Luxury goods companies, particularly French ones, once again make headway in Interbrand’s 25th ranking of the world’s 100 most valuable brands. Generally speaking, the strategy consultancy advises companies to avoid short-term operational performance in favor of a lasting image, through positioning that goes beyond the simple sale of goods and services.
As it has done every year for the past quarter-century, Interbrand has lifted the veil on the world’s 100 most valuable brands.
And once again this year, luxury goods, and French luxury goods in particular, stood out with an average increase in valuation of 7%, after already +6.5% in 2023.
Even if this business is less prominent than technology, with iconic brands such as Apple in first place (down 3%), Microsoft (second, +11%), Amazon (third, +8%), Google (fourth, +12%) and Samsung (fifth, +10%), it is still showing dynamic growth, demonstrating its understanding of brand issues.
Vuitton, Hermès and Chanel in the top quarter
Louis Vuitton, LVMH’s flagship brand, is the leading player in the luxury goods sector (excluding high-end automotive brands), and moved up to eleventh place this year, boosted by a valuation up 9% to $50.9 billion.
The next to reach the Holy Grail, Hermès, in 22nd place at 34.7 billion euros, enjoyed the most remarkable growth (+15%). Chanel (+7%) came 23rd at 33.2 billion euros.
Proof that sales growth and brand valuation do not necessarily coincide, Gucci, the Kering Group’s flagship fashion house, also saw its valuation rise by +10% to $18 billion, despite its current commercial setbacks. It is now in 41st place.
Rumors have also been rife of late about the underperformance of Tiffany & Co, the American jewelry retailer acquired by LVMH at the end of 2019. This hasn’t stopped its valuation from rising by +4% to $7 billion, giving it 89th place in the ranking.
However, this remains the most modest increase among the luxury houses in the second half of the list. Cartier, the Swiss Richemont group’s watch and jewelry house, is ranked 73rd, with an increase of +7% to $11 billion. Just behind, in 74th place, Dior, LVMH’s other flagship, posted an increase of +8% to $10 billion.
Prada, first Italian group in the ranking
For its part, Prada, the first House controlled by an Italian luxury fashion group on the list (+14% to $8 billion), came in at 83rd position.
It should be noted that L’Oréal, the world’s number-one beauty company, whose Luxury division has been doing well of late, came in 53rd, buoyed by a 9% rise to $14.8 billion.
While in the same sector, Sephora, the leading selective retailer owned by LVMH, reached 90th place, thanks to strong growth of 13% to 7.2 billion dollars.
The other sector to shine in the Interbrand rankings is the automotive sector, which is still making its clientele salivate. The list includes14 brands, 6 of them very high-end.
In the top ten, Mercedes Benz stands out in 8th place, despite a decline of 4% to 58.9 billion euros, and BMW (10th, +2% to 52 billion dollars). Although still well placed, Tesla was downgraded to 12th place, due to a sharp decline (-9% to 45.5 billion dollars).
Very high tempo for Ferrari
Porsche (43rd, with growth of +7% to 17.4 billion euros) and, above all, Ferrari (62nd, +21% to 13.1 billion euros), on the other hand, continued the race at a high tempo.
Finally, Range Rover, one of the jewels in the crown of the Jaguar Land Rover group, moved down to 96th place for the first time, with a valuation of $6.6 billion.
To achieve its ranking, Interbrand developed a methodology – the first to obtain Iso 10668 certification in this field – based on three pillars: “financial analysis, the brand’s role in purchasing decisions and brand strength”.
“Financial analysis thus measures economic return for investors, brand role assesses the brand’s influence on consumer choices, and brand strength examines its ability to generate loyalty and sustainable demand”.
Long-term view
And to get to the top, it’ s best to take a long-term view, Interbrand stresses.
This year more than ever, the brand strategy consultancy insists on the need to avoid obsessing over short-term performance, i.e. operational efficiency to the detriment of brand investment.
Interbrand estimates that this inappropriate approach hascost the most influential companies$3.5 trillion in cumulative brand value over 25 years. And in the last 12 months alone, the loss of potential revenues has reached 200 billion dollars, proving that this policy, with no long-term perspective, is becoming increasingly costly…
In 2024, Interbrand believes that brands must do more than just sell products and services. They must now take their place in “Arenas”, i.e. multiple competitive spaces beyond their initial perimeter of activity, and establish “ deep emotional bonds with increasingly solicitous consumers ”.
The winning luxury strategy
“The most successful companies, such as Apple, Ferrari or Amazon, have transformed themselves into complex systems, integrating sensory, emotional and moral aspects to create deep relationships with their consumers. This strategy helps to increase loyalty and explore new growth territories, demonstrating that brands that take on the role of societal leader and anticipate consumer expectations are those that prosper the most,” points outLa Réclame Newsletter in an analysis of the Interbrand ranking.
It’s precisely this approach that drives luxury brands, which generally focus on the long term, a flawless image, excellence, innovation and dreams, and close ties with their community…
Et si ces Maisons ont le vent en poupe sur le classement Interbrand, ce n’est donc pas un hasard…
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Read also > Kantar BrandZ Top100 2024 : Louis Vuitton, Hermès and Chanel, leading luxury brands
Featured Photo: © Félix Fuchs/Unsplash
