In the Brand Finance Annual Report, luxury brand names are are growing following the pandemic

In its annual report 2022 The company Brand Finance reveals that Nike is ranked first among the top-performing fashion brands. Fashion trends were fading away as luxury gained traction during Covid-19.

The outbreak of the pandemic was an important turning point in consumer behavior. In the past few years fashion brands for athleisure and sportswear have witnessed constant growth in value, since consumers are more likely to be at home, and pick brands based on comfort, not the fashion.

The pressures of industry and consumers are transforming priorities in the clothing industry: sportswear and high-end brands are expanding as well as brand names are losing their value. The brand's latest Brand Finance report reveals that among the top 50 apparel brands in the industry, the total value of the brand's luxury brands grew by 21 percent over the last time around (from $103 billion to USD 125 billion) Sportswear brands increased by 10 percent in the time around (from $68 billion up to $74 billion) while fast fashion brands declined by 7 per cent (from $44 billion up to $11 billion).

In response to the increased demand from consumers for sportswear, the brands within the field saw substantial rise in value of their brands: Nike (brand value up 9 percent to US$33.2 billion) , Adidas (brand value rising 2.5% in the range of US$14.6 billion), Puma (brand value rising 13 percent up to US$4.5 billion) and Lululemon (brand value up 28 percent to US$4.2 billion). Nike is still at the top as the most effective brand since the rankings' inception.

Smaller brand names in sportswear are some of the most rapidly growing brands in the rankings including Skechers (brand value rising 68 % in the range of US$3.2 billion) and Li Ning (brand value brand increasing by 68 percent, reaching US$2.0 billion).

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Screenshot Brand Finance

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Screenshot Brand Finance

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Screenshot Brand Finance

Fast fashion brands in decline

Dynamic dynamics are not the same for brands that are fast fashion like Zara which is down 1 percentage to US$13 billion. H&M which is increasing 3 percent US$12.7 billion US, Uniqlo with brand value dropping by 26 per cent to US$9.6 billion, and Primark/Penneys which has a brand worth falling 10% in the range of US$2.2 billion. Fast fashion brands have faced tough times in recent years, with their values either steady or declining.

The desire of consumers to live a greener fashion is the reason behind this shift however it's not the sole reason. A lot of fast fashion brands depend on physical stores to reach large sales. Since stores have been shut down because of restrictions on pandemics, the desire for shopping online has grown.

For Brand Finance Labels have faced the loss of their business model. It was difficult for them selling their goods online with a lower margin while incorporating the cost of delivery and logistics. This led the price of fashion brands that are fast-fashion to drop in the fashion industry.

The increasing value of luxury high-end brands

After losing value over the last 2 years, sector of luxury is now recovering and growing this year. In other words Nine of the best 10 luxury brands are back to growth. Consumers who haven't been able to afford their dream vacation, are now betting on clothing, specifically expensive luxury goods. Contrary to fast fashion companies and the high-end brands, the brands that make up the top 10 have exhibited more resistance to the drastic changes the industry has seen in the course of the epidemic.

Luxury brands such as Louis Vuitton (brand value increasing by 58 percent to US$23.4 billion), Gucci (brand value increased by 16.6% in the range of US$18.1 billion ) and Armani (brand value increased by 9 percentage points up to US$3.3 billion) have seen their brand values increase dramatically.

Brands with luxury also lead the top spot among the 50 brand new entries: Boss (brand value up 54 percent to US$1.7 billion), Bottega Veneta (brand value increased by 25 percent to .7 billion US dollars) and the brand of luxury jewelry Van Cleef & Arpel