Porsche is racing ahead of the competition, beating out Louis Vuitton as the world’s top luxury and premium brand. The Porsche brand is valued at $29.3 billion, beating the fashion brand’s $13.6 billion. That achievement represents a 54 percent growth for Porsche.
“Connotations of luxury extend far beyond fashion brands with this becoming ever more apparent since Porsche yet again tops the Brand Finance Luxury and Premium 50 2019 ranking of the world’s most valuable luxury and premium brands,” states Alex Haigh, the director of Brand Finance. “The combination of Porsche’s trusted and long-standing heritage, a commitment to diversifications, innovation and after sales-services is what really sets the auto titan apart from its competitors.”
The award comes after Brand Finance used their index to calculate the value of brands using the Royalty Relief approach—overall business performance, stakeholder equity, and royalty range are combined with marketing investment, net revenue, and forecasted revenue for this approach. This means that for Porsche, their commitment to sustainability and innovation demonstrated through the production of the fully electric Taycan, played strongly in their favor. Of course, a 70-year history of creating beautiful and reliable cars helps as well. “Wealthy consumers tell us that Porsche stays true to its core values and to its enthusiasts,” observes Milton Pedraza, CEO of the Luxury Institute. “Porsche remains an automobile that never loses its way on the luxury highway, even at high speeds.” Porsche recognizes that need to keep its customers happy. “Customer perception is everything in the luxury market,” notes Peter Schwarzenbauer, President and CEO of Porsche Cars North America.
The full list showed a lot of movement from the rest of the pack as well. Louis Vuitton was actually bumped down to third with Cartier taking second place. Chanel jumped from number nine to number 4 while Hermes, Gucci, Ferrari, Rolex, and Coach all slipped a spot. Dior, on the other hand, moved from number sixteen up into the top ten. Montblanc, Bobbie Brown, and Fendi are all newcomers to the list.