Despite a significant drop in brand value – down 12% to $28.0 billion – Nike held on to its position as the world’s most valuable apparel brand in 2017, according to a new report by brand valuation and strategy consultancy, Brand Finance.

The report suggests that fourth placed Adidas (up 41% to $14.3 billion) played a key role in Nike’s falling value, with the German-based apparel brand growing rapidly across both sporting and casual categories.

The brand value of second placed H&M (down 1% to $19.0 billion) remained relatively stagnant over the last year, with a strongly performing third placed Zara (up 21% to US$17.5 billion) significantly narrowing the gap between the two brands.

Richard Haigh, managing director of Brand Finance, commented: “The top four brands in apparel are here to stay. However, steep competition to maximise on the sporting apparel trend, coupled with increased choice and information for the consumer could threaten Nike’s future position in the rankings. This year, Adidas’ brand value is further encroaching on the incumbent champion, which has suffered significant loss to brand value.  Empowerment to the consumer is having a wide-spread impact on the industry, allowing fast-fashion retailer Zara to reign supreme on the high street, challenging H&M and leveraging both online and offline sales platforms to meet consumer demands for variety, fashion and low prices.”