World's Most Valuable Luxury Brands

by Carrie Coolidge (RSS feed)
Apr 28th 2010 at 8:31AM

What is the world's most valuable luxury brand? According to a study released today compiled by market research firm Millward Brown Optimor, the most valuable brand is France's Louis Vuitton with a brand value of nearly $19.8 billion.

Hermes, with a brand value of $8.45 billion, landed in the second spot, followed by Gucci ($7.58 billion), Chanel ($5.54 billion) and Hennessy ($5.36 billion).

Millward Brown used an economic use approach to the valuation, with brand values based on the intrinsic value of the brand derived from its ability to generate demand. The values reflect the sum of all future earnings a brand is forecasted to generate, discounted to present-day value.

"The big takeaway is that brands that focused on heritage are the ones that topped the list," says Lauren Sherman, editor of Fashionista, a fashion news website. "Louis Vuitton, Hermes and Gucci all focused this year on heritage."

According to Sherman, Louis Vuitton's advertising campaigns focused on travel, which ties to its history of being a maker of steamer trunks, while Hermes began to again market their saddles and also sponsored a horse show in Paris, which they haven't done in years. "They are going back to the basics."

Gucci, on the other hand, is focusing on its vintage bags. The company recently formed a partnership with Christie's in which the auction house will provide appraisal services for owners of vintage Gucci leathergoods. "Gucci Collector: Presented by Christie's" provides auction estimates for vintage Gucci items that are of a type and value typically sold at Christie's. The service is provided free of charge.

"Gucci wants to bring back the company from mass luxury which it had become," says Sherman.

Millward Brown used the BrandZ database of its parent company, WPP, which owns several marketing, advertising and public relations firms, among others. BrandZ tracked sales and marketing for more than 1,000 brands over the course of a year to come up with the list.

The brand that saw the most growth on the list this year was Hermes, with an increase of 8%.

Perhaps most surprising about the list this year were the brands that didn't fare well. The brands that are more closely associated with trends and high fashion, such as Prada and Burberry, did not rank high on the list---in fact, Prada was knocked off the top ten list altogether.

Chanel's ranking dropped from where it was a year ago and lost 11% of its brand value. "Chanel will always sell perfume and leather goods which are classic products, but compared to Gucci and Louis Vuitton, they are more associated with high fashion," says Sherman. "Any brand where the runway is more important than the boutique, suffered a bit."

See Fashionista's report to view the rest of the top ten list of the world's most valuable brands.

Tags: Chanel, Christies, Fashionista, fashionista.com, Gucci, hennessy, Hermes, Louis Vuitton, Millward Brown

Filed under: Apparel, Handbags

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Reader Comments (Page 1 of 1)

RYAN Apr 28th 2010 10:20AM

Ugly....honestly,I never got it,never understood why people liked their stuff.....sorta hidious to me.

Yon Apr 28th 2010 12:26PM

It is interesting what motivates people to buy and use items that are far costlier than plain run of the mill ones, are generally not aesthetic, are impractical, smell like excrement, advertise wealth and make you a crime target. But then, how often do you get highjacked in your private jet?

sean murrey Apr 28th 2010 12:57PM

i wouldnt buy that stuff useless to me.

What?! Apr 28th 2010 1:07PM

Just a bag to me. Gee.

steve Apr 28th 2010 1:26PM

How much would those bags cost?

ronandlane Apr 28th 2010 1:45PM

Louis Vuitton has been knocked off so widely it's impossible to tell the fakes from the real ones and additionally they have failed to keep up with modern styling, unlike Coach that has really managed to stay ahead of the curve and manufacture gorgeous items for affordable prices. Have you ever tried to buy an authentic Louis Vuitton item? The prices are outright obscene.

Cathy Apr 28th 2010 5:58PM

Gotta have it, Gotta have it, Gotta have it....Gotta have it now! All my friends have one already...Wahhhhhhhh!! Yet it's usually some poor smuck is out working his nuts off to pay for this junk. Made in France, Made in Italy...Maybe tell the truth, most of the xrap is made over in China. Good Grief! And what looks even worse is all those that can afford the real thing, they go out and buy all these cheap plastic lookalikes anyone with a good eye can tell they are fakes from a mile distance. Nobody needs to be spending that much money on stuff like that.
You can walk into any Salvation Army or Goodwill and find where they all end up...So save your money for some better use.

erica Apr 30th 2010 8:34AM

I have a girlfriend who loves Louis Vuitton, every time I see her with one I can't help checking it out trying to find the appeal. They all look like they are made of a high grade plastic, and they are ugly to boot! Some thing is wrong when you have to buy ugly expensive things just so you can show you can... Is this a plea, I want to fit in, ..spend it on a shrink, better spent!