Let’s face it, the tightening of the purse strings in 2020 definitely pumped the brakes on our spending. Where in previous years, we’d be jumping at the chance to cop a new phone or jacket, the world collectively reined it in following the COVID-19-related store closures and financial uncertainty. However, the world’s attempt at fiscal responsibility has apparently not stopped luxury brands from raking in big dollars. In fact, of the top 10 most valuable luxury brands for 2020, only two reported a fall in revenue, with a large number posting double-digit growth. Turns out we’ve been spending those stimulus cheques on Ferraris.
The latest Brand Finance Luxury & Premium 50 report has just been released, giving us all a glimpse inside the world’s most valuable luxury brands. Unsurprisingly, the big names are all there, but despite the growth from key players, the report does reveal the devastating impact of 2020. According to the Brand Finance Index, the world’s top luxury & premium brands could lose up to USD$35 billion of brand value cumulatively as a result of the pandemic.
While the difficult circumstances have certainly thrown a spanner in the works, the index suggested that different sub-categories had responded in varying ways. For example, apparel brands were the most heavily impacted, facing a 20 per cent brand value loss, automotive moderately impacted, with a 10 per cent brand value loss and cosmetics brands largely sheltered from the damage of pandemic.
Where the report gets really interesting is in reference to China. The world’s most important market for luxury brands was hit hard by COVID-19, but the resilience of the Chinese consumer has seen the region respond remarkably positively. “There is no denying the importance of the Chinese market in ensuring the good health and growth in the luxury & premium sector,” Brand Finance valuation director Alex Haigh said. “We have witnessed the Chinese successfully keep the sector above water following the 2008 crash and luxury brands will be relying on this market once again in the wake of the Coronavirus pandemic. Porsche – the most valuable luxury and premium brand in the world – sold a staggering 86,000 units in China in 2019 alone, and the auto giant, along with fellow brands across the sector, will be hopeful that keen spenders will keep demand high.”
World’s Most Valuable Luxury Brands 2020
With that in mind, the world’s most valuable luxury brands have managed to swell revenue despite conditions. Honourable mention must go to Givenchy, which claimed the title of fastest-growing luxury brand this year. According to the report, Givenchy grew its brand value by a staggering 74 per cent to USD$2.0 billion in 2020 jumping up 11 spots in the rankings.
But the big honours go to the traditional leaders. Without further ado, here is a list of the 10 most valuable luxury brands for 2020.
After an outstanding year, Porsche has secured the title of the world’s most valuable luxury brand for 2020. Following a 16 per cent brand value increase to USD$33.9 billion, the German automotive manufacturer has cemented itself as the epitome of luxury. Further in-roads in sustainable practices and new models have helped the brand to another stellar year in the rankings.
2020 value: USD$33.91 billion
2019 value: USD$29.34 billion
Founder: Ferdinand Porsche
Founded: 25 April 1931, Stuttgart, Germany
Headquarters: Stuttgart, Germany
Growing its brand value by over 20 per cent over the last 12 months, Italian fashion stalwart Gucci has landed the second spot on the list of most valuable luxury brands. A solid showing across all of the brand’s key verticals promoting further growth, which now sees the brand with one of the strongest followings in fashion.
2020 value: USD$17.63 billion
2019 value: USD$14.66 billion
Founder: Guccio Gucci
Founded: 1921, Florence, Italy
Parent organisation: Kering
CEO: Marco Bizzarri
Creative director: Alessandro Michele
3. Louis Vuitton
Sitting in the third spot this year, Louis Vuitton was named the fastest growing brand in the top 10. Over the disrupted year, the brand was able to increase growth by 21 per cent, up to USD$16.5 billion. The monumental effort came primarily through Louis Vuitton’s makeup division, which performed strongly throughout the pandemic.
2020 value: USD$16.47 billion
2019 value: USD$13.57 billion
Founder: Louis Vuitton
Founded: 1854, Paris, France
Parent organisation: LVMH
CEO: Michael Burke (19 Dec 2012–)
Headquarters: Paris, France
While other apparel brands may have struggled this year, French luxury goods icon Cartier has weathered the storm. The label emphasised its jewellery offering over the course of the year, securing a solid 10.1 per cent brand value growth.
2020 value: USD$15.01 billion
2019 value: USD$13.64 billion
Founder: Louis-François Cartier
Founded: 1847, Paris, France
Parent organisation: Cie Financiere Richemont SA
CEO: Cyrille Vigneron (1 Jan 2016–)
Like Louis Vuitton, French icon Chanel reported a massive growth year despite the uncertain times. The fifth-ranking Maison recorded a solid 20 per cent brand value growth to USD$13.7 billion. It was an impressive effort in Chanel’s first year without long-standing creative director Karl Lagerfeld, who passed away last year.
2020 value: USD$13.70 billion
2019 value: USD$11.48 billion
Founder: Coco Chanel
Founded: 1910, Paris, France
CEO: Alain Wertheimer (Feb 2016–)
Headquarters: Paris, France
Parent organisation: CHANEL International B.V.
Another legendary French label, Hermes followed up a great result last year with another strong showing. Through a series of solid sales and marketing campaigns, the apparel company was able to secure 9.1 per cent brand value growth, good enough for sixth spot on the list of world’s most valuable luxury brands for 2020.
2020 value: USD$11.90 billion
2019 value: USD$10.92 billion
Founder: Thierry Hermès
Founded: 1837, Paris, France
CEO: Axel Dumas (5 Jun 2013–)
Parent organisation: H51 SAS
While only coming in at number seven on the most valuable luxury brands list, Italian automotive icon Ferrari found itself in an enviable position. Brand Finance evaluated the relative strength of brands, based on factors such as marketing investment, familiarity, loyalty, staff satisfaction, and corporate reputation, finding Ferrari to be the world’s strongest luxury and premium brand. Add a nine per cent rvalue growth to USD$9.1 billion and five new models in 2019, and you’ve got yourself a solid year for the prancing horse.
2020 value: USD$9.05 billion
2019 value: USD$8.32 billion
Founder: Enzo Ferrari
Founded: 1947, Maranello, Italy
CEO: Louis C. Camilleri (Jul 2018–)
Headquarters: Maranello, Italy
Parent organisation: Exor
One of only two brands in the top 10 to drop value this year, Rolex was hit hard by the closure of its Maison and physical showrooms. The Swiss brand dropped by 2.2 per cent to USD$7.87 billion, however, retained the exact same spot on the list as last year.
2020 value: USD$7.87 billion
2019 value: USD$8.04 billion
Founders: Hans Wilsdorf, Alfred Davis
Founded: 1905, London, United Kingdom
CEO: Jean-Frederic Dufour (2014–)
Headquarters: Geneva, Switzerland
Parent organisation: Fondation Hans Wilsdorf
A decent return for Dior, the apparel brand scored a solid 8.6 per cent brand value growth over the year. The admirable sales and strong marketing saw Dior rise from 10th spot last year, one higher in the rankings.
2020 value: USD$6.86 billion
2019 value: USD$6.32 billion
Founder: Christian Dior
Founded: 16 December 1946, Avenue Montaigne, Paris, France
CEO: Sidney Toledano (15 Oct 2015–)
Parent organisations: LVMH, Semyrhamis SA
The only US brand to make the list and by far the most heavily impacted by the pandemic, Coach’s brand value fell by 9.7 per cent this year. Being headquartered in New York, which was at one stage, the global epicentre for the virus didn’t help, but the brand is slowly returning to everyday operation. It’s likely to be some time before we see the apparel brand make it’s way back up the list, however.
2020 value: USD$6.81 billion
2019 value: USD$7.54 billion
Founders: Lillian Cahn, Miles Cahn
CEO: Joshua Schulman (5 Jun 2017–)
Headquarters: 10 Hudson Yards; New York City, New York, U.S. 10001
Parent organisation: Tapestry
What is the most valuable luxury brand in the world for 2020?
The most valuable luxury brand in the world for 2020 is Porsche. With a value of USD$33.91 billion, up from USD$29.34 billion in 2020, the brand has secured top spot once again.
What is the most valuable luxury watch brand in the world?
According to the 2020 Brand Finance index, the most valuable luxury watch brand in the world is Rolex, with a valuation of USD$7.87 billion. The brand is the most valuable watch specialist, however, luxury brands Hermes and Cartier are worth more.
How much is Louis Vuitton worth?
According to the 2020 Brand Finance index, French brand Louis Vuitton is valued at USD$16.47 billion, up from USD$13.57 billion in 2019.