Italian brands dominate this year’s Luxury & Premium ranking, with 15 brands represented. France is the second most represented nation in the ranking, with 11 French brands claiming spots.
By Luxus Plus
Porsche, luxury & premium brand, at the top of the ranking
Porsche cements itself once again as the world’s most valuable luxury and premium brand, increasing its brand value by 54% to US$29.3 billion. For over 70 years, the Porsche brand has been synonymous with world-class and superior quality sports car manufacturing.
French luxury brands represent half of the Top 10
Prestigious jewellery manufacturer and watch maker Cartier, up 39% to US$13.6 billion, has clinched the second-place spot in this year’s ranking, pushing Louis Vuitton, up 29% to US$13.6 billion, down into third position.
The brand, hailed by Edward VII as “the jeweller of kings and the king of jewellers”, has long been the go-to jewellery brand for European royalty. With 300 boutiques worldwide, and the newly renovated flagship London store opening its doors at the end of last year.
While celebrity endorsements are rife amongst luxury brands – usually in the form of advertisements and brand ambassadors – 2 of the top 50 brands in the Brand Finance Luxury & Premium 2019 ranking notably do not use celebrities as part of their marketing strategies.
Hermès’ (up 14% to US$10.9 billion) aversion to celebrity endorsements can perhaps be summarised in a quote from former CEO, Jean-Louis Dumas: “We don’t have a policy of image, we have a policy of product”.
This policy still rings true, trickling down to the brand’s marketing strategy. Hermès benefits from more informal celebrity endorsements and contributes to consumer perceptions as is shown by five-year long waiting lists for the latest models.
Ferrari remains the strongest Luxury & Premium brand
Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance.
According to these criteria, Ferrari, up 27% to US$8.3 billion, is the world’s strongest luxury and premium brand with a Brand Strength Index (BSI) score of 94.8 out of 100 and an elite AAA+ brand strength rating.
Since its inception, Ferrari has remained synonymous with style and performance, enabling the brand to successfully extend into other sectors – from merchandise, such as hats and sunglasses, to theme parks, and even the Maranello Village, a Ferrari-themed hotel – without losing its appeal as a luxury brand.