The Grey Relation Comparison of Brand Value and Business Ranking for L’Oréal and Dior

As the only luxury company in the Fortune Global 500 list, Dior is far behind the FMCG company L’Oréal in the world’s most famous brand value appraisal agency Interbrand. However, Dior is far superior to L’Oréal in the Fortune Global 500 ranking. The difference between which is due to the calculation basis. This paper analyzes the calculation basis of Interbrand and Fortune Global 500 ranking by Gray Relation Analysis, and finds that the impact of profits, assets, shareholders’ equity and number of employees on the ranking of Fortune Global 500 and Interbrand models is significantly different. The analysis shows that both Dior and L’Oréal have the strongest correlation between shareholders’ equity and its ranking results in both Fortune Global 500 results. This is true for L’Oréal in the Interbrand valuation model. For Dior, however, profits has the strongest impact on its ranking in the Interbrand valuation model. The two companies need to start from the two factors of shareholders’ equity and profits respectively if they want to improve their corporate rankings and brand value.