Gucci brings colour to our lives as fastest growing Luxury brand

June 7, 2018
Industry News
Content Provided By:

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Kantar Insights
Info.hk@kantarmillwardbrown.com
  • Stellar 28% category growth eclipses previous years with help from ‘Moonlight Clans’ of Asian millennials
  • An ‘Instagram’ picture paints a thousand words as Luxury brands develop digital strategies to attract younger audiences
London, UK – Gucci stole the show this year as the Luxury brand category’s fastest riser, growing its brand value by +66% to $22.4 billion. Retaining its no.3 position in the Top 10 Luxury brands ranking, Gucci demonstrates how luxury fashion brands are embracing digital technologies, such as Instagram and other social media channels, to share their latest collections with a younger millennial audience.

Louis Vuitton retains its position as the no.1 most valuable luxury brand and is also the third fastest riser in the category, growing +41% in brand value to $41.1 billion. Dior (no.9) was the second fastest riser growing +54% to $3.6 billion.

Disillusioned by world events, consumers are seeking excitement, happiness and escapism through luxury brands according to the 2018 BrandZ™ Top 100 Most Valuable Global Brands ranking announced today by WPP and Kantar Millward Brown.

The pace of growth of the BrandZ Luxury Top 10 has grown seven-fold over the last 12 months from just 4% in 2017 to 28% in 2018, and now has a total brand value of $133.1 billion.

New entrant to the Top 10 Luxury brands, Yves Saint Laurent (no.10) increased the number of French brands in the ranking to six as it too engages younger audiences with virtual and augmented reality technologies to promote new perfumes such as Mon Paris. Staying true to its brand heritage and loyal customer base, it also commissioned new advertising campaigns featuring 70-something former Yves Saint Laurent muse, Betty Catroux .

Doreen Wang, Global Head of BrandZ at Kantar Millward Brown, comments: “Once shunned by luxury brands for fear of diluting their prestige and exclusivity, leaders such as Hermès, Burberry and Gucci are embracing digital technologies, attracting younger consumers while providing a seamless shopping experience across multiple channels; whether that’s online, mobile or in high-street stores. We’ve seen particularly strong growth in Asian markets as consumption of luxury products in these regions increases and brands deploy more targeted, omnichannel marketing campaigns to reach this influential demographic group.”

Wang continues: “Snapping the perfect picture of their luxury item using image-sharing platforms, such as Instagram, consumers have been able to assert their voices and communicate personal brand experience stories. It was only a matter of time before luxury brands realised the importance digital technologies played in controlling and driving the narrative.”

The BrandZ™ Top 10 Most Valuable Luxury Brands 2018

Rank 2018 Brand Country of origin Brand value 2018 ($M) Brand value change Rank change
1 Louis Vuitton France 41,138 41% 0
2 Hermès France 28,063 20% 0
3 Gucci Italy 22,442 66% 0
4 Chanel France 10,383 -6% 0
5 Rolex Switzerland 8,721 8% 0
6 Cartier France 7,040 20% 0
7 Burberry UK 4,483 5% 0
8 Prada Italy 3,925 -1% 0
9 Dior France 3,612 54% 0
10 Saint Lauren/Yves Saint Lauren France 3,316 N/A New
 

Instagram, itself a newcomer in this year’s BrandZ Top 100 Most Valuable Global Brands at no.91, is proving pivotal as a way of rejuvenating heritage brands. Two of the leading Luxury brands, Gucci and Louis Vuitton, have been particularly successful in their use of it. Each with over 23.4 million Instagram followers, these brands are using social media to appeal to millennial customers to great effect with a clear correlation between followers and sales to a new generation of younger customers via digital channels.

While Gucci’s digital competence has contributed to the re-invention of its brand, the appointment of creative director Alessandro Michele, hiring street artist Trevor Andrew, aka GucciGhost to collaborate on new collections and celebrity endorsements by Rhianna, Brad Pitt, Rachel McAdams and Salma Hayek have proved popular with millennials keen to express their identity with higher-end products.

UK brand Burberry (no.7), regarded as one of the first adopters of digital change, increased its brand value to $4.48 billion and partnered with the online fashion platform, Farfetch as a move to target younger, fashion-conscious consumers and make its products more widely available in over 150 countries. Other luxury brands partnering with Farfetch include Prada (no.8) and Yves Saint Laurent (no.10).

Led by mobile, digital revenues rose in all regions with strongest growth in Asia Pacific. Partnerships are proving effective for brands wishing to offer distinctive products and services, and Burberry’s collaboration with Russian designer and leading streetwear brand Gosha Rubchinskiy is one of many ways it is widening its appeal to younger consumers.

Demand from Asian regions, particularly China, has added to the growth of Luxury this year, with companies such as LVMH, the world’s biggest luxury goods maker and parent company to 70 luxury Houses, reporting strong sales in high-end handbags, clothing, Champagne and spirits. Overseas travel and business trips outside mainland China have added to the consumption of luxury items, particularly among the ‘Moonlight Clan’ – a name given to Chinese millennials that spend all their money by the end of the month. This represents a departure from traditional spending habits of older generations in a country renowned for its high savings rate. Hermès (no.2) has increased its brand value by +20%, growing to $28.1 billion as it invests in growing its online presence in Europe and stepped up its digital innovation in China with the launch of its first WeChat pop-up store. 

Key trends highlighted in this year’s BrandZ Global Top 100 study include:

  • Intelligence-led marketing, such as AI and AR, allows brands to ‘revive and thrive’ and maintain relevance to consumers.
  • JD.com and HP reappeared on this year’s list, having both been in the BrandZ Top 100 in 2016. US telecoms giant Spectrum (no. 27) led the Newcomers to the rankings, with Uber (no.81) and Instagram (no.91). Last year’s fastest riser Adidas jumped into the ranking at 100. It was also the first time an Indonesian brand entered the BrandZ Top 100 with regional bank BCA at no.99.
  • Partnerships proved pivotal as brands sought ways to maximise efficiency. Leading brands continued to raise the bar on expectations for customer experience at every touch point—both online and offline—from trial to pick-up or delivery by seeking strategic, long-term partnerships.
  • Retail demonstrated strong growth as the fastest rising category growing +35% in value over the last 12 months.
  • Tech-related brands continue to dominate. In the ‘battle of the brands’, accounting for over half (+56%) of the BrandZ Top 100’s brand value.


The BrandZ Top 100 Most Valuable Global Brands report and rankings, and a great deal more brand insight for key regions of the world and 14 market sectors, are available online here. The global report, rankings, charts, articles and more can also be found via the BrandZ app. The BrandZ app also contains the same features and functionality for all BrandZ regional reports and is free to download for Apple IOS and all Android devices from www.brandz.com/mobile or by searching for BrandZ in the respective iTunes or Google Play app stores.

ENDS


NOTES TO EDITORS:


About the BrandZ™ Top 100 Most Valuable Global Brands Ranking
Carried out by WPP's marketing and brand consultancy Kantar Millward Brown, the BrandZ™ Top 100 Most Valuable Global Brands ranking is now in its thirteenth year. As the world’s largest and most definitive brand equity platform, BrandZ reflects the brands that are integrated into today’s consumer lifestyles. It is the only brand valuation study to combine interviews with over three million consumers globally with analysis of the financial and business performance of each company (using data from Bloomberg and Kantar Worldpanel).

In order to identify the dollar amount a brand contributed to the overall value of a corporation, BrandZ combines measures of brand equity based on interviews with over three million consumers about thousands of brands, with rigorous analysis of the financial and business performance of each company (using data from Bloomberg and Kantar Worldpanel). The BrandZ rankings are the only brand valuations in the world that take into account what people think about the brands they buy.

About Kantar Millward Brown
Kantar Millward Brown is a leading global research agency specialising in advertising effectiveness, strategic communication, media and digital, and brand equity research. The company helps clients grow great brands through comprehensive research-based qualitative and quantitative solutions. Kantar Millward Brown operates in more than 55 countries and is part of WPP’s Kantar group, one of the world’s leading data, insight and consultancy companies. Learn more at www.millwardbrown.com.

About WPP
WPP is the world leader in communications services. The Group provides a comprehensive range of services including digital, ecommerce and shopper marketing; advertising & media investment management; data investment management; public relations & public affairs; brand consulting; health & wellness communications; and specialist communications.

For further information please contact:


Lucy Edgar
Kantar Millward Brown
Tel: +44 (0)207 450 2614
Email: lucy.edgar@kantarmillwardbrown.com

Marcus Edgar
Eureka Communications
Tel: +44 (0)1420 564346
Mobile: +44 (0)7810 876 077
Email: marcus@eurekacomms.co.uk

 
 

 

About Kantar MillwardBrown 
Kantar Millward Brown is a leading global research agency specialising in advertising effectiveness, strategic communication, media and digital, and brand equity research. The company helps clients grow great brands through comprehensive research-based qualitative and quantitative solutions. Kantar Millward Brown operates in more than 55 countries and is part of WPP’s Kantar group, one of the world’s leading data, insight and consultancy companies. Learn more at www.millwardbrown.com.