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Even amidst a global economic crisis, luxury brands are faring pretty well.
While luxury brands are not completely immune to the effects of the recession, the industry’s biggest names – such as Louis Vuitton, Hermes and Chanel – continue to thrive, according to the annual Millward Brown BrandZ ranking of the Top 100 Most Powerful Brands, a list that covers 50,000 brands worldwide, which was released on April 29.
10. Prada
Brand value: US$2.7 billion
Although they had been planning another initial public shares offering in 2008, the once-publicly listed Prada had to put thse plans on hold due to the recession, as well as investments in new stores and product lines.
However, the value of Muccia Prada’s designs, which continue to please the who’s who of the fashion industry as well as luxury consumers, has pushed this brand into the ranks of luxury’s 10 most powerful.
Sales were flat from 2007 to 2008 at US$1.7 billion.
9. Fendi
Brand value: US$3.47 billion
Italian luxury fashion house Fendi – whose ready-to-wear collection is designed by Chanel creative director Karl Lagerfeld – is best-known for its collection of accessories.
The “baguette” clutch, which made its mark in the late 90s after being featuring on the international hit television series Sex and the City, made a comeback in 2009 with a “paint your own” coated canvas style that includes 10 Pantone markers for embellishment.
8. Moët & Chandon
Brand value: US$4.85 billion
While there’s been less reason to celebrate with a global recession in our midst and demand for Champagne has decreased overall – luxury goods conglomerate LVMH says retailers in Europe and the U.S. are reducing their stock levels – Moët & Chandon is still keeping its head way above water as the most illustrious brand of the bunch.
However, recent reports suggest that LVMH might shed its wine and spirits division altogether, under a €12 billion bid by British drinks maker, Diageo.
7. Cartier
Brand value: US$4.91 billion
While Cartier is still seen as being the most valued jewellery brand in the world, its lustre has dulled somewhat over the last year, dropping three spots in the top luxury brands ranking from its previous number four spot.
The jeweller’s parent company, Richemont, said year-over-year jewellery sales decreased by 12 per cent to €800 million (US$1.1 billion) in the fourth quarter of 2008.
Other high-end jewellers have suffered more, though: Fortunoff, Doris Panos Designs and Fred Leighton have all filed for bankruptcy protection in recent months.
6. Hennessy
Brand value: US$5.40 billion
One of the most popular spirits in emerging markets such as China and Korea, LVMH says its prestigious Hennessy brand stayed strong in those regions during the first quarter of 2009.
However, the brand’s wine and spirits category experienced an overall decrease by 16 per cent to €540 million (US$716 million) during that same period.
5. Rolex
Brand value: US$5.53 billion
Easily one of the most counterfeited brands on the planet, Rolex generates an estimated US$3 billion each year in sales, according to one study.
Although the brand’s jewellery and watch category has suffered during the recession, fashionistas’ affinity towards vintage Rolexes has brought the brand to the forefront yet again.
4. Chanel
US$6.22 billion
Praised as much for its in-demand apparel - which is currently designed by fashion design legend Karl Lagerfeld – as it is for its fashionable handbags and ballet flats, Parisian fashion house Chanel continues to reap in success, moving up one spot on this year’s list.
However, the recession forced the private company to shed 200 employees at the end of 2008.
3. Gucci
Brand value: US$7.47 billion
The biggest-selling Italian brand in the world, Gucci, with its flashy accessories and runway couture, also remains one of the world’s most sought-after brands.
Its parent company, Pinault-Printemps-Redoute (PPR), saw a 2.6 per cent decrease in year-over-year sales for the first quarter of 2009 to €4.8 billion (US$6.4 billion), but the Gucci Group subsidiary jumped 5 per cent to €855 million (US$1.1 billion) during the same period, with a 21 per cent increase in emerging-market sales.
2. Hermes
Brand value: US$7.86 billion
Paris-based high fashion luxury goods brand, Hermes, which is best known for its leather handbags priced at US$5,000 and up, saw 2008 sales increase by nine per cent to €1.8 billion (US$2.4 billion), when compared with 2007.
However, the company’s executives predict that sales will stay flat for the 2009 fiscal year.
1. Louis Vuitton
Brand value: US$19.4 billion
Although Louis Vuitton’s holding company LVMH’s jewellery and watch sales decreased by 27 per cent to €154 million (US$204 million) in the first quarter of 2009 when compared with the first quarter of 2008, sales in this luxury goods conglomerate’s fashion and leather goods sector, of which Louis Vuitton is a part, increased by 11 per cent to €1.6 billion (US$2.1 billion).
LVMH said both Louis Vuitton’s new Damier Graphite and Stephen Sprouse collections sold particularly well.
by Alex Newman September 7, 2009
Tags: luxury brands, world's most powerful
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