Brand equity for fashion industry: In search of general principles and a valuation case for Louis Vuitton and Gucci

Abstract

We construct a brand equity model for fashion industry. To capture specificity of this industry we introduce two new factors of exclusivity and conceptual consistency. This gives a possibility to modify Global Brand Equity valuation model to fashion businesses developing the Fashion Global Brand Equity model (F–GBE). As an illustration we evaluate Louis Vuitton and Gucci brands. The F–GBE value is consistent to the results provided by Interbrand and Millward Brown Optimor. We also mention some restrictions on the use of F–GBE and give some practical recommendations for its implementation.