As per the latest ‘Brand Finance Luxury & Premium 50 2020 report, world’s top luxury and premium brands could lose up to $35 billion of brand value cumulatively as a result of the COVID-19 pandemic. The report analyzes the three subsectors of apparel, automobiles and cosmetics and personal care within the luxury and premium ranking. These sub sectors are likely to be impacted differently by coronavirus, with apparel brands facing a 20 per cent loss of brand value, while automobile are set to be moderately impacted, facing a 10 per cent loss of brand value and cosmetics brands largely sheltered from the damage of the pandemic.
The report states, the value of the 500 most valuable brands in the world, ranked in the Brand Finance Global 500 2020 league table, could fall by an estimated $1 trillion as a result of the coronavirus outbreak.
The report ranks Porsche as the world’s most valuable luxury and premium brand following a 16 per cent increase in its brand value to $33.9 billion. Givenchy has been ranked as the fastest-growing brand with its brand value growing by 74 per cent to $2 billion, simultaneously jumping 11 spots in the ranking from 37th to 26th.
Five French brands feature in the top 10 list with their brand values growing on average by 14 per cent. In third place in the top ten ranking, Louis Vuitton has been ranked as the fastest growing brand with 21 per cent increase in brand value to $16.5 billion, while fifth-ranking Chanel recorded a solid 20 per cent brand value growth to $13.7 billion.
In addition to measuring overall brand value, Brand Finance also evaluates the relative strength of brands, based on factors such as marketing investment, familiarity, loyalty, staff satisfaction and corporate reputation. According to these criteria, Ferrari has retained its position as the world’s strongest luxury and premium brand with a Brand Strength Index (BSI) score of 94.1 out of 100 and a corresponding elite AAA+ brand strength rating.