After record revenues in 2022, many brands have started 2023 with significant worries about the near-term future. The huge amount of growth delivered by young US consumers seems to be drying up, with the hope being that renewed luxury demand in China can start to make up for it. New creative leads at Gucci, Burberry and Louis Vuitton are getting to work, while the trend on everyone’s lips is the high-quality, unshowy ‘quiet luxury’ aesthetic.
In positive news, awareness is higher than ever for the 60 brands in the Vogue Business Index. More worrying, though, is an increasing decline in how highly consumers rate the quality of what brands are producing. What remains unchanged is the top three brands in the Vogue Business Index, which occupy the same positions they did in both the summer and winter 2022 editions. That being said, Saint Laurent is hot on the heels of Kering stablemate Gucci, while British brand Burberry has capitalised on hype around its new direction to make the most impressive push up the rankings this edition.
1. Louis Vuitton
LVMH
Rank change: 0
Last year, it became the first luxury brand to exceed €20 billion in sales, so it is not a surprise that Louis Vuitton has topped the Vogue Business Index for the third time in a row. Little has changed in its performance over time, but consistent high scores across the consumer, financial and digital pillars will make it incredibly hard for any brand to dislodge.
2. Dior
LVMH
Rank change: 0
No brand does digital like Dior. The French maison continually reiterates the high levels of craftsmanship that go into the brand, whether through behind-the-scenes imagery or creative presentations that emphasise its artisanal lineage, like its recent show in Mumbai. A canny eye for celebrity ambassadors is also treating the brand well, with the recruitment of K-pop band Blackpink’s Jisoo a particular success.
3. Gucci
Kering
Rank change: 0
Of the perennial top three (Louis Vuitton, Dior and Gucci have never placed below fourth in the Vogue Business Index), the Italian brand was perhaps most at risk this year after poor revenue growth and a transition between creative directors. In spite of all that, Gucci continues to shift boundaries in a way few other luxury brands can, in turn scoring stronger than Louis Vuitton and Dior on the innovation, omnichannel and ESG pillars.
4. Saint Laurent
Kering
Rank change: +1
Saint Laurent continues its rise up the rankings after solidifying itself as a top-tier luxury brand and breaking the €3 billion revenue mark in 2022. The brand is increasingly seen by consumers worldwide as just as iconic as Louis Vuitton or Dior. Creative director Anthony Vaccarello has continually pushed the brand’s output in interesting directions, and it would not be surprising to see it rise even higher in future editions of the Index.
5. Chanel
Chanel Limited
Rank change: -1
Chanel is the brand that luxury consumers currently want to buy from the most. Demand for the brand is so high that it is said to be mulling even more price increases later this year. While Chanel is the Index leader on consumer sentiment, its lack of transparency around ESG and mediocre omnichannel performance continues to hold the brand back. If it puts some effort into either of those areas, then it would easily move up to the top three.
6. Burberry
Burberry
Rank change: +4
The recruitment of new creative director Daniel Lee has coincided with an upward surge in the brand’s score after a notably improved performance in the digital pillar. Lee is looking forwards but also backwards in his renovation of the brand’s identity, pulling on iconography from Burberry’s past to demonstrate the heritage of the British fashion house. Will this give the brand the stature that it lacks in the eyes of some luxury consumers?
7. Hermès
Hermès International
Rank change: +1
Luxury bag specialists Hermès always scores strongly on consumer sentiment, with luxury shoppers respecting the stature and high quality of the brand. An increase in its digital score thanks to good performance on Chinese platforms and increased search interest helped push the brand higher in the rankings this year.
8. Prada
Rank change: +1
With sales levels flying, Prada is clearly on an upward path, and that is reflected in its strong showing in the Vogue Business Index this year. As well as being a hyped brand right now, thanks to the popular designs of co-creative leads Raf Simons and Miuccia Prada, it performs well on every single pillar.
9. Ralph Lauren
Rank change: -2
Ralph Lauren is once again the highest-ranked US brand and is largely defying the slowing demand in its home base. The brand nevertheless falls down the Index rankings, in part because of the new digital scoring methodology (rejigged because of the new inclusion of TikTok) and a slightly weaker score on the omnichannel pillar. A consolation for the brand is that the consumer sentiment data shows luxury shoppers love it just as much.
10. Fendi
LVMH
Rank change: +1
In the first Index since the 25th anniversary of its iconic baguette bag, Fendi becomes the only brand to enter the top 10 since the winter edition. The brand is among the best performers across all pillars though not a top scorer in any of them. ESG and financial are where it shows the most strength, with the latter part-in-thanks to its impressive revenue-to-employee ratio.
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