Hermes, Brioni and Versace brand are all luxury brands that enjoy a strong reputation around the world. You always knew that they are respected brands but now the fact has been established by a survey undertaken by the Luxury Institute. The New York based institute released the report of the survey under the heading Luxury Brand Status Index (LBSI) 2011. The institute, that enjoys the reputation of being objective and independent, has taken the first hand perspective of wealthy U.S. consumers They have taken detailed inputs from the participating consumers regarding the luxury brand’s reputation and prestige before drawing their conclusions. Hermes, Brioni and Versace rank highest in reputation and prestige according to the results of the study. These brands have taken the top position in different categories. There were various brands in contention and the competition was indeed very tough. The brands were given scores on a scale of one to ten and the difference between the top brands was marginal. They have come out on top but one thing is clear that they will have to work harder to retain the position.
French luxury house Hermés scored the top ranking in the women’s category among five luxury retailers in the survey of wealthy shoppers. The credibility of the brand is so high amongst the wealthy consumers that they are able to sell even beach towels at exorbitant prices. Brioni has been voted to the top spot by the discerning consumers in the men’s fashion segment. People have this misconception that the men’s wear segment is less competitive but it wasn’t easy for Brioni to score the top marks amongst the rich customers. Versace has occupied the top spot in the women’s footwear category. The luxury women’s shoe category is one where fickle consumers rank and rate brands differently over the years and it is a significant achievement for the Versace brand. The brand commands enormous respect from the consumers as well as the industry for the Versace fashion and Versace leather bags.
Milton Pedraza, CEO of the Luxury Institute, highlighted a key point that the classic brands have remained strong over time and come out on top at the end of every cycle in the industry. These old brands have become large and have acquired the critical mass to survive in the lean periods. In fact the recession worked as a shake out for the luxury industry and the old, strong and large brands not only survived the tough period but came out stronger and bigger. It has been a kind of a learning experience for them. By adapting and innovating in the tough period they have emerged as a leaner and meaner organization and are in the best position to take advantage of the improving conditions. Mr. Pedraza suggested that the luxury brands should focus on creating and maintaining a pool of loyal clients, especially young affluent consumers. For the luxury brands creating brand loyalty is the most important thing. If the younger customers come to the fold, the chances are they will stay with the brand for life. Prada, Louis Vuitton, Zenga and Christian Louboutin were other brands who were close to the top but missed the top spot by a small margin.