Dubai, United Arab Emirates (CNN) – The 5 largest brands in the world are likely to lose up to about a trillion dollars of their value as a result of the outbreak of the Corona virus, which has caused the closure of business worldwide, and negatively affected several industries, most notably the clothing sector. Hardest hit.
A new report from “Brand Finance” analyzing the impact of the Corona pandemic on the clothing industry shows that the sector has been among the most affected globally by the outbreak of the epidemic, and may face a potential 20% loss in the value of brands.
Despite the chaos caused by the epidemic in the sector, flexible brands are likely to perform much better than their peers, as with the proliferation of new shopping habits and different consumer behaviors, brands will search for innovative ways to adapt to e-commerce and rebuild the business models of traditional stores.
Nike is among those brands that were able to adapt and preserve their value in the year Corona, as for the sixth year in a row, Nike won the title of the most valuable clothing brand in the world, registering a 7% increase in the brand’s value to reach $ 34.8 billion in 2020.
The sports giant has also focused on a strategic pivot distribution plan, to drastically reduce the number of retailers selling its products with the aim of regaining control over the brand’s relationship with customers and improving profit margins.
Find out more about the most valuable brands of 2020, in the above infographic:
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