This post was originally published on this site
Nike NKE, -3.71% has retained its spot as the world’s most valuable apparel brand but the brand value of the sector could fall by 20% due to the coronavirus pandemic, according to a global report.
The U.S. sportswear giant’s brand value jumped 7% to $34.8 billion as of Jan.1, the Brand Finance Apparel 50 index found.
Sporting goods rival Adidas ADS, -6.06% stayed in third place as its brand value dropped 1% to $16.5 billion, behind Gucci in second, which rose 20% to $17.6 billion.
Jeans brand Levi’s LEVI, -6.10% was the fastest growing brand, rising 38% to $4.1 billion, while Valentino and Gap suffered the sharpest falls in value.
However, the report warned that the brand value of the world’s biggest 500 companies could fall by up to $1 trillion, with the apparel sector one of the worst affected falling 20%.
Nike and Adidas have both been forced to close stores around the world, with sales expected to be severely hit in the first half of the year.
Read:Adidas gets $3.3 billion government-backed loan as it warns of pandemic hit to sales
Brand Finance managing director Richard Haigh said: “The Covid-19 pandemic is undoubtedly going to hit the apparel sector hard – Brand Finance has predicted that apparel brands could face up to a 20% drop in brand value.
“As these brands negotiate store and factory closures, broken supply chains and a customer base that is facing unprecedented economic uncertainty, they will have to prepare for a tough and turbulent journey ahead.”
A brand’s value is the economic benefit it would achieve if it was licenced in the open market, according to the consultancy. The index also includes brand strength, which is calculated as the efficacy of a brand’s performance relative to its peers.
See also:Nike stock rallies as retailer sees 36% digital sales growth
Rolex retained its position as the world’s strongest apparel brand, according to the index.
Brand Finance ranked sectors in terms of how severely they would be impacted by coronavirus, with the brand value of apparel, airlines, restaurants, retail and auto parts industries all falling 20%.
Amazon AMZN, +0.49% beat Google GOOG, -1.26%, Apple AAPL, -1.28% and Microsoft MSFT, -1.15% to become the world’s most valuable brand in the consultancy’s global 500 index earlier this year.
The value of the e-commerce giant’s brand has soared 17.5% to a record $220.8 billion in 2019 – the first brand to top $200 billion, the report found.
