France’s most valuable brands post 22% value growth
Top 50 brands worth US$293 billion
The total brand value of the 50 brands to make the 2019 Top 50 is just over $293 billion (or about €254 billion). This is equivalent to just over 11.3 percent of France’s annual GDP, and represents a rise in the past 12 months of 22 percent. In the current climate, this is an outstanding result. The latest BrandZ Global Top 100 rose 21 percent, and the Top 50 brands in the UK this year were worth 5 percent more than in 2018.
First name in luxury leads ranking again
The luxury label that made its name with its signature luggage and is now an icon in the world of high fashion, footwear, accessories jewelry, fragrance and more is again the most valuable French brand. Louis Vuitton, recognized around the world simply by its initials, has a brand value of more than $46 billion in 2019. This makes it not just the country’s leading brand, but also one of its fastest-growing brands; LV is worth 31 percent more than a year ago.
Disruptive influence fuels consumer desire
Innovation and disruption are supercharging brands’ value growth – especially for those brands that communicate well, and that use their innovation to improve the brand experience. While the Top 50 are significantly more innovative than other French brands, there remains an innovation gap between leading names in France compared to other major world markets.
Strong brands beat the stock market
Investing in brands is just that – an investment – and one that pays handsome dividends. Between December 2017 and October 2018, the BrandZ™ strong French brands portfolio grew 2.9 percent, while over the same period, the CAC 40 actually lost value: 0.2 percent. That means for every €1,000 invested in shares, a person with a BrandZ™ driven portfolio would have made €31 over someone with an index tracker.
Premium brands are fastest risers
The brands that grew their value fastest over the past 12 months include the fashion and accessory brands we group together in the “luxury” category, as well as high-end alcoholic drinks and retailers. Dior and Remy Martin were the two fastest-growing brands in the Top 50 this year, up 58 percent and 39 percent respectively. The fastest-growing brands stand out for being great communicators, and for delivering a superior brand experience.
New entries from range of sectors
The six brands making their debut in the French Top 50 Brands ranking this year come from five different categories: luxury, personal care, food and dairy, appliances and retail. These are sectors already well represented in the French ranking, so while the names are new, there is little difference in the composition of this year’s Top 50 compared to 2018’s. Luxury still accounts for almost half the value of the entire Top 50, followed by personal care, with a 17 percent share.
Brand health adds vigor to bottom line
BrandZ uses five key indicators of health to determine the overall wellbeing of a brand. When we then compare the healthiest brands’ performance over the past 12 months with that of the most “frail”, it becomes clear that health delivers value. In fact, while the healthiest gained 18 percent in brand value, the weakest declined by 5 percent.
Good work generates great returns
Brands that are seen as having a strong – and genuine – focus on being responsible corporate citizens are winning the hearts and minds of consumers. Those that scored high on Corporate Social Responsibility this year posted double the brand value growth of low-responsibility brands.
Top learnings for marketers
1 A healthy brand means a valuable brand
The fastest risers in the French ranking over the past year perform significantly better than other brands on the BrandZ measure of health. This metric takes into account how well a brand performs in five key areas: purpose, innovation, communication, experience and love. Strength in any one of these areas is an advantage for a brand, but the strongest brands perform well on all of them and create a multiplier effect.
2 Be driven by something other than profit
The brands that have a strong purpose beyond what they produce or deliver every day are viewed more favorably by consumers, and ultimately generate stronger value growth. Corporate Social Responsibility is about more than a token tree-planting ceremony; have a genuine social mission, promote it, and make it part of the brand’s DNA. Brands with a strong sense of purpose generate double the growth of those without.
3 It’s vital to shake things up
Innovation is one of the five elements of brand vitality, and is closely linked to experience and love. Brands that are innovative – and are recognized as such by consumers because they clearly communicate their innovations – tend to be loved more. This love sustains a brand in the gaps between innovations. Innovation means having disruptive, market-leading products and approaches to business, as well as creative, ground-breaking communications.
4 Any brand can be innovative
Creative disruption isn’t just the preserve of startups and tech brands; the five most innovative brands in the French Top 50 range in age from just four years old to more than a century – Michelin marks its 130th anniversary this year – and are in categories as diverse as sports retail, tires, energy and telecoms. What marks them out is their ability to change so that they stay relevant.
5 Be different, in a way consumers care about
Being different to other brands is one way of standing out from the crowd, but it’s important that what sets a brand apart is seen as important to the people it’s targeting. We call this “meaningful difference” and it’s this that makes a difference to success in the market and a rise in brand value.