New data from Brand Finance reveals Japanese luxury brands grow 3% in value, driven by skincare innovation, consumer trust, and purpose-led brand building.
TOKYO, 29 September 2026 – Japanese luxury and premium brands, represented by two brands in the ranking, increased their combined brand value by 3% to USD3.8 billion in 2026, according to the Luxury and Premium 50 2026 report by Brand Finance, the world’s leading brand valuation consultancy. This performance reflects a broader trend across the global luxury sector, where brands with strong consumer trust, clear positioning, and continued investment in innovation and premium experiences are proving more resilient amid increasingly polarised market conditions.
Leading Japan’s luxury and premium sector, SK-II (brand value up 10% to USD3 billion) is the 22nd most valuable luxury and premium brand globally. The brand is also the ninth strongest luxury brand globally, with a Brand Strength Index (BSI) score of 81.9/100 and an AAA- brand strength rating. SK-II's strong performance in 2026 was supported by continued investment in high-end skincare innovation and consumer engagement. The brand strengthened its product portfolio with the launch of its first-ever Facial Treatment Serum in July 2026, one of its most significant product introductions in recent years, leveraging its signature PITERA™ technology to target radiance, firmness, and skin quality.
Beyond product innovation, SK-II increased its visibility among affluent consumers through experiential activations and luxury retail initiatives, including major travel retail advertising for its premium LXP range at its large scale DOOH campaign held at Seoul Incheon International Airport in May 2026. These efforts helped strengthen brand awareness in a key channel for luxury beauty brands while reinforcing SK-II's position at the premium end of the global skincare market.
The other Japanese luxury and premium brand in the ranking is Clé de Peau Beauté (brand value down 18% to USD760 million). The brand achieved a BSI score of 56.9/100 and an A brand strength rating. Despite the decline in brand value, the brand’s strength improved in 2026 compared to 2025 (46.8/100). Clé de Peau Beauté strengthened consumer trust in 2026 through a combination of luxury brand experiences and long-term social impact initiatives. The brand renewed its global partnership with UNICEF, committing USD6 million to support girls' STEAM (Science, Technology, Engineering, Arts, and Mathematics) education and aiming to reach an additional 7 million girls by 2029, while continuing its Power of Radiance Awards programme, now in its eighth year, celebrating female changemakers.
Clé de Peau Beauté also leveraged global ambassador Nicole Kidman in 2026 to promote its education and empowerment initiatives, helping expand awareness of the brand's purpose-led positioning. These initiatives helped reinforce Clé de Peau Beauté's reputation for purpose, quality, and authenticity.
Alex Haigh, Managing Director, Brand Finance Asia Pacific, commented:
“Japan’s luxury and premium brands continue to demonstrate the enduring strength of the country’s beauty sector, even as the wider global luxury market becomes more polarised. SK-II’s growth reflects how sustained investment in premium skincare innovation, distinctive brand experiences, and strong consumer trust can translate into greater brand value. At the same time, Clé de Peau Beauté’s improving brand strength highlights the increasing importance of purpose, authenticity, and long-term brand building in maintaining consumer confidence. As luxury consumers become more selective, brands that successfully combine innovation, premium experiences, and meaningful emotional connection will be best positioned to achieve sustainable growth.”
Global Insights
The global luxury and premium sector is worth USD292.3 billion in 2026, as performance becomes increasingly polarised across categories. Apparel remains the largest segment at USD204.5 billion, while more than half of luxury brands continue to grow in value despite weakness across traditional luxury categories.
Established leaders continue to dominate the ranking, with Porsche remaining the most valuable luxury and premium brand globally at USD35.2 billion, ahead of Chanel (USD34.3 billion) and Louis Vuitton (USD28.8 billion). The rankings also highlight shifting dynamics in brand strength and growth, with Dior ranking as the strongest luxury and premium brand globally, achieving a Brand Strength Index (BSI) score of 91.5/100 and an AAA+ brand strength rating. Chanel places second (with a BSI score of 89.8/100 and an AAA+ brand strength rating), and Rolex third, (achieving a BSI score of 87.1/100 and an AAA brand strength rating). Veuve Clicquot is the sector's fastest-growing brand, with brand value up 39% to USD1.4 billion.
Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance, Brand Finance evaluates the strength of brands and quantifies their financial value to help organisations make strategic decisions.
Headquartered in London, Brand Finance operates in over 25 countries. Every year, Brand Finance conducts more than 6,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.
Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on 6,000 brands, surveying more than 175,000 respondents across 41 countries and 31 industry sectors. By combining perceptual data from the Global Brand Equity Monitor with data from its valuation database — the largest brand value database in the world — Brand Finance equips ambitious brand leaders with the data, analytics, and the strategic guidance they need to enhance brand and business value.
In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics, compliant with ISO 20671.
Brand Finance is a regulated accountancy firm and a committed leader in the standardisation of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671 and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.
Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.
Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.
Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.
Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.
The steps in this process are as follows:
1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.
2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.
3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.
4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.
5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.
6 Apply the royalty rate to the forecast revenues to derive brand revenues.
7 Discount post-tax brand revenues to a net present value which equals the brand value.
Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.
The data presented in this study form part of Brand Finance's proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.
