PRN: Recession Fails to Dent Consumer Lust for Luxury Brands
Recession Fails to Dent Consumer Lust for Luxury Brands [18-March-2012] LONDON, March 19, 2012 /PRNewswire/ -- Brand Finance's latest Global 500 study of the world's top brands suggests that, far from cutting their cloth, consumers are turning their backs on traditional household favourites and lower end products and embracing luxury lifestyle and indulgent brands despite the grim economic outlook.
Recession Fails to Dent Consumer Lust for Luxury Brands
LONDON, March 19, 2012 /PRNewswire/ --
Brand Finance's latest Global 500 study of the world's top brands suggests that, far from cutting their cloth, consumers are turning their backs on traditional household favourites and lower end products and embracing luxury lifestyle and indulgent brands despite the grim economic outlook.
The Brand FinanceÂ®Â Global 500 report shows how the global downturn has spawned a new breed of recession proof and aspirational "Alphabrands" which we turn to for quality regardless of the economic conditions. Â Bucking the trend for consumers to look to lower end products during times of economic uncertainty, our results show that consumers are increasingly eager to indulge in high quality cutting edge design and couture. Some of the world's top fashion chains have experienced soaring profits with big brands such as Louis Vuitton ($US 4.9 billion), HermÃ¨s ($US 3.4 billion) and Polo Ralph Lauren ($US 3.3 billion) increasing their brand value.
2012 has also seen the re-entry of high end fashion houses such as Prada and Coach whilst Christian Dior and Burberry appear as new entrants in the Global 500 tables. Luxury jeweller's brand Tiffany & Co have also made the Global 500 for the first time ($US2.9 billion) whilst bespoke Swiss watch makers, Cartier, entered the ranking of the top brands with a value of ($US 3.1 billion).
As consumers continue to indulge themselves during the downturn, brands such as Rolls Royce have seen an increase of 17% in brand value to US$3.1 billion whilst both Daimler and BMW have benefitted from this renewed interest in luxury automobiles with brand increases of 20% and 5%.
Further evidence of consumers' lust for luxury has been seen by the drop in value of high street supermarkets such as Sainsbury's (now valued at $US 5.8 billion), ASDA ($US9.4 billion) and even Marks and Spencer's ($US4.5 billion) who have all suffered a difficult year.
The latest tech gadgetry appears also to be a must for today's consumers. Â Technology lifestyle brands also dominate the table, increasing their standings on last year's table by 79%. 49 technology companies appear in this year's Global 500 making it the most valuable sector by some margin. Lifestyle technology brand, Apple has leapfrogged Google to be named as the world's most valuable brand, having the highest ever valuation calculated by Brand Finance at an impressive $US70.6 billion.
David Haigh, CEO of Brand Finance, commenting on the tables stated: "The rise to prominence of luxury and lifestyle brands in this year's report is quite impressive. Whilst the world remains shrouded in economic misery, people are investing their hard earned cash in brands they feel they can rely on to produce quality, long lasting products. It is also an encouraging sign for the economy to see that the overall value of the Global 500 increase by 3.3% to $US3,415 billion from last year."
Brand Finance's Top 15 Luxury Brands 2012
Global Global Rank Rank Brand Value 2012 2011 Brand Industry Group Domicile 2012 1 8 Apple Technology United States $70.6 billion 22 23 BMW Automobiles Germany $21.2 billion 32 46 American Express Financial Services United States $18.2 billion 201 259 Louis Vuitton Fashion France $4.9 billion 258 Daimler Automobiles Germany $4 billion 320 339 Hermes Fashion France $3.4 billion 325 337 Polo Ralph Lauren Fashion United States $3.3 billion 357 Cartier Fashion Switzerland $3.1 billion 329 Prada Fashion Italy $3.3 billion 359 405 Rolls-Royce Automobiles United Kingdom $3.1 billion 360 Coach Apparel United States $3.1 billion 371 Burberry Fashion United Kingdom $3 billion 384 Tiffany & Co Retail United States $2.9 billion 420 498 Gucci Fashion France $2.7 billion 464 Christian Dior Fashion France $2.5 billion
% Global Global Brand Increase Rank Rank Rating in Brand 2012 2011 Brand 2012 Value 1 8 Apple AAA+ 139% 22 23 BMW AAA- 5% 32 46 American Express AAA- 17% 201 259 Louis Vuitton AAA 24% 258 Daimler AA- New 320 339 Hermes AA+ 9% 325 337 Polo Ralph Lauren AA- 6% 357 Cartier AAA- New 329 Prada AA+ New 359 405 Rolls-Royce AA+ 17% 360 Coach AA New 371 Burberry AA+ New 384 Tiffany & Co AAA- New 420 498 Gucci AA 21% 464 Christian Dior AAA- New
Brand Finance's Top 10 Most Valuable Global Brands 2012
Brand Rank Rank Industry Brand Value Rating 2012 2011 Brand Group Domicile 2012 2012 1 8 Apple Technology United States $70.6 billion AAA+ 2 1 Google Technology United States $47.5 billion AAA+ 3 2 Microsoft Technology United States $45.8 billion AAA+ 4 4 IBM Technology United States $39.1 billion AA+ 5 3 Walmart Retail United States $38.3 billion AA 6 18 Samsung Manufacturing South Korea $38.2 billion AAA- 7 7 General Electric Manufacturing United States $33.2 billion AA+ 8 16 Coca Cola Beverages United States $31.1 billion AAA+ 9 5 Vodafone Telecoms United Kingdom $30.0 billion AAA+ 10 32 Amazon Technology United States $28.7 billion AA+
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