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L’Oreal has been named the world’s fifth most valuable brand in Euromonitor International’s latest Top 100 Megabrands report.

Released this month, the prestigious list ranks the world’s most successful FMCG brands on their retail sales value in 2017.

The French cosmetics giant was however not the only beauty brand to make it into the Top 100 – 24 other ‘beauty and personal care’ brands made the list to account for one quarter of all the listings which included packaged food, soft drink, health, home care, hot drink and pet care brands

According to Euromonitor, while several major brands have maintained their ranking for some time, the balance across the Top 100 list is shifting.

“People’s attitudes to health and premiumisation are evolving and brands that cannot meet new realities have lost out,” says report author Tom Rees.

“Changes in how people research and shop online are having a profound impact.

“Also, the importance of different regions of the world has changed for many of these megabrands, raising the question of where companies should focus their resources most effectively.”

In regards to the beauty and personal care category, Rees says that that while there has been movement across the Top 10, the rankings have not changed significantly since 2014 as both L’Oreal Paris and Nivea have retained their first and second positions and only one new brand (Shiseido) has entered the top 10.

Rees also notes that the key trend in the beauty and personal care market has been premiumisation.

“Revived consumer confidence in key markets, plus aspirational demand in emerging regions has grown the premium market substantially.

“Mass market brands have responded and premium brands have sought to increase differentiation through ‘authentic’ positioning and personalisation.”

He explains that the growth of e-commerce has exacerbated this trend.

“As online retailers look to own the customer relationship, brands have to avoid commoditisation.”

Rees also points out that the Asia Pacific region is becoming increasingly important for beauty and personal care brands.

“The top three brands, L’Oréal Paris, Nivea and Colgate are particularly strong in Asia Pacific and North America,” he says.

“In Nivea’s case retail sales have fallen in Western Europe since 2014’s data, but sales in the Asia Pacific region have risen steadily, with China now the brand’s third most important market.”

He concludes that Shiseido best illustrates the importance of the Asia Pacific region for beauty and personal care brands — “a Number 1 rank there makes it eighth globally”.

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