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Brand Finance announced the release of its 2014 Brand Finance Cosmetics 50. The Brand Finance Cosmetics 50 is an annual study in which the world’s biggest beauty and cosmetic brands are put to the test and evaluated to determine which are the most powerful and most valuable.
The total brand value of the world’s top 50 beauty and cosmetic brands is up from $101.5 billion in 2013 to $106.2 billion for 2014. And while the #NoMakeupSelfie trend has succeeded in raising thousands for charity, it seems that despite the involvement of thousands of people and dozens of celebrities, makeup sales haven’t suffered as a result.
L’Oréal, which tops Brand Finance’s list, is the world’s only $10 billion beauty brand. Its value is up 24%, growing from $8.7 billion last year to $10.8 billion in 2014. L’Oréal’s growing brand value is in line with its strong business performance, according to Brand Finance, and the company’s enterprise value was up from $26.2 billion to $37.6 billion.
Brand Finance CEO David Haigh comments, “The key to L’Oréal’s success is its unrivaled marketing focus and investment. Its marketing graduates, drawn from the world’s top universities, are well trained and well resourced. With the perfectly constructed and enduring ‘You’re Worth It’ slogan, L’Oréal has pulled off the trick of simultaneously capturing the mass market while maintaining an air of exclusivity.”
Also, L’Oréal is the only beauty brand, and one of only 11 brands from any sector (including Google, Ferrari, Rolex and Hermes) to have been awarded a AAA+ brand rating. The brand rating is a benchmark of the strength and future potential of the brand, confirming L’Oréal’s brand power.
Second on the list is America’s most valuable beauty brand Avon, which has staged a remarkable recovery. A drop in sales and bribery allegations in China had seen brand value fall 35% between 2012 and 2013. However CEO Sheri McCoy’s robust approach, creating $400 million savings at the release of 1,500 staff, has seen the beginnings of a turnaround. Brand value is up 24% to $6.84 billion while the brand has been strengthened, and has been upgraded by Brand Finance from AA to AA+.
Rounding out, American and French brands dominate the list, together accounting for over two-thirds of the total brand value. Germany’s most valuable brand is Nivea, which has a brand value of $6.1 billion, putting it fourth worldwide. Fifth on the list is Dove ($5.9 billion), the U.K.’s top beauty brand. Japan’s Shiseido ($2.5 billion), Brazil’s Natura ($2.5 billion) and South Korea’s Sulwhasoo ($439 million) also make the list.
CoverGirl is the highest new entry, with a brand value of $1.24 billion. Recent celebrity endorsements include Katy Perry, Pink and Janelle Monae. The Capitol Collection, a recent tie in with the film The Hunger Games: Catching Fire, has further strengthened CoverGirl’s appeal to younger consumers. Other new entrants include Max Factor, Sunsilk and Old Spice.
Haigh notes, “Perceptions of the Old Spice brand have been transformed in the last few years, almost entirely thanks to the advertising phenomenon that is ‘The Man Your Man Could Smell Like.’ From being regarded with, at best, affectionate nostalgia, Old Spice is now one of the most highly sought after men’s grooming brands.”
Below is the 2014 ranking of the world's top 50 beauty and cosmetic brands, according to Brand Finance: