Consumers continue lust for luxury brands

Brand Finance's latest Global 500 study of the world's top brands suggests that consumers are turning their backs on traditional household favourites and lower end products and embracing luxury lifestyle and indulgent

brands despite the grim economic outlook.

The latest Global 500 report shows that the global downturn has spawned a new breed of recession proof and aspirational ‘Alphabrands’, which consumers are turning to for quality regardless of the economic conditions, with the overall value of Global 500 increasing by 3.3 per cent to US $3,415 billion from 2011 to 2012.

High end fashion houses continue to flourish and account for nine out of the top 15 luxury brands including Louis Vuitton, which has been valued at $US 4.9 billion with a 24 per cent increase, Hermes has seen an increase of 9 per cent to $US3.4 billion, and Polo Ralph Lauren with $US 3.4 billion a 6 per cent increase, all have significantly increased their brand value.

The 2012 list has also seen the re-entry of high end fashion brands such as Prada and Coach, whilst Christian Dior, Burberry and Tiffany & Co appear as new entrants in the Global 500 tables.

The rest of the Global 500 table is dominated by automotive and technology brands including Apple, which has leapfrogged Google to be named as the world’s most valuable brand, having the highest ever valuation calculated by Brand Finance at $US70.6 billion.

David Haigh, CEO of Brand Finance, commenting on the report said: "The rise to prominence of luxury and lifestyle brands in this year's report is quite impressive. Whilst the world remains shrouded in economic misery, people are investing their hard earned cash in brands they feel they can rely on to produce quality, long lasting products."

Image: Louis Vuitton AW12