The world’s top-50 most valuable luxury and premium brands saw their total value decline by 3% in 2021, according to a new report from Brand Finance. Some 10 Cosmetics and Personal Care brands made the ranking, which is largely dominated by apparel brands.
Impacted by the covid-19 pandemic, the 50 biggest luxury and premium brands lost over $7bn in brand value between 2020 and 2021, collectively falling from $227.1bn in 2020 to $219.5bn this year, says Brand Finance’s Luxury & Premium 50 2021 report. This represents a decline of 3% year-on-year.
“As predicted, the pandemic has damaged brand values across the luxury and premium sector,” said Alex Haigh, Valuation Director, Brand Finance. “However, it is not all doom and gloom; the pandemic can be used as a catalyst for change across the sector, through growing e-commerce channels or through brands’ responses to the increased consumer demand for social and sustainable action.”
The top-10 most valuable luxury and premium brands are:
Porsche ($34.33bn, +1.2% vs 2020)
Gucci ($15.6bn, -11.5%)
Louis Vuitton ($14.86bn, -9.8%)
Chanel ($13.24bn, -3.4%)
Cartier ($12.09bn, -19.5%)
Hermès ($11.66bn, -2.1%)
Ferrari ($9.24bn, +2.1%)
Rolex ($7.94bn, +0.8%)
Dior ($7.83bn, +13.9%)
Guerlain ($5.69bn, +0.1%)
Apparel brands dominate the ranking, with 62% of the total brand value coming from the 30 apparel brands featured. In Apparel, French brand Celine is the fastest-growing luxury and premium brand this year, thanks to its success in appealing to Asia’s Gen-Z under Hedi Slimane. The brand rose 13 spots to 34th place, with its brand value increasing by 118% to $1.5bn. Conversely, Coach’s brand value fell 31% to $4.7bn, with sales and profits impacted, although e-commerce and China are said to be bright spots for the US apparel brand.
In Cosmetics & Personal Care, Guerlain came in at 10th place, up from 13th position last year, with a brand value of $5.69bn (+0.1%). Estée Lauder was stable in 11th place, Lancôme rose one spot to 15th position and Clarins fell two spots to 20th place.
By country, at $80.3bn, France accounts for 36.6% of total brand value, with 13 brands. Italy represents 21.9% ($48bn), also with 13 brands, while Germany accounts for 15.6% ($34.3bn) with one brand – the index’s top-ranking player: Porsche.
Despite the impact of the pandemic, the luxury and premium industry is recovering, beginning with the US and Asia. There are also profound shifts, such as brands reconnecting with local customers, consumer demand for brands that are transparent and sustainable, with socially conscious products, and a boom in secondhand luxury.