Best Global Brands 2018: luxury growing faster than all other sectors

While Apple, Google and Amazon are once again the world’s most valuable brands, luxury labels were the biggest stars on this year’s Best Global Brands ranking, unveiled today by brand consultancy firm Interbrand. Published since 1999, the ranking attributes a monetary value to brands with a worldwide presence, based on several aspects such as their financial results, influence and brand strength. Luxury was this year’s top-performing category, having grown 42 percent in brand value in 2017.

Wondering why? According to the study, many luxury brands have been able to anticipate and respond to shifting cultural trends. “They have managed to immerse themselves into street culture and provide levels of access that, while retaining their authenticity and a level of exclusivity, have made their brands more desirable to more customers”, reads the report.

In fact, the more responsive a company is, the better its results. Luxury brands which have increased their score in the “responsiveness” variable over the past five years were valued 43 percent higher this year than those which didn’t. “Gucci’s recent efforts to respond more rapidly to today’s business landscape helped it grow by 30 percent within the past year”, explains Interbrand, noting that luxury’s noteworthy performance has ignited a trend for “premiumization” in other categories. For example, Samsung has raised the prices of its phones to rival Apple.

Another sign of the rise of “premiumization” lies in the popularity of subscription businesses. In 2018, 29 percent of the total value of the 100 Best Global Brands lies in subscription based businesses, versus 18 percent in 2009. “This is because traditional notions of loyalty are eroding as we live in a service-driven economy where access is more important than ownership. Brands are winning by offering the most frictionless ways to leverage their products and services based on the personalized needs of their customers¨, reads the report.

In addition to offering a premium, personalized customer experience, brands looking to increase their value should become more sustainable. According to the report, companies which have a “sense of purpose” and focus on creating “meaningful, positive impact in the world” have a five-year growth rate of 14.3 per year, compared to 2.3 percent for those that largely rely on storytelling to promote their brand.

The world’s most valuable brands in 2018

Fashion companies in the 2018 Best Global Brands ranking

Top growing brands (fashion)

Photo: Gucci Facebook