The world’s most iconic luxury and premium brands are manoeuvring through recent dips in the global economy. In Brand Finance’s latest Luxury and Premium 50 ranking, Porsche retains its position as the most valuable luxury and premium brand for the seventh consecutive year, while French apparel giants Louis Vuitton and Chanel retain second and third positions.
As rising cost of living and economic instability have reduced spending for many, affluent consumers have sustained their purchasing power in challenging economic conditions, translating into continued sales for the world’s leading luxury brands. Notable examples from this year’s ranking include brands within LMVH, the world’s leading luxury group. LMVH recorded significant revenue growth in 2023, driven by exceptional performance in its Fashion segment. Louis Vuitton, the most valuable French brand, has grown its brand value by 23% to USD32.2 billion. Its brand value now stands at almost double that of the third most valuable apparel brand, Hermès (brand value up 18% to USD16.7 billion).
Brand Finance research finds that the strongest brands in the ranking all boast exceptionally high familiarity and reputation scores. In 2024, Rolex has knocked Ferrari off the top spot to become the strongest luxury and premium brand, with a brand strength index score of 90.1/100 and an equivalent rating of AAA+, the highest accolade for brand strength awarded by Brand Finance. The brand’s stellar brand strength score is underpinned by its strong performance for familiarity, for which it achieves a perfect score of 10. Another notable performer in the brand strength ranking is Chanel, which has moved up 16 ranks to third position, achieving a BSI score of 88.9/10, and perfect score of 10 for familiarity.
Another standout performer in the 2024 ranking is Dolce & Gabbana, (brand value by 52% to USD2.1 billion) which has seen the largest increase among all brands in the table. The brand has also slightly improved its BSI score to 78.3/100, driven by gains in consideration and reputation scores. Dolce & Gabbana's enhanced growth and reputation are particularly notable given its recovery from the 2018 Shanghai image crisis, which led to a boycott in China and widespread criticism. Before the crisis, the brand's value was estimated at USD937 million, dropping to USD646 million by January 2020. Since then, the brand’s value has surged to 2.1 billion in 2024.
Dolce & Gabbana has undertaken various initiatives to strengthen its reputation and increase its relevancy and appeal to consumers. For example, in 2023, the brand participated in the Metaverse Fashion Week with its 'Future Rewind' Digital Collection. As well as supporting emerging digital fashion designers, the initiative aimed to showcase the brand’s leadership in blending traditional luxury with digital technology.
Annie Brown, Valuation Director at Brand Finance UK, commented,
“Strong brands are built on more than just sales; a solid reputation and strong consumer perceptions are integral to building brand strength, which is vital for a brand’s ability to thrive and remain competitive in an increasingly crowded marketplace. This year’s leading luxury brands are remarkable for their unique ability to preserve and enhance brand strength, even in times of economic uncertainty. These traditional players are now finding new and innovative ways to deliver premium experiences that resonate with the modern luxury consumer while staying true to their distinctive heritage and iconic legacies. This balance between embracing transformation while preserving a tradition is fundamental to their enduring brand power.”
The research indicates a more influential role for sustainability in driving choice within the Luxury & Premium market segments of Auto, Apparel, and Cosmetics. In these segments, sustainability driver scores are over 1.5 times higher than for the sector overall. In fact, Luxury Auto has the highest driver score across all industries the research covers, at 23.8%. Luxury Apparel (12.2%) and Luxury Cosmetics (11.4%) also have significant driver scores.
Why would sustainability have a more influential role in luxury segments? There may be multiple effects at play.
Robert Haigh, Strategy and Sustainability Director at Brand Finance, commented,
“A brand’s sustainability commitments can imply a slight cost increase that necessitates more premium positioning. Premium-segment consumers also have less price sensitivity, enabling them to seek improvements on other attributes, including sustainability. Lastly, at the premium end of many markets, brands become more than just a guarantee of attributes to the consumer—their products also signal the purchaser’s status, taste, identity, or ethics to others.”
Sustainability Perceptions Values
In Luxury Apparel, Louis Vuitton has the highest Sustainability Perceptions Value, at USD3.8 billion, followed by Chanel and Hermes. Luxury Auto sees Porsche (USD10.5 billion) in the top spot, ahead of Ferrari and Lamborghini. The highest Sustainability Perceptions Value in Luxury Cosmetics belongs to Guerlain (USD732 million), followed by Lancôme and Estée Lauder. Brands with the highest Sustainability Perceptions Values have large financial scale and therefore large amounts of value tied to their sustainability perceptions. However, smaller Luxury & Premium brands have the strongest sustainability perceptions.