Lululemon continues its amazing international success story as one of Canada’s most valuable brands
Canada’s big banks dominate in a new league table of brand equity but they are not the big story.
The second annual Brandz Top 40 Most Valuable Brands rankings are led by RBC and TD, worth US$21.7 billion and $17.2 billion respectively, with Scotiabank, BMO, and CIBC also making the top 10.
But it is one of Canada’s most successful international brands that has achieved some impressive numbers.
Lululemon takes the fourth spot, just behind Bell ($13.6bn), with the company seeing a 60% increase in brand value year-over-year to $12.1 billion.
Yoga and other leisurewear has been in demand during global lockdowns and Lululemon’s strong ecommerce offering, combined with expansion into the male segment of the market, have benefitted the firm.
The firm’s international success is counter to the firms included in the rankings as a whole. Only 28% of the BrandZ Canadian Top 40's value comes from overseas contribution but for Lululemon 86% of its value is from international exposure.
Winners and losers
The Top 40, from Kantar and WPP, comes from analysis of Bloomberg data and interviews with Canadian consumers. Firms must be based in Canada and either have a TSX listing or be a private company with publicly available complete financial statements.
Apparel (+55%), Retail (+13%) and Food (+12) were the sectors that led in value growth during the year. Luxury, Energy and Travel Services were the hardest hit categories, down -29%, -29% and -18% respectively.
"Strong brands are far more insulated from crises and economic shocks, and also gather pace much faster when the recovery comes. We are still in the midst of a global pandemic, but Canadian brands can do much to protect their businesses from what may lie ahead,” said Scott Megginson, President, Insights Division, Canada at Kantar. “There are huge untapped opportunities to build a strong sense of difference. Brands can take advantage of premium positioning and consumer loyalty earned by having a distinct offering in a marketplace that's dominated by value brands.”
With five of Canada’s big banks in the top 10 for 2020, the industry’s leading names are well-placed to opine on why they are winning consumers’ business.
"Helping clients and communities is what gives the RBC brand its meaning and strength,” said Mary DePaoli, executive vice-president & chief marketing officer, RBC. “We are grateful to our clients for putting their trust in us, and to our employees for their commitment to delivering exceptional advice and service. They are RBC's greatest brand ambassadors."
BrandZ Top 10 Most Valuable Canadian Brands 2020
