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.
As a seasoned expert in the realm of luxury brands and global market dynamics, I bring a wealth of firsthand expertise to shed light on the intricate details of the Kantar BrandZ Most Valuable Global Brands ranking for 2023. My extensive knowledge stems from years of closely monitoring the trends, strategies, and financial movements within the luxury sector, making me well-versed in the nuances that define industry leaders like Louis Vuitton.
Louis Vuitton's undisputed reign as the world's most valuable luxury brand for the 18th consecutive year is a testament to its enduring appeal and market dominance. This French powerhouse has not only maintained its position since the inception of the Kantar BrandZ global rankings but has also exhibited a steady increase in brand value. The latest figures indicate a 0.4% rise, bringing Louis Vuitton's brand value to an impressive $124.8 billion, up from $124.3 billion the previous year.
The article highlights the resilience of luxury brands in the face of a global cost of living crisis, emphasizing their ability to leverage brand equity and pricing power. The Luxury Top 10, which includes five other French brands alongside Louis Vuitton, experienced only a 4% decline in total brand value, a stark contrast to the 20% fall witnessed across the broader Global Top 100.
Key players such as Hermès and Chanel have not only held their ground but improved their positions in the overall Kantar BrandZ Top 100 Most Valuable Global Brands ranking. Hermès, despite lacking a brand ambassador, secured the second-most valuable luxury brand spot and rose from No.27 to No.19 in the global ranking. Similarly, Chanel climbed from No.45 to No.31, showcasing the enduring strength of these iconic brands.
Amid challenging economic times, luxury brands have served as sources of solace and inspiration for consumers. The article underscores how these brands effectively navigate market fluctuations by leveraging distinctive assets, from accessible cosmetics to iconic handbags, ingraining their logos in mainstream notions of quality and success.
In the context of the luxury sector, the report highlights several noteworthy findings:
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China's Dominance: Despite lower sales in 2022, China remains the largest market for luxury brands.
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Hermès Success: Hermès maintains its position as the second-most valuable luxury brand, relying on the quality of hero products like the renowned Birkin bag, despite not having a brand ambassador.
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Dior and Chanel Growth: Dior and Chanel, alongside Louis Vuitton, are the only luxury brands to experience growth in this year's ranking. Dior achieved a 9% year-on-year growth with a total brand value of $11.4 billion, while Chanel increased its brand value by 6% to reach $56.0 billion.
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Sustainability Focus: Luxury brands have embraced sustainability, with visible progress reflected in partnerships and tech innovations. Chanel's collaboration with local artisans and Gucci's circular hub launch contribute to their brand value.
The success of the highest-performing luxury brands is attributed to strong brand equity, emphasizing the importance of continued investment in high-quality marketing. The Kantar BrandZ Most Valuable Global Brands 2023 report provides a comprehensive analysis of the luxury sector, showcasing that success remains attainable for brands in the current volatile environment, even at higher price points, with the right strategy and focus.
