Statistical Analysis of the Impact of Branding and Marketing on the Competitiveness of TNCs in the Global Clothing Market (based on the materials of Zara, Nike, Dior, Prada Companies)

Abstract

The main objective of this study is to analyze the impact of branding and marketing on the competitiveness of leading companies in the fashion and sports sectors (Nike, Zara, Dior, and Prada) from 2020 to 2023. The research aims to determine how advertising expenses, goodwill, and brand value influence these companies' ability to maintain and improve their competitive positions in the market. Methods. To conduct the study, regression analysis method was used. Regression analysis identified the relationships between advertising expenses, goodwill, and brand value on one hand, and competitiveness indicators on the other. Results. The article examines the impact of branding and marketing on the competitiveness of four leading companies in the fashion sectors: Nike, Zara, Dior, and Prada. To assess the effect of branding on company competitiveness, three main factor indicators were used: advertising expenses, goodwill, and brand value. The competitiveness indicator was chosen as the performance measure. The analysis covers the period from 2020 to 2023, allowing for the consideration of both stable and crisis years for the fashion and sports industries. Conclusions.Based on regression analysis of individual companies in both the luxury and mass-market segments, we can draw several key conclusions. In the luxury segment, comparing Dior and Prada, Dior's indicators are significantly higher across the board. Competitiveness coefficients for both brands do not follow a consistent trend, except for a notable increase during 2021-2022, likely due to post-quarantine recovery. Both companies spend $480-680 million on advertising, but Dior's brand value and goodwill are significantly higher than Prada's and have doubled over time. Goodwill inversely affects competitiveness, reflecting the luxury market's focus on brand uniqueness, exclusivity, and high customer loyalty over intangible assets. Brand value has the least impact on competitiveness, as luxury brands maintain strong market status and stability. In the mass-market segment, Nike generally outperforms Zara in most indicators. Competitiveness coefficients lack a clear trend but rose from 2020 to 2022, suggesting better pandemic adaptation. Nike's advertising expenses are significantly higher due to its focus on high-quality campaigns, and its brand value is twice that of Zara. Goodwill for both companies is within $193-284 million, typical for the mass-market. Here, goodwill directly influences competitiveness, underscoring the importance of brand reputation in a highly competitive market. Brand value has the most significant impact on competitiveness, as strong brand recognition and trust are crucial for standing out and commanding higher prices in the mass-market segment.