Louis Vuitton remains the world’s most valuable luxury brand for the 18th consecutive year in the Kantar BrandZ Most Valuable Global Brands ranking 2023. The French giant has held this position since the Kantar BrandZ global rankings first launched, the only brand to do so in any sector. With a 0.4% increase, Louis Vuitton reached a brand value of $124.8bn versus $124.3bn last year. It was joined by five other French brands in the Luxury Top 10, including Dior, which was the fastest-growing luxury brand, delivering 9% growth.
As the global cost of living crisis continues, the report highlights how luxury brands are leveraging their brand equity and pricing power in ways few others can – proving more resilient as a result. The Luxury Top 10 only declined 4% in total brand value, compared to a 20% fall across the board in the Global Top 100. While the Luxury Top 10 brand ranking remains largely unchanged, Louis Vuitton, Hermès and Chanel all improved their position in the overall Kantar BrandZ Top 100 Most Valuable Global Brands ranking; Hermès moved into the Global Top 20, rising from No.27 to No.19, whilst Chanel moved from No.45 to No.31.
During challenging economic times, luxury brands have provided solace, comfort and continuity for affluent consumers. While at the same time being a source of inspiration for the average consumer. Luxury brands know how to leverage their distinctive assets to drive sales – from accessible cosmetics to iconic handbags, their logos permeate mainstream ideas of quality and success that help them navigate market fluctuations.
Other key findings for the luxury sector from the Kantar BrandZ global report include:
• Despite lower sales in 2022, China remains the biggest market for luxury brands.
• Hermès remains the second-most valuable luxury brand in the ranking, despite not having a brand ambassador. Its success relies on the quality of its hero products, like its Birkin bag.
• Dior and Chanel joined Louis Vuitton as the only luxury brands to grow in this year’s luxury ranking. Dior with a total brand value of $11.4bn, growing 9% year-on-year. Chanel, with a total brand value of $56.0bn, increased its brand value by 6%.
• Sustainability has been an important focus for many luxury brands. There has been visible progress, with luxury brands developing partnerships and tech innovation to take them above and beyond the now brand basic of carbon neutrality and sustainable packaging. This has also contributed to their brand value. For example, Chanel’s collaboration with local artisans ahead of regional fashion shows and Gucci’s circular hub launch.
The highest-performing luxury brands in this year’s ranking have been supported by strong brand equity, leading to faster and higher returns for brand owners. Continuing to invest in high-quality marketing plays a critical role for luxury brands. The most valuable global luxury brands show that success remains possible for brands despite the current volatile environment and prove that even brands with much higher prices can continue to grow with the right strategy and focus.
The Kantar BrandZ Most Valuable Global Brands 2023 report, including an extensive analysis of the luxury sector, is available now via www.kantar.com/campaigns/brandz/global
For an overarching view of a brand’s performance, Kantar has launched a new, free interactive tool using BrandZ’s wealth of data. BrandSnapshot powered by BrandZ delivers intelligence on 10,000 brands in more than 40 markets, offering a quick read on a brand’s performance in a category.