Chanel overtakes Louis Vuitton in Brand Finance’s 2025 luxury ranking #FrenchFinance

Porsche, Chanel, Louis Vuitton, Hermès, and Rolex dominate the top ranks of Brand Finance’s 2025 list of the most valuable luxury brands. Dior is named the strongest brand globally. According to Brand Finance’s annual ranking of the world’s most valuable luxury and premium brands, French fashion houses continue to lead the global luxury landscape. German carmaker Porsche retains the top spot but is now closely followed by French labels—most notably Chanel, which climbs to second place, overtaking Louis Vuitton and posting the biggest growth of 2025. Meanwhile, Dior takes the title of the world’s strongest brand.

The combined brand value of the top 50 luxury and premium brands reached $317 billion, with French labels contributing nearly half—$154.4 billion, or 49%. Italy ranked second with $57.6 billion, nearly three times less. Fashion remains the dominant sector in the ranking, with 32 brands generating $221 billion in brand value, representing 70% of the total.

Porsche remains in the lead for the eighth consecutive year, despite a 5% drop in brand value to $41.1 billion. Chanel’s brand value surged more than 45% to $37.9 billion, while Louis Vuitton, part of the LVMH group, posted a modest 2.1% increase to $32.9 billion. Porsche’s decline is attributed to weaker demand in China and Europe, though it continues to score strongly on reliability, brand reputation, and price acceptance.

Chanel also rose in the ranking of the world’s strongest brands, moving from fifth to fourth with a Brand Strength Index score of 89.6 out of 100. “In France, the brand achieved a perfect score of 10 for awareness, consideration, and customer satisfaction, reflecting deep local resonance and consumer loyalty. Chanel performs strongly across most brand strength indicators in key global markets, including Europe, the U.S., and Asia, highlighting its widespread recognition and prestigious image,” the London-based consultancy reported.

Last year, the French fashion house undertook several strategic initiatives to boost awareness and market dominance, including opening a high jewelry boutique in New York. It also appointed Matthieu Blazy as artistic director to inject fresh creative energy into its collections. These efforts aim to expand Chanel’s global reach and reinforce its leadership in the high-end segment.

The top three—Porsche, Chanel, and Louis Vuitton—are followed by Hermès, which remains in fourth place; Rolex, which climbs two spots; Dior, steady at sixth; Cartier (Richemont) and Ferrari, both gaining one spot; Gucci (Kering), which drops from fifth to ninth with a 23.6% decline in brand value; and Guerlain (LVMH), which enters the top 10 after a 23% increase in brand value, pushing Tiffany & Co. (LVMH) down to eleventh.

As for the strongest brands, Dior jumped from fourth to first in 2025, becoming the world’s top luxury and premium brand with a Brand Strength Index score of 93.5 out of 100. The LVMH label also entered the top 10 global brands across all industries in terms of strength among the world’s 500 most valuable brands.

Brand Finance attributed Dior’s performance to rising awareness and reputation across multiple regions, especially the U.S. The label is now recognized as the most popular online luxury brand and scored highly in consideration and recommendation metrics in Europe and the U.S.

To establish its rankings, Brand Finance first evaluates brand strength using a balanced scorecard. This scorecard measures investments in product, pricing, distribution, communication, marketing, public perception, internal reputation, and business performance—including sales, revenue, and customer loyalty. The resulting Brand Strength Index is then applied to brand-specific royalty rates by sector and combined with forecast revenues to determine overall brand value.

“Between 2019 and 2024, the luxury and premium sector generated substantial brand value, with the top 50 brands growing 43%. That momentum continued into 2025, reaching a record $317 billion,” said Bertrand Chovet, managing director of Brand Finance France. He added, however, that the industry is undergoing a major transformation.

“Growth is expected to slow, and brands must now adapt to changing consumer preferences. Today’s customers increasingly favor premium experiences like travel or meaningful social moments over material goods. The days of easy price increases driven by strong demand are over. Luxury brands must evolve to remain relevant,” he concluded.

So far, the sector has remained resilient thanks to a “strong appetite for luxury goods, abundant supply, and strategic price hikes,” according to the report. Over the past five years, luxury and premium brands have outperformed the broader global market, achieving an average annual growth rate of 5%, according to McKinsey. But this trend is now shifting rapidly.