To receive the Vogue Business newsletter, sign up here.
To the surprise of many, the luxury goods sector has remained resilient this past year, facing all that 2023 has thrown its way. During this volatile period, many top brands have reported declines in revenue, among other areas, in relation to various factors — one of these being reduced engagement across multi-brand online shopping portals in the consumer purchase journey, affecting brands with a particular reliance on wholesale. While others include currency fluctuations and consumer caution — pricing strategies have felt the squeeze.
Despite all these difficulties, bright spots still exist: brands like Gucci, Miu Miu and Ferragamo have all benefited from a rise in purchase intent due to pent-up demand. Investment items continue to be top of mind, with handbags remaining the most purchased, and luxury consumers in China, Japan, and South Korea appear undeterred by price rises in comparison to their global counterparts.
In Vogue Business’s Winter 2023/24 Index, the gap between the industry’s top three players and the remaining luxury line-up continues to widen, decreasing the likelihood of disruption for these key brands across upcoming Indices. Gucci overtakes Dior in its return to second place since Winter 2021, reclaiming its spot as the number one brand across omnichannel and ESG; in the previous Index, these pillars were led by Burberry and Bottega Veneta, respectively. Meanwhile, Prada pushes its way up the rankings, rising three positions, and Balenciaga re-enters the top 10.
1. Louis Vuitton
LVMH
Rank change: 0
Louis Vuitton maintains its stronghold at the top of the Vogue Business Index for the fourth time in a row. Despite being a leader in only one pillar, the brand’s stellar financial results recorded in the Spring/Summer edition and consistently strong performance across all other pillars sees Gucci and Dior struggle to overtake.
2. Gucci
Kering
Rank change: +1
Despite a downturn in sales last October, Gucci returns to its second spot in the Vogue Business Index for the first time since Winter 2021. The brand takes back the top position within omnichannel and ESG, while the appointment of Sabato De Sarno as creative director begins to pay off in the digital pillar, as Gucci becomes the top-performing brand on Vogue Runway.
3. Dior
LVMH
Rank change: -1
Dior remains the undisputed leader in the digital pillar, continuing to grow across the majority of social media platforms, thanks to an extensive ambassador strategy and platform-nascent content. While Dior is the luxury brand consumers are most likely to buy, a challenge for the house will be maintaining this iconic status as luxury spending habits become more fragmented amid rising caution.
4. Chanel
Chanel Limited
Rank change: +1
For luxury consumers, Chanel is associated with heritage and status, supporting its position as the most iconic brand within the Vogue Business Index. Although, aside from this perception, the brand lags behind the perennial top three Index brands. Investment into the communication of its ESG policies, as well as its omnichannel offerings, would see Chanel place more competitively.
5. Prada
Prada
Rank change: +3
Prada’s upward trajectory continues in Winter 2023/24, making it the biggest riser within the top 10. A skill for driving TikTok engagement secures brand hype across digital platforms, while the sustained influence of Miuccia Prada as co-creative head works to protect the brand’s heritage appeal.
6. Hermès
Hermès International
Rank change: +1
Despite the economic challenges facing luxury consumers, purchase intent for Hermès remains strong. The brand reported positive financial performance in Q3, reflecting the stability of its core category: handbags. The maison’s coveted bags withstood declines in other luxury categories due to their impressive investment quality. Hermès continues to enjoy its status and heritage appeal, as well as the trust held by its consumers.
7. Burberry
Burberry
Rank change: -1
Daniel Lee’s positive impact at Burberry becomes even more evident, with luxury consumers showing an increased likelihood to purchase the brand in comparison to six months ago. Although, while the creative director’s second show met with high online engagement, some of the initial hype has worn off, and comparative brand performance across the majority of social channels is beginning to drop.
8. Saint Laurent
Kering
Rank change: -4
Having previously risen to fourth position in the Spring/Summer 2023 edition, the Winter 2023/24 Index sees Saint Laurent drop to eighth place. A consequence of reduced online engagement, this descent relies on weak traction across socials and Vogue Runway — but should not be cause for concern. Both the brand’s purchase intent and advocacy to friends and family are continuing to grow. Its commercial appeal remains strong.
9. Ralph Lauren
Ralph Lauren
Rank change: 0
Ralph Lauren is one of the only two brands within the top 10 — alongside Louis Vuitton — to maintain its ninth-place win. The American brand has offset declines in consumer opinion with rises in digital performance, and its luxury pivot is paying off across Western tech platforms, as well as on Vogue Runway, where the label’s return to New York Fashion Week increased engagement. Further investment in Chinese social platforms will strengthen its standing.
10. Balenciaga
Kering
Rank change: +1
Balenciaga re-enters the top 10 after falling five places in Spring/Summer. Purchase intent was a key area of improvement for the brand, alongside its five-place rise in the digital pillar. The brand’s SS24 show saw almost double the engagement of AW23 (tracked in the Spring/Summer Index), with the brand’s commitment to creative director Demna paying off.
Fastest risers
For the first time this year, Vogue Business is providing a snapshot of the Index’s fastest risers. Historically, the usual suspects have always dominated the top 10, but this year, the lower half of the Index is seeing more twists and shifts. Across the top five fastest risers, we see a mixture of smaller brands and more aspirational ones, too.
Given the often lower metric scores in this space, small strategic changes can make a big difference. However, limited resources or greater exposure to volatility can also make it harder for brands to maintain a consistent performance. Successes in digital, innovation and consumer sentiment have all contributed to the ascension of these five players. Often, new strides in digital and innovation can represent quick wins for brands, but it can take longer for these to deliver genuine change in consumer perception, making Carolina Herrera and Mulberry’s gains in this space even more commendable. But consumers can be fickle, and we’ll be watching to see if this appreciation in consumer sentiment can be maintained in future editions.
Comments, questions or feedback? Email us at feedback@voguebusiness.com.