Luxury in French Style: 8 Fashion Brands Dominating the Market
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The Kantar BrandZ 2023 ranking reports an exponential increase in the financial valuation of certain brands. The cumulative value of the 50 strongest French brands has risen by +30% in two years, from 325 billion in 2021 to over 424 billion dollars. In this regard, luxury brands would account for 58% of this total, amounting to 244 billion dollars. Moreover, in the Top 10 of the most dynamic brands in this ranking, 9 belong to the luxury and beauty sector. Let’s break down this trend.
Luxury Brands: The Winning Trio
According to the study, the brands that perform best all share three criteria: they are useful (meaningful), different (different), and distinctive (salient).
A Useful Brand
To meet its market, the product or service sold must, above all, make sense (Meaningful in English). It must address the needs of consumers. 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 have 21% more meaning than the average of all brands. Those in the Top 10 are perceived as having 37% more.
A Different Offering
Furthermore, the study shows that a performing product or service must differentiate itself from the competition.
It must offer buyers something that other players do not provide.
Moreover, brands with a strong identity are often pioneers in their market. They are innovative and pave the way for challengers. Irreplaceable and incomparable, they thus solidify their position as leaders. According to the graph How the leader performs, companies in the Top 100 have a differentiation superior by 21% to that of the average of companies. Those in the Top 10 have a differentiation of 31%.
Striking Communication
Finally, the Kantar BrandZ study proves that successful brands are striking (salient in English).
Through impactful communication, they embed themselves in the minds of consumers 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 memorization is a real advantage for companies, as it significantly improves their conversion rates at the time of the buyer’s decision-making. The graph above shows that companies in the Top 100 are 34% more memorable than the average of all brands, while those in the Top 10 are 69% more memorable.
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 at the top of the ranking since 2018. Its value exceeds 102 billion dollars. It is the French company that has experienced the strongest growth since 2021 (+72%).
Hermès (2nd place)
Valued at 57.5 billion dollars, the brand saw +48% growth in 2021.
Chanel (3rd place)
The fashion house is valued at 57.1 billion dollars. Since 2021, its growth has increased by +30%.
Dior (8th place)
Valued at 8.76 billion dollars, the LVMH group’s brand has increased by 47% between 2021 and today.
Cartier (9th place)
The luxury house is now valued at 8.2 billion dollars, representing +51% growth between 2022 and 2023. However, compared to 2021, the brand shows an increase of +88%. This is the highest rate of all the companies in the ranking. A remarkable evolution, especially for a French brand.
Saint Laurent – YSL (16th place)
The valuation of the Saint Laurent brand is currently 4.59 billion dollars. This is 1% less than in 2021. However, the company ranks sixteenth in the list.
Givenchy (24th place)
Valued at 2.71 billion dollars, the fashion house has seen a growth of +26% since 2021.
Celine (30th place)
The brand from the LVMH group is estimated at 2.13 billion dollars. Its growth is +69% compared to 2021.
The Case of Louis Vuitton, Uncontested Leader of the Ranking
With an estimated value of 102 billion dollars, Louis Vuitton ranks first, far ahead of Hermès, number 2, with its valuation of 57 billion dollars. These exceptional results are due to the high pricing strategy that the brand implements in its key markets (China, Japan, and the United States). To maintain such a price level, the luxury house deploys several strategies.
Between Stability and Innovation
One of Louis Vuitton’s secrets is alternating iconic best-sellers and new products. This mix projects the image of a company that is both classic and modern. By doing so, the brand retains its historic customers while attracting the new generation.
Successful Partnerships
Yayoi Kusama, Supreme, Stephen Sprouse, Jeff Koons… Many artists have collaborated with the brand with the Monogram for a collection.
A Bold Brand
Whether it’s opening a restaurant in Saint-Tropez with starred chef Mory Sacko, or launching a cultural and culinary venue in Paris with pastry chef Maxime Frédéric, Louis Vuitton successfully multiplies experiences. Let’s also mention the enthusiasm 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 joined the ranking of the most influential brands worldwide (across all sectors). Ranked 10th, LV is the only French brand to appear in this list alongside giants such as GAFA, Microsoft, and 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 reinforcing their loyalty, fashion houses can justify high pricing. Hence their exponential growth. The diagram below shows us that brands with a high positioning have, on average, experienced a +30% growth since 2021, while those positioned at the entry-level have only increased, on average, by 9%.
To grow the value of one’s brand, it is essential to enhance the perceived value by the consumer.
Source:
https://www.kantar.com/fr/inspirations/brand-growth/2023-brandz-top50-classement
Featured image: © Unsplash/ Clarisse Croset
