The world’s top 50 most valuable luxury and premium brands could lose up to US$35 billion worth of brand value as a result of the COVID-19 pandemic. Within the luxury and premium ranking, three sub sectors are represented: apparel, automobiles and cosmetics & personal care. Brand Finance’s analysis has shown that these sub sectors are likely to be impacted differently by coronavirus, with apparel brands the most heavily impacted, facing a 20% brand value loss, autos moderately impacted, facing a 10% brand value loss and cosmetics brands largely sheltered from the damage of pandemic.
Looking beyond the luxury and premium sector, the value of the 500 most valuable brands in the world, ranked in the Brand Finance Global 500 2020 league table, could fall by an estimated US$1 trillion as a result of the Coronavirus outbreak.
Brand Finance has assessed the impact of COVID-19 based on the effect of the outbreak on enterprise value, compared to what it was on 1st January 2020. The likely impact on brand value was estimated for each sector. The industries have been classified into three categories – limited impact (minimal brand value loss or potential brand value growth), moderate impact (up to 10% brand value loss), and heavy impact (up to 20% brand value loss.
