Valued at US$1.7 billion, Natura elected the world’s “strongest” brand

RIO DE JANEIRO, BRAZIL – A digital presence has become a critical issue for the perception of brand value, before product sustainability.

According to the newly released Brand Finance survey, after a crazy 2020, L’Óreal is the most valuable cosmetics brand in the world, for the second consecutive year. The company held on to the top spot despite a 13% drop in value, which totaled US$10.2 billion this time around – equivalent to about 4.5% of its market value of nearly US$240 billion.

The following positions, up to the 10th, are taken by Gillete, Nivea, Guerlain, Estée Lauder, Pantene, Dove, Clinique, Garnier and Head & Shoulders.

But what especially interests Brazilians is that Natura was chosen as the strongest brand on the planet in the sector, in a study that combines economic performance, values and potential. After a 19% increase, the brand reached US$1.7 billion – equivalent to almost R$9 billion.

In addition to the Brazilian brand, the Natura &Co group includes two other brands among the 50 most valuable in the world: The Body Shop, which was highlighted by its strong growth, and Avon. The portfolio includes the Australian Aesop and, in the case of Avon, excludes the North American operation.

The Body Shop is one of the highlights of this edition, as a newcomer among the 50 most valuable. It debuted in 49th position, valued at US$775 million, after a 21.7% rise. The news is very encouraging, as the Natura &Co conglomerate plans to take the Brazilian brand to China with a production unit, provided that it follows the brand’s values of no animal testing.

The factors assessed in the Natura case considered investment in marketing, customer familiarity, satisfaction and corporate reputation. The company’s score was 86.7 out of 100. The Brazilian brand is ahead of, in order, Johnson’s, Dove, Rejoice, and Estée Lauder.

“Natura is perceived as an extremely strong brand in Brazil and South America, and although it is less known outside the region, its international purpose will be furthered by the growing popularity of natural products. The brand was largely able to protect itself from the negative impact of the pandemic due to the diversified risks of its business operations, which cover a wide range of products – from bath, fragrance, body and make-up. In addition, it is underpinned by the success of its parent company Natura & Co – owner of Aesop, The Body Shop and Avon – which scores well across all brand measures, including governance, sustainability and appeal to attract talent,” the report says.

Brand Finance attempts to tie together intangible values and consumer trends with the financial reality and brand performance of the industry’s leading global companies.

Drop

In the year when beauty was competing with health and comfort, Brand Finance’s survey reflects the results of the pandemic. The added value of the 50 largest cosmetics brands in the world fell by 9%, from US$137.5 billion to US$124.8 billion. There were highlights for skin and hair care products and losses for those focused on makeup, for instance – also a reflection of the social isolation policy implemented worldwide to contain Covid-19.

Among the ten leaders, the brand that lost the most value was Clinique, which retreated 19.5%, to US$5 billion. The brand dropped from the 5th to the 8th position.

The coronavirus crisis was different from the others known to the cosmetics industry. The lipstick effect? But why lipstick? Only for some meetings and lives, and that’s about it. Particularly because people became accustomed to casual clothes and a more natural look. Havaianas, Alpargatas’ brand, elected the official footwear of the pandemic, knows this best.

There is no greater value in 2021 than natural beauty. Of the 10 most valuable brands, only two showed an increase in value: Guerlain and Dove, which ranked 4th and 7th, respectively. All others posted a decrease in value.

The same, but different

Brand Finance’s 2021 survey showed a tremendous turnaround in what consumers value in a brand. The following is a snapshot of the findings:

The desire for a sustainable brand, which featured in the top spot in the 2020 survey, plummeted to a #6 priority in this edition, considering consumers’ top 10 interests. Concern for a brand with visibility in the “online” world and with ease of e-commerce tools has become the #1 item of value – it was the second most relevant issue in 2020.

Relevance regarding brand transparency jumped from 5th to 2nd position. Consumers have signaled that they want to make their own comparisons to make their decision, since they no longer depend only on shelf space in the supermarket.

The relevance of transparency about the ingredients used in cosmetics jumped from 7th to 3rd position. And the famous word-of-mouth, that is, the recommendation of friends and family members became more important after the pandemic. The relevance of this rating jumped from 11th to 5th position. It is the network effect and social selling, boosted by Covid-19.

Source: Exame