PARIS – Louis Vuitton, Chanel, Cartier, Hermès and L’Oréal figure among the top 10 most valued French brands in 2021, according to Brand Finance, the brand valuation consultancy.
Louis Vuitton ranks fourth, down one notch since last year. Chanel places fifth, up two slots. Cartier comes in seventh, two ranks below 2020’s standing. Hermès comes in eighth, up one place. L’Oréal is ninth, one rank higher than in 2020.
Other companies in the top 10 include Orange, Total, Axa, BNP Paribas and Renault. Sephora ranks 11th.
“Clothing (including fashion and luxury) is the biggest contributor to the Brand Finance 150 2021 ranking (16 percent),” the company said in a statement. “However, this sector fell 12 percent year-on-year mainly due to the pandemic.”
Distribution was the second largest contributor to the list, with 10 percent, then cosmetics, with 8 percent.
“For some French companies with strong brands, the brand asset has acted as a shock absorber and reduced risks during the pandemic. However, in many sectors, this was not enough and in order to gain competitiveness again, these economic agents will have to reinvest in their brand assets to take advantage of the recovery,” Bertrand Chovet, managing director of Brand Finance France, said in a statement.
The strongest value brand growth on-year came from Celine, up 105 percent; Kenzo, with a 63 percent increase, and Yves Rocher, with a 61 percent gain.
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The new entrants in the annual ranking included Moncler, which placed 47th.
Among the luxury and premium brands, Louis Vuitton recorded a 15 percent drop in brand value to 12.64 billion euros, according to Brand Finance. Louis Vuitton’s “brand strength,” reflecting a brand’s competitiveness, decreased from an AAA rating last year to an AAA- rating, with a score of 84, due to the decline in its financial performance and financial outlook in 2020.
Chanel’s brand value was calculated at 11.27 billion euros, while its brand strength increased to AAA-.
“Cartier’s diminished revenues outlook during the pandemic caused the brand’s value to drop by 24 percent,” said Brand Finance, which valued the luxury jeweler’s brand at 10.29 billion euros.
“Hermès is the strongest brand in the top 10 most valued French brands, with a [Brand Strength Index] of 85 (AAA rating),” Brand Finance continued. “However, here, too, a weakened financial outlook leads to an 8 percent drop in its brand value to 9.92 billion euros.”
The L’Oréal brand was valued at 8.7 billion euros, down 18 percent on-year, while its brand strength declined from an AAA rating to AAA-.
In terms of brand strength, Moncler’s was the strongest of any other label’s, with a score of 87.4 percent and an AAA rating. Brand Finance attributed Moncler’s “excellent perception and strong brand image with customers” to its mix of creativity, innovation and respect for heritage while offering highly performant and surprising fashion.
Chovet noted that half of the strongest brands in the ranking are luxury and premium.
“This underlines the French soft power in this category of offer and the potential of French brands to be real and inspiring points of reference in the world, particularly in China and Asia,” he said. “Without a doubt, these brands will continue to be aspirational in the future.”
For more, see:
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