Brand Finance Cosmetics 50 May 2018 3.
Foreword.
What is the purpose of a strong brand: to attract customers, to build loyalty, to motivate
staff All true, but for a commercial brand at least, the frst answer must always be ‘to
make money’.
Huge investments are made in the design, launch, and ongoing promotion of brands.
Given their potential fnancial value, this makes sense. Unfortunately, most
organisations fail to go beyond that, missing huge opportunities to effectively make
use of what are often their most important assets. Monitoring of brand performance
should be the next step, but is often sporadic. Where it does take place, it frequently
lacks fnancial rigour and is heavily reliant on qualitative measures, poorly understood
by non-marketers.
As a result, marketing teams struggle to communicate the value of their work and
boards then underestimate the signifcance of their brands to the business. Sceptical
fnance teams, unconvinced by what they perceive as marketing mumbo jumbo, may
fail to agree necessary investments. What marketing spend there is, can end up poorly
directed as marketers are left to operate with insuffcient fnancial guidance or
accountability. The end result can be a slow but steady downward spiral of poor
communication, wasted resources, and a negative impact on the bottom line.
Brand Finance bridges the gap between marketing and fnance. Our teams have
experience across a wide range of disciplines from market research and visual identity
to tax and accounting. We understand the importance of design, advertising, and
marketing, but we also believe that the ultimate and overriding purpose of brands is to
make money. That is why we connect brands to the bottom line.
By valuing brands, we provide a mutually intelligible language for marketing and
fnance teams. Marketers then have the ability to communicate the signifcance of what
they do, and boards can use the information to chart a course that maximises profts.
Without knowing the precise, fnancial value of an asset, how can you know if you are
maximising your returns If you are intending to license a brand, how can you know
you are getting a fair price If you are intending to sell, how do you know what the right
time is How do you decide which brands to discontinue, whether to rebrand and how
to arrange your brand architecture Brand Finance has conducted thousands of brand
and branded business valuations to help answer these questions.
Brand Finance’s research revealed the compelling link between strong brands and
stock market performance. It was found that investing in highly-branded companies
would lead to a return almost double that of the average for the S&P 500 as a whole.
Acknowledging and managing a company’s intangible assets taps into the hidden
value that lies within it. The following report is a frst step to understanding more about
brands, how to value them and how to use that information to beneft the business.
The team and I look forward to continuing the conversation with you.
David Haigh
CEO, Brand Finance
Brand Finance Cosmetics 50 May 2018 5.Brand Finance Cosmetics 50 May 2018 4.
Foreword3
About Brand Finance 4
Contact Details 4
Definitions 6
Executive Summary 8
Full Table 12
Methodology 14
Understand Your Brand’s Value 15
Consulting Services 16
Communications Services 17
Contents.
4.
About Brand Finance.
Brand Finance is the world’s leading independent
brand valuation and strategy consultancy.
Brand Finance was set up in 1996 with the aim of
‘bridging the gap between marketing and fnance’.
For more than 20 years, we have helped companies
and organisations of all types to connect their brands
to the bottom line.
We pride ourselves on four key strengths:
Independence
Technical Credibility
Transparency
Expertise.
Brand Finance puts thousands of the world’s biggest
brands to the test every year, evaluating which are the
strongest and most valuable.
For more information, please visit our website:
www.brandfinance
Contact Details.
For business enquiries,
please contact:
Richard Haigh
Managing Director
rd.haigh@brandfnance
For media enquiries,
please contact:
Konrad Jagodzinski
Communications Director
k.jagodzinski@brandfnance
For all other enquiries,
please contact:
enquiries@brandfnance
+44 (0)207 389 9400
linkedin/company/
brand-fnance
facebook/brandfnance
twitter/brandfnance
For further information on Brand Finance’s services and valuation experience,
please contact your local representative:
Country Contact Email address
Asia Pacifc Samir Dixit s.dixit@brandfnance +65 906 98 651
Australia Mark Crowe m.crowe@brandfnance +61 282 498 320
Canada Charles Scarlett-Smith c.scarlett-smith@brandfnance +1 647 3437 266
Caribbean Nigel Cooper n.cooper@brandfnance +1 876 8256 598
ChinaScott Chen s.chen@brandfnance +86 1860 118 8821
East Africa Jawad Jafer j.jafer@brandfnance +254 204 440 053
France Victoire Ruault v.ruault@brandfnance +44 207 389 9427
Germany Holger Mühlbauer h.muehlbauer@brandfnance +49 1515 474 9834
India Savio D’Souza s.dsouza@brandfnance +44 207 389 9400
Indonesia Jimmy Halim j.halim@brandfnance +62 215 3678 064
Ireland Simon Haigh s.haigh@brandfnance +353 087 6695 881
Italy Massimo Pizzo m.pizzo@brandfnance +39 230 312 5105
Mexico & LatAm Laurence Newell l.newell@brandfnance +52 1559 197 1925
Middle East Andrew Campbell a.campbell@brandfnance +971 508 113 341
Nigeria Babatunde Odumeru t.odumeru@brandfnance +234 012 911 988
Romania Mihai Bogdan m.bogdan@brandfnance +40 728 702 705
Spain Teresa de Lemus t.delemus@brandfnance +34 654 481 043
South Africa Jeremy Sampson j.sampson@brandfnance +27 828 857 300
Sri Lanka Ruchi Gunewardene r.gunewardene@brandfnance +94 114 941 670
Turkey Muhterem Ilgüner m.ilguner@brandfnance +90 216 3526 729
UK Richard Haigh rd.haigh@brandfnance +44 207 389 9400
USA Laurence Newell l.newell@brandfnance +1 917 794 3249
Vietnam Lai Tien Manh m.lai@brandfnance +84 473 004 468
Brand Finance Cosmetics 50 May 2018 7.Brand Finance Cosmetics 50 May 2018 6.
Definitions.
Definitions.
Brand Value
+Enterprise Value
The value of the entire enterprise, made
up of multiple branded businesses.
Where a company has a purely mono-
branded architecture, the ‘enterprise value’
is the same as ‘branded business value’.
+Branded Business Value
The value of a single branded business
operating under the subject brand.
A brand should be viewed in the context of
the business in which it operates. Brand
Finance always conducts a branded
business valuation as part of any brand
valuation. We evaluate the full brand value
chain in order to understand the links
between marketing investment, brand-
tracking data, and stakeholder behaviour.
+Brand Contribution
The overall uplift in shareholder value
that the business derives from owning
the brand rather than operating a
generic brand.
The brand values contained in our league
tables are those of the potentially
transferable brand assets only, making
‘brand contribution’ a wider concept. An
assessment of overall ‘brand contribution’ to
a business provides additional insights to
help optimise performance.
+Brand Value
The value of the trade mark and
associated marketing IP within the
branded business.
Brand Finance helped to craft the
internationally recognised standard on
Brand Valuation – ISO 10668. It defnes
brand as a marketing-related intangible
asset including, but not limited to, names,
terms,