Luxury Landscape Shifts: Chanel Tops Longtime Leader with High-Priced Strategy

Brand Finance "Luxury Brand Value"
Chanel Surpasses Louis Vuitton to Claim No. 1 in Fashion Sector

Chanel has overtaken Louis Vuitton to claim the top spot in global brand value within the fashion sector.

Artist Jennie, Chanel House Ambassador. Chanel official website.

According to the "2025 Global Luxury Brand Value 50" report released by British brand valuation consultancy Brand Finance on December 30 (local time), Chanel's brand value surged 45% year-on-year to reach $37.9 billion (approximately 53 trillion won). Chanel ranked second overall and first in the fashion sector, while Louis Vuitton, which had long held the top position in fashion with a brand value of $32.9 billion (about 47 trillion won), fell to third overall and second in fashion. Herm?s ranked fourth overall in brand value.

Citizens are waiting for the luxury store to open in front of a major department store's luxury hall in Seoul. Photo by Kang Jin-hyung

Experts attribute this to the "victory of the ultra-luxury strategy." Despite raising prices multiple times since the COVID-19 pandemic, Chanel's popularity has remained undiminished, with "open runs"-customers lining up before stores open-continuing unabated. Brand Finance analyzed, "Chanel is now perceived as a brand that sells heritage, not just fashion," and described it as "a prime example of breaking through consumers' psychological price resistance."

Louis Vuitton logo. Photo by Reuters and Yonhap News

In contrast, Gucci, which once enjoyed fervent support from Millennials & Gen Z thanks to its trendy designs, saw its brand value drop 24% year-on-year to $11.4 billion. Its ranking also fell from fifth to ninth place. This was largely due to the economic slowdown in China, a key market for luxury consumption, as well as reduced purchasing power among younger consumers.

Among watch and beauty brands, Rolex and Guerlain performed strongly. Rolex's brand value soared 36%, propelling it to fifth place, while Guerlain, a beauty brand under the LVMH Group, increased by 23% and entered the top 10 for the first time since 2021. Rolex, with most of its products priced in the tens of millions of won, is increasingly seen as a highly liquid safe asset rather than just a luxury item, driving up demand. Beauty brands like Guerlain are benefiting from the "small luxury" trend, which offers consumers the satisfaction of owning luxury goods through relatively modest spending.

A Rolex watch is on display. Photo by AP Yonhap News

In this survey, Germany's Porsche claimed the overall top spot. Porsche's brand value reached $41.1 billion (about 57 trillion won), marking its eighth consecutive year at number one. By country, France stood out, with six of the top 10 brands-Chanel, Louis Vuitton, Herm?s, Dior, Cartier, and Guerlain-originating from France.