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brandstop 50
Despite the ongoing economic
difficulties in many parts of the world, the
beauty industry continues to defy the
downturn. NPD, R&D and the creation of
new brands in the beauty sector is
outstripping many other consumer
industries and the outlook from analysts is
largely positive.
“The resilience of the beauty industry is
clear to see,” says Mary-Ellen Field,
Chairman of Brand Finance (Australia). “If
you compare it to other industries it’s
holding up very well. Fashion for instance,
with the exception of a few retailers such
as Zara and Mango, is really suffering.”
The beauty industry’s ability to weather
the financial storm can be attributed to a
number of factors: burgeoning
consumerism in developing markets is
providing demand for personal care and
cosmetic products, while in more mature
markets spending on discretionary items
such as beauty products has increased at the
expense of the bigger ticket items.
LUXURY LEADS
Luxury brands in particular have enjoyed a
renewed uptake, which is reflected in this
year’s Brand Finance top 50 brands.
L’Oréal’s Lancôme brand crept up to fifth
place in the rankings, while Christian Dior
jumped four places to come in at number
ten. The beauty arm of French fashion
house Chanel climbed six places to reach
TOP 50: BRAND VALUE CHANGE WINNERS
TOP 50: BRAND VALUE CHANGE LOSERS
38 SPC April 2013
GLOBAL
TOP 50
BRANDS
2013
Procter & Gamble’s supremacy of the global beauty
market continues for a third consecutive year, with its
Olay brand taking the top spot in Brand Finance’s
influential 50 Most Valuable Cosmetics Brands league
table. SPC takes a look at the winners and losers, and
which brands to watch out for in the coming 12 months
number 12, while Clarins comes in at
number 17, a jump of two places.
“Lancôme’s jump was a surprise,” says
Field. “The fragrances are not quite right
but there is a very good offer for skin care
and colour.”
New launches include an extension to
the Absolue franchise: Sublime
Regenerating Oleo-Serum, an anti-ageing,
moisturising oil/serum hybrid containing
nutrient-rich citrus, babassu and camellia
oils and L’Oréal’s exclusive pro-xylane
sugar derivative, extracted from beech
wood that works on the skin’s extracellular
matrix and helps to boost the skin’s
regeneration abilities. The brand also
extended its Visionnaire skin care range
into colour, with the creation of Teint
Visionnaire, a foundation and concealer
enriched with LR 2412, the active
ingredient found in the orginal skin care
product. The foundation is claimed to
provide coverage, while helping to reduce
the appearance of wrinkles, dark spots,
enlarged pores and other imperfections. In
fragrance meanwhile, the big launch for
2012 was La vie est belle, fronted by actress
Julia Roberts.
Chanel meanwhile has increased its
footfall with a number of new retail
initiatives. Its temporary pop-up store in
London’s Covent Garden, which opened in
2012, has now become a permanent fixture
in the tourist hotspot and features
educational workshops, make-up
consultations, facials and manicures, along
top 50brands
TOP 50 BRANDS: NEW ENTRANTS
1,127*
1,017*
Clearasil
Pola Orbis
TOP 50 BRANDS: DROPOUTS
-35%
-41%
PZ Cussons
Axe/Lynx
*Brand value. All the figures are shown in US$m
with a number of exclusive products and
sneak previews over its two floors. New
products include Les Beiges, a line of
lightweight powders that impart a healthy
glow on the skin and are enriched with
cotton flower, white rose plant cells and an
SPF of 15 to protect. The campaign is
fronted by supermodel Giselle Bündchen.
The brand’s Research and Technology
arm has also entered into an exclusive
partnership with French plant biology
specialist Plant Advanced
Technologies (PAT) to
develop a line of pure
active ingredients produced
at the heart of plants.
Chanel will launch its
first regenerating antiageing skin care product
containing an active
substance developed using
the new PAT technology
OLAY REIGNS SUPREME
With a retail presence spanning the globe and numerous retail channels,
Olay’s dominance of the top 50 list continues. The brand, which has
been meeting women’s beauty needs since 1949, has carved out a
business from the supermarket to cyberspace. “Olay comes top again
because it is available in so many channels,” explains Field. “It’s to do
with ease of access. It has improved and widened its footstep globally –
consumers can put it in their shopping trolley when they are at the
supermarket. It’s a legacy brand too. We grew up seeing it in our
mother’s cabinets.”
Olay has invested in its image too, with premium-looking packaging
and numerous brand extensions. New launches include a Moisturiser and
Serum Duo in its popular Total Effects range and Regenerist Advanced
Age-Defying Eye Roller, featuring a tri-ball massage head that is said to
help increase lymphatic drainage, as well as cool and reduce puffiness
around the delicate eye area.
Clearasil enters the
top 50 for the first
time this year, buoyed
by its growing
popularity in
developing markets
where the consumer is
still relatively young
later this year. The technology now makes
it possible for selection and purification
processes to take place at the very heart of
the plant. It involves stimulating the
metabolism of plants, which
then express compounds in
concentrations that may
reach 50 times higher than
normal.
RISING STARS
There were two new
brands in the top 50 this
year, namely Reckitt
Benckiser’s anti-blemish
brand Clearasil (ranked 32)
and Japanese beauty brand
owner Pola Orbis (ranked
36).
Clearasil’s most recent
innovations suggest the
brand is taking a more
specific approach to caring
for problem skin, with
products aimed at
consumers with spot prone
yet sensitive skin, or those
suffering from acne scars.
“The Clearasil brand has
been around since World
War Two but very much
targets the youth market,”
explains Field. “The brand
has been doing particularly
well in developing
April 2013 SPC 39
brandstop 50
countries, where there is a greater
proportion of younger people.”
New launches to the Clearasil line-up
include Clearasil Ultra Blemish + Marks
range, featuring a wash and mask, scrub
and treatment cream, containing vitamin
B3 and lactic acid, said to enhance the skin
renewal process, to combat both the
appearance of spots and the marks left
following a breakout. Also new is the
Clearasil Vitamins & Extracts line,
formulated with ingredients like avocado
and pomegranate known for their skin
nourishing and antioxidant properties.
It has also been a remarkable year for
TABLE 1: TOP 50 GLOBAL BEAUTY BRANDS 2013
No No No Brand
‘13 ‘12 ‘11
Domicile
Brand Brand Enterprise Brand/
% Brand Brand Enterprise Brand/ Brand Brand Enterprise Brand/
value
enterprise value rating
value
enterprise
value rating
value
enterprise +/- value rating
2013 2013 2013 (%) value (%)
2012 2012 2012 (%) value (%) 2011 2011 2011 (%) value (%)
1
1
1
Olay
USA
11,709 AA+
2
3
4
L'Oréal
France
3
4
6
Neutrogena
USA
4
5
5
Nivea
Germany
5
6
7
Lancôme
France
5,508 AA+
6
2
2
Avon
USA
5,169 AA-
8,186
63
-35
7
7
8
Dove
UK
4,242 AA
10,690
40
-16 5,045 AA
8
8
9
Estée Lauder
9
9
10 Biore
10 14
36,829
32
0 11,756 AA
36,578
32
35,777
31
26,205
33
12 7,744 AAA-
22,358
35
7,630 AAA-
23,935
32
6,940 AA+
16,383
42
11 6,248 AAA-
14,308
44
6,350 AAA
14,467
44
5,843 AA+
12,288
48
5 5,574 AA+
8,522
65
6,569 AA+
10,178
65
13,467
41
8 5,095 AAA-
11,490
44
5,685 AA+
12,300
46
8,696 AAA-
7,901 AA+
11,066 AA
11,656
68
10,171 AA+
15,843
64
10,250
49
4,517 AA
8,715
52
USA
3,870 AA+
8,711
44
4
3,716 AA
7,387
50
3,037 AA
5,095
60
Japan
3,378 AA
5,317
64
1 3,336 AA-
5,858
57
3,014 AA-
5,575
54
2,545 AA
7,197
35
France
2,952 AAA
4,362
68
16 2,540 AAA-
11 12 13 Pantene
USA
2,910 AA
7,409
39
10 2,643 AA
12 18 16 Chanel
France
2,813 AAA
13 15 15 Aveeno
USA
2,793 AA
11,844
24
17 2,384 AA+
10,344
23
2,319 AA
10,459
22
14 16 14 Garnier
France
2,632 AAA-
7,051
37
12 2,340 AA
6,016
39
2,493 AA
6,440
39
15 11
Germany
2,420 AA-
5,761
42
-10 2,682 A+
4,579
59
7,076
34
19
2,016 AA+
6,037
33
1,568 AA
6,463
24
N/A
18
2,018 AA
Christian Dior
Schwarzkopf
N/A
USA
2,398 AAA-
17 19 19 Clarins
France
2,375 AA+
18 10 11 Shiseido
Japan
2,203 AA+
3,313
67
19 21 21 Clean & Clear
USA
2,196 AA
5,777
38
10
20 17 17 Natura
Brazil
1,849 AA+
12,091
15
-21 2,332 AA-
21 23 22 L'Occitane
Luxembourg 1,698 AA-
4,194
40
22 29 28 Johnson's
USA
1,513 AA+
5,026
23 13 12 Lux
USA
1,501 AA-
5,403
24 27 29 M.A.C.
USA
1,382 AAA-
25 30 34 Kérastase
France
1,360 AA
26 32 36 Redken
France
1,285 AA
3,829
27 22 20 Rexona
UK
1,203 A
4,856
28 26 26 Biotherm
France
1,174 AA+
29 28 32 Vichy
France
1,170 AA
30 25 27 Oriflame
Luxembourg
1,151 AA-
31 36 38 Matrix
France
1,133 AA
France
1,127 AA
5,557
USA
1,109 A+
Clearasil
33 42 39 Rimmel
61
36
23 2,292 AAA
16 20 23 Maybelline
32
4,191
7,358
-24 2,907 AA+
1,990 AA
2,283 AAA
2,057 AA
4,339
67
2,972 AA+
4,818
62
5,045
39
1,959 AA
5,101
38
12,722
18
4,316
40
8,191
28
2,274 AA-
2,776
58
1,705 A+
5,181
49
2,797 AA
1,258 AA+
2,841
44
1,094 AA+
1,960
56
1,138 AA+
3,459
33
936 AA
3,703
25
26
1,024 AA
3,267
31
884 AA
3,498
25
-31
1,752 A 4,656
38
2,033
1,277 AA+
2,462
52
1,393 AA+
2,636
53
1,172 AA+
2,977
39
1,036 AA
3,187
33
5
1,611 AA-
30
32
1,148 AA+
28
-41 2,541 AA-
3,351
41
10
4,055
34
19
34
25
2,886
41
-8
3,489
34
0
1,917
60
-12
3,379
34
30
871 AA+
N/A
1,310 AA
1,179 AAA-
A 3,959
4,438
27
4,405
64
51
2,510
52
1,204 AA-
3,830
31
2,883
30
779 AA
3,086
25
20
80
615 A+
34 35 37 Yves Saint Laurent France
1,092 AAA-
1,924
57
19
915 AAA-
1,641
56
872 AA
1,757
50
35 33 35 The Body Shop
France
1,063 AA+
2,969
36
9
977 AA
2,533
39
890 AA-
2,712
33
Japan
1,135 A+
36
Pola Orbis
694 A+
1,017 A+
1,159
88
37 31 25 Sunsilk
UK
902 A
2,785
32
-21
2,670
43
38 37 41 Clinique
USA
885 AAA-
1,564
57
12
790 AAA-
1,326
60
1,410 A+
683 AA+
2,270
62
915
75
39 40 30 Softsoap
USA
826 AA-
4,295
19
10
754 AA
2,930
26
1,090 AA-
3,164
34
40 41 33 Irish Spring
USA
655 A+
3,758
17
-8
715 A+
2,441
29
1,022 AA-
2,768
37
41 47
USA
562 AA
N/A
37
409 AA
1,852
35
Coty
42 34 43 Revlon
USA
561 A
2,312
24
-39
922 A-
43 49 49 Elizabeth Arden
USA
502 AA
1,489
34
42
353 AA-
44 43 44 Eucerin
Germany
487 A+
1,494
33
-12
557 A+
1,852
50
656 A-
826
43
342 AA
1,036
54
618 A
39
45 46 45 RoC
USA
481 AA
1,265
38
2
46 38 40 La Roche-Posay
France
456 AA
2,326
20
-41
778 AA+
1,985
47 45
KOSÉ
Japan
-4
473 AA
1,034
48 47
Head & Shoulders USA
452 A+
836
54
423 AA-
1,149
37
472 AAA-
France
416 AA
962
43
10
379 AA+
50 44 42 Speed Stick
USA
402 AA-
3,221
12
-19
498 A+
*All the figures are shown in US$m
40 SPC April 2013
41
1,238
50
420 AA
1,117
38
689 AA
2,125
32
46
394
49 48 48 Kiehl’s
826
AA 1,116
35
821
46
366 AA
879
42
2,441
20
681 AA-
2,373
29
top 50brands
BRAND RATING DEFINITIONS
Brand rating
AAA
AA
A
BBB–B
CCC–C
DDD–D
BRAND VALUATION METHODOLOGY
Strength
Extremely strong
Very strong
Strong
Average
Weak
Failing
The valuation in the Brand Finance
beauty brands puts a value on the
intangible assets of a certain company,
namely its ‘trademarks, logos and
associated intellectual property’ on a
specific date: 1 January 2013.
THE ROYALTY RELIEF APPROACH
Using royalty relief, a method favoured
by most financial, legal and tax
practitioners, we determine the royalty
rate a brand owner would charge a third
party to use their brand.
So if the brand owner did not own
their brand, but had been forced to
license it from a third party, this would
be the amount paid for the privilege of
using the brand forever.
The royalty relief method involves
estimating likely future sales, applying
an appropriate royalty rate and then
discounting estimated future, post-tax
royalties to arrive at a net present value.
We then call this the ‘brand value’ which
is recorded in US$.
TABLE 2: TOP BRANDS BY BRAND
RATING
Brands
Christian Dior
Chanel
L'Oréal
Maybelline
Garnier
Clinique
Brand rating
AAA
AAA
AAAAAAAAAAAA-
Source: Brand Finance
Tokyo based brand owner Pola Orbis,
whose operations include Pola Inc
(responsible for the BA line of luxury
cosmetics) and mail order division Orbis
Inc (see p48).
WHO’S OUT
Two brands, PZ Cussons and Axe/Lynx,
dropped out of the top 50 altogether.
Manchester based PZ Cussons – whose
portfolio includes Imperial Leather, St
Tropez and Fudge – suffered a bad
beginning to 2012 in Nigeria, responsible
for 90% of its African revenues.
As if social unrest in the north of the
country, where Boko Haram Islamists
demanding the implementation of Sharia
law have been conducting a terror
campaign, didn’t impact revenue growth
THE STEPS TO BRAND VALUE
1. Obtain financial and revenue data
2. Model the market to identify
market demand and the position of
individual brands.
adversely enough, PZ Cussons also had to
contend with the results of the partial
removal of Nigeria’s fuel duty subsidy.
Commenting in March 2013, the company
said: “Consumers across the country
[Nigeria] continue to adjust to lower
Three forecast periods are used:
Historical financial results up to and
including 2012 if available
● A five year forecast period (2013-2018)
based on consensus forecasts, historic
growth and GDP growth
● Perpetuity growth
3. Establish the royalty rate by:
● Calculating brand strength from 0 to
100 based on attributes from the
financial sector, risk and security and
brand equity
● Determine Brand Beta index score
● Calculate royalty rate
4. Calculate future royalty income
stream
5. Calculate discount rate to each
brand in relation to its size,
geographical presence and reputation
6. Discount future revenues to
determine the brand value
●
BRAND RATINGS
These are calculated using Brand
Finance’s Brand Beta which looks at the
brand in relation to its competitors and
awards it a rating on a scale from D to
AAA. The data comes from sources such
as Bloomberg, annual reports, our
international offices and Brand Finance
research.
disposable incomes as a result of the
removal of part of the fuel duty subsidy in
January 2012.”
However, PZ Cussons might just climb
its way back into the top 50 in 2014, as
prospects are now beginning to improve.
TABLE 2: L'ORÉAL
Brand
Brand
value
2013
Brand Enterprise
Brand/
rating
value
enterprise
2013
2013 (%)
value (%)
%
+/-
Brand
value
2012
Brand Enterprise
rating
value
2012 2012 (%)
Brand/
Brand
enterprise value
value (%) 2011
Brand Enterprise
Brand/
rating
value
enterprise
2011 2011 (%)
value (%)
L'Oréal
8,696 AAA-
26,205
35
19
7,744
AAA-
22,358
35
7,630
AAA-
23,935
Lancôme
5,508 AAA-
13,467
44
16
5,095
AAA-
11,490
44
5,685
AA+
12,300
46
Garnier
2,632 AAA-
7,051
37
12
2,340
AA
6,016
39
2,493
AA
6,440
39
Maybelline
2,398 AAA-
7,076
34
19
2,016
AA+
6,037
33
1,568
AA
6,463
24
Kérastase
1,360 AA
4,055
34
19
1,138
AA+
3,459
33
936
AA
3,703
25
Redken
1,285 AA
3,829
34
26
1,024
AA
3,267
31
884
AA
3,498
25
Biotherm
1,174 AA+
2,886
41
-8
1,277
AA+
2,462
52
1,393
AA+
2,636
53
Vichy
1,170 AA
3,489
34
0
1,172
AA+
2,977
39
1,036
AA
3,187
33
Matrix
1,133 AA
3,379
34
30
871
AA+
2,883
30
779
AA
3,086
25
Yves Saint Laurent
1,092 AAA-
1,924
57
19
915
AAA-
1,641
56
872
AA
1,757
50
The Body Shop
1,063 AA+
2,969
36
9
977
AA
2,533
39
890
AA-
2,712
33
La Roche-Posay
456 AA
2,326
20
-41
778
AA+
1,985
39
689
AA
2,125
32
Kiehl’s
416 AA
962
43
10
379
AA+
821
46
366
AA
879
42
TOTAL
28,382
25,726
32
25,220
*All the figures are shown in US$m
April 2013 SPC 43
brandstop 50
In the half year to 30 November 2012, the
company enjoyed a 13% jump in operating
profit, buoyed by a better performance in
Australia and a robust performance in the
UK, where it recently introduced mother
and baby care brand Cussons Mum & Me.
Said to be practical and simple to use, the
range includes Dry Shampoo and Stretch
Mark Fader for new mothers, as well as
Sleep Easy Baby Bath and Ultra Mild
Emollient creams for babies.
The brand value of male toiletries brand
Axe/Lynx, meanwhile, dropped a dramatic
41% in line with Unilever stablemates
Rexona (-31%) and Dove (-16%). While
Unilever reported solid financial results in
2012 (with underlying sales up 6.9% on
2011), it admitted that its performance in
the intensely competitive European market
had been sluggish against a background of
fragile consumer confidence.
On a more positive note, Axe is
currently enjoying a period of
diversification and energetic launch activity,
with the European roll-out of Axe Hair
and the launch of Axe Face. It also
introduced Axe Anarchy which, in addition
to a male scent, features the brand’s first
ever female one. And, in 2013, it
introduced its most ambitious marketing
campaign to date – sending 22 Axe
customers into space as part of its Axe
RIMMEL: BRIT POWER ON THE UP
Founded in London in 1834 as a
perfumery, Rimmel has always been a
brand that has stayed ahead of beauty
trends, forging a presence on every high
street in the UK and further afield. Under
the guidance of parent company Coty, its
availability in local towns combined with
its accessible price points and
innovative products
have made the brand a
favourite with young
and old alike,
according to Field.
In 2001 Rimmel
signed British
supermodel Kate
Moss, and with the
slogan ‘Get the
London look’,
launched a range of
lipsticks under the
model’s name, which
marry the brand’s
cutting edge
cosmetics with Moss’
fashion-forward
image. Other Rimmel
launches include
Apocalips, a new range of lipstick/lip
gloss hybrids, which provide the
coverage and colour payoff of a lipstick
with the shine and texture of a gloss.
Colours include nudes, vibrant reds and
bright pinks and the advertising
campaign is also fronted by Moss.
TABLE 3: PROCTER & GAMBLE
Brand
Brand
value
2013
Olay
11,709
AA+
36,829
2,910
AA
7,409
423
AA-
1,149
37
Pantene
Head & Shoulders
TOTAL
Brand Enterprise
Brand/
rating
value
enterprise
2013
2013 (%)
value (%)
%
+/-
Brand
value
2012
32
0
11,756
AA
36,578
32
11,066
AA
35,777
31
40
11
2,643
AA
7,358
36
2,545
AA
7,197
35
394
AA
1,116
35
15,042
Brand Enterprise
rating
value
2012 2012 (%)
Brand/
Brand
enterprise value
value (%) 2011
14,399
Brand Enterprise
Brand/
rating
value
enterprise
2011 2011 (%)
value (%)
14,005
*All the figures are shown in US$m
TABLE 4: ESTÉE LAUDER
Brand
Brand
value
2013
Estée Lauder
3,870
AA+
8,711
45
5
3,716
AA
7,387
50
3,037
AA
5,095
60
M.A.C.
1,382
AAA-
3,351
41
10
1,258
AA+
2,841
44
1,094
AA+
1,960
56
885
AAA-
1,564
57
12
AAA-
1,326
60
683
AA+
915
75
Clinique
TOTAL
Brand Enterprise
Brand/
rating
value
enterprise
2013
2013 (%)
value (%)
%
+/-
6,136
Brand
value
2012
790
Brand Enterprise
rating
value
2012 2012 (%)
5,764
Brand/
Brand
enterprise value
value (%) 2011
Brand Enterprise
Brand/
rating
value
enterprise
2011 2011 (%)
value (%)
4,815
*All the figures are shown in US$m
TABLE 5: COTY
Brand
Brand
value
2013
Rimmel
1,109
A+
N/A
80
615
A+
562
AA
N/A
37
409
AA
Coty
TOTAL
1,671
*All the figures are shown in US$m
44 SPC April 2013
Brand Enterprise
Brand/
rating
value
enterprise
2013
2013 (%)
value (%)
%
+/-
Brand
value
2012
1,024
Brand Enterprise
rating
value
2012 2012 (%)
Brand/
Brand
enterprise value
value (%) 2011
694
694
Brand Enterprise
Brand/
rating
value
enterprise
2011 2011 (%)
value (%)
A+
top 50brands
Apollo launch – all of which bodes well for
the future.
US brand Revlon has also seen its
fortunes wane in the top 50, dropping nine
places in this year’s list. Despite recording a
3.2% increase to net sales in 2012, and a
particularly profitable year in the Americas,
the brand has failed to crack the lucrative
European market, where sales dropped 11%
for the same period. “Revlon has been
struggling as a brand for a long time,” says
Field. “The problem is it looks tired. Just
becuase it’s a heritage brand doesn’t mean
it needs to be old.”
The brand has injected a dose of youth
into its DNA with the signing of actress
Emma Stone, along with a number of new
product launches, but according to Field:
“The positioning is wrong. There is so
much competition out there at this price
bracket and Revlon is just not doing
enough to stand out.”
BRAND OWNERS ON THE RISE
As if Olay’s third year atop Brand Finance’s
top 50 weren’t cause enough for
celebration at Procter & Gamble, P&G
owned hair care brands Pantene and Head
& Shoulders also made it on to the list.
Pantene continued its climb from number
13 in 2011 and 12 in 2012 to reach the
11th spot, while Head & Shoulders, which
appeared for the first time on the top 50 in
2012 (at number 47), was at number 48.
In the last 12 months, both brands have
benefited from new product launches and
the signing of high profile ‘faces’. In
October, Pantene responded to emerging
trends towards premium hair care and skin
AVON: TROUBLE AT THE TOP
Avon has taken a tumble in this year’s Brand Finance rankings, falling from second
place in 2012 to sixth, a drop of 35%. Following CEO Andrea Jung’s departure,
incumbent CEO Sheri McCoy has implemented an aggressive cost saving strategy
that will see a saving of $400m by the end of 2015 but at the expense of 1,500
workers worldwide, two US distribution facilities and the decision to withdraw from
markets including South Korea and Vietnam. McCoy described 2012 as a “challenging
year”; total beauty sales declined 5% and ongoing bribery problems in China have
resulted in the beauty brand calling off its direct sales model in the country. Product
wise, the brand’s flagship Anew range continued to expand with the launch of Anew
Clinical Absolute Even Multi-Tone Skin Corrector with DSX-7, a multifunctional skin
care treatment that is claimed to target dark spots, blemishes, uneven skin tone, red
patches, freckles, post blemish marks and sallowness to leave skin looking even and
radiant. “Avon’s troubles do not seem to be easing,” says Field. “It has had two knockbacks from Coty, but fundamentally it’s a good company. Its door to door policy is
empowering women from Afghanistan to French Guyana.”
Fundamentally Avon is a good
company but it has had two
knock-backs from Coty and its
troubles do not seem to be easing
care claims in hair care by introducing its
Expert Collection, which comprises two
ranges: AgeDefy and Advanced+ Keratin
Repair. At the same time it announced US
actress Courtney Cox, best known as
Monica from Friends, as its brand
ambassador.
Anti-dandruff brand Head & Shoulders,
meanwhile, targeted female consumers
with the launch of Head & Shoulders
Apple Fresh, part of its improved Fresh &
Clean range, and simultaneously
strengthened its position with male
consumers by signing football superstar
Lionel Messi and Los Angeles Angels
pitcher CJ Wilson as ambassadors.
TABLE 6: JOHNSON & JOHNSON
Brand
Brand
value
2013
Brand Enterprise
Brand/
rating
value
enterprise
2013
2013 (%)
value (%)
%
+/-
Brand
value
2012
Brand Enterprise
rating
value
2012 2012 (%)
Brand/
Brand
enterprise value
value (%) 2011
Brand Enterprise
Brand/
rating
value
enterprise
2011 2011 (%)
value (%)
Neutrogena
6,940
AA+
16,383
42
11
6,248
AAA-
14,308
44
6,350
AAA
14,467
Aveeno
2,793
AA
11,844
24
17
2,384
AA+
10,344
23
2,319
AA
10,459
22
Clean & Clear
2,196
AA
5,777
38
10
1,990
AA
5,045
39
1,959
AA
5,101
38
Johnson's
1,513
AA+
5,026
30
32
1,148
AA+
1,179
AAA-
4,438
27
481
AA
1,265
38
2
472
AAA-
420
1,117
38
RoC
TOTAL
13,924
12,241
AA
44
12,227
*All the figures are shown in US$m
TABLE 7: UNILEVER
Brand
Brand
value
2013
Brand Enterprise
Brand/
rating
value
enterprise
2013
2013 (%)
value (%)
Dove
4,242
AA
10,690
Lux
1,501
AA-
5,403
Rexona
1,203
A
4,856
Sunsilk
902
A
2,785
TOTAL
7,848
%
+/-
Brand
value
2012
40
-16
5,045
AA
10,250
49
4,517
AA
8,715
52
28
-41
2,541
AA-
5,181
49
2,797
AA
4,405
64
25
-31
1,752
A
4,656
38
2,033
A
3,959
51
32
-21
1,135
A+
2,670
43
1,410
A+
2,270
62
10,474
Brand Enterprise
rating
value
2012 2012 (%)
Brand/
Brand
enterprise value
value (%) 2011
Brand Enterprise
Brand/
rating
value
enterprise
2011 2011 (%)
value (%)
10,757
*All the figures are shown in US$m
April 2013 SPC 47
brandstop 50
Indeed, to support P&G’s position as a
Worldwide Olympic Partner at the London
2012 Olympic and Paralympic Games, the
company amassed a line-up of 150 athletes
to sponsor its brands internationally. These
included Swiss tennis player Roger Federer,
British cyclist Sir Chris Hoy, Chinese
badminton player Lin Dan and swimmers
Felipe Franca (Brazil) and Ryan Lochte
(US), who all featured in Gillette’s ‘A Great
Start Every Day’ campaign.
While beauty care net sales in fiscal 2012
(ended 30 June 2012) dipped 4%, P&G’s
figures for the quarter ended 31 December
2012 showed signs of a rebound, with net
sales in a majority of businesses in P&G’s
beauty care segment up verses the prior
year quarter, indicating that 2012’s
Herculean promotional push might now be
paying off, particularly in mature market
regions.
Of all the parent companies in the
beauty and personal care industry, however,
L’Oréal delivered the strongest
performance, with more top 50 brands
than any other company; 13 of its 36
brands made it into Brand Finance’s roster,
with L’Oréal Paris hot on Olay’s heels as
the second most valuable name in beauty.
POLA ORBIS: RISING STAR
New to the Brand Finance top 50 this year,
Japanese beauty company Pola Orbis is
expected to make record group operating
profits for the fourth consecutive year in 2013,
thanks to strong domestic sales and earnings
from the Jurlique brand, which the company
purchased in 2012. Operating profit is
expected to rise 13% to around ¥16bn, while
sales are expected to climb 4% to about
¥189bn.
The company ended 2012 with an 8.5%
increase in net sales. Within its Beauty Care
segment, which consists of its flagship
brands Pola and Orbis, along with brands
under development Orlane, decencia and
Three, and overseas brands H2O Plus and
Jurlique, net sales came to ¥169bn edging up
9.1% on the prior year. Operating income
totalled nearly ¥12bn, up 9.5% year on year.
Recent months have seen the brand
confirm its reputation for innovation. Its
three-step system Age Perfect Cell Renew,
for example, is claimed to be L’Oréal’s most
advanced technology to date and is based
BRAND VALUE OF TOP 50 PARENT COMPANIES
Parent company
L’Oréal has the
greatest number of
brands in this year’s
top 50 list thanks to
its strong positioning
in both the mass and
premium retail
channels
on 20 years of research in skin cell biology
and the protection of stem cells and
corneocytes. L’Oréal Paris also pays
assiduous attention to what is poised to
trend in beauty, as recent additions Nude
Magique CC Cream and Skin Perfection
3-in-1 Purifying Micellar Solution can
attest.
As well as L’Oréal Paris and Lancôme,
L’Oréal owned Garnier and Maybelline
were among those brands included in the
top 20. Garnier bounced back from 16th
place in 2012 to its 2011 position at
number 14. The brand benefited from the
introduction of an industry first last year:
Olia, Garnier’s ammonia-free oil based
permanent hair colour. Meanwhile,
Maybelline’s rapid fire approach to launches
(new products include Fit Me customised
TABLE 8: COLGATE-PALMOLIVE CO
Brand
Brand
value
2013
Brand Enterprise
Brand/
rating
value
enterprise
2013
2013 (%)
value (%)
%
+/-
Brand
value
2012
Brand Enterprise
rating
value
2012 2012 (%)
Brand/
Brand
enterprise value
value (%) 2011
Brand Enterprise
Brand/
rating
value
enterprise
2011 2011 (%)
value (%)
Softsoap
826
AA-
4,295
19
10
754
AA
2,930
26
1,090
AA-
3,164
34
Irish Spring
655
A+
3,758
17
-8
715
A+
2,441
29
1,022
AA-
2,768
37
Speed Stick
402
AA-
3,221
12
-19
498
A+
2,441
20
681
AA-
2,373
29
TOTAL
1,883
1,966
2,793
*All the figures are shown in US$m
TABLE 9: BEIERSDORF
Brand
Brand
value
2013
Nivea
5,843
Eucerin
487
TOTAL
6,330
*All the figures are shown in US$m
48 SPC April 2013
Brand Enterprise
Brand/
rating
value
enterprise
2013
2013 (%)
value (%)
%
+/-
Brand
value
2012
AA+
12,288
48
6
5,574
A+
1,494
33
-12
557
6,131
Brand Enterprise
rating
value
2012 2012 (%)
Brand/
Brand
enterprise value
value (%) 2011
AA+
8,522
65
6,569
A+
1,036
54
618
7,187
Brand Enterprise
Brand/
rating
value
enterprise
2011 2011 (%)
value (%)
AA+
A
10,178
65
1,238
50
top 50brands
NUMBER OF BRANDS BY COUNTRY
BENEFIT: ONE TO WATCH
Brazil 21
France 16
LVMH-owned colour and skin care brand
Benefit prides itself on beguiling and
delighting its customers with a
combination of serious beauty know-how
and a playful attitude towards make-up.
It has ramped up its launch rate
considerably over the last 12
months with new skin products
Germany 7
Luxembourg 6
Japan 5
UK 2
US 1
and colour sets as well as, most recently,
relaunching its core colour range of
eyeshadows, lip glosses and lipsticks.
Geographically there has also been a big
push and the brand is now available in
over 2,000 locations worldwide. “We’ve
seen a lot of growth from
Benefit so I’m confident we
will see them in the top 50
next year,” says Field.
VALUE OF BRANDS BY DOMICILE ($M)
US 45,161
France 36,523
UK 9,534
Germany 9,442
Japan 7,738
Luxembourg 2,849
Brazil 1,849
make-up, Superstay 14hr Lipstick and
Volum’ Express The Rocket Mascara) has
clearly worked for the colour cosmetics
brand as it moved from number 20 to
number 16.
At 25 Kérastase is the highest placed
brand from L’Oréal’s Professional Products
Division (just ahead of stablemate Redken,
the US equivalent to Gallic Kérastase) and
(like L’Oréal Paris and Garnier) the brand
recently enjoyed a ‘star’ product launch in
the form of Initialiste by Kérastase, touted
as the first hair ‘skin care’ serum, which acts
at the base of the hair to generate the
growth of stronger, shinier and more
resilient hair.
The worst performance by any L’Oréal
brand included in the top 50 was pharma
brand La Roche-Posay, which slid from
38th place to 46th. Field notes that while
La Roche-Posay enjoys a unique position
with regards to distribution in France
Benefit has ramped up its
launch rate considerably over the
last 12 months with new skin
products and colour sets
where “it is prescribed by pharmacists for
dermatological issues”, which serves to set
it apart, this is not the case in other
regions, where the therapeutic skin care
brand risks getting swamped in a throng of
on-shelf competitors.
TABLE 10: TOP 50 BRANDS BY COUNTRY
No of brands
Domicile
United States
France
UK
Germany
Japan
Luxembourg
Brazil
2011
1
19
2
6
2
2
18
2012
1
19
2
6
3
3
16
2013
1
16
2
7
5
6
21
Value ($m)
growth (yoy)
2011
52,793
33,759
12,589
7,187
5,986
2,909
2,274
2012
43,547
34,362
12,137
8,812
6,716
2,922
2,332
2013
45,161
36,523
9,534
9,442
7,738
2,849
1,849
Percentage
2012
-18%
2%
-4%
23%
12%
0%
3%
2013
4% 6%
-21%
7%
15%
-2%
-21%
2 year
growth
(%)
CAGR
8%
4%
-13%
15%
14%
-1%
-10%
Overall, however, despite natural and
organic brand Sanoflore (part of L’Oréal’s
Active Cosmetics Division) performing
below par, one can expect positive things
from most of the L’Oréal line-up in
2013/14.
And it will be interesting to monitor
which other L’Oréal owned brands
(SkinCeuticals, Shu Uemura, or Innéov, for
example) might join L’Oréal Paris,
Lancôme etc in the Brand Finance top 50
in coming years.
LOOKING AHEAD
But outside of the L’Oréal stable, what can
we expect from our beauty brands in
2013/14? Despite McCoy’s best efforts, will
Avon slide yet further down Brand
Finance’s top 50 ranking, as Field suggests?
Will LVMH’s efforts move Benefit into the
top 50, as predicted? And will Olay’s potent
combination of accessibility and heritage
secure it the top spot for the fourth year
running?
What is certain is if brands continue to
display the creative momentum shown in
2012/13 the beauty industry will continue
to be the success story of this difficult
financial period.
April 2013 SPC 51