The latest global brands ranking by WPP and Kantar Millward Brown show luxury companies have increased their value by 28 percent, with Louis Vuitton, Hermès and Gucci in the top three rankings. Louis Vuitton and Hermès are valued at 41.1 billion and 28 billion dollars respectively.
Gucci leads the luxury brands in value rise
“Gucci led the Brandz luxury Top 10 in value with tremendous one-year gain of 66 percent. Over 12 years, the Gucci brand increased 414 percent in value. Its recent bold designs and colours capture the mood of the time, and Guggi increase its scores in Meaning Difference and Trust, “ says Susannah Outfin, Managing Partner Mindshare.
2018 marks the 13th annual BrandZ ranking, where value is measured by financial performance and consumer perception. Eight out of the Top 10 global brands are technology or tech-related brands. This category continues to dominate the rankings with Google and Apple retaining the number 1 and 2 spots, growing +23 percent to 302.1 bn dollars and +28 percent to 300.6 bn dollars respectively. Amazon moved into the no.3 position ahead of Microsoft, growing +49 percent to 207.6 bn dollars, while Tencent ranked 5 ahead of Facebook (6) growing +65 percent in brand value to 179 bn dollars, up three places from last year’s ranking.
One of the key factors driving brand growth today is digital engagement with consumers. From leveraging social media to embracing influencers, brands that are seeing success are finding ways to turn digital marketing into sales.
“Consumer expect more from the luxury brands than the products themselves. They are demanding experiences. Look at Louis Vuitton’s storefront, for example. It’s always spectacular,” said Rubi Pabani Managing Partner at Mindshare.
Brand building action points for luxury
Be bold, take risks, be willing to communicate a unique point of view both in design and communication. Heritage is important but even a royal family needs to refresh sandpit on a modern face.
More than in most categories, luxury is about brand and originality of design, not analysis of data. Luxury brands should be neither data-driven nor data-adverse Artistic intuition, rather than data, connects fashion with the zeitgeist. But data can inform artistic intuition without subverting it.
As the market for luxury expands with new, younger consumers, it is important to be present in diverse media, which means both social media and the traditional fashion press. Print is resuming among young people as more tactile and tangible than digital.
Be exclusive, with good manners
For luxury exclusivity is essential. Being snobby, however, is poor manners. Don’t alienate the younger customer whose buying power you may need in the future.
Photo credit: Louis Vuitton Cruise collection, source Louis Vuitton website