The luxury market has been growing significantly over the past couple of years and is still continuing on an upwards trend. Experts forecast an annual growth rate for the luxury goods market of 5-6% between 2013 and 2015. The Brain & Company estimated the luxury market to be valued at $274 billion, with a potential to reach an astonishing value of $290 value by 2015.
Whilst the luxury market has been dominated by Louis Vuitton, which continues to be the most valuable luxury brand on a global scale, other names have been emerging as potential market leaders. Gucci and Prada have experienced the most significant growth. With great growth and potential, brands like Prada, Gucci and Hermes may one day overtake the market. and reach the number one spot.
It is believed that Prada and Gucci experienced such high growth in brand value due to an increase in Asian customers, at home and abroad. Gucci is mainly operating in North America and Western Europe, whilst Prada has been proactively expanding and opening stores worldwide. However, both brands put efforts to tap into the Asian market and much of their growth was due to the success of those efforts.
On the other hand, in the past year Louis Vuitton dropped its brand value by 12%, but it sill maintaining a top 30 position in the world’s most valuable global brands. Some experts are questioning the potential of growth for Louis Vuitton, even though it remains the most powerful luxury brand on the market.
This growth in the luxury market has led experts to believe that the luxury goods commerce is immune to economic fluctuations, as it has been growing sharply, in spite of the recession.
Read on to find out the Top 10 World’s Most Powerful Luxury Brands. Each brand will include details about country of origin, founder and date it has been founded, as well as details about the brand value, position in the global market and product prices. Read on to also find some astonishing facts about the highest priced bags in the world.
10. Coach – Brand Value: $3,2 Billion
Coach, Inc. is a luxury leather goods company from America. The company was founded in Manhattan, New York, in 1941. Coach is currently run by CEO Lewis Frankfort.
As of 2013, Coach has over 600 stores in the United States and Canada, and is currently the top 10 most valuable luxury brand in the world, with a brand value of over $3,2 billion.
Coach currently collaborated with Billy Reid to produce one of the most expensive bags in the world, priced at approximately $20 000. Other Coach products usually sell in the region of $500, but the company is continuing to tap into the luxury market with higher priced items.