’Oreal Paris has been named the most powerful and valuable cosmetics brand by strategy consultancy Brand Finance, and its study has also highlighted positives for the Procter & Gamble brands, whilst it is bad news for Avon.

The annual study rates global brands for their influence and value, constructing industry-specific charts, and in the Brand Finance Cosmetics 50 it is L’Oreal Paris who comes out on top with a record brand value of $11.2 billion, up 15% from 2014.

“L'Oréal has pulled off the trick of simultaneously capturing the mass market while maintaining an air of exclusivity,”​ says Brand Finance Chief Executive David Haigh, after the brand achieved the top AAA+ rating and is one of the top 12 in all industries.

“L'Oréal is a powerhouse of brand creation. The key to its success is its unrivalled marketing focus and investment.”

Portfolio value

There is also good news for P&G too, as it achieved the honour of being the conglomerate with the greatest number of beauty brands listed in the directory; namely Gillette, Pantene, Olay, Head & Shoulders, Clairol, SK-II, Cover Girl, Max Factor, Old Spice and Wella.

The US firm’s brands are also, collectively, the most valuable brands in the Cosmetics top 50, totalling $27.46bn, compared with L’Oréal’s $27.11bn.

The strategy consultancy also says that there is more positive news as the company’s previously mentioned pledge to shed up to 100 ‘outlying’ brands will allow it to accelerate the growth of its core brands, so P&G’s biggest beauty brands seem likely to creep up the rankings in the coming years.

False dawn

It is not quite good news for everyone though as, perhaps unsurprisingly; Avon saw its brand value drop by 39% to $3.9 billion.

Brand Finance says the company’s once pioneering approach of door-to-door selling and heavy emphasis on word-of-mouth marketing has come under strain as social structures and living patterns have changed.

Last year the company appeared to stage a rally in brand terms, increasing brand value by over $1 billion and reclaiming its position as the world’s second most valuable cosmetics brand.

However Brand Finance says that appears to have been a false dawn; its current brand value sees it drop outside the top 10 for the first time.

The total brand value of the World’s top 50 cosmetics brands is up 13% to $123 billion this year, although not everyone has seen growth, according to Brand Finance, as Dove, Pantene, and Nivea have lost brand value this year, as have Garnier, Olay and Lancôme.

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