A luxury brand is a brand for which majority of its products are luxury goods or whose names are associated with luxury, high price, glamour or high quality, though few, if any, of their goods are currently considered luxury goods.
LVMH (Louis Vuitton Moet Hennessy) is the largest luxury good producer in the world with over fifty brands, including Louis Vuitton, the brand with the world’s first designer label. Other market leaders include PPR (after it purchased the Gucci Group) and Richemont.The advertising expenditure for the average luxury brand is 5-15 percent of sales revenue. This rises to about 25 percent with the inclusion of other communication such as public relations, events and sponsorships.
The 2013 BrandZ Top 100, a ranking of the most valuable global brands compiled by research firm MillwardBrown, found luxury firms struggling with the need to balance exclusivity with attracting new customers through use of social media. The survey said that luxury brands has become more “acessible, collaborative and experimental”.
The top ten brands were: Louis Vuitton, Hermes, Gucci, Prada, Rolex, Chanel, Cartier, Burberry, Fendi and Coach.