Brand valuation and strategy consultancy Brand Finance has published its ranking of French brands for 2024, with Louis Vuitton leading the way for the third year running. The total value of the 150 biggest French labels reached 507 billion euros, marking a 7% increase on the previous year.
Brand Finance, the world’s leading independent brand valuation and consultancy firm, published its ranking of French brands for 2024 on Monday May 27. 96 of the brands in the ranking saw their value increase, while 50 others fell, and four new brands entered the ranking.
The report, entitled Brand Finance France 2024, reveals that the total value of the 150 biggest French brands has reached 507 billion euros, an increase of 33 billion euros on 2023. This 7% growth follows a 17% increase observed between 2022 and 2023, marking a relative slowdown in the increase in the valuation of French brands.
In terms of dollar growth, French brands saw their value increase by 6%, outperforming Germany (+5%) and the UK (-1%).
However, the average Brand Strength Index for the 150 French brands fell slightly by 0.6 points, in contrast to Germany, which rose by 0.1 points, while the UK fell by 0.4 points.
“While all of the 150 most valued brands increased their brand value, the decline in Brand Strength for French brands is worrying,” said Bertrand Chovet, Managing Director of Brand Finance France. “This demonstrates a gradual erosion in the competitiveness of French brands. While this remains dependent on each business category, it demonstrates a slowdown in brand investments, a deterioration in brand image and therefore in the performance of major French brands in relation to global competition.”
French know-how
The main French sectors show varied performances in terms of brand value trends. Clothing, which includes leather goods and jewelry, remains the most highly valued sector, accounting for 21.9% of total brand value in the ranking, with a 16% increase and a concentration on 10 brands, 5 of which feature in the Top 10.
Retail and cosmetics, with 15 brands each, account for 9.3% and 8.2% of the ranking’s value. The banking sector, up 11%, includes 10 brands for 7.3% of total value, while engineering and construction, with 9 brands, account for 6.7% of total value.
On the other hand, business services grew by 21%, followed by automotive (+19%) and technology (+14%).
Louis Vuitton still in the lead
Louis Vuitton, the flagship brand of the LVMH group, remains the most valuable French brand for the third year running, with a brand value of 30.1 billion euros, up 19% (to 25% in 2023). Its Brand Strength reaches 86.9, points, up 0.6 points (after a 1.5 point drop in 2023),
The brand has indeed extended its cultural footprint with events such as the Spring-Summer 2024 Homme fashion show, where Pharrell Williams used the Pont-Neuf as a catwalk, surpassing a record 1.1 billion views on social networks.
Another luxury star, Chanel, now the second most valuable brand, saw its value rise by 30% to 24.3 billion euros. The brand has moved up 6 places compared to 2023. It has a Brand Strength of 88.8, a sharp rise of 5.5 points, due to higher scores on ESG metrics (responsibility indices) and sharply higher brand performance scores.
Orange holds on to third place, up 7%, while TotalEnergies falls two places. EDF re-enters the top 10 with an increase of 18%. Hermès, Axa, Airbus and Cartier complete the top 10 with increases of 14%, 1%, 9% and 5% respectively. Meanwhile, Edenred, the payment systems specialist, posted the most impressive increase with a rise of 45%, reaching a valuation of 1.2 billion euros and ranking 82nd.
Sustainability valued
Brand Finance uses the Global Brand Equity Monitor to calculate the Sustainability Perceptions Index (SPI). This tool determines the role of sustainability in consumer choices, identifies the brands perceived as most committed to sustainability, assesses the proportion of brand value attributable to sustainability perceptions (VPD) and, finally, estimates the value at risk or moving up the rankings based on the gap between sustainability perceptions and actual performance.
Thus, Louis Vuitton has the highest sustainability perception value at 3.6 billion euros, followed by Chanel, Hermès, Dior and Cartier.
Chanel, with its net-zero plan for 2040, has the highest positive gap at 696 million euros, thanks to investments in its Sustainability Academy and better communication of its sustainability initiatives.
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Featured photo : © LVMH
