To be a luxury brand is one thing, but to be the most powerful is something else.
In a year as hectic and unpredictable as 2020, luxury brands may not be at the forefront of everyone’s mind. With countless stores closed and people becoming more cautious about their spending, consumption of premium goods is anticipated to drop by 25% to 30% compared to last year according to the Boston Consulting Group – this means tens of billions of dollars foregone.
Despite being positioned in our minds as upmarket, extravagant, and first-class, the luxury goods sector is another industry that has been confronted by the COVID-19 pandemic. Whether it be apparel, accessories or automobiles, these lavish companies have been forced to reassess where they stand and how they need to adjust to this current climate. Labels have been told to prepare for a recession more detrimental than the Global Financial Crisis of 2007, with revenue already declining at a rapid rate. Nevertheless, it is still possible to remain dominant with the right approach to community, causes, and communication.
It is in times such as now that we are able to differentiate which brands have been able to maintain a cultural influence in the midst of this uncertainty. Many have achieved this by embracing new forms of communication such as the digital era and its ability to connect with their consumers, or by engaging in initiatives that exemplify their social values. Others however, have maintained their strength simply through the iconicity of the brand’s name and heritage. In fact, when the Hermès store reopened its second-largest Guangzhou flagship store in April, the brand accumulated $2.7 million in just one day. There’s only so long you can keep people away from the new range of Birkins, right?
Even if this year hasn’t been the greatest for sales, we can still appreciate the efforts of these exclusive brands in staying ahead of the game. Here’s the top 10 most powerful luxury brands list for 2020 revealed in the Brand Finance Luxury & Premium 50 report:
Top of Italian design, the most powerful luxury automobile company has claimed the number one spot among a select group of luxury brands.
Much like Ferrari, Rolex demands the attention of the rich and famous. If Rolex is good enough for Roger, it sure as hell is good enough for the rest of the world. Rolex slip into the list at number two.
You’ve seen just about everyone and anyone strutting their Gucci mink. Whether you like the brand or not, Gucci has made one of the more impressive comebacks in fashion history. For a while it was touch and go for the well-known powerhouse. They return in third place for 2020.
What is more controversial? Louis Vuitton placing third? Or Louis Vuitton placing fourth behind Gucci? We aren’t exactly sure, one thing is certain, fourth place has never looked so extra.
Zendaya has burst onto the pop-culture scene much like Drake did years ago. Lancome has dominated sales and the public eye with their various campaigns, placing them fifth on the list.
Another controversial placement, Estée Lauder is known for luxury cosmetics, and have done so for decades. Sixth may not be what the lux brand was hoping for, however, the fact remains—they are still up there with the best.
Orange is owned by this company. Well before Orange is the New Black aired across flat screens all over the world. From Apple watches to handbags, Hermès may land seventh among luxury brands, but only Hermes can make placing seventh look sheik.
If you ski, you wear Moncler. If you don’t ski, you still wear Moncler. The titan of warm apparel has dominated their industry for years, placing eighth may not give them the credit they deserve.
Given the list and its combatants, SK-II would feel confident a number nine spot places them in safe hands looking towards 2021. During a difficult year, SK-II has managed to beat the odds.
Last on the list, and still ever so powerful is the fashion house dominating online sales, clock and collect sales, and just about every other medium you can think of. Bottega Veneta reigns supreme, their campaigns are just another reason we all love to hate the charismatic fashion house.