Japanese Luxury Brands Grow Amid a Divided Luxury Market
Japanese luxury and premium brands recorded combined brand value growth of 3% to USD 3.8 billion in 2026, according to Brand Finance’s Luxury and Premium 50 2026 report.
The ranking includes two Japanese brands, SK-II and Clé de Peau Beauté. Their performance reflects wider changes in the global luxury market, where consumer trust, innovation and strong brand positioning are becoming increasingly important.
SK-II Leads Japan’s Luxury Brand Sector
SK-II remains Japan’s most valuable luxury and premium brand. Its brand value increased 10% to USD 3 billion, placing it 22nd among the world’s most valuable luxury and premium brands.
The skincare brand also ranks as the ninth strongest luxury brand globally. It achieved a Brand Strength Index (BSI) score of 81.9/100 and an AAA- brand strength rating.
SK-II’s growth followed continued investment in premium skincare innovation and consumer engagement. In July 2026, the brand launched its first-ever Facial Treatment Serum.
The product uses SK-II’s signature PITERA™ technology and targets radiance, firmness and overall skin quality.
In addition, SK-II expanded its visibility among affluent consumers through experiential campaigns and luxury retail initiatives. These included a major digital out-of-home campaign for its premium LXP range at Seoul Incheon International Airport in May 2026.
Together, these initiatives helped strengthen the brand’s visibility in the luxury beauty market.
Clé de Peau Beauté Builds Brand Strength
Meanwhile, Clé de Peau Beauté recorded an 18% decline in brand value to USD 760 million.
However, its brand strength improved compared with 2025. The brand achieved a BSI score of 56.9/100, up from 46.8/100, and received an A brand strength rating.
The brand continued to build consumer trust through luxury experiences and purpose-led initiatives. It renewed its global partnership with UNICEF and committed USD 6 million to support girls’ STEAM education.
The initiative aims to reach an additional 7 million girls by 2029. Clé de Peau Beauté also continued its Power of Radiance Awards, now in its eighth year, recognising female changemakers.
The brand further worked with global ambassador Nicole Kidman to promote its education and empowerment initiatives.
Global Luxury Market Shows Diverging Growth
The global luxury and premium sector is valued at USD 292.3 billion in 2026, according to Brand Finance.
Apparel remains the largest segment, with a value of USD 204.5 billion. At the same time, more than half of luxury brands continue to increase their brand value despite pressure across traditional luxury categories.
Porsche remains the world’s most valuable luxury and premium brand at USD 35.2 billion. Chanel follows at USD 34.3 billion, while Louis Vuitton ranks third at USD 28.8 billion.
Brand strength rankings show a different picture. Dior ranks as the strongest luxury and premium brand globally, with a BSI score of 91.5/100 and an AAA+ rating.
Chanel ranks second with a BSI score of 89.8/100 and an AAA+ rating. Rolex ranks third, with a BSI score of 87.1/100 and an AAA rating.
Meanwhile, Veuve Clicquot recorded the fastest brand value growth in the sector. Its brand value increased 39% to USD 1.4 billion.
Innovation and Purpose Shape Luxury Growth
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.”
Overall, the Brand Finance data highlights a changing luxury landscape. Japanese beauty brands continue to combine product innovation, consumer engagement and purpose-led initiatives as they compete in a more selective global market.
