Interbrand, company with 35 years of experience on retail brand consulting, has released its report ‘Best Retail Brands 2014’, pointing out H&M (1st) and Zara (3rd) as the best retail apparel brands in Europe.
Followed with a certain distance, we can also find UK retailers Marks & Spencer (6th) and Next (16th), Spanish labels Mango (17th), Bershka (18th), Massimo Dutti (25th) and UK online retailer ASOS (29th) as fashion representatives in the ranking.
Interbrand’s study points out that ‘big players ably manage to stay on top of trends while feeding shoppers’ social media appetites. The fast fashion model […] continues to keep prices low and inventory fresh’. Even though questioning lack of sustainability and unsafe/unfair labor practices, ‘consumer spending has not slowed significantly so far’.

The brands ranking provides sector overviews (apparel, department store, drugstore, electronics, grocery, home improvement and mass merchant) as well as regional overviews (North America, Europe, Asia-Pacific, and Latin America). In North America, the most valued apparel-only retail brands this year are Coach (position 9th), Nordstrom (12th) and Victoria's Secret (15th) whereas in the Asia-Pacific region, the most valued fashion retailer Japanese Uniqlo (2nd).

In order to obtain these results, Interbrand analyzes three key components in the four regional valuations for Best Retail Brands 2014.
  • Analyses of the financial performance of the retailer: overall financial return to an organization’s investors or its economic profit (after-tax operating profit of the brand).

  • The role the brand plays in the purchase decision: the portion of the decision to purchase that is attributable to the brand, relative to other factors (e.g. purchase drivers like price or location).

  • The competitive strength of the brand: the ability of the brand to create loyalty and, therefore, to keep generating demand and profit into the future.
The full report can be downloaded here.