Have you ever been curious about how Louis Vuitton, Hermès, Prada, and other well-known brands compare to companies like Google and Nike? Interbrand has recently released their annual Best Global Brand ranking that allows for a bird’s eye view of the global marketplace. Using criteria like profits and financial success, as well as a brand’s influence over consumer choice, the list chooses the top 100 most profitable and influential brands.
While perhaps predictably, Google, Microsoft, and Apple scored the top three spots on the list. Yet, the top players in the luxury market also made an appearance. Of the 100 companies on the list, 8 were luxury brands.
Louis Vuitton reigned supreme over its colleagues at number 19, the spot it held last year. Hermès rose to 32 from 34, and Gucci climbed to 51.
The five other luxury brands underperformed this year according to the list and decreased in rank. Dior dropped to 95 from 89, and Prada dramatically fell from 81 to 94. In a lackluster year, Burberry dropped from 83 to 86.
Luxury jewelry brands Tiffany & Co. and Cartier fell from last year. Cartier moved from 62 to 65, and Tiffany fell from 74 to 81. Tiffany has invested a lot of time and money into their new fall campaign featuring popular young influencers. Will their strategic move pay off? PurseBop will keep you updated…
So, how can we interpret this information? Without a doubt, Louis Vuitton’s collaboration with Supreme, as well as Gucci’s trendiness and current wave of popularity (both topics we have covered thoroughly on PurseBop), contributed heavily to their success this year.
If you all remember our piece What Were the Top Luxury Brands For Q2? , Interbrand’s list has some key differences from the Lyst Index we covered. Obviously, Louis Vuitton and Hermès are prominent in Interbrand’s list, while the Lyst Index does not include them. Interbrand was more interested in profitability and influence, while Lyst used words like “hot” and focused on top selling products. These differences raise questions such as, is it better for a brand to be profitable or “hot”?
Which list do you think better captures the current luxury market Let me know in the comments or on BopTalk!
We think it’s both fun, interesting, and necessary to keep up with the ebbs and flows of the luxury market. If you are interested in catching up, here are recent articles we have published that paint a picture of the market:
Fashion Conglomerates 101: LVMH v Kering
Barney’s Strategy for a Turbulent Luxury Market
The Luxury Inventory Glut
Luxury in the Age of Millenials
Prada’s Plummeting (but Recovering?) Profits
Luxury Retail Between a Rock and a Hard Place