Surge in growth for Italy’s Top 30 Most Valuable Brands worth $128.7 billion

The Kantar BrandZ Top 30 Most Valuable Italian brands have grown 12% in value over the past year. The ‘Made in Italy’ badge continues to bolster international growth for Italy’s leading brands, but stronger and more effective communication could support brands to strengthen brand equity.

The overall brand value of the Top 30 Italian brands has grown in the last year to $128.7 billion. This is nearly twice the rate of the country’s GDP growth in 2021 (6.5%) and three times the forecasted GDP growth for 2022 (4%). In the last four years, Italian brands have grown in value by 51%.

The ‘Made in Italy’ stamp of ultimate quality continues to bolster the international growth for luxury goods brands and household names such as Ferrari (No.5), Ferrero Rocher (No.11), Nutella (No.9) and Pirelli (No.16). Now is a great time for Italian brands to lean into their origin stories and stress their qualities that have made the country’s products renowned and desired the world over.

In contrast to much of the world, Italy is experiencing a bright international moment. Recently named ‘Country of the Year’ by the Economist, Italy has undergone quicker economic recovery than most neighbouring countries; buoyed in part by a quick return of demand for its products overseas where consumers particularly value the ‘Made in Italy’ quality badge.

Italian luxury brands continue to contribute the most value to the Top 30 with eight brands accounting for 44% (or $57.2 billion) of the total brand value. Luxury brands generate the greatest growth in absolute value year-on-year (more than $9 billion) with Bvlgari, Fendi and Prada all registering significant growth in brand value during the last year.

Fendi’s brand value grew the most, by 47% to $4.7 billion, buoyed by the revival of iconic and vintage items and the Fendace collection, an unprecedented mash-up of the Fendi and Versace brands at Spring 2022 in Milan, in which new Creative Director Kim Jones celebrated the beauty of the union after a period of separation. Luxury goods maker Gucci retained its top position in the Kantar BrandZ ranking as the Most Valuable Italian Brand for the fourth year with a brand value of $37.9 billion.

After 100 years of business, the luxury goods maker’s highly creative new collections and premium brand experience across all channels, with a particular focus on digital, define its uniqueness. Gucci’s brand value is nearly one third of the total value of all Italian brands in the ranking, and more than three times the value of second place brand, Enel (worth $12.6 billion). Enel has received a positive response among customers for its sustainable and integrated business model.

Versace propels into the ranking as the only newcomer this year. Its glamour positioning, endorsed by some of the world’s biggest celebrities sizzling in Versace gowns, and the “bold and fearless design vision of Donatella Versace, based on unapologetic glamour” have helped drive global revenue growth of 81% in 1H 2021.

Despite brand growth, Italian brands must not forget about the role that communication plays in keeping brands strong and valuable to the business. Excelling with innovative products and a superb brand experience is no longer sufficient to guarantee success. Brands must address new values of consumers who want the brands they buy to align with their own beliefs. They no longer think only about how things are made, but by whom, under what conditions, and whether their materials are ethically sourced. Leading brand Gucci for example has tackled this challenge head on. It trades not just in fabrics, leather goods and gemstones, but commitment, authenticity, and conviction.

Our analysis shows that exposure is one of the greatest levers of brand growth, but brands could do more to demonstrate clearly that their products and services meet the needs of a more conscientious consumer with compelling content. As the value that Italy and its brands derive from exports overseas risks being impacted by instability, inflation and rising material costs, there is a greater need to focus on ensuring that consumers properly understand that brands are worth their value.