Brand Value of Top Cosmetics Companies Up 13%

Year-over-year, the total brand value of the world’s top 50 cosmetics brands grew from $106 billion to $123 billion, a gain of 13%, according to Brand Finance's 2015 listing of top cosmetics companies.

While the overall industry grew, top brands lost value, including top-five players such as Dove, Pantene and Nivea, as well as Garnier, Olay and Lancôme.

L'Oréal Paris & Avon: A Tale of Two Brands
L'Oréal Paris has achieved record value of $11.2 billion, a gain of 15% from 2014's $9.8 billion. Interestingly, the L’Oreal corporate brand outperformed L'Oréal Paris, growing 26% year-over-year, from $1 billion to $1.26 billion.

Brand Finance credits the company for "maintaining an air of exclusivity," as well as its marketing and investment focus and brand creation It is therefore no surprise that L'Oréal Paris is the only cosmetics company to have been awarded Brand Finance’s top AAA+ brand rating, which benchmarks future brand potential.

Meanwhile, Avon has lost 39% of its brand value in the last year, totaling $3.9 billion and dropping out of the top 10.

Top Brands
Procter & Gamble has the greatest number of beauty brands listed, including Gillette, Pantene, Olay, Head & Shoulders, Clairol, SK-II, Cover Girl, Max Factor, Old Spice and Wella. Collectively, these brands possess the most value, totaling $27.46 billion, compared to L’Oréal’s $27.11 billion.

As it prepares to shed as many as 100 "outlying" brands, the company should see accelerated growth in its core brands, according to Brand Finance.

Global View: Natura
While most brands hail from the United States, France, United Kingdom and Germany, Brazil’s Natura is the most valuable non-western brand. Its growth is driven by Brazil’s increasing affluence and strong demand for beauty products.

The company's brand value has grown 31% year-over-year to $3.2 billion, while its brand rating has been upgraded from AA+ to AAA-.

Though Brazil’s economy is somewhat troubled at present, Natura is set to continue its momentum, perhaps by focusing on recession-proof products as part of the "lipstick effect."

Read the full list here.


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