Millward Brown’s annual rankings of Luxury and Apparel Brands
By Kenneth Richard | The Impressionist
It was a knockout year for Louis Vuitton according to Millward Brown, who just released their ranking of the Most Valuable Global Brands of 2015
. The Paris-based house topped the firm’s list in the luxury sector at an estimated valuation of $24.7 billion, growing 6% over last year’s valuation.
Also on the growth trajectory is none other than Chanel, whose valuation grew 15 percent to come in just under $9 billion. As a whole, the top 10 brands in the luxury sector accounted for a whopping combined total brand value of ~$105B, which is down 6% from the previous year.
This is the 10th anniversary of the report from the research group Millward Brown and the advertising conglomerate WPP. The study combines data reviewed from the brands’ corporate earnings along with data from the BrandZ database of over three million consumer interviews to project potential for future earnings for brands.
As a whole the sector dropped as luxury spending slowed in China and Russia, but the loss was partially offset by gains in Mexico, Turkey, and Nigeria. The report also speaks to the challenges the luxury sector faces, with millennials who view luxury products as “expensive indulgences inconsistent with their desire to live in a modest and sustainable way.” That being said, The Impression is certain that millennials played more than a small role in lifting Michael Kors into the Top 10 for the first time.
On the apparel category front, Nike increased their valuation by 21%, to come in just under $30 billion. A milestone for fashion. Meanwhile, Tommy Hilfiger had the most dynamic increase of all the fashion brands at 29%, to lift the label to a $2.6B valuation. Zara continues to lead the fast fashion crowd with a $22B valuation, followed by H&M’s $13.8B, and the firm expects the launch of the beauty division to positively impact the retailer for next year.
The study is a warning sign for those on the middle saying, “The consumer’s ability to find value for money at both the premium and budget ends of the market squeezed brands in the middle.”
Topping the list is, of course, Apple, with a staggering $247B valuation, ten times that of Louis Vuitton’s. But if an Apple product and an LVMH handbag entered the ring, we are pretty sure it would go the full 10 rounds. And our money is on the bag.