COVID-19: World’s top luxury brands could lose up to US$35 billion in brand value
The world's fifty nearly valuable luxury and premium companies are expected to lose up to US$35 billion (S$47.6 billion) in make value as a result of the COVID-19 outbreak, co-ordinate to the latest written report past London-based make valuation consultancy firm, Brand Finance.
Brand Finance assessed the impact of COVID-19 based on the effect of the outbreak on enterprise value, compared to what it was on Jan 1 this year.
Three sub sectors – apparel, automobiles and cosmetics and personal care – were analysed in the report. Out of these three sub sectors, apparel brands will be the almost heavily impacted, facing a 20 per cent brand value loss. Automobiles will be moderately impacted, facing a ten per cent brand value loss. Cosmetics brands will exist largely sheltered from the damage of pandemic.
Meanwhile, German language automobile brand Porsche has retained its title equally the world'due south most valuable luxury and premium brand by a considerable margin, following a 16 per cent make value increase to US$33.9 billion.
"There is no denying the importance of the Chinese marketplace in ensuring the good health and growth in the luxury and premium sector. We accept witnessed the Chinese successfully keep the sector to a higher place h2o post-obit the 2008 crash and luxury brands will be relying on this market once again in the wake of the coronavirus pandemic," said Alex Haigh, Valuation Director at Brand Finance.
"Porsche – the most valuable luxury and premium brand in the world – sold a staggering 86,000 units in Prc in 2022 alone, and the motorcar giant, along with beau brands beyond the sector, will be hopeful that great spenders volition continue demand high."
"We have witnessed the Chinese successfully keep the sector in a higher place water following the 2008 crash and luxury brands will exist relying on this market place once once again in the wake of the coronavirus pandemic." – Alex Haigh
Gucci ranked 2nd, with a brand valuation of US$17.6 billion. Louis Vuitton took tertiary place, with a brand valuation of U.s.a.$xvi.5 billion. Cartier, Chanel, Hermes, Ferrari, Rolex and Dior followed in the acme 10.
According to the report, Givenchy is the fastest-growing brand in this yr's ranking, its brand value growing 74 per cent to US$2 billion, simultaneously jumping xi spots in the ranking from 37th to 26th.
In add-on to measuring overall brand value, Make Finance as well evaluates the relative force of brands, based on factors such every bit marketing investment, familiarity, loyalty, staff satisfaction, and corporate reputation.
According to these criteria, Ferrari has retained its position every bit the world'south strongest luxury and premium brand with a Brand Strength Index (BSI) score of 94.i out of 100.
Ferrari announced five new models in 2019, including the SF90 Stradale and Ferrari Roma, both aimed at new market segments. The visitor also established a manufacturing agreement with the Giorgio Armani Group to help push Ferrari collections into a more premium infinite.
Haigh commented, "The embodiment of luxury, Ferrari continues to be admired and desired effectually the globe, and its outstanding brand strength reflects this. It is no wonder that many consumers, who might never own a Ferrari automobile, want a bag or a picket emblazoned with the Prancing Horse, but it is also crucial that direction remain at the steering wheel of the brand's future and maintain its sectional positioning by monitoring the licensing output closely."
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Source: https://cnalifestyle.channelnewsasia.com/obsessions/top-most-valuable-luxury-brands-ranking-covid-19-236321
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