In this article, we will take a closer look at the most valuable luxury brands of 2022, as determined by Brand Finance, the world’s leading brand valuation consultancy.
From Porsche’s position as the most valuable luxury brand valued at $33.7 billion, to Louis Vuitton’s strong online marketing and celebrity influencer campaigns, we will take a peak at the strategies and performance of these top luxury brands.
The strength of these brands are determined by a balanced scorecard of metrics developed by Brand Finance that evaluates marketing investment, stakeholder equity, business performance, and also future plan of these luxury brands.
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The Most Valuable Luxury Brand: Porsche
Porsche is still one of the most highly valued luxury brands in the world, worth an impressive $33.7 billion, as reported by Brand Finance.
This is thanks in part to Porsche being recently separated from its parent company, the Volkswagen Group, and being listed on the Frankfurt Stock Exchange.
This move shows just how valuable the Porsche brand is, similar to the successful separation of Ferrari from its parent company years ago.
Louis Vuitton takes Second Place
Louis Vuitton, valued at $23.4 billion, comes in second place on this list of the top luxury brands in the world.
The brand saw a boost in sales during the pandemic as people couldn’t travel and instead spent their money on luxury items.
Louis Vuitton is now focusing on building their brand through online marketing and partnerships with popular influencers to attract new customers, while also staying true to their historical roots.
Top 10 Luxury Brand Value
Here’s the list of the top 10 valued luxury brands.
Most Recognizable Luxury Brand
Ferrari, valued at US$8 billion, is the world’s most recognizable brand.
The brand is facing a big challenge and opportunity as it plans to build its first fully electric vehicle by 2025, and predicts that electric vehicles will make up 40% of its product offerings by 2030.
Fastest Growing Luxury Brands
The Ritz-Carlton is quickly becoming one of the most popular luxury brands in the world as travel started up again in 2022.
It is part of the Marriott Group and has a really strong reputation, with its BrandFinance Strength Index going up from 79.6 to 83.2, which is considered an AAA rating.
Dior, a luxury brand whose value has increased by 19% to $9 billion, has been doing really well globally with their popular Sauvage fragrance. They’ve bounced back from the pandemic and are seeing growth again.
Dolce & Gabbana, a brand with a unique personality and a value that’s grown by 55% to $1.4 billion, is currently setting up a new division called Dolce & Gabbana Beauty, that will handle all aspects of its fragrance and makeup products.
Estée Lauder, brand value has risen by 39% to $7.9 billion, and has seen a lot of growth this year. The company has also seen an increase in sales at airports and other travel-related places as the industry recovers.
The brand has big plans for the future and is currently in talks to acquire luxury fashion house Tom Ford for $3 billion.
Lamborghini and Aston Martin, both luxury car brands, have recently announced new plans to focus on sustainability. These plans are already having a positive effect on how people perceive these brands with both brand strengths increasing.
Why Brand Value is so Important For Luxury Goods
In the luxury goods space, brand value is incredibly important for a number of reasons.
Firstly, it is a measure of the financial worth of a brand, and as such, it is a key indicator of a brand’s success and overall performance.
Additionally, luxury brand value is closely tied to a brand’s reputation and perceived value in the minds of consumers.
This is why many luxury brands focus on building and maintaining a strong brand image, as it is essential to their overall success.
Furthermore, luxury brand value is closely linked to the stock prices of the companies that own these brands, as well as the value of their assets. This means that luxury brand value can have a significant impact on the overall value of a company and its shareholders.
All these factors together make luxury brand value a crucial metric for any business looking to succeed in the luxury market.
For more Brand valuation rankings check out our site’s Brand section.