drive value increase
The BrandZ™ Luxury Top 10 increased 72 percent in value over the past 12 years, which is a good performance, but around half the growth rate of the BrandZ™ Global Top 100. The category contains many strong traditional brands, but they are not all perceived the same way.
The most exclusive super-luxury brands increased 161 percent in value between 2006 and 2017. Hermès rose 385 percent. In comparison, Louis Vuitton, the No. 1 brand in the Luxury Top 10, rose 50 percent, and the value of other luxury brands rose 29 percent. As a proportion of Top 10 value, super-luxury brands increased from 27 percent in 2006 to 41 percent in 2017.
Being perceived as Different (distinctive and trend setting) was the key to commanding a premium. The super luxury brands and Louis Vuitton score virtually the same in Difference, 123 and 122, while other luxury brands score 103. A score of 100 is average. The category scores well in the BrandZ™ Vital Signs, and is strongest in Brand Experience, scoring 107.
Luxury brands need to be clear about their identity within the category, whether they are super-luxury with well-guarded exclusivity, or luxury with a touch of mass. Deciding on this designation will help brands regulate the balance between exclusivity to protect premium and accessibility to drive volume. Brands then need to communicate their brand story in ways that resonate with consumers today, which usually involves a digital component.