French Luxury: 8 Fashion Brands Dominate the Market
The Kantar BrandZ 2023 ranking reports an exponential evolution in the financial valuation of some brands. The combined value of the top 50 most powerful French brands has increased by +30% over two years, rising from 325 billion in 2021 to more than 424 billion dollars. In this regard, luxury brands would represent 58% of this total, or 244 billion dollars. Moreover, among the Top 10 most dynamic brands in this ranking, 9 belong to the luxury and beauty sector. Decoding this trend.
Luxury brands: the winning trio
According to the study, the most successful brands all share three criteria: they are useful (meaningful), different (different), and striking (salient).
A useful brand
To meet its market, the product or service sold must, above all, make sense (Meaningful in English). It must meet consumers’ needs. A clear and consistent positioning allows the brand to create a strong relationship with its customers, both functionally and emotionally. Thus, companies appearing in the Top 100 of the ranking are considered to be 21% more meaningful than the average of all brands. Those in the Top 10, are perceived as having 37% more.
A different offer
Furthermore, the study shows that a high-performing product or service must differentiate itself from the competition.
It must offer buyers something that other players do not.
In addition, brands with a strong identity are often market pioneers. They are innovative and pave the way for challengers. Irreplaceable and incomparable, they thus consolidate their leadership position. According to the graph How the leader performs, companies in the Top 100 have a differentiation that is 21% higher than that of the average companies. Those in the Top 10 by 31%.
Striking communication
Finally, the Kantar BrandZ study proves that successful brands are striking (salient in English).
Through impactful communication, they become embedded in minds to become THE reference brand. This is referred to as Top of mind awareness (when consumers are asked, they primarily mention this brand). Achieving this level of recall is a real advantage for companies, as it significantly improves their conversion rate at the time of the buyer’s decision. The above graph shows that companies in the Top 100 are 34% more memorable than the average of all brands, while those in the Top 10 are by 69%.
Ranking of the most influential luxury fashion brands in France
Louis Vuitton (1st place)
The brand, which belongs to the luxury group LVMH, has been first in the ranking since 2018. Its value exceeds 102 billion dollars. It is the French company that has seen the strongest growth since 2021 (+72%).
Hermès (2nd place)
Valued at 57.5 billion dollars, the brand has grown by +48% since 2021.
Chanel (3rd place)
The fashion house is valued at 57.1 billion dollars. Since 2021, its growth has been +30%.
Dior (8th place)
Valued at 8.76 billion dollars, the LVMH group brand has increased by 47% between 2021 and today.
Cartier (9th place)
The luxury house is now worth 8.2 billion dollars, with a +51% progression between 2022 and 2023. However, compared to 2021, the brand has shown a progression of +88%. This is the best rate of all the companies in the ranking. An outstanding evolution, especially for a French brand.
Saint Laurent – YSL (16th place)
The valuation of the Saint Laurent brand is currently 4.59 billion dollars. That’s 1% less than in 2021. However, the company still occupies the sixteenth place in the rankings.
Givenchy (24th place)
Valued at 2.71 billion dollars, the fashion house has seen a progression of +26% since 2021.
Celine (30th place)
The LVMH group brand is estimated at 2.13 billion dollars. Its progression is +69% versus 2021.
The case of Louis Vuitton, the undisputed leader of the ranking
With an estimate of 102 billion dollars, Louis Vuitton takes the top spot in the ranking, far ahead of Hermès, the number 2, with its valuation of 57 billion dollars. These exceptional results are due to the high pricing policy that the brand implements in its key markets (China, Japan, and the United States). To maintain such a level of pricing, the luxury house deploys several strategies.
Between stability and innovation
One of Louis Vuitton’s secrets is to alternate iconic best-sellers and new releases. This mix conveys the image of a company that is both classic and modern. By doing so, the brand retains loyal customers while attracting the new generation.
Successful partnerships
Yayoi Kusama, Supreme, Stephen Sprouse, Jeff Koons… Many artists have collaborated with the Monogram brand for a collection.
A daring brand
Whether it’s opening a restaurant in Saint-Tropez with the starred chef Mory Sacko, or a cultural and culinary venue in Paris with pastry chef Maxime Frédéric, Louis Vuitton successfully multiplies experiences. Also noteworthy is the excitement generated by its ephemeral fashion shows. The brand dares to innovate and reinvent itself.
Louis Vuitton: 10th most influential brand in the world
Finally, this year, the fashion house has entered the ranking of the most influential brands in the world (across all sectors). Positioned in 10th place, LV is the only French brand to join this list alongside giants such as GAFA, Microsoft, or McDonald’s.
The strength of the 8 most influential French brands in fashion is largely due to their ability to create a strong relationship with their customers. By enhancing their loyalty, couture houses can justify high pricing. Hence their exponential growth. The diagram below proves that brands with a high positioning have, on average, experienced a growth of +30% since 2021, while those positioned in the entry-level have increased, on average, only by 9%.
To grow a brand’s value, it is therefore necessary to improve the value perceived by the consumer.
Source :
https://www.kantar.com/fr/inspirations/brand-growth/2023-brandz-top50-classement
Image en une : © Unsplash/ Clarisse Croset
