While coronavirus outbreak affect all retail players worldwide, the French company Louis Vuitton stands out as an exception. According to the BrandZ™ Retail 2020 ranking, it remains in first place far ahead of Chanel and Hermès, maintaining its status as the world’s most powerful luxury brand for retail.
The only brand valuation ranking to combine analysis of retailers’ financial performance with the opinions of millions of consumers surveyed in more than 51 markets around the world, BrandZ™ Retail unveiled its third annual ranking of the world’s most valued retail brands on April 30.
And the 2020 ranking is a new proof of Louis Vuitton’s leading position in the luxury world.
Indeed, among 75 other retailers, Louis Vuitton remains the world’s number one luxury retailer with a value of $51.8 billion. Louis Vuitton is fifth in all categories, ahead of Chanel with $36.1 billion and Hermès with $33.0 billion.
A success that the BrandZ 2020 report does not attribute to a coincidence: the good financial results are due to the actions that agile and innovative retail brands are taking to make a difference to the lives of people confined to their homes and forced to change their habits, in other words, to their ability to respond to shifts in consumer behaviour while facing business-critical changes to supply and demand and a restricted ability to trade.
Thus, if Louis Vuitton, the parent company LVMH, occupies the top luxury position in the ranking, it is because it took only 72 hours to convert its production lines to manufacture hand sanitizer, opened a new global flagship store in Seoul and signed numerous creative partnerships with major artists.
“Brand value isn’t just determined by financial performance, but also by reputation in the eyes of consumers.” confirmed Graham Staplehurst, Global Strategy Director for BrandZ at Kantar. “How retailers behave now in terms of helping people through the crisis, as well as the way in which they treat their staff and whether they comply with government and health advice, will be important to their survival. Those that have actively demonstrated their relevance and usefulness and continue to do so as consumers’ lives start to get back to normal, will be best-placed to strengthen customer relationships both in the recovery phase and the long-term.”
If Louis Vuitton continues to be the world’s most valued luxury brand in 2020, it is because of its exceptional adaptation to the coronavirus era, particularly in terms of innovation, and its agile response to consumers.
“We are seeing some heroic examples of retail companies stepping up to meet consumer need and keep the world turning. While this is a fast-moving and ongoing story, the report allows us to show the businesses that, having invested in becoming a strong brand, are potentially better able to withstand the current shock. Twenty-two years of BrandZ data analysis consistently confirms that strong brands help their businesses to survive turbulent times” said David Roth, CEO of The Store WPP EMEA and Asia and Chairman of BrandZ.
Featured Photo : © Louis Vuitton / Facebook
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