Top Brands Becoming Recession-proof

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    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, says Brand Finance’s latest study of the world’s top brands. It shows how the global downturn has spawned a new breed of recession proof and aspirational ‘Alphabrands’ which consumers turn to for quality regardless of the economic conditions. Bucking the trend for consumers to look to lower end products during times of economic uncertainty, the results show that consumers are increasingly eager to indulge in high quality cutting edge design and couture. Some of the world’s top fashion chains have experienced soaring profits with big brands such as Louis Vuitton ($4.9 billion), Hermès ($3.4 billion), and Polo Ralph Lauren ($3.3 billion) increasing their brand value. This year has also seen the re-entry of high end fashion houses such as Prada and Coach and the entry of luxury jeweller Tiffany & Co, and Swiss watch maker Cartier to its list of the top 500 luxury brands globally. Rolls Royce has seen an increase of 17 per cent in brand value to US$3.1 billion whilst both Daimler and BMW have benefitted from this renewed interest in luxury automobiles with brand increases of 20 per cent and five per cent.