Luxury brands have emerged as the dominant force in the global market, as outlined in Interbrand’s 2021 Best Global Brands list. While Tesla claimed the title of the fastest-growing brand overall with an astounding 184% surge in brand value, luxury brands, particularly in the fashion sector, have showcased exceptional performance this year. LVMH, in particular, has established itself as a top performer.
A notable addition to this year’s ranking is Sephora, owned by LVMH, which made its debut at number 100. With this inclusion, LVMH has become not only the largest group entity on the list but also the first to feature five brands. Joining Sephora on the list are other LVMH powerhouses: Louis Vuitton at number 13, Dior at number 77, Tiffany & Co at number 92, and Hennessy at number 95. The success of LVMH underscores the company’s strength and influence in the luxury industry.
Louis Vuitton has achieved a significant milestone, being one of only two luxury brands that have been consistently included in the list since its inception over two decades ago. Not only did Louis Vuitton break into the top 20 this year, but it also secured a place in the top 15, solidifying its position as the most valuable luxury brand in the study. Additionally, other luxury brands such as Dior, Tiffany & Co, Hermès, and Prada have also witnessed notable increases in brand value, indicating a prosperous year for the luxury sector.
The supremacy of luxury brands is also evident in country-specific results. In the UK, Burberry secured the third spot, trailing behind HSBC and Land Rover. In France, Louis Vuitton, Chanel, and Hermès led the pack, with L’Oréal, Cartier, Dior, and Sephora leaving their mark further down the list. In Italy, Gucci, Ferrari, and Prada emerged as the top three luxury brands.
However, despite the impressive achievements of luxury brands, the global top 10 remains dominated by tech giants. Apple, Amazon, and Microsoft continue to hold their positions as the top three brands, collectively accounting for one-third of the total table value. In total, the top 100 brands on the list have seen their value reach a record-breaking $2.67 billion, marking a 15% growth compared to the previous year.
Interestingly, media brands Facebook and Instagram, both significant players in the fashion, beauty, and luxury sectors, have made their mark in the ranking as well. Facebook claimed the 15th spot, while Instagram, owned by Facebook, secured the 19th position. These platforms demonstrated a 3% and 23% increase in brand value, respectively.
Interbrand’s Best Global Brands list determines rankings based on three key factors: the financial performance of the brand’s products or services, the brand’s influence on consumer purchasing decisions, and the brand’s competitive strength in fostering loyalty and driving sustainable demand and profit.
Ultimately, this year’s Best Global Brands list illuminates the power and resilience of luxury brands in an economy that is on the path to recovery. With luxury brands continuing to adapt and grow in response to evolving consumer preferences, the future looks exceptionally promising for the industry.
Useful Links:
1. Interbrand’s 2021 Best Global Brands list
2. Business of Fashion’s analysis on Interbrand’s Best Global Brands list in the luxury fashion sector
