Louis Vuitton has changed a lot over the past couple of years, and by the numbers, the shifts in strategy are starting to look like they’re working. According to research firm Millward Brown, Vuitton held onto its spot as the world’s most valuable luxury brand in 2014, and it was one of only two that gained value.
Every year, the Millward Brown BrandZ Study looks at metrics like corporate earnings and consumer attitudes for global brands in a variety of categories and assess how they’re performing, both relative to their competition and their own previous valuations. This year, of the luxury brands measured, only Louis Vuitton and Chanel gained value; LV rose 6% to $27.4 billion and the top spot on the luxury list, while Chanel grew 15% to a $9 billion valuation, which brought the French powerhouse in at fourth worldwide. Louis Vuitton has been ranked first in luxury for ten years running.
According to Bloomberg Business, Millward Brown analyst Elspeth Cheung attributes both Louis Vuitton’s and Chanel’s increasing value to recent strategy changes; Louis Vuitton’s revitalization is working, and Chanel’s price harmonization across markets has encouraged in-store consumption.
On the whole, though, luxury brands did not fare so well in 2014. The second and third place companies (Hermès and Gucci, respectively) each saw valuation decreases, and even in the top ten, the category was down an average of 6%.
As a consumer, do these findings reflect your perceptions of the brands in question?
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