Although luxury brand Louis Vuitton retained the top spot in the most valuable luxury brands list this year, competitors such as Prada and Gucci are fast catching up.

In a report by branding organisation Millward Brown Optimor, despite being no. 1 the LVMH Moet Hennessy-owned bagmaker's brand value dropped by 12 per cent.

Meanwhile, third- and fourth-ranked Gucci and Prada's brand values increased by 48 and 63 per cent respectively.

"Prada's brand awareness in China, Russia, Brazil and the Middle East continues to rise," said Anastasia Kourovskaia, vice-president of Millward Brown Optimor EMEA.

French brand Hermes' brand value showed no change.

Fendi and Coach both joined the top 10 list for the first time this year.

Take a look at the brand rankings here.

Photos: Reuters, AFP, Louis Vuitton, Fendi, Coach