L’Oréal Paris is the world’s most valuable personal care brand for the fifth consecutive year, according to the 2017 BrandZ™ Top 100 Most Valuable Global Brands ranking announced by WPP and Kantar Millward Brown.
L’Oréal Paris increased its brand value by 2% to $23.9 billion over the last year following successful strategies to build loyalty and become more customer-centric.
Lancôme (the fourth most valuable personal care brand) and Shiseido (no.13, up from no.14 in 2016) were the fastest risers, both increasing their value by 10% to $9.4bn and $2.7bn respectively. Dove, the world’s eighth most valuable personal care brand, has grown its value by 6% to $5.8bn.
The total value of the BrandZ™ Personal Care Top 15 has increased 1% in the last year as brands tackled challenges including disruption from new niche brands, currency fluctuations and pressured margins owing to couponing and price promotion. The sector’s total brand value remained unchanged between 2015 and 2016.
BrandZ says in a commoditised, crowded category, brands differentiated themselves by responding to more diverse needs and ideas of beauty with personalised products and customised advice. For example, L’Oréal launched its True Match range of 33 foundations at the Golden Globe Awards. Brands also aligned themselves with customers’ values; The Strong is Beautiful campaign from Pantene Pro-V (+5%) continues to celebrate the idea that beauty is more than skin deep, while Shiseido reinforced its reputation for doing right by its customers and employees.
Martin Guerrieria, Global BrandZ Research Director, says: “Brands must be increasingly single-minded around where they position themselves in the market, then underline that in their marketing and how they innovate. Are you a luxury brand with a key difference that consumers find desirable? Or aiming for a broader market and creating affinity by meeting basic needs exceptionally well? Be decisive; sitting in the mainstream middle means you’ll be hit from both sides. Those with mass market and premium ranges must clarify their portfolio, determining where each product belongs and can best compete.”
Rachel Evans, Sector Managing Director at Kantar Millward Brown, adds: “In a diverse sector that offers massive choice, established brands are being squeezed. At the mass market end they’re challenged by local players, and at the top end by specialist premium brands. To win, they should refresh their original purpose – the roots that made them strong – and reinforce this continually in communications, in particular with a presence on social media which can help cement a sense of meaning for personal care brands.”