World’s most powerful luxury brands
1) LOUIS VUITTON
Brand value: $25.74 million
As the marquee brand of French conglomerate LVMH, nothing- not even a strong euro and dwindling U.S. economy- can stop Louis Vuitton’s growth. Most recently, the company launched and ad campaign focused on its core customer, the luxury traveler, instead of the fashionista , who has adopted the brand as her own in the past decade. In the fashion and accessories division, of which Louis Vuitton is a part, LVMH reported revenues of 1.5 billion euros ($2.3 billion) in the first quarter of 2008, jumping 7.1 % from 1.4 billion euros ($1.9 billion) in the corresponding period from 2007.
2) HERMES
Brand value: $9.63 million
French stalwart Hermes is traded on the Paris Bourse, but the family behind the brand still owns 29% of its shares. Many experts credit this as a reason the brand continues to grow. Handbags are still sourced, handcrafted and assembled in France, which is why, says the company, the most basic version of the beloved Birkin starts at $8000. Hermes has also done well with lower-priced items. Silk scarves, bracelets and beach towels are sold on its exclusive E-commerce web site.
3) GUCCU
Brand value: $9.34 million
Gucci, owned by French luxury goods conglomerate PPR, reported lower that expected sales for the first quarter this year, but in terms of brand-power, Millward Brown has determined the brand has plenty. Other fashion labels in the GUCCI Group’s portfolio fared well, however; Alexander McQueen announced profitability for the first time since being acquired by the group in 2004, and Stella McCartney is expanding into India. In the first quarter of 2008, Bottega Venneta’s revenue grew 31.5% over the same time a year earlier.
4) CARTIER
Brand Value: $9.29 million
It’s possible Cartier diamonds shine the brightest. The French jeweler, a subsidiary of luxury conglomerate Richemont, reported worldwide growth for the fiscal year ending March 2008. Sales in Richemont’s jewelry category, which includes Cartier and the much-smaller Van Cleef and Arpels, were 2.66 billion euros ($4.2 billion) , a 9% increase from 2.44 billion euros ($3.8 billion) in the fiscal year.
5) CHANEL*
Brand Value: $9.29 million
One of the few private companies on our list, Chanel strikes an elusive balance; The brand continues to please aging customers while attracting young socialites. Ladies who lunch prefer classic tweed suites, while girls about town opt for designer Karl Largerfeld’s forthey frocks, And the company’s haute couture production is booming. At the end of 2007, Chanel’s president of fashion, Bruno Pavlovsky, said that last year was the company’s best in terms of couture sales, with 20 % more dressed produced that the previous year. A sunglasses licensing deal with Lyusotica fattens the bottom line.
* Private company; financial values were estimated
6) Rolex *
Brand Value: $9.29 million
It’s easy to see why Swiss watchmaker Rolex manufactures the arguably most counterfeited product on the planet; its high-quality goods generate estimated revenue of $3 billion each year, according to the study. New wealth in Russia and China are cushionin the company’s revenue while the Western economy suffers.
* Private company; financial values were estimated
7) HENNESSY
Brand Value: $5.4 million
LVMH’s spirit and wine division reported a 7.1 % decrease in revenues for the first quarter of 2008 compared with the same quarter in 2007. However, its Hennessey cognac brand was a bright spot, shinning in emerging markets including Russia, China and Vietnam. In China especially, congnac has been a status symbol since French traders shipped it into Asian ports over 200 year ago. A coveted wedding present in the country is as bottle of Hennessy.
ARMANI *
Brand Value: $5.12 million
Although big companies like LVMH have sniffed around Armani’s business in the past, the minimalist designer, one of the world’s billionaires, has chosen to keep the company private and avoid added pressure from shareholders. Instead, he’s focused on extending the brand into the lifestyle category, cutting deals with television-maker Samsung, as well as opening Armani-branded hotels, spas and restaurants.
* Private company; financial values were estimated
9) MOET & CHANDON
Brand Value: $5.4 million
Unlike flash-in-the-pan Champagne brands, Moet continues to be served at exclusive events and parties around the planet. The LVMH-owned company’s most recent marketing efforts included a holiday pop-up store in New York City’s Soho neighborhood. There, shoppers could have any pre-purchased bottle of Moet encrusted with Swarovski crystal lettering.
10) FENDI *
Brand Value: $4.67 million
Billionaire Bernard Arnault’s French conglomerate Lous Vuitton Moet Hennessy (LVMH) owns several fashion houses, but the Karl Lagerfeld-helmed Fendi has kept apace with its slew of ‘it’ bags, from the Baguette in the late ’90 to the B Bag in 2005. With the premier of the Sex and the city film just weeks away, the company has reissued the Baguette, made famous by character Carrie Bradshaw and her friends on the HBO television series.
Source: Bangalore Mirror
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