Page 33 - BrandZ Top 100 Most Valuable Global Brands 2014

Section 03 | The Categories
Consumer and Retail | Luxury

Luxury

Shoppers feel freer to indulge,

enjoy and express themselves

Tastes and attitudes change

Luxury is back. Consumers purchased More consolidation Industry

enthusiastically and without apology. The consolidation continued as LVMH
category brand value rose 16 percent, added Italian clothing designer Loro
following a 6 percent rise a year ago.
Piana to a portfolio that includes
brands such as Givenchy and Fendi
The strong performance illustrates both as well as Louis Vuitton and

how luxury consumers have put the Moët & Chandon.
inancial crisis behind them and also how
the crisis inluenced changing attitudes Vertical integration Several brands
and tastes.
purchased vendors in order to
vertically integrate, control the
During the recession, luxury became
production process, ensure quality Top 10 Luxury

a stealth indulgence after years of and improve proitability.
conspicuous consumption. Informed by
that experience, consumers today are Brand experience New ways to Brand
Brand Value
more comfortable with luxury, treating express brand experience included Value Brand
% Change
it as a medium of self-expression.
brand-themed theatrical events 2014 $M Contribution
2014 vs 2013

staged in airport duty free shopping 1
Louis Vuitton
25,873
4
14%
Even in China, consumers became
areas. Brand experience in luxury
more discerning, appreciating luxury for drives new business, trialing and 14% 2 Hermès 21,844 5
design and craftsmanship rather than
brand equity.
as ostentatious display to demonstrate 3
Gucci
16,131
5
27%
Insight

status. At the same time, luxury brands Consumer conidence 6% 4 Prada 9,985 4
felt the impact of China’s slower inluences aesthetics
5
Rolex
9,083
4
14%
economy and the government’s
discouragement of extravagant spending.
40% 6 Cartier 8,941 4
Some brands
Interest in luxury jewelry increased,
Adjusting to these market dynamics, perhaps an indicator that post-recession, 7
Chanel
7,810
5
10%
rebalance exclusivity,

some brands rebalanced in favor of people are ready to purchase items
42% 8 Burberry 5,940 5
accessibility
exclusivity over the accessibility to mass that are purely decorative rather
audiences that drove revenue during than utilitarian.
9
Coach
3,129
2
-4%
lean inancial times. Logo key rings are Some of the luxury brands are
out, but fragrance remains an entry Consumer interest in jewelry is broader -17%
10 Fendi 3,023 4
pulling back their low-end entry
merchandise. While these brands
point to the category.
16%
than traditional precious gems and Source: Valuations include data from BrandZM and Bloomberg.
Brand contribution measures the inluence of brand alone on earnings, on a scale of 1 to 5, 5 highest.
may feel a short-term inancial
includes colorful and unique stones that impact, they have a long-term
Driven in part by newly wealthy young express individuality. The interest in
people in fast growing markets, the self-expression also shaped attitudes view. They want the branded
luxury consumer is becoming younger, about the prominence of designer logos. product to be consistent with
the brand’s purpose, what the
with different tastes and interest in niche Louis Vuitton, known for integrating its brand is about. They believe
brands. Major luxury brands marketed
iconic logo into the design of its bags and that makeup and fragrance
to this group both for the immediate other merchandise, introduced products
payoff and to cultivate the next without the LV logo.
work better than key chains
generation of customers.
and other trinkets as an entry
point to luxury.
The shift away from prominent logos to
In a trend also inluenced by consumption more discrete, subtle and less accessible Elaine Quirke
in fast growing markets, men’s luxury has luxury captures a change in consumer
expanded from a narrow focus on attitude termed, “in the know” rather Deinition
Worldwide Director
watches and cars to include accessories than “in the show.” Louis Vuitton, Gucci Mindshare Luxury Elaine.Quirke@Mindshareworld.com
and clothing. And brands, including and Fendi took steps to reinforce the The luxury category includes

Gucci, Prada and Burberry, opened exclusivity of their high-end brands by brands that design, craft and
stores devoted exclusively to men.
cutting back on less expensive market high-end clothing, leather
These other trends emerged:
merchandise. Burberry eliminated some goods, fragrances, accessories
opening price points on rainwear and and watches.
leather goods.

64 BrandZM Top 100 Most Valuable Global Brands 2014
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