Porsche leads the way as luxury sector recovers strongly
- With a US$36.8 billion brand value, Porsche continues to lead the sector
- Porsche also achieves the highest Sustainability Perceptions Value (SPV) at US$8.1 billion
- Louis Vuitton, (brand value US$26.3 billion ) retains 2nd in the ranking and Chanel, (US$19.4 billion), climbs to the 3rd position pushing Gucci into 4th at US$17.8 billion
- Accelerating hard is Lamborghini (+123%) as the fastest-growing brand in 2023
- Ferrari remains the strongest brand in the Luxury & Premium sector
Porsche leads the new Brand Finance Luxury & Premium 50 2023 ranking of the most valuable luxury and premium brands globally. With a US$36.8 billion brand value, the German brand has led from the front in overall brand value for 6 consecutive years. Louis Vuitton, US$26.3 billion, retains 2nd in the ranking and Chanel, US$19.4 billion climbs to 3rd position, pushing Gucci in 4th at US$17.8 billion.
“Luxury brands have long flourished by providing exclusive and personalized experiences, and this trend has continued post-COVID-19. Utilizing data and technology, these brands are now generating personalised recommendations, customised products, and tailored experiences for their customers. This focus on individualisation enhances customer loyalty and helps brands stand out in a crowded market. The sector is no stranger to new sustainable trends either. They are embracing sustainability by incorporating eco-friendly materials, implementing ethical sourcing and production practices, and communicating their commitment to responsible business operations.” Alex Haigh, Director at Brand Finance
Porsche continues to push forward its strategy of modern luxury. The brand combines an outstanding product with a highly personal customer experience. Porsche is expanding its product portfolio with new sports car concepts but will also continue to focus on limited editions and expand their Sonderwunsch programme, which champions highly tailored cars where customers get involved in design outcomes.
Chanel reported great financial results (revenue ofUS$17.22 billionfor the year ending on December 31, 2022 – up 17% compared to the year prior, and profits ofUS$5.78 billion, representing an increase of 5.8%). The Chanel brand maintains a high Familiarity rate of 72% in recent years, especially high in Saudi Arabia, Malaysia and Italy. It also has one of the highest Consideration percentages among Luxury Apparels brands,51%, according to Brand Finance’s annual market research.
Sustainability an increasingly important factor in driving consideration
As part of its analysis, Brand Finance assesses the role that specific brand attributes play in driving overall brand value. One such attribute, is sustainability. Brand Finance assesses how sustainable specific brands are perceived to be, which are then represented by a ‘Sustainability Perceptions Score’. This is an indexed score that provides a view of the role of sustainability in driving positive brand reputation. The value that is linked to sustainability perceptions, the ‘Sustainability Perceptions Value’, is then calculated for each brand.
As well as being the most valuable Luxury & Premium brand, Porsche also has the highest Sustainability Perceptions Value (SPV) of any brand included in the Luxury & Premium 100 2023 ranking – US$8.1 billion.
Accelerating hard, Lamborghini (+123%) is named the fastest-growing luxury & premium brand in 2023
With an impressive increase of 123% in brand value up to US$4.1 billion, Lamborghini is the fastest-growing brand in the ranking.
This is a golden time for Lamborghini in particular. The Italian brand also climbs to second place in terms of Brand Strength, behind Ferrari which maintains its leadership. Lamborghini rose from a brand strength of 84/100 to 88/100 this year. Brand Finance’s research among high-income individuals in 16 countries confirms the growth and development of the brand from the point of view of Brand Equity, especially in Asia Pacific and North America where the brand has increased its familiarity significantly. In addition to strengthening the brand globally, the company continues to demonstrate how equity translates into excellent financial performance. Lamborghini sales now exceed €2 billion for the first time, the best financial result in its history.
Ferrari remains the strongest brand in the Luxury & Premium ranking
In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 100,000 respondents in 38 countries and across 31 sectors.
Ferrari (brand value is up slightly 3% to US$7.2 billion), retains the pole position in the Brand Strength Index (BSI) with an impressive 91/100 score and the consequent top rating of AAA+.
For the Italian luxury sportscar brand, growth is mainly due to two factors: the e-building - the home of its internally developed strategic electric components; and a higher degree of production flexibility for hybrid and full electric models.
The strength behind the prancing horse marque remains the ability of this brand to be exclusive but leave no-one behind. It has achieved this through its presence, from the sports world of F1, to merchandising, from high fashion and lifestyle to amusem*nt parks, it manages to enter everyone's imagination. Brand Finance research into brand familiarity for Ferrari remains at a very high at a global level, as well as its reputation and perceived quality.
