22 Jul 2024 01:56

Editor's Pick Global Premium Content

Luxury brands shine in brand value and strength in new ranking

The world’s most iconic Luxury & Premium brands are manoeuvring through recent dips in the global economy

Porsche retains position as world’s most valuable Luxury & Premium brand; Louis Vuitton and Chanel round out top 3

High familiarity drives luxury brands’ exceptional brand strength; Rolex becomes 2024’s strongest luxury brand

Sustainability an increasing driver of consideration in the luxury sector; automobile sector leads for sustainability perceptions

Porsche (brand value up 17% to USD43.1 billion) has retained its position as the world’s most valuable Luxury & Premium brand for the seventh consecutive year, according to new data from Brand Finance. French apparel giants Louis Vuitton (brand value up 23% to USD32.2 billion) and Chanel (brand value up 35% to USD26.1 billion) retain second and third positions in the 2024 ranking. As rising cost of living and economic instability have reduced spending for many, affluent consumers have sustained their purchasing power in challenging economic conditions, translating into continued sales growth for the world’s most valuable luxury brands.

Rolex has become the strongest Luxury & Premium brand in 2024, earning a brand strength index (BSI) score of 90.1/100 and an equivalent AAA+ rating, followed by Ferrari, earning a BSI of 90.0/100 and an AAA+ rating. Chanel jumps up a considerable 16 ranks to 3rd position for brand strength, scoring 88.9./100. Notably, these brands command exceptional scores in the familiarity and reputation metrics of Brand Finance’s research, highlighting their globally renowned statuses and positive consumer perceptions. Leveraging their iconic legacies and unique heritages, these brands are further enhancing global familiarity through initiatives ranging from celebrity partnerships to product innovations, and digital experiences.

Annie Brown, Valuation Director at Brand Finance UK, commented, “Strong brands are built on more than just sales. This year’s leading luxury brands are remarkable for their unique ability to preserve and enhance brand strength, even in times of economic uncertainty. Traditional players are now finding new and innovative ways to deliver premium experiences that resonate with the modern luxury consumer while staying true to their distinctive heritage and iconic legacies. This balance between embracing transformation while preserving a tradition is fundamental to their enduring brand power.”

This year’s research also indicates a more influential role for sustainability in driving choice within the Luxury & Premium market segments of Auto, Apparel, and Cosmetics. In these segments, sustainability driver scores are over 1.5 times higher than for the sector overall. Luxury Auto has the highest driver score across all industries the research covers, at 23.8%. Luxury Apparel (12.2%) and Luxury Cosmetics (11.4%) also have significant driver scores.

Why would sustainability have a more influential role in luxury segments? There may be multiple effects at play.

Robert Haigh, Strategy and Sustainability Director at Brand Finance, commented, “A brand’s sustainability commitments can imply a slight cost increase that necessitates more premium positioning. Premium-segment consumers also have less price sensitivity, enabling them to seek improvements on other attributes, including sustainability. Lastly, at the premium end of many markets, brands become more than just a guarantee of attributes to the consumer—their products also signal the purchaser’s status, taste, identity, or ethics to others.”

In Luxury Apparel, Louis Vuitton has the highest Sustainability Perceptions Value, at USD3.8 billion, followed by Chanel and Hermès. Luxury Auto sees Porsche (USD10.5 billion) in the top spot, ahead of Ferrari and Lamborghini. The highest Sustainability Perceptions Value in Luxury Cosmetics belongs to Guerlain (USD732 million), followed by Lancôme and Estée Lauder.

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