05.05.22
L’Oréal has been named as the world’s most valuable cosmetics brand, topping the Brand Finance Cosmetics 50 2022 report, which values the brand at $11.2 billion, up 10% from the previous year.
“After a tough two years due to the Covid-19 pandemic which substantially reduced cosmetics sales across the world, the brand value of L'Oréal has almost returned to its pre-pandemic value,” says the report.
In the report, L’Oréal is followed by Estée Lauder, Gillette, Nivea and Guerlain, rounding out the top five most valuable cosmetics brands.
What is the secret to L’Oréal’s success? The report highlights the group’s valuable brand portfolio, led by the L’Oréal Paris brand.
“The French brand has built significant value over 100 years of operation by continuing to innovate and acquire complementary brands that build upon its significant history, value and tradition,” says Brand Finance.
Furthermore, this year has seen a transition of leadership from outgoing CEO Jean-Paul Agon, who led L’Oréal for 15 years, to incoming CEO Nicolas Hieronimus. Industry analysts believe that the promotion of key lieutenant Hieronimus from within represents an effort to build on the existing strategy to lead the brand out of the pandemic.
Natura (brand value up 17% to $2.4 billion) is the strongest brand in the cosmetics ranking with a Brand Strength Index (BSI) score of 91.5 out of 100 and a corresponding brand rating of AAA+.
Brand Finance says the brand strength of Natura is boosted by South American stakeholders feeling a strong affinity to the brand – significant proportions of customers familiar with the brand feel a strongly positive connection with the brand. Natura benefits from both local patriotism and a belief amongst many consumers that the brand is caring sustainably for local natural heritage such as the Amazon rainforest.
“After a tough two years due to the Covid-19 pandemic which substantially reduced cosmetics sales across the world, the brand value of L'Oréal has almost returned to its pre-pandemic value,” says the report.
In the report, L’Oréal is followed by Estée Lauder, Gillette, Nivea and Guerlain, rounding out the top five most valuable cosmetics brands.
What is the secret to L’Oréal’s success? The report highlights the group’s valuable brand portfolio, led by the L’Oréal Paris brand.
“The French brand has built significant value over 100 years of operation by continuing to innovate and acquire complementary brands that build upon its significant history, value and tradition,” says Brand Finance.
Furthermore, this year has seen a transition of leadership from outgoing CEO Jean-Paul Agon, who led L’Oréal for 15 years, to incoming CEO Nicolas Hieronimus. Industry analysts believe that the promotion of key lieutenant Hieronimus from within represents an effort to build on the existing strategy to lead the brand out of the pandemic.
Other Insights
In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 100,000 respondents in more than 35 countries and across nearly 30 sectors.Natura (brand value up 17% to $2.4 billion) is the strongest brand in the cosmetics ranking with a Brand Strength Index (BSI) score of 91.5 out of 100 and a corresponding brand rating of AAA+.
Brand Finance says the brand strength of Natura is boosted by South American stakeholders feeling a strong affinity to the brand – significant proportions of customers familiar with the brand feel a strongly positive connection with the brand. Natura benefits from both local patriotism and a belief amongst many consumers that the brand is caring sustainably for local natural heritage such as the Amazon rainforest.