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Identification of Factors of Fashion Company's Brand Value

Student: Marina Irina

Supervisor: Ivan D. Kotliarov

Faculty: St.Petersburg School of Economics and Management

Educational Programme: Economics (Bachelor)

Year of Graduation: 2019

The topic of this Graduation Qualification Work is “Identification of Factors of Fashion Company's Brand Value” - within the framework of which a study was conducted to identify factors affecting the brand value of a fashion industry company. The most significant factors shaping the brand value were investigated, and a final regression model based on the 100 most expensive brands in the world was obtained. This model was applied to the Russian company Gloria Jeans, that is not included in the Top 100 global brands, to calculate its brand value and test the versatility of the model. The relevance of the topic lies in the increasing uncertainty and the lack of a clear framework, both of the very concept of a brand in the fashion industry, and of methods for evaluating a fashion brand. Literature review was made regarding the concept of brand, brand value, cost factors and basic valuation methods. Also, review of the state of the fashion industry was made and its main characteristics for 2019 (uncertainty, speed, change) were revealed. Regressors were selected for inclusion in the model, before the models were built. A regression model of brand value was derived, the quality of which was verified by using various tests. Thus, factors affecting the value of a fashion brand, as well as the nature of their influence, are identified. The use of the model for calculating the cost of the Gloria Jeans brand led to overestimated results regarding the assessment carried out according to the Future Brand methodology, which is contrary to common sense due to the bias of the resulting model because only the most expensive brands were included in the sample. Analysis of the Top 200 brands was also conducted, on the basis of which the trend of increasing deviation of the regression estimate from the actual value was identified.

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