A willingness to adopt new technology, coupled with a pacey approach to new product development is keeping top beauty brands competitive, with US mass-market brands forging ahead of their more premium European counterparts, according to the latest data from leading brand valuation consultancy Brand Finance.
This year’s ‘Brand Finance cosmetics 50’ – the seventh in SPC’s series – is based on brand value as calculated by Brand Finance. Established using the royalty relief method, the ‘brand value’ refers to the value a company would pay to licence its brand as if it did not own it. It estimates the future revenue attributable to a brand to find its royalty rate in a process explained in more detail in SPC May.
Brand Finance also gives each brand a ‘rating’, with AAA+ reserved for the very strongest of brands. This rating is derived from the Brand Strength Index (BSI), which benchmarks the strength, risk and future potential of a brand.
Outstripped by others
Beauty’s big names might not boast as high a brand value as leaders in other industries. But when it comes to BSI, they are up there with the best of them.
In addition to industry-specific league tables, Brand Finance compiles a ‘global 500’ table of brands across all sectors.
Talking to SPC, Fei Zhang, Analyst at Brand Finance, says: “Compared with brands from