The Top 10 Luxury Brands That Remain Reigning Champions, Come Rain or Shine

The year 2020 has been an unusual one, to say the least. Companies all over the globe have witnessed dramatic setbacks, losses and disappointments, all in the course of this single year. Likewise, the luxury market has been hit by a freight train of fiscal chaos- befuddled customers, falling revenue, excess stock and frightened owners.

However, some brands have managed to stand strong and sail smoothly through the winds of change, based on the sheer might of their reputations and brilliant planning. Goodwill goes a long way in garnering success, and brands that have become the face of luxury and quality are masters in this art.

Let us take a look at 10 luxury brands who have remained at the top of their game:

1. Ferrari

The Italian sports manufacturer has been a world favourite for years, and with the coronavirus hitting Italy first and hardest, Ferrari was forced to shut down production. Following a seven-week closure, the company re-opened but implemented rigorous and methodical social distancing and testing measures.

And although revenue had fallen by 3 percent, the smooth re-opening certainly helped it bounce back by not only earning well in the third quarter, but also managing to remain on track to reach the top ends of its annual guidance earnings of about 1.125 billion euros. Apart from this, there has been an impressive 15% increase in the shipments of its V12-powered models, including Monza SP1 and SP2.

2. Rolex

Luxury Swiss watch manufacturers like Rolex have all had to stop and then re-start production owing to the pandemic, and have all suffered due to undeniable drop in sales and demand. However, brands that have well developed online presences, and those whose products are sold through auctions and at sales are still making money.

3. Gucci

Gucci also, like most brands, faced substantial drops in revenue, despite excellent early-quarter trends. The first quarter revenue for 2020 was €1,804.1 million (US$1957.18 million), which reduced by 22.4% as reported and 23.2% on a comparable basis. Against an extremely high first-quarter 2019 comparison basis, sales from directly operated stores fell by 23.8%. On a positive note, though, Gucci has recorded improved trends in Mainland China since the re0opening of stores.

3. Louis Vuitton

As with the entire Fashion and Goods sector of the LVMH, there had been drops in revenue in the first nine months of 2020, owing to store closures and international travel restrictions. However, Louis Vuitton picked up great momentum in the third quarter, resuming all ebb and flow in terms of products, shows and customer events. It also commenced production by opening a new workshop in France and continuing to stay true to its commitment of high-quality craftsmanship and responsible creativity.

Read the Brand Story of Louis Vuitton.

4. Lancôme

Lancôme is one of the brands included under the Loreal Luxe collection, and with the overall luxury beauty market shrinking by 23%, saw its fair share of losses in the first and second halves of 2020. However, it has been making major market share growth across Zones such as Asia, China and Western Europe.

5. Estée Lauder

The Estée Lauder Companies performed brilliantly in the first half of FY2020, providing customers with a plethora of high-quality products fuelled by their diversified portfolio of brands. They navigated the unprecedented situation in the second half with efficiency and agility, strategically shifting and placing priority across different business areas, all the while staying true to their commitments to customers, employees and all other stakeholders.

6. Hermès

Sales at Hermès was considerably affected due to the pandemic, as several flagship stores had to be shut down. While perfume, watches and lipstick sales were greatly affected, other sectors such as jewellery continued to do well. Online stores have been doing exceptionally well in countries like Japan, and sales are still strong owing to customer loyalty.

7. Moncler

Moncler recorded considerable drops in revenue throughout the Americas, Asia and Europe in the first quarter. Mainland China showed good recovery rates in the second quarter, with sales reaching double-digit growth rates. E-commerce has also continued to register positive double-digit growth rates.

News - Moncler Acquires Luxury Apparel Brand Stone Island

8. SK-II

While SK-II recorded double-digit drops in revenue, Procter & Gamble actually reported a 5% increase in FY 2020 sales figures as compared to 2019. The company recorded an increased demand in volume for cleansing and degerming products.

10. Bottega Veneta

Bottega Veneta recorded marvellous performance in the first three months of the year, with revenue up 10.3% as reported and 8.5% on a comparable basis, to €273.7 million (US$296.92 million). Retail sales figures in directly operated stores remained broadly unchanged (down 0.9%) despite the frightfully unfavourable market context. Collections met with great success in North America (up 31.3%) and Western Europe (up 25.4%), but sales were adversely affected only in Asia-Pacific and Japan. Wholesale was up a strong 55.1%.

Read the incredible brand story of Bottega Veneta here