Which Luxury Brands Are Dominating 2024?

As the world of luxury fashion navigates a landscape marked by shifting tides and emerging trends, the latest Vogue Business Index for H2 2024 brings to light both the enduring powerhouses and the rising stars in the industry. Against a backdrop of economic uncertainties and the musical chairs of designers and CEOs, little has changed among the leaders. However, the report provides valuable insights into how brands are maintaining their ground or making their mark.

At the forefront, the top three brands — Louis Vuitton, Gucci, and Dior— remain steadfast in their positions, showcasing their resilience even as the industry undergoes a somewhat tumultuous period.

Hermès emerges as a standout, climbing two spots to claim the 4th position. It’s no surprise that consumer sentiment towards the brand remains exceptionally positive. Despite challenges like the ‘Hermès game’ and the quota-bag system, the brand continues to solidify its reputation as one of the most recognized and revered names in luxury. Additionally, Hermès demonstrates its commitment to sustainability with a 13% increase in repair interventions. This year, the brand has revamped several flagship boutiques globally, including a notable redesign of its location in Beijing, and has opened its 23rd leather workshop in France.

Image courtesy: China Daily

Meanwhile, Chanel experiences a slight dip to 5th place but continues to shine, on track to exceed $20 billion in sales. With strategic expansions into prime real estate and high-profile campaigns featuring stars like Brad Pitt and Penélope Cruz, Chanel proves its allure remains unwavering, for now anyway.

In 6th place, Prada is making strides with a strong emphasis on omnichannel retailing and recent store renovations, gaining positive attention for its modern style and digital campaigns. Interestingly, Prada has generated fewer headlines than competitors this year, however, looking ahead, the brand intends on several significant retail investments, with a particular focus on the Chinese market – so things could change. Meanwhile, Saint Laurent, climbs to 7th place, despite a fairly quiet publicity period. That said, the brand’s recent initiatives, including the Saint Laurent Babylon bookstore in Paris, and participation at the Cannes Film Festival have boosted its appeal. Burberry follows Saint Laurent in 8th place after dropping one position.

Image courtesy: Saint Laurent

In a notable shift, LVMH brands Loewe and Fendi have made impressive strides in the latest rankings. Loewe has climbed five spots to break into the top 10 for the first time, marking a remarkable rise of 16 positions since mid-2022. This growth is particularly evident in its digital strategy, where Loewe skillfully combines fun, creative content with deeper cultural themes, enhancing consumer awareness and purchase intent.

Meanwhile, Fendi has rejoined the top 10 at 10th place after falling out in the previous half of the year. The brand has seen improvements in its digital and omnichannel efforts, gaining traction on platforms like TikTok. With the recent appointment of Pierre-Emmanuel Angeloglou as CEO, it will be interesting to see how Fendi navigates the coming year.

As we look to the future of luxury fashion, the current rankings in the Vogue Business Index serve as a snapshot of both stability and change. The enduring presence of LVMH powerhouses like Louis Vuitton and Dior demonstrates their strength in an ever-evolving market. At the same time, the rise of newer contenders like Loewe and the resurgence of Fendi highlights a significant shift in the landscape. As the industry prepares for further changes in leadership and creative direction, it will be intriguing to observe how these brands respond. The next year promises to be a critical period for luxury houses, as their ability to adapt to change will ultimately shape their trajectories.