Louis Vuitton may be the most valuable luxury brand, but it is losing ground, according to the latest Top 100 BrandZ survey.
The report, which is released by consulting firm Millward Brown outlines the Top 100 Most Valuable Global Brands.
Apple clinched the No.1 top spot again ($US185 billion) and the top luxury company is Louis Vuitton, coming in at 29th position.
The French luxury house clinched the top spot for an eighth straight year, but is losing ground as Italian brands Gucci (68th) and Prada (95th) are slowing creeping up. Louis Vuitton’s brand value dipped by 12 per cent from last year to $US22.7 billion.
The value of PPR’s Gucci brand surged 48 per cent to $US12.7 billion, ranking it the third in the luxury list, while Prada’s worth soared an impressive 63 per cent to US$9.45 billion, placing it fourth, Millward Brown Optimor said. French luxury house Hermes stayed in second place at $US19.1 billion, unchanged from last year.
Rounding out the top ten when it comes to luxury was Rolex, Chanel, Cartier, Burberry, Fendi and Coach.
Overall, luxury grew by 6 per cent, which is a strong increase but softer than the 15 per cent the previous year because sales slowed in the BRICs (Brazil, Russia, India & China) markets.
Even as the rate of economic expansion slowed in the BRIC countries, luxury sales still grew. Wealthy Asian clients continued to support and bolster the brands both with purchases made at home and while traveling abroad, which helped grow financial results in Europe.
We have spoken about the slowdown in China’s economic growth, but loyalty still seems to count for something when it comes to some luxury brands.
Chanel and Louis Vuitton illustrate how luxury brands cultivate Brand Contribution in various ways. Chanel emphasizes the brand’s exclusivity, while Louis Vuitton tends to be more accessible, widely celebrating its heritage in travel and evoking the elegance of earlier periods.
Will Louis Vuitton get the top spot for 2013 for a ninth straight year?
By Cassandra Murnieks
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