10 World Most Powerful Luxury Brands
Three brands – Hermes, Gucci and Rolex have maintained double digit growth in brand value.
This acomplishment is significant at a time when many consumers can no
longer afford expensive products. And those who can often feel
compelled to constrain spending, concerned that flaunting Luxury
Badges would project insensitivity and poor taste.
The Luxury category has grown by 10 percent in brand value, driven mostly by demand in China and other developing markets. In addition, classic and timeless brands have done a better job of resisting the recession.
As the most ubiquitous Luxury brand, Louis Vuitton, which leads the category with a brand value of $19.4 billion, also benefited from this trend.
All the Luxury brands score high on brand contribution, reflecting
the tight bond They have with customers. These scores have not
softened, despite the economic pressure, suggesting that spending will
resume when consumer confidence returnes.
Luxury brands may benefit in a recession as customers reward
themselves with affordable Luxury treats. Some investment gurus have
even suggested investing in Luxury items as more reliable return on
investment than the stock market. Rolex watches, for example, often
increase in value on the second-hand market.
Several Luxury brands held secret sales late in the year to move excess stock without tarnishing Their brand image. Brands such as Moet & Chandon, Gucci, and Louis Vuitton adjusted their messages to emphasize brand heritage, with resonates with the more reflective consumer mood.
After many years of high groth, with exciting and avant-garde designs and advertising, in 2008 Louis Vuitton went back to Its heritage with the launch of the Journey campaign, featuring celebrities such as Keith Richards and Sean Connery. The idea of the campaign is a celebration of Louis Vuitton’s origins: travel and discovery, but also an invitation for consumers to live their lives as a journey. This was a masterstroke in the current times. People are looking for brands that They can trust, that have stood the test of time and that They perceive to provide value. Louis Vuitton’s classic quality and timeless style play straight into this trend.
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