Despite economic uncertainty and digital disruption, luxury brand stalwarts DIOR GUCCI and CHANEL SAINT LAURENT also remain resilient in their leadership.
A lot has changed in luxury over the past six months, with Covid restrictions easing in China, corporate reshuffles at LVMH, the acquisition of TOM FORD by ESTÉE LAUDER and the departure of Alessandro Michele from GUCCI. The top four brands of the VOGUE BusinessIndex have nonetheless remained the same, defending their positionings. Look under the hood, though, and some changes seem to be happening, with purchase intent down for most major players (except in China) and diminishing scores across many of the consumer metrics tracked.
Few luxury consumers want to switch brands but may shop differently if prices increase, with a readiness to wait for sales.
Survey data shows few consumers want to switch brands as economic instability continues but may shop differently if prices increase, with a readiness to wait for sales. Brands should continue to grow their digital reach, being mindful of the fastest-growing channels, and working with culturally important figures and collaborators in spaces like gaming, film/TV, hospitality, and leisure to cement their appeal even if times are tough.
1. LOUIS VUITTON
LVMH
Rank change: 0
A leader in almost all areas covered by the VOGUE Business Index, LOUIS VUITTON maintains its spot at the top of the rankings. Enthusiasm for the French Maison among luxury consumers only grew over the course of 2022, and its score on the innovation pillar improved too. New CEO Pietro Beccari has the strongest of foundations from which to work.
2. DIOR
LVMH
Rank change: 0
Beccari’s former home came incredibly close to unseating Louis Vuitton, but it was not to be this time. DIOR is once again the standout digital performer in the Index and even ranks slightly ahead of LOUIS VUITTON on purchase intent. One reason for its failure to take the top spot is it’s underdeveloped omnichannel (or cross-channel) shopping experience when compared to its peers.
3. GUCCI
Kering
Rank change: 0
Creative director Alessandro Michele has left, and GUCCI is at a crossroads. Demand for the brand has diminished among consumers across almost all of the major markets tracked, upping the pressure on Kering to pick an exciting successor. Despite this, GUCCI remains incredibly well-liked among luxury consumers worldwide and a pioneer across ESG (environmental, social, and governance), as well as all things digital.
4. CHANEL
Chanel Limited
Rank change: 0
Little has changed for CHANEL. Its resistance to digital sales and innovations like resale makes it a laggard in some of the key metrics tracked. The brand nevertheless impresses consumers more than any other when all VOGUE Business Index survey questions are taken into account, leading on awareness, recommendation, and purchase intent.
5. SAINT LAURENT
Kering
Rank change: +2
As the hype around Gucci has become more muted, SAINT LAURENT has been a bright spot for parent company Kering. It takes the fifth spot in the ranking from RALPH LAUREN in this edition of the Index. Consumer appreciation for the brand has increased over the course of the year and its digital performance has also improved. A new approach to ESG scoring that takes the work of parent companies like Kering more into account also helped SAINT LAURENT’s score. It continues to be a low scorer on innovation, with room for growth in this space.
The article was adapted from voguebusiness.com.
