International brand consultants Brand Finance recently published its Luxury & Premium 50 for 2025. This is the ranking by brand value in dollars of the top 50 global luxury and premium brands in five categories of apparel, automobiles, cosmetics & personal care, hotels and champagne & wine.
The sector has always fascinated me, as it has different appeals depending on life stage involved. Early in one’s career in financial services, champagne, fast cars and especially chunky watches are de rigueur, but as we age they assume less importance, and comfy hotels and slow but reliable cars become more attractive. Older people are less inclined to display their wealth via vulgar displays of brand labels on clothing and sneakers, and often opt for nondescript though well-made and comfortable apparel.
One of the hottest items in any aspiring socialite’s wardrobe is the Birkin Bag by Hermes, named after the late British chanteuse Jane Birkin. The Birkin Bag sells new for about $10,000 and there’s a waiting list of a few years for a new one. Hermes deliberately keeps the supply tight to keep the punters gasping for more. Second hand, or “pre-owned” Birkins are somewhat easier to source, but they tend to keep their price or even appreciate, so no real bargains here.
At the height of US President Donald Trump’s trade tariff applications in April, a number of Chinese manufacturers claimed that many European luxury apparel brands were mostly manufactured in China, with only a tiny amount of final stitching and logo application being performed in Europe.
Those manufacturers claimed that their products were identical to the European originals apart from the labelling. Brands such as Hermes and Louis Vuitton were quick to quash those claims and took journalists on tours around their factories in France to prove the point.
However, this exercise served to demonstrate that Chinese manufacturers are capable of producing high-end luxury apparel goods not too far removed from the quality of the European originals: very good-looking counterfeits.
The psychology behind purchases of luxury goods is fascinating. Often the punters simply cannot afford them, but they buy them anyway because it boosts their feelings of self-worth.
And the same goes for watches, in which Chinese counterfeits of high-end timepieces of brands such as Rolex, Audemars Piguet, Jaeger-LeCoultre and even low-end luxury brands such as Breitling and TAG Heuer are churned out at a fraction of the price of the Swiss originals.
In this year’s ranking, Porsche retains the dominant position as the world’s most valuable brand, a position it has held for the past eight years. With a brand value of $41.1bn, it enjoys a substantial lead over its rivals. Ferrari is only ranked eighth, with a brand value of $14.4bn, while Lamborghini trails at 19th position. Bentley is ranked 26th, Rolls-Royce 28th, Aston Martin 39th and Maserati 50th.
Although not ranked by Brand Finance, it’s worth noting the travails of Jaguar, the brand value of which was virtually wiped out recently, with a 97.5% sales decline in April. This followed a radical rebranding exercise late last year that has fallen flat with its customers. A classic example of “if it ain’t broke, don’t try to fix it”. This may well end up being similar to Coca-Cola’s disastrous 1985 marketing blunder, which had to be reversed within three months.
In second spot in Brand Finance’s ranking was Chanel on $37.9bn, and in third place Louis Vuitton on $32.9bn. The aforementioned Hermes was ranked fourth on $19.9bn. Among watches, Rolex came in at number five on $18.8bn, while Cartier in the Richemont stable was ranked seventh on $15.7bn. Omega is ranked 27th, TAG Heuer 29th , Jaeger-Lecoultre 36th, Tissot 46th and Longines 48th. Horological icons such as Blancpain and Audemars Piguet were conspicuous by their absence.
And for those with champagne tastes and brown ale income, Moët & Chandon is ranked 30th, with Veuve Cliquot at 41. No Krug, Bollinger or Louis Roederer Cristal here.
The psychology behind purchases of luxury goods is fascinating. Often the punters simply cannot afford them, but they buy them anyway because it boosts their feelings of self-worth. It’s irrational in many ways but it’s unlikely to change soon.
• Gilmour is an investment analyst.
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