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Each year research group Millward Brown and the advertising conglomerate WPP ranks the top 100 most valuable global brands across categories. The study measures brand equity based on interviews with more than three million global consumers, an analysis of companies’ performance, consumers’ attitude toward purchasing its products and its potential for future earnings
Louis Vuitton, the grand dame of luxury conglomerate LVMH, leads the competition in brand value as it gained 6 percent to $27.4 billion, beating the likes of Chanel and Hermes. It is one of the two luxury fashion brands (Chanel gained 15 percent) whose brand value increased despite a sluggish sales in China and Russia.
According to Millward Brown, the value of the top 10 luxury-goods brands fell 6 percent, or $7.1 billion, to $105 billion.
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“After the global recession, luxury made a strong comeback, and in fact was the biggest growth category in 2013,” said Greg Christoforides, senior partner at Millward Brown Vermeer, New York. “Since then, there have been slowdowns in emerging markets like China, Brazil and Russia, all of which are growth engines for luxury brands.
“The anti-corruption laws in China have affected many luxury brands and there is also the grey market (i.e. price differences between geographic markets, which lead to shopper tourism), something that brands are starting to address,” he said.
“China continues to show impressive growth – mainly at Europe’s expense. China was represented by 14 brands in the 2015 report, up from one in the inaugural report in 2006. It will be interesting to see how Chinese marketers seize the opportunity to expand on the global stage.”
Trailing behind Louis Vuitton, there’s Hermès ($19 billion), Gucci ($13 billion), Chanel ($9 billion), Rolex ($8.5 billion), Cartier ($7.6 billion), Prada ($6.5 billion), Burberry ($5.7 billion), Michael Kors ($3.8 billion) and Tiffany ($3.2 billion).
The luxury ranking is part of a broader study commissioned by WPP Plc, the advertising-company parent of Millward Brown. Apple Inc. overtook Google Inc. as the world’s most valuable brand with its estimated value rising 67 percent to $247 billion, Millward Brown said. Google’s value gained 9 percent to $173.7 billion.
Vuitton ranked 34th in brand value across all industries, compared with 30th last year.