L’Oréal Paris – Once, Twice, Three Times a Winner

  • Oréal Paris is the most valuable cosmetics brand for the third consecutive year
  • The brand has reached a record value of US $13.7 billion 
  • Avon drops 11 places to 21st with brand value down over 50%
  • Brazilian Brand, Natura, fell 67%, more than any other
  • Lynx loses laddish image to increase brand value by 69%

Every year, leading brand valuation and strategy consultancy Brand Finance analyses thousands of the world’s top brands to determine which are the most powerful and most valuable. The top cosmetics brands grouped in the Brand Finance Cosmetics 50.

L’Oréal Paris remains the world’s most valuable cosmetics brand. A 22% increase on its 2015 brand value brings the total to US $13.7bn, a record for the industry. It also has the strongest brand; Brand Finance creates a Brand Strength Index (BSI) score out of 100 for each brand based on indicators such as familiarity, consideration, loyalty, investment, social responsibility and preference. L’Oréal Paris’ score is 91.5, making it not just the strongest cosmetics brand, but the third strongest from any industry, beaten only by Disney and Lego.

Commenting on the label’s strong performance, Brand Finance’s Cosmetics Analyst Emilie Milton-Stevens stated, “L’Oréal Paris continues to impress: bettering itself and raising its game the whole time. It is performing well in three key respects: it is investing in trends and technology; it is innovating digitally; and it continues to inspire trust. Across the Brand Finance Cosmetics 50, brands based outside the US have been negatively impacted by foreign exchange rate changes, but L’Oréal revenue and brand performance was so strong that it not only counteracted that impact but actually grew 22%.”

Brazilian brand Natura did not experience the same good fortune this year. 81% of the brand’s revenue comes from the domestic market and the combined effects of recession, inflation and the depreciation of the Real against the dollar have contributed to a 67% decline in brand value.

Brazil is also the biggest market for American cosmetic brand, Avon. It too has seen a severe decline in brand value, which is down 54% to US$1.8 billion. Avon’s problems stem as much from its home market in North America as from Brazil however. The brand has admitted that eroding relevance, a declining base of representatives and profitability are serious problems in the US.

One of the best performers of the year was Unilever’s Lynx (Axe) deodorant brand. It has pursued a concerted strategy to shed its ‘laddish’ image as more nuanced portrayals of masculinity are popularized. In January, Lynx launched its ‘Find Your Magic’ brand campaign, which encourages men to break free from assumptions about how they should behave and express themselves, a particularly suitable message for a brand seeking to redefine itself.  Its brand value is up 69% to US$1.7 billion.

The World’s 50 Most Valuable Cosmetic Brands

Rank 2016

Rank 2015

Brand

Domicile

Brand Value 2016 (USDm)

Brand Rating 2016

Brand Value change (%)

Brand Value 2015 (USDm)

Brand Rating 2015

1

1

L’Oréal Paris

France

13,697

AAA+

22%

11,218

AAA+

2

2

Gillette

US

7,189

AAA

-20%

8,988

AAA

3

4

Nivea

Germany

6,171

AAA-

-6%

6,565

AAA

4

6

Clinique

US

5,960

AAA-

4%

5,741

AAA-

5

8

Chanel

France

5,802

AAA-

18%

4,921

AAA-

6

3

Neutrogena

US

5,709

AAA

-35%

8,794

AAA

7

9

Garnier

France

4,815

AAA

4%

4,630

AAA

8

7

Pantene

US

4,802

AAA

-10%

5,364

AAA

9

10

Estée Lauder

US

4,170

AAA-

-4%

4,328

AAA-

10

5

Dove

UK

4,104

AAA-

-30%

5,821

AAA-

11

13

Clarins

France

3,501

AA+

-1%

3,550

AA+

12

16

Shiseido

Japan

3,273

AAA-

8%

3,027

AA+

13

17

Maybelline

France

3,178

AAA-

13%

2,814

AAA

14

18

Lancôme

France

2,682

AAA

3%

2,602

AAA

15

19

Head & Shoulders

US

2,680

AAA

4%

2,577

AAA-

16

15

Christian Dior

France

2,513

AAA

-18%

3,051

AAA

17

20

Schwarzkopf

Germany

2,348

AAA

-4%

2,437

AAA-

18

11

Olay

US

2,191

AAA-

-45%

3,986

AAA-

19

New

Aveeno

US

2,139

AAA

0%

 

 

20

23

Mac

US

1,803

AA+

2%

1,776

AAA-

21

12

Avon

US

1,785

AA

-54%

3,897

AA+

22

50

Lynx

UK

1,675

AA

69%

989

AA+

23

22

L’Occitane

China

1,639

AAA-

-10%

1,818

AAA-

24

21

Rexona

UK

1,536

AAA-

-16%

1,838

AA+

25

28

The Body Shop

France

1,328

AAA

4%

1,278

AAA-

26

29

L’Oréal

France

1,293

AAA+

2%

1,262

AAA+

27

32

Max Factor

US

1,250

AAA-

12%

1,115

AAA-

28

New

Le Petit Marseillais

US

1,246

AAA

0%

 

 

29

31

Cover Girl

US

1,168

AAA-

-2%

1,192

AAA-

30

27

Clairol

US

1,154

AA+

-11%

1,298

AA+

31

New

Laneíge

South Korea

1,127

AAA-

0%

 

 

32

34

Bioré

Japan

1,078

AA+

7%

1,007

AA+

33

35

Palmolive

US

1,056

AAA-

10%

957

AA+

34

14

Natura

Brazil

1,051

AAA-

-67%

3,220

AAA-

35

25

Sunsilk

UK

916

AA+

-37%

1,446

AA+

36

36

Old Spice

US

914

AAA-

1%

903

AAA-

37

37

Wella

US

906

AAA-

10%

827

AA+

38

40

Revlon

US

896

AA

15%

782

AA

39

New

RoC

US

884

AAA

0%

 

 

40

New

Sulwhasoo

South Korea

880

AA-

71%

515

AA-

41

24

Clean & Clear

US

856

AAA

-43%

1,505

AAA-

42

45

Hera

South Korea

839

AA-

39%

602

AA-

43

26

Lux

UK

803

AAA-

-42%

1,377

AA+

44

38

Rimmel

US

793

AA-

-3%

815

AA

45

41

Vichy

France

736

AAA

1%

732

AAA-

46

43

Kosé

Japan

723

AA-

7%

677

AA

47

New

Mamonde

South Korea

700

AA-

0%

 

 

48

30

SK-II

US

654

AA+

-46%

1,205

AAA-

49

33

Oriflame

Switzerland

642

AA+

-38%

1,038

AA+

50

New

Syoss

Germany

594

AAA-

0%

 

 

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