Recession Fails to Dent Consumer Lust for Luxury Brands

Recession Fails to Dent Consumer Lust for Luxury Brands

LONDON, March 19, 2012/PRNewswire/ --

Brand Finance's latest Global 500 study of the world's top brands suggests that, far
from cutting their cloth, consumers are turning their backs on traditional household
favourites and lower end products and embracing luxury lifestyle and indulgent brands
despite the grim economic outlook.

The Brand Finance(R) Global 500 report shows how the global downturn has spawned a new
breed of recession proof and aspirational "Alphabrands" which we turn to for quality
regardless of the economic conditions. Bucking the trend for consumers to look to lower
end products during times of economic uncertainty, our results show that consumers are
increasingly eager to indulge in high quality cutting edge design and couture. Some of the
world's top fashion chains have experienced soaring profits with big brands such as Louis
Vuitton ($US 4.9 billion), Hermes ($US 3.4 billion) and Polo Ralph Lauren ($US 3.3
billion) increasing their brand value.

2012 has also seen the re-entry of high end fashion houses such as Prada and Coach
whilst Christian Dior and Burberry appear as new entrants in the Global 500 tables. Luxury
jeweller's brand Tiffany & Co have also made the Global 500 for the first time ($US2.9
billion) whilst bespoke Swiss watch makers, Cartier, entered the ranking of the top brands
with a value of ($US 3.1 billion).

As consumers continue to indulge themselves during the downturn, brands such as Rolls
Royce have seen an increase of 17% in brand value to US$3.1 billion whilst both Daimler
and BMW have benefitted from this renewed interest in luxury automobiles with brand
increases of 20% and 5%.

Further evidence of consumers' lust for luxury has been seen by the drop in value of
high street supermarkets such as Sainsbury's (now valued at $US 5.8 billion), ASDA ($US9.4
billion) and even Marks and Spencer's ($US4.5 billion) who have all suffered a difficult
year.

The latest tech gadgetry appears also to be a must for today's consumers. Technology
lifestyle brands also dominate the table, increasing their standings on last year's table
by 79%. 49 technology companies appear in this year's Global 500 making it the most
valuable sector by some margin. Lifestyle technology brand, Apple has leapfrogged Google
to be named as the world's most valuable brand, having the highest ever valuation
calculated by Brand Finance at an impressive $US70.6 billion.

David Haigh, CEO of Brand Finance, commenting on the tables stated: "The rise to
prominence of luxury and lifestyle brands in this year's report is quite impressive.
Whilst the world remains shrouded in economic misery, people are investing their hard
earned cash in brands they feel they can rely on to produce quality, long lasting
products. It is also an encouraging sign for the economy to see that the overall value of
the Global 500 increase by 3.3% to $US3,415 billion from last year."

Brand Finance's Top 15 Luxury Brands 2012

Global Global
Rank Rank Brand Value
2012 2011 Brand Industry Group Domicile 2012
1 8 Apple Technology United States $70.6 billion
22 23 BMW Automobiles Germany $21.2 billion
32 46 American Express Financial Services United States $18.2 billion
201 259 Louis Vuitton Fashion France $4.9 billion
258 Daimler Automobiles Germany $4 billion
320 339 Hermes Fashion France $3.4 billion
325 337 Polo Ralph Lauren Fashion United States $3.3 billion
357 Cartier Fashion Switzerland $3.1 billion
329 Prada Fashion Italy $3.3 billion
359 405 Rolls-Royce Automobiles United Kingdom $3.1 billion
360 Coach Apparel United States $3.1 billion
371 Burberry Fashion United Kingdom $3 billion
384 Tiffany & Co Retail United States $2.9 billion
420 498 Gucci Fashion France $2.7 billion
464 Christian Dior Fashion France $2.5 billion

Table continues

%
Global Global Brand Increase
Rank Rank Rating in Brand
2012 2011 Brand 2012 Value
1 8 Apple AAA+ 139%
22 23 BMW AAA- 5%
32 46 American Express AAA- 17%
201 259 Louis Vuitton AAA 24%
258 Daimler AA- New
320 339 Hermes AA+ 9%
325 337 Polo Ralph Lauren AA- 6%
357 Cartier AAA- New
329 Prada AA+ New
359 405 Rolls-Royce AA+ 17%
360 Coach AA New
371 Burberry AA+ New
384 Tiffany & Co AAA- New
420 498 Gucci AA 21%
464 Christian Dior AAA- New

Brand Finance's Top 10 Most Valuable Global Brands 2012

Brand
Rank Rank Industry Brand Value Rating
2012 2011 Brand Group Domicile 2012 2012
1 8 Apple Technology United States $70.6 billion AAA+
2 1 Google Technology United States $47.5 billion AAA+
3 2 Microsoft Technology United States $45.8 billion AAA+
4 4 IBM Technology United States $39.1 billion AA+
5 3 Walmart Retail United States $38.3 billion AA
6 18 Samsung Manufacturing South Korea $38.2 billion AAA-
7 7 General Electric Manufacturing United States $33.2 billion AA+
8 16 Coca Cola Beverages United States $31.1 billion AAA+
9 5 Vodafone Telecoms United Kingdom $30.0 billion AAA+
10 32 Amazon Technology United States $28.7 billion AA+

For the full Global 500 and the Global 500 Report visit:

http://www.brandfinance.com

Media Information:

Brand Finance plc
James Baker
Head of Communications
T: +44(0)20-7389-0400
j.baker@brandfinance.com

Source: Brand Finance plc

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