Interbrand’s Best Global Brands 2019 report (bestglobalbrands.com) says that luxury and retail is still the fastest growing sector.
While the top 10 brands of the respected brand valuation survey is dominated by tech, with Apple, Google, and Amazon rated as the world’s three most valuable brands worldwide, the top growing sector for 2019 was luxury with nine luxury brands making the top 100.
The luxury sector saw the highest average brand value growth rate year-over-year at 11%. According to Interbrand, the most successful brands in the luxury space are those that have adapted to rapid changes in the global marketplace, including catering to a younger consumer base whose stylistic tastes have shifted toward streetwear, who are tech-first in their purchasing habits, and who increasingly demand shareable, memorable moments from any brick-and-mortar retail experiences.
Gucci (#33) was symbolic of the luxury sector’s success, showing a 23% increase in brand value. Louis Vuitton (#17) and Chanel (#22) saw a 14% and an 11% increase, respectively, since last year’s report.
Among the other names best known in the travel retail and/or luxury channel, Hermès was the third highest ranked luxury brand (#28, with 9% growth since last year in the ranking); L’Oréal (#51, +4%); Cartier (#68. +7%); Jack Daniel’s (#80, +13%); Dior (#82, +16%); Burberry (#96, +4%).
Tiffany (#94) and Prada (#100), were the only luxury brands to show a decrease, down -5% and -1% respectively.
20 Years of Brand Insights
Interbrand launched the Best Global Brands report 20 years ago to provide marketers, investors and consumers insights into the state of the brands that have come to define modern consumerism and the evolution of the sectors in which they operate.
Looking back on 20 years of brand valuation data can provide many insights for the future:
- Only 31 brands from the first report in 2000 remain on the list today, including Disney, Nike and Gucci.
- 137 brands, such as Nokia and MTV have dropped off the list in the intervening years.
- Coca-Cola and Microsoft are the only brands to have retained top 10 spots.
- In 2001, the first year in which the table included 100 brands, the cumulative brand value residing in the world’s top 100 brands was $988B. Today, that value stands at $2.13T, representing a 4.4% average compound annual growth rate (CAGR) and a more than doubling in total value.
These figures show that in such a fluid market landscape, investing in brand is key to long term success.
For the complete Top 100 ranking and the report with comprehensive analysis of growth, sector, and industry trends, visit www.bestglobalbrands.com.
Note: Interbrand measures what it calls Brand Strength — the ability of the brand to create loyalty and, therefore, sustainable demand and profit into the future. Brand Strength analysis is based on an evaluation across 10 factors that Interbrand believes constitute a strong brand. Internal factors include Clarity, Governance, Commitment and Responsiveness. External factors are Authenticity, Consistency, Relevance, Presence, Differentiation and Engagement.