Top luxury brands of the world could lose their brand values cumulatively to up to 35 billion dollars due to the pandemic outbreak.
The figures are reported in the latest Brand Finance Luxury & Premium 50 2020 report, which dispenses luxury apparel brands as the common profoundly influenced by a pandemic, suffering a 20% brand value decline.
Behind luxury fashion, the significance of the 500 most relevant brands in the world, ranked in the Brand Finance Global 500 2020 league table, which could drop by a predicted 1 trillion dollars as a consequence of the coronavirus outbreak.
Within the luxury and premium ranking, three sub-sectors are represented: automobiles, apparel and cosmetics and personal care. Brand Finance’s analysis has revealed that these sectors are expected to be affected conversely by a COVID-19. The values are based on the impression of the outbreak on business value, if compared to what it was in January 2020.
The Chinese market plays an essential role in ensuring wellness and growth in the premium & luxury sector. The Chinese market was able to keep the industry above the water in the 2008 crash. Luxury brands have been relying on the Chinese market once again in the watch of the Coronavirus pandemic.
The most valuable luxury and a premium brand in the world, Porsche had sold a tremendous 86,000 units in China in 2019, and the auto-titan, with other fellow brands across the sector, will be hopeful that enthusiastic spenders will have demand soaring.
A great year for Givenchy
Givenchy jumped 11 spots up from 37th to 26th, and its brand value grew 74% to 2 billion dollars this year and has become the fastest-growing brand in this year’s ranking.
French brands on the rise
Top brands Louis Vuitton, Hermès, Cartier, Dior and Chanel, are the ones that are flourishing this year as well. Each marked a strong year, their brand values expanding on an average by 14%.