Luxury brands continue to prosper

Demand for luxury lifestyle brands helped grow the value of the worlds 500 biggest brands by 3.3% to $3,415 billion. (£2,17 billion) from 2011 to 2012 with high end fashion brands Louis Vuitton, Hermes and Polo Ralph Lauren “significantly” increasing their brand value in the past 12 months.

High street supermarkets such as Sainsbury’s, Asda and Marks & Spencer, however, suffered a drop in value.

BrandFinance claims that 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.

Prada, Christian Dior, Burberry and Tiffany & Co all appeared as new entrants in the 2012 Global 500 tables.

Apple overtook Google and is now valued as the “world’s most valuable brand” at $70.6bn (£44.87bn).

The Global 500 list includes 49 technology companies, making it the most valuable sector.

David Haigh, CEO of Brand Finance, says: “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 $3,415 billion from last year.”