In its latest report, the Brand Finance firm highlights the place of sustainable development in consumer choice. A criterion that weighs more heavily in the valuation of luxury brands.
Louis Vuitton, Guerlain, Porsche…
With $3.8 billion attributable to perception what consumers have of its commitments to sustainability, Louis Vuitton takes first place on the podium in the luxury and premium fashion category, just ahead of Chanel and Hermès.
According to the report, sustainability plays a role of 12.2% in consumers’ purchasing motivations for this product category. In the prestige beauty sector, it would account for 11.4% where luxury automobiles, in the midst of an energy transition, have the most significant score with 23.8%.
Average performance 1.5 times higher than in the general public consumption sectors and the causes of which can be found in the pricing specificities of the luxury market. “A brand’s sustainability commitments may involve a slight increase in costs which requires a more premium positioning. observes Robert Haigh, director of strategy and sustainability at Brand Finance. “Luxury consumers are less price sensitive, which allows them to seek improvements in other attributes, including sustainability”, he specifies while insisting on the desire of these customers to publicly show their attachment to a certain “ethics” by consuming brands perceived as sustainable.
Porsche, the most valuable luxury brand according to Brand Finance
These insights are part of a broader study conducted by Brand Finance which aims to highlight the most valuable luxury brands in 2024. For the seventh consecutive year, Porsche takes first place in the ranking with a value up +17% to $43.1 billion.
On the podium, we also find Louis Vuitton, leader of the BrandZ top, and with an increase in value of +23% to $32.2 billion. Chanel comes in third position, up +35% to $26.1 billion.
The Rolex tour de force
The Brand Finance ranking also distinguishes Rolex as a luxury brand “the strongest” with an index of 90.1/100. Ferrari (90/100) and Chanel (88.9/100, up 16 places) are positioned just behind. If brand strength takes into account, among other things, the market share occupied by it, it is also based on less tangible factors such as the image conveyed.
“Strong brands don’t rely on sales alone.”, says Annie Brown, director of valuation at Brand Finance UK. “The luxury houses recognized this year in this ranking stand out for their unique ability to preserve and strengthen the strength of their brands, even in times of economic uncertainty. These traditional players are finding new and innovative wayss to deliver premium experiences that resonate with consumers while remaining true to their distinctive heritage. This balance, which aims to embrace transformation while preserving tradition, is fundamental to long-term brand power.”
The Brand Finance report is accessible via this page.
