Louis Vuitton remains top-seed in the roster of top 5 luxury brands

Louis Vuitton remains the most valuable luxury brand in the world with an overall brand goodwill valued at $25.9 Billion, the latest survey done by Millward Brown Optimor under the study banner BrandZ.

The French handbag-makers showed a promising increase of 7 percent in the worth of their brand over the course of one year. The increase in the brand’s goodwill in the market shows that the company made more profits compared to the previous term. This is most certainly a reassuring indicator amid the financial crisis that has devoured the better part of Europe.

The second in line is Hermes that secured a brand value of $19.1 Billion during the same period. Louis Vuitton also has stake in Hermes and that might be a catalyst in bringing the brand in the top 3 slot, which showed a whopping 61 percent increase in the value. The third spot was stolen by Rolex, the Swiss watch-makers, with $7.17 billion, a 36 percent gain.

“Luxury is seen as a good investment with people increasingly buying classic pieces rather than high fashion,” Millward Brown Optimor Managing Director Nick Cooper said in a statement. “Those who can afford it indulge, including young professionals who, increasingly unable to buy houses, are spending their disposable income on mid-tier luxury.”

The customers are now more attracted toward the heritage and history rather than mere luxury, however, the latter aspect augments the value of such ornaments and accessories.

Chanel dropped to fourth position with a 2 percent decrease in value to $6.68 Billion. The fifth place-holder Gucci said the same story only it was more aggravated that Chanel. The Italian brand showed a massive decrease in the value clocked at $5.7 Billion, a 14 percent decrease. The reason for such a decrease is linked, according to the company’s spokesperson, to the stock price decrease in Gucci’s parent company, PPR SA.

The study was conducted on a worldwide span and was based on reviews of the customers and the overall performance of the said companies.

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Posted by Usman Khalid on May 22 2012. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.