Top 10 luxury goods companies are 7.1 billion dollars’ worth less

The total value of the top 10 luxury-goods brands fell 6 percent, or 7.1 billion dollars, to 105 billion dollars, according to the the 2015 BrandZ study.

The 10th Annual Brandz Top 100 Most Valuable Global Brands Ranking, released by WWP and Millward Brown, shows how due to slowing sales in China and Russia the likes of Prada and Cartier have seen not only its sales but also its brand’s value badly affected.

As per the latest data gathered in this year’s edition of the BrandZ study, only Louis Vuitton and Chanel saw an increase over last year. In fact, Louis Vuitton advanced a 6 percent to 27.4 billion dollars, becoming the number one of the luxury ranking for the tenth consecutive year.

Likewise, Chanel’s value rose 15 percent to 9 billion dollars, pushing it to fourth in the list behind second-place Hermes and Kering SA’s Gucci.

Spending on gifts has fallen in China as the government clamps down on corruption, while Russia's shoppers are suffering from the ruble's depreciation and sanctions tied to the conflict in Ukraine, Millward Brown said. At the same time, efforts to appear more exclusive have created opportunities for cheaper brands such as Michael Kors and Tiffany, which finished in the top ten for the first time, the researcher said.

Chanel and Louis Vuitton shine where Prada failed

Chanel and Louis Vuitton fared better than their peers thanks to their unique approach, according to Elspeth Cheung, Millward Brown's Global Brandz Valuation Director.

As highlighted by Cheung, the fact that Chanel had harmonised prices across regions, encouraging more in-store consumption, has proved capital to conserve its brand’s value. In a similar fashion, Louis Vuitton successfully revitalised its brand with a fresh take on its original LV monogram, pointed out from Millward Brown's Global Brandz.

The worst performers were Cartier, whose value decreased 15 percent to 7.6 billion dollars, placing it sixth, while Prada slumped 35 percent to 6.5 billion dollars. According to analysts at Exane BNP Paribas, an overly expensive product mix and lack of novelty at Prada are to blame for the customers churn.

Meanwhile, Hermes's value fell 13 percent to 18.9 billion dollars while Gucci took a 14 percent dip to 13.8 billion dollars.

The top ten also includes the likes of Burberry, Michael Kors, Rolex and Tiffany.