The 11 most profitable luxury brands in the world are recognized for their perceived quality, high brand awareness, uniqueness, and sophistication. Luxury goods are defined as those products that are not essential but are highly desirable.
Then why do we buy them? People want to own luxury goods because they uplift one’s self-esteem as well as confer high social status to the owner. Luxury goods impart an incandescent charm and grant an exuberant approach to everyday living. Many regard luxury as a sinful self indulgence. Coco Chanel stated that “Some people think luxury is the opposite of poverty. It is not. It is the opposite of vulgarity.” Self-indulgent response from someone with the money to not be “vulgar”? Of course, but that’s what passes for wisdom in the luxury world.
Other than boosting one’s status, the 11 most profitable luxury brands in the world use countless creative hours, immaculate designing, and sophisticated materials in the creation of their end products, making them more attractive to customers, who are then willing to shell out an exorbitant amount to own them.
You might want to check out our list of the 21 Most Valuable Luxury Brands In The World, to know more about popular luxury brands across the planet.
The luxury sector operates in seven major product categories – fashion, beauty, beverages, jewelry, eyewear, auto, and property. The industry is very sensitive to emotional and psychological factors, as people from different countries have different reasons to shop for luxury items. For example, people in India buy luxury items to boast about their social status and wealth.
Most luxury companies are small- or medium-sized enterprises but have a presence in most parts of the world. These luxury brands have a wide geographic footprint and are present in all of the popular tourist destinations. Global demand for luxury goods is rapidly increasing too. According to Allied Market Research, the luxury goods market is expected to be worth about $430 billion by 2022, growing at almost 4% compounded annually between 2016-2022. Asian markets have become vital for the growth of luxury brands. Rising consumerism in emerging markets is also driving sales of luxury goods. However, the sale of luxury goods is impacted by economic and political conditions, as well as currency fluctuations.
One of the eminent challenges facing luxury companies today is whether to choose between the exclusivity of their products or the inclusivity required to attract customers in today’s online digital world. Fierce competition from leading online stores like Amazon.com, Inc. (NASDAQ:AMZN) and other fast-fashion retailers has also been an area of concern for luxury companies. Even though the past few years have been hard on the luxury industry, given rising terrorism threatening tourism and a pull-back in luxury spending in China, the 11 most profitable luxury brands in the world have successfully delivered profits in the last twelve months.
Starting on the next page, we have listed the 11 most profitable luxury brands in the world based on the common choices between three websites: Forbes, Statista and Luxatic, and then ranked them based on the profits they made in the last twelve months.
Head to the next page to begin the list!