The Porsche 964: a classic whose DNA runs through contemporary vehicles from the marque. Image credit: Porsche
German automaker Porsche was named the world’s most valuable luxury and premium brand, growing its brand value by 54 percent to $29.3 billion. The latest report from independent brand valuation specialist Brand Finance said French jeweler Cartier swapped second place with compatriot Louis Vuitton. “The brands that have performed well in this year’s Brand Finance Luxury & Premium 50 2019 ranking have shown their strength in the face of a struggling luxury market,” said Alex Haigh, director of Brand Finance, London. “However, their ability to continue to thrive shows just how loyal the luxury customer base really is.” Quality stands out Adherence to quality, brand positioning, innovation and sales growth seem common factors to the brands in the top 50 list. Porsche’s focus on quality sports car manufacturing and consistent sales growth over 70 years won its plaudits. The automaker recently launched its first purely electric production car, the Taycan, as it boosts its eco credentials. Cartier’s brand value went up 39 percent to $13.6 billion versus Louis Vuitton’s 29 percent increase to a similar valuation. Known as jeweler to royalty, Cartier boasts 300 boutiques worldwide. With its newly renovated flagship London store opening doors at last year’s end, Cartier has successfully recovered from the recent sector slump, cementing its position as the crème de la crème of luxury jewelry, Brand Finance said. At No. 4, French brand Chanel was up 95 percent to $11.5 billion. Chanel designer Karl Lagerfeld, who passed away earlier this year, is credited with introducing ranges of affordable cosmetics to target consumers who aspire to wear Chanel apparel but can only buy a fragrance or lipstick. Brand Finance said the jury is still out where Lagerfeld’s successor, Virginie Viard, can continue the brand’s journey. Brexit-headed United Kingdom was represented on the list by its automakers, accounting for four out of the five most valued luxury and premium brands on the Brand Finance list. Aston Martin was down 8 percent to $3.3 billion, Bentley Motors down 8 percent to $2.3 billion, Rolls-Royce Motor Cars up 52 percent to $1.6 billion and McLaren up 66 percent to $1.3 billion. “There is no denying the desirability and international appeal of British luxury brands, particularly in the United States,” Mr. Haigh said. “Take, for example the role of the Royal Family in showcasing the ‘Best of British’ – dresses worn by the Duchess of Cambridge, which often sell out within minutes of the pictures hitting the press,” he said. “Or our homegrown brand, Goat, whose Web site crashed after Meghan Markle was spotted wearing a Goat dress for Prince Charles’ birthday bash. We like to call this the ‘Markle Effect.’” Burberry, up 2 percent to $4.7 billion, spoke for British fashion and led the list of most valuable U.K. luxury and premium brands. “[It] is a testament to its success using iconic British faces like Cara Delevingne,” Mr. Haigh said. Per Brand Finance, Italian brands dominated this year’s luxury and premium ranking, with 15 brands represented. Italy’s deep roots in luxury help maintain its allure and growth in international markets. France was the second-most represented nation in the ranking, with 11 French brands claiming spots. The country competes with Italy for luxury goods production and sales, with Paris known as the worldwide capital of luxury given its numerous store openings year after year. Innovation key New entrants that made it to the list this year were Montblanc with a brand value of $925 million, Bobbi Brown at $786 million and Fendi at $573 million.
Brand Finance Luxury & Premium 50: Top 10 rankings