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 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.

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