“The brand, owned by Paris-based LVMH Moet Hennessy Louis Vuitton SA (MC), is worth $25.9 billion, a 7 percent increase from 2011, according to Millward Brown Optimor’s 2012 BrandZ study published today. Hermes, in which LVMH owns a stake, rose to second place with a value of $19.1 billion, up 61 percent on last year. Rolex, the closely-held Swiss watch brand, was ranked third at $7.17 billion, a 36 percent gain.
“Luxury is seen as a good investment with people increasingly buying classic pieces rather than high fashion,” Millward Brown Optimor Managing Director Nick Cooper said in a statement. “Those who can afford it indulge, including young professionals who, increasingly unable to buy houses, are spending their disposable income on mid-tier luxury.”
Quality craftsmanship, heritage and history are key factors of success for luxury brands, according to the study. Luxury makers “can embrace brand management as a critical competency for building long-term financial value,” Cooper said.”
See the full top 10 after the click.
1. Louis Vuitton, $25.9 billion, up 7%
2. Hermes, $19.1 billion, up 61%
3. Rolex, $7.17 billion, up 36%
4. Chanel, $6.7 billion
5. Gucci, $6.4 billion (down 14%)
6. Prada, $5.7 billion (first time in top 10)
7. Cartier, $4.8 billion
8. Hennessy, $4.6 billion
9. Moet & Chandon, $4.2 billion
10. Burberry, $4.09 billion