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Leathergoods and automotive brands make top 100

Specialist research company Interbrand has published its annual list of top 100 global brands for 2018.

Among the highest-ranked luxury leathergoods brands are Louis Vuitton at number 18, Chanel at 23, Hermès at 32, Gucci at 39, Cartier at 67, Dior at 91, Burberry at 94 and Prada at 95.

In addition, a number of automotive brands make the list and many of the ones that do are avid users of leather. These include Mercedes-Benz at number 8, BMW at 13, Audi at 42, Porsche at 52, Land Rover at 78 and Ferrari at 80.

Interbrands bases its ranking on three factors: financial analysis, the “role” of each brand, and brand strength. Of these three criteria, the first two are the most straightforward.

Financial analysis measures the overall financial return to the organisation’s investors, or its economic profit. Economic profit is the after-tax operating profit of the brand, minus a charge for the capital used to generate the brand’s revenue and margins.

What Interbrand means by the “role” of the brand is its assessment of how much influence the brand’s name and reputation have in influencing consumers’ purchasing decisions. It gathers information on this from primary research, a review of historical information relating to this question and the assessment of an expert panel. Interbrand maintains a Role of Brand Index.

The third criteria, brand strength, is more complicated. It measures the ability of the brand to “create loyalty” and “sustainable demand and profit into the future”. Interbrand bases its analysis of this across 10 factors that it believes constitute a strong brand. Performance in these areas is judged relative to other brands in the industry and relative to other world-class brands.

These 10 factors for brand strength include internal aspects such as clarity and responsiveness, and external aspects including authenticity and differentiation.

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