In a headline-making shift across the luxury industry, Chanel has officially overtaken Louis Vuitton to become the second most valuable luxury brand in the world, according to Brand Finance’s 2025 rankings. This remarkable leap sees the iconic French fashion house posting the highest growth of any luxury label this year—a staggering 45% surge in brand value. It’s a milestone that not only reflects Chanel’s enduring allure but also signals a reshaping of the luxury brand hierarchy at the very top.
While Porsche retains its position at number one, Chanel’s rise to second place is especially notable given the long-standing dominance of Louis Vuitton. Once considered the undisputed leader in fashion luxury, Vuitton now trails behind as Chanel strengthens its global influence. The brand’s performance is a result of more than consumer demand—it’s the outcome of strategic moves across fashion, beauty, and high jewelry that continue to resonate with today’s luxury consumer.
Chanel’s Meteoric Rise in 2025
Luxury & Premium 50 2025
Porsche remains the world’s most valuable luxury and premium brand. CHANEL surpasses Louis Vuitton to claim second place, while Guerlain returns to the top 10 for the first time since 2021 with a brand value of $7.7 billion.
📊BrandFinance pic.twitter.com/6Z1Y4h48e1
— Mikki (@bbbczzz27) May 23, 2025
Chanel posted the most significant brand value increase of the year, soaring to $37.9 billion—up 45% from 2024. In contrast, Louis Vuitton saw a modest 2.1% rise to $32.9 billion. This leap underscores Chanel’s steadfast investment in creativity, retail expansion, and global presence, even amid economic uncertainty and a cooling luxury market. From eye-catching boutique launches to daring marketing campaigns, Chanel continues to affirm its identity as both timeless and resolutely modern.
The French powerhouse also advanced in the Brand Strength Index, climbing from fifth to fourth with an impressive score of 89.6 out of 100. In France, Chanel earned a perfect score for awareness, consideration, and customer satisfaction, cementing its role as a national treasure with deep-rooted loyalty. Globally, the brand performed strongly in key markets such as the U.S. and Asia, reinforcing its cross-cultural resonance and universal appeal.
Strategic Expansion and Creative Reinvention
A key driver of Chanel’s performance this year was its strategic push into emerging markets and a reinvigorated creative vision. Under the leadership of CEO Leena Nair and CFO Philippe Blondiaux, the brand is expanding into high-growth regions like India, Mexico, and Canada. In India, Chanel opened its first beauty store in Mumbai, with further momentum fueled by a newly announced partnership with local retail powerhouse Nykaa.
Creative shifts also played a pivotal role. The appointment of Matthieu Blazy—formerly of Bottega Veneta—as Chanel’s new artistic director signaled a fresh chapter for the house. Blazy is expected to bring a nuanced vision that blends Chanel’s storied elegance with forward-thinking design. While his first collection will debut this autumn, the brand has continued to deliver six shows a year during the transition, maintaining both pace and presence. Ready-to-wear emerged as one of Chanel’s fastest-growing categories in 2024, a testament to sustained appetite for its fashion offerings.
The Power of the Chanel Brand in 2025
#Chanel reported a 4.3% revenue drop & a 30% profit dip, marking its 1st decline since 2020. CEO Leena Nair notes it’s part of a natural cycle after rapid growth. As Matthieu Blazy steps in, #Darveys remains committed to #luxury with resilience and authenticity at its core. pic.twitter.com/eUKzCLJfD2
— DARVEYS (@Darveyscom) May 26, 2025
Despite a 4.3% dip in annual revenue to $18.7 billion and a sharp 30% decline in operating profit, Chanel remains a powerhouse in the luxury landscape. These financial headwinds—driven by broader macroeconomic challenges including inflation, geopolitical tensions, and a global slowdown in luxury spending—did little to deter the brand’s momentum. Chanel continued to invest boldly, allocating $1.8 billion in capital expenditures and opening 53 new stores, with a particular emphasis on expanding its standalone beauty and fragrance boutiques.
Marketing remained a cornerstone of Chanel’s strategy. The house invested $2.4 billion in advertising, product launches, and immersive client experiences, including its breathtaking Métiers d’Art runway show at China’s West Lake. High-impact campaigns featuring brand ambassadors like Margot Robbie for No. 5 and the relaunch of the Chance fragrance line helped solidify Chanel’s global visibility, ensuring the brand stayed firmly embedded in the minds of consumers worldwide.
Challenges and the Road Ahead
Like many luxury houses, Chanel has come under fire for sharp price increases in recent years, particularly for its coveted leather goods. In response, the brand has adjusted its strategy, aligning price hikes more closely with global inflation trends. At the same time, Chanel is reinforcing its commitment to craftsmanship and design excellence, unveiling new handbag models like the Chanel 25. Backed by high-profile ambassadors such as Dua Lipa and Jennie of Blackpink, these launches aim to reignite interest among both loyal collectors and younger luxury consumers.
Still, leather goods underperformed compared to other divisions like beauty and fine jewelry in 2024, signaling the need for a course correction. Chanel is betting on the accessory expertise of Matthieu Blazy and a more immersive approach to product storytelling to breathe new life into this pivotal category and restore its edge.
A New Luxury Landscape
sometimes I just gotta pinch myself!!!!!! @CHANEL dreams 🤍🤍🤍 shot by David Sims pic.twitter.com/R0HLS7ZIUC
— DUA LIPA (@DUALIPA) March 25, 2025
Chanel’s rise to the second position behind Porsche marks more than just a brand milestone—it signals a broader shift in the luxury landscape. This year, the combined value of the top 50 luxury and premium brands reached $317 billion, with fashion labels accounting for a commanding 70% of that total. French powerhouses like Chanel and Louis Vuitton remain at the forefront, contributing nearly half of the overall value and reinforcing France’s enduring influence on global luxury.
As consumer preferences tilt toward experience over ownership and as global markets grow more complex, Chanel has shown a rare ability to evolve without losing its identity. By weaving together heritage and modernity, exclusivity and accessibility, the brand isn’t just keeping pace—it’s setting it.
In a space where prestige, perception, and performance rule, Chanel stands out as the defining success story of 2025. With a revitalized creative direction, expanding global footprint, and steadfast commitment to excellence, its ascent may well mark the beginning of a bold new chapter in luxury.
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