Lululemon 4th in Top 40 Most Valuable Canadian Brands list
October 31, 2020 - Canada
Vancouver-headquartered athletic apparel brand Lululemon Athletica rose in value of 60 per cent, ranking fourth ($12.1 billion) in the second annual BrandZTM Top 40 Most Valuable Canadian Brands ranking. The brand benefited from the lockdown by being e-commerce ready at a time when being at home gave people more time to focus on their wellbeing.
It also grew through a successful strategic expansion into the male segment. Its unique approach has made it the third-largest apparel brand in the world by sales, a press release from evidence-based insights and consulting company Kantar said.
The ranking was announced recently by Kantar and creative transformation company WPP.
The Royal Bank of Canada and TD Bank retained the top spots despite the challenges posed by the COVID-19 pandemic.
The total value of the brands in the ranking slipped by 6 per cent to $135 billion in the face of tough economic conditions caused by the lockdown, though this was ahead of similarly sized European economies, such as Spain and Italy.
The dividing line between the strongest-performing brands and those that struggled was the perception of 'difference'. A high score for difference highlights that consumers think a brand stands out from its rivals, while enabling it to charge a premium and generate greater overseas value.
The 10 Canadian brands that scored most highly on difference grew by 6 per cent. Brands that demonstrate outstanding performance on difference include Aritzia, Tim Hortons and Lululemon.
Canadian consumers' use of online shopping nearly doubled in the first half of 2020, with 48 per cent buying more online, which boosted e-commerce. At the same time, BrandZ data shows that consumer perceptions of Canadian brands' ability to deliver a great brand experience have declined.
Improving the online and offline experience will play a vital part in brands' future performance; this is also a key contributing factor to creating differentiation, the press release said.