Prada tote
Cartier, Louis Vuitton and Prada are at the forefront of global luxury brands, according to Interbrand’s Best Global Brands 2013 report.
Interbrand ranked the 100 top global brands based on the financial performance of its branded products or services, the role of the brand in purchase decision and the ability to command a premium price. Additional luxury brands to make the list include Mercedes-Benz, BMW, Gucci, Audi, Hermès, Porsche, Tiffany & Co., Burberry, Ferrari and Moët & Chandon.
“The remarkable thing about luxury brands is that so many are so old and with their longevity they have managed to reinvent themselves constantly for a modern world,” said Jez Frampton, global CEO of Interbrand, New York.
“Prada is one of the top 3 risers, up 30 percent, and Burberry too, continues to grow despite what many assumed was the end of the luxury market in 2009 during the credit card crisis," he said.
“Most of the luxury brands are still benefiting from growth in Asia where there is a tremendous amount of consumers with aspiration and the cash to make a purchase.”
The top five brands overall in the 2013 report include Apple, Google, Coca-Cola, IBM and Microsoft.
Leading the way
Mercedes-Benz and BMW were ranked 11 and 12 respectively and were the highest-ranked luxury brands on the list.
Mercedes saw an increase of 6 percent which is likely due to its favor of green technologies such as its BlueTEC and hybrid engines. The automaker is the number one luxury brand in the United States and Germany and is showing dominance in the Chinese and Russian markets.
Mercedes-Benz AMG model
BMW’s brand value increased 10 percent and had its most successful year in 2012. With an increase of 40 percent in Chinese car sales, the automaker used its mobile applications and sponsorships to support the launch of its anticipated i3 and i8 models.
Other automakers on the list include Audi, Porsche and Ferrari, all of which were located in the upper half of the list.
Brands that fared the best are those that have used technology to their advantage. A combination of brand history and the latest technology has given luxury brands an opportunity to reinvent their image for a new generation of consumers.
Apparel and accessories brands ranked well on Interbrand's Best Global Brands 2013. Louis Vuitton was ranked number 17, the highest of any other luxury apparel and accessories brands.
The brand's 6 percent brand value jump was made possible by leveraging a global presence that balances luxury and exclusivity.
Actress Michelle Williams for Louis Vuitton ad
Prada saw an increase in brand value, making it one of the list’s top risers in 2013. The brand saw an increase of 30 percent, a rise outmatched only by technology brands Facebook and Google.
The Italian fashion brand’s value likely increased because of its ability to balance its heritage while producing innovative designs through digital and physical touch points in a meaningful way. Brands that do this well may see an increase of brand value as well.
In the high-end jewelry sector, Cartier and Tiffany & Co. were in the upper half of the report.
Cartier's Paris Nouvelle Vague product page
Cartier moved from number 68 to 60 in 2013 due to its 26 percent increase in brand value that came from a pairing of history with well-crafted social videos for its new Paris Nouvelle Vague collection.
Tiffany & Co. ranked at 75 due to its involvement in films such as “The Great Gatsby” and expanding into new markets such as Brazil, China and the Czech Republic.
Move toward the future
Brands that have seemed to fall behind in terms of technology will likely not see an increase in brand value and may lose relevance among modern consumers. As a brand's digital presence becomes more of a driving force of purchases, it will become increasingly vital to keep up-to-date with the latest technology.
“Luxury brands are demonstrating the key things needed to be a great brand: a strong vision of where they want to go, using new technology to engage with consumers and using the history and skills combined with the very latest digital technology to create communities around their brands,” Mr. Frampton said.
“Most of the luxury brands have reinvented their image for a modern consumer and as we move away from a retail experience to a more engaged experience, these luxury companies are setting the pathway for the future,” he said.
Interbrand's full list of Best Global Brands 2013 can be viewed here.
Final Take
Jen King, editorial assistant on Luxury Daily, New York