January 22, 2012

Top 3 Global Brands: LVMH, Gucci, and Hermès

In a developed market that survives the quake of any massive financial crisis, the rich always gets richer, and the poor gets poorer. A survey of best global brands from Interbrand (based on 2011 reports) shows that LVMH (Louis Vuitton) tops the competition between luxury goods manufacturer, sitting at the highest rank above Gucci and Hermes. It is then followed by Cartier, Tiffany & Co, Armani, and Burberry. Only 7 companies are included in the list! Think about Rolex, Prada, Bottega, Louboutin, etc.

The most striking growth comes from Burberry, with 20% brand value's increase. I totally have no idea about the force behind this crazy increase, so perhaps I'll do some more research in the future. Cartier had an increase of 18%, while Hermes got 12% and LVMH. Both growth can probably be explained by their classic, timeless design, which always trumps any seasonal trend that comes and goes as time passes on. "Timeless" is the keyword in an era where nothing is certain.

Seeing these companies fighting hard to survive through many crisis and still be able to stand strong with their brands is really inspiring. Even more than that, they're growing, expanding, persisting to improve and deliver all those best quality goods. I'm starting to believe that I've made a good decision by investing in their products, even if it's just bags, for now.

Finest quality goods do come from the best companies.

Sourced from Interbrand and Bloomberg