The luxury goods category is beginning to be defined by a growing sense of responsibility and a greater online presence. The luxury segment took center stage in the ranking, becoming the fastest-growing category in the 2019 BrandZ Top 100 Most Valuable Global Brands study.
The luxury goods category recorded exceptional growth thanks to a shift in the existing tension between exclusivity and accessibility, which is linked to its appeal to two different audience groups.
First place in the ranking has been held unchangingly for 14 years by Louis Vuitton. Over the past year, LV increased its brand value by 15% to USD 47.2 billion. Thanks to its distinctive look, clear brand identity and attractive cultural heritage, the LV brand continues to achieve growth. The next places were also taken by French brands such as CHANEL (No. 2 - USD 37 billion) and Hermès (No. 3 - USD 31 billion). The fastest-growing brand was DIOR (No. 8), whose value rose by as much as 29% thanks to its perfume and cosmetics offerings; countries such as China and the USA contributed to its success.
The LV brand "updated" its heritage by entering the travel products segment, while other exclusive brands, such as Chanel (No. 2) and Cartier (No. 6 - USD 6.0 billion), remained consistent with the heritage they had developed. Chanel kept its brand in the cosmetics services segment – the brand was created more than 30 years ago on the initiative of the recently deceased Karl Lagerfeld, who gave it such qualities as attractiveness, creativity and innovativeness.
Gucci (No. 4 - USD 25.3 billion), the most valuable Italian brand in the global BrandZ ranking for seven years, changed and revived itself thanks to a new wave of creative solutions. Along with an increased emphasis on e-commerce and digital media communication strategies, thanks to bold designs and a somewhat flashy style that draws inspiration from the brand's heritage, Gucci's innovative approach attracted new fashion fans and younger consumers to the brand, which translated into increased sales and further brand development.
Luxury brands that ignore CSR issues do so at their own risk
We are observing that more and more luxury brands are taking a stance on important issues. Positive brand activity helps it demonstrate a clear purpose and authenticity. For some customers, associating a brand with a specific political or social pursuit makes buying something luxurious for themselves more permissible - assesses Elspeth Cheung.
ABOUT THE BRANDZ TOP 100 RANKING
The BrandZ™ Top 100 Most Valuable Global Brands ranking is conducted by Kantar. It is a study that combines brand value indicators based on interviews conducted with more than 3 million consumers worldwide. These interviews concern thousands of global consumer brands and business-to-business brands. A methodological analysis of each company's financial and business results is then carried out (based on data provided by Bloomberg and Kantar Worldpanel) to isolate the brand's impact on generated sales and shareholder value.
