The luxury market has been growing significantly over the past couple of years and is still continuing on an upwards trend. Experts forecast an annual growth rate for the luxury goods market of 5-6% between 2013 and 2015. The Brain & Company estimated the luxury market to be valued at $274 billion, with a potential to reach an astonishing value of $290 value by 2015.
1. Louis Vuitton – Brand Value: $28.4 Billion
Louis Vuitton Malletier, often referred to as Louis Vuitton, or LV, is a French fashion house, that was founded by Louis Vuitton in 1984. Crowned the most valuable luxury brand in the world, Louis Vuitton has a current brand value of $28.4 billion and ranks number 10 on Forbes list of The Most Valuable Luxury Brands 2013.
In spite of dominating the luxury market, Louis Vuitton has experienced a loss in brand value of 12% since 2012.
One of the famous Louis Vuitton bags usually sells for over $10 000, and their Tambour Monogram watches collection sells items for prices in the region of $26, 000 to $29, 000.
The list with the top 10 of the word's most powerful luxury brands reveals the significant lead of Louis Vuitton, the growth of well-known brands such as Gucci and Prada and the expansion of Coach, especially due to their collaboration with Billy Reid for a top luxury item.
Another interesting fact to note is that 5 out of the top 10 most powerful luxury brands in the world are from France, and 2 from Italy. Only three others countries have a place in the top 10 most powerful luxury brands, such as America, Switzerland and England.
2. Hermès – Brand Value: $19,2 Billion
Hermès International S.A., mostly known as Hermès Paris, or just Hermès, is a French luxury manufacturer that was founded in 1837. The company is the second most valuable luxury brand in the world. The French manufacturer ranked 40 in the Brandz Top 100 Most Valuable Global Brands 2013.
One of the Hermès signature orange bags can be bought for approximately $4,420. In 2011, Hermès set a world record, when one of their famous bags, the Hermès Birkin Bag, was sold at an auction for an astonishing price of $203,150 and became the most expensive purse to be sold at an auction.
3. Gucci – Brand Value: $12,7 Billion
Gucci is the third most valuable luxury brand in the world, with a brand value of $12,7 billion. Gucci was founded in Florence in 1921, by Guccio Gucci. Today Gucci is part of the Gucci Group and is owned by Kering, a French company mostly known as PPR. The current CEO at Gucci is Patrizio di Marco.
Gucci has experienced a significant growth since 2012, as it increased its brand value by 48%, from $8,6 billion to $12,7 billion. Gucci was also introduced as number 68 in the Top 100 Most Valuable Global Brands 2013.
The famous crocodile shoulder bag from Gucci sells for approximately $35,000.
4. Prada – Brand Value: $9,4 Billion
Prada S.P.A., mostly known as Prada, is an Italian fashion house that was founded in 1913 by Mario Prada. The company has the headquarters in Milan, Italy, and is run by CEO Patrizio Bertelli.
Prada is the fourth most valuable luxury brand in the world, with a brand value of $9,4 billion. The brand experienced a sharp rise since 2012, increasing in value by 63%, from $5,7 billion to $9,4 billion.
Prada was also introduced at number 95 on the Brandz list of Top 100 Most Valuable Global Brands 2013. The famous Ostrich leather bags from Prada sell for approximately $10 000 a piece.