Luxury named fastest growing sector for second consecutive year

Luxury has topped the list of fastest-growing sectors for the second consecutive year, with nine luxury brands making the top 100 of the Best Global Brands 2019 ranking by consultancy firm Interbrand.

Luxury was named the fastest-growing sector with the highest average brand value growth rate year-over-year at 11 percent. Italian label Gucci, which came in 33rd position overall, was emblematic of the sector’s success, showing a considerable 23 percent increase in brand value, while French labels Louis Vuitton and Chanel saw 14 percent and 11 percent increases, respectively.

Luxury embraces streetwear

According to the report, the most successful luxury brands are those that have adapted to rapid changes in the global marketplace, for example by catering to a younger consumer base whose interests are shifting more towards streetwear, who are tech-first in their purchasing habits, and who increasingly demand shareable, memorable and experiential brick-and-mortar experiences.

In the overall fashion category, US sportswear giant Nike topped the list again, coming in 16th position in the overall ranking, followed by Louis Vuitton and Chanel which came in 17th and 22nd place, respectively.

“Twenty years on from our first report, customers today are more informed, more connected and more demanding than ever before through a combination of wealth of choice, erosion of loyalty and shifting frames of reference wanting immediacy, abundance and intimacy – all at the same time,” said Charles Trevail, global chief executive officer of Interbrand.

“The age of brand positioning is over. In a world where customer expectations will continue to move faster than businesses, static brand positions and incremental change will just about keep brands in the game – but it will take, brave, we would say ‘iconic’, moves, to make brands leap ahead of customer expectations and ultimately deliver extraordinary business results.”

Photo credit: Gucci, Facebook