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LVMH Steals the Show With Five Companies in Interbrand’s 2021 Ranking

LONDON — Big tech may top Interbrand’s 2021 Best Global Brands Report, which was released Wednesday, but LVMH Moët Hennessy Louis Vuitton has stolen the spotlight — and made history — with five of its companies listed in the top 100 ranking.

Interbrand’s 22nd annual report, titled “The Decade of Possibility,” looks at how the world’s top brands came through the COVID-19 crisis, and how they are navigating the post-pandemic landscape.

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LVMH is the first group in the ranking’s history to boast such a large number of companies from a variety of sectors, including fashion, luxury, retail and spirits.

The biggest riser this year was Tesla, which saw a 184 percent increase in brand value after reentering the top 100 list in 2020. It now ranks at number 14. Among the decliners was Zara, which sank from 35 to 45 in this year’s ranking, and saw its brand value shrink by 9 percent.

In a sign of the times, the LVMH-owned Sephora was the only new entrant this year, squeaking in at 100 with a brand value of $4.63 billion. Sephora, like so many beauty companies, saw its e-commerce sales rocket during lockdown when its physical stores were shut.

Interbrand noted that the fastest-rising companies this year “significantly outperformed” other brands on three main factors: direction, agility and participation.

It said the risers “set a clear direction, ensuring that the entire organization knows where they are going, and are working toward the same ambition.” Those companies also moved fast “bringing new products and services to market and, where necessary, pivoting to address changing customer needs.”

They also put an emphasis on participation. “These brands ultimately bring people on a journey with them and make them part of the movement to create an engaging brand world,” Interbrand said.

Charles Trevail, global chief executive officer of Interbrand, said: “Perhaps unsurprisingly, given the constantly evolving business landscape, employee buy-in, adapting to change and a strong customer base have helped certain brands to thrive.”

He noted the three-figure increase in Tesla’s brand value was “unprecedented” in the past 22 years of the ranking. “Tesla is a brand that epitomizes the importance of brand direction, agility and participation,” Trevail said.

Interbrand calculates its valuations by looking at the financial performance of a brand’s products or services; the role the brand plays in purchasing decisions; competitive strength, and the ability to create loyalty, sustainable demand and profit.

It gathers data from the public domain, customers and key stakeholders and uses a specifically designed valuation methodology to make its calculations. The research covered the period between July 1, 2020, and June 30, 2021.

Tech dominates the top 10, and there were no changes to the three leading companies this year, with Apple number one; Amazon number two, and Microsoft number three. Interbrand said those three companies account for one-third of the total value of the table.

The rest of the top 10 includes Google, Samsung, Coca-Cola, Toyota, Mercedes, McDonald’s and Disney at numbers four to 10, respectively.

Together, the total list value of the 100 brands is $2.67 trillion, 15 percent higher than last year. Interbrand said 2021 marked the biggest growth rate for the table since the inception of the ranking in 2000.

The average brand value increased by 10 percent in 2021, which was “significantly larger” than the 1.3 percent uptick in 2020.

“That owed largely to the economic disruption caused by COVID-19. Technology is the fastest-growing sector, with an average brand value change of 23 percent year-on-year. It is also the most valuable sector by average brand value, followed by beverages and sporting goods,” the company said.

LVMH achieved its milestone due to Sephora’s entry, and the acquisition of Tiffany & Co. at 92, earlier this year. Louis Vuitton at 13; Hennessy, 95, and Dior, 77, were already in the ranking.

Antoine Arnault, who’s in charge of Image & Environment at LVMH, said having five companies in the latest Interbrand list, “represents a magnificent reward for the group and its 170,000 talented employees, and shows our ability to support and grow the success of our maisons on a long-term basis.”

Interbrand noted that Louis Vuitton is one of just two fashion luxury brands that has consistently ranked in the top 100. The other one is Gucci. Louis Vuitton broke into the top 20 in 2005, and Interbrand said it remains the most valuable fashion luxury brand in the study.

Rebecca Robins, Interbrand’s global chief learning and culture officer, said in an interview that Sephora was the first omnichannel retailer to make it into the top 100.

Its success, she said, is due to “relentless investment in e-commerce and logistics. The brand continues to pave the way toward innovation by launching digital initiatives that make online shopping easier, and harnessing technology that offers offline customers a personalized shopping experience.”

Robins said another driver of success was Sephora’s early commitment to the 15 Percent Pledge in June 2020, which saw the company dedicate 15 percent of its shelf space to Black-owned brands. She said the pledge aligned with Sephora’s vision to become “the diversity, inclusion and equity champion in the retail industry.”

Sephora has also focused on transitioning to renewable energy: since 2019, all Sephora U.S. stores, corporate offices and distribution centers have been powered by 100 percent renewable energy.

While the 2021 report did not specifically measure companies’ ESG (environmental, social and corporate governance) or DEI (diversity, equity and inclusion) initiatives, Robins said those commitments from brands are becoming more important to consumers.

She added that “there would be more to come” from Interbrand with regards to ESG and DEI issues and their impact on the ranking.

Commenting on the 2021 report, Gonzalo Brujo, Interbrand’s global president, alluded to the importance of ESG and DEI going forward.

“As we continue in the Decade of Possibility, many of the Best Global Brands are actively expanding their possibilities by driving decisive innovation, developing more efficient business models, and taking uncompromising stances,” he said.

Zara slipped in this year’s ranking due to a variety of factors, including issues around ESG, according to Interbrand. Asked specifically about Zara, Robins noted it had been a challenging year for the Spanish company.

“COVID-19 store closures, limitations on capacity and restrictions on movement have significantly impacted Zara,” said Robins, adding those headwinds were “only partially offset by the sizable increase in e-commerce.”

She added that “the rise of ultra-fast fashion has been another challenge, as e-commerce remains a small portion of Zara’s business, compared to online native competitors. Though the brand goals are aligned to being more sustainable, Zara only ranked at 44 in the Fashion Transparency Index 2020, a review of 200 of the biggest global fashion brands and retailers.”

Robins added that transparency is becoming more significant “as consumers are looking to more tangible goals, and more accountability,” from brands.

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