THE WHAT? L’Oréal has retained its title as the world’s most valuable brand, topping the Brand Finance Cosmetics 50 report.

THE DETAILS L’Oréal was followed by Estee Lauder, Gillette, Nivea and Guerlain in the top five respectively, with Estee Lauder brand value up a massive 39 percent, jumping up three places from fifth spot last year. 

Gillette’s brand value was down 8 percent, while Nivea’s brand value was up 10 percent to US$6.8 billion, and Guerlain was up 8 percent to US$6.1 billion.

In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance.

Natura, which had a brand value increase of 17 percent to US$2.4 billion, is the strongest brand in the cosmetics ranking with a Brand Strength Index (BSI) score of 91.5 out of 100 and a corresponding brand rating of AAA+.

THE WHY? According to Brand Finance, L’Oréal has built significant value over 100 years of operation by continuing to ‘innovate and acquire complementary brands that build upon its significant history, value and tradition.’ 

It said, “This year has seen a transition of leadership from outgoing CEO Jean-Paul Agon, who led L’Oréal for 15 years, to incoming CEO Nicolas Hieronimus. Industry analysts believe that the promotion of key lieutenant Hieronimus from within represents an effort to build on the existing strategy to lead the brand out of the pandemic.”

Annie Brown, Associate Director at Brand Finance, commented, “L’Oréal is – again – the world’s most valuable cosmetics brand, but with consumers forecast to increase spending as they re-emerge from the pandemic, the brand has significant growth opportunities. The key challenge for new CEO Hieronimus will be to serve as an effective brand guardian for L’Oréal as it seeks to return to growth, especially throughout Asia.”