In a plot twist that would make even the most stoic fashion executive do a double take, Chanel has leapfrogged over Louis Vuitton to become the world’s second most valuable luxury brand, per Brand Finance’s 2025 rankings. Behind only Porsche (yes, the car), Chanel posted a jaw-dropping 45% surge in brand value—making it the fastest climber on the luxury ladder this year.
Translation? Chanel didn’t just step up—they moonwalked past Vuitton, flipped their signature flap bag over their shoulder, and kept it moving. The brand now sits at a cool $37.9 billion, while Vuitton, bless them, grew a modest 2.1% to $32.9 billion. Is the crown slipping?
Chanel’s Rise in 2025
While the rest of the market took cautious baby steps, Chanel was busy eating the luxury girls up. The brand flexed across every vertical—from haute couture to beauty to high jewelry—like it had something to prove. Spoiler: it didn’t. But it did anyway.
France gave Chanel a perfect score for awareness, consideration, and customer satisfaction (we stan a national treasure), and key markets like the U.S. and Asia kept showing up and showing out. Oh, and in the Brand Strength Index, they jumped from fifth to fourth with a sizzling 89.6/100.
What’s Fueling the Fire?
Two words: strategy + vision. CEO Leena Nair and CFO Philippe Blondiaux are clearly not here to play. The brand has been on a global conquest, opening its first beauty store in India and linking up with Nykaa for a retail power move that says, “We see you, emerging markets.”
Creative-wise, the arrival of Matthieu Blazy—formerly of Bottega Veneta—as artistic director signals a stylish shake-up. We’re all holding our breath for his debut collection this autumn, but Chanel’s been keeping the energy alive with six shows a year (because when has Chanel ever been caught slacking?).
And let’s talk product: ready-to-wear is booming, while leather goods (once Chanel’s cash cow) are… well… not giving. But the hope is Blazy’s magic touch will restore the sparkle.
Wait—They’re Doing All This While Losing Money?
Yup. In a surprising twist, Chanel’s revenue dropped 4.3% to $18.7 billion, and operating profit tanked 30%. Sounds grim, right? But here’s the kicker—they still spent big:
- $1.8 billion in capital expenditures
- 53 new stores (mostly beauty and fragrance)
- $2.4 billion on marketing, including the Métiers d’Art spectacle in China
Clearly, the brand’s playing long-term chess while the others are busy budgeting lunch.
The Price Problem (and the Gen Z Factor)
Let’s address the elephant in the boutique: prices keep going up, and not everyone’s thrilled. Leather goods saw a dip, likely due to sticker shock. But Chanel claims they’re now syncing increases with inflation and doubling down on design, quality, and storytelling.
Enter the Chanel 25 bag, launched with help from Dua Lipa and Jennie of BLACKPINK. It’s aimed at both longtime collectors and TikTok scrollers who want the bag that says taste and tax bracket in one frame.
TL;DR: Chanel Ate—and Left No Crumbs
This isn’t just a Chanel moment. It’s a reshuffling of the luxury elite. The top 50 luxury brands are now worth a combined $317 billion, with fashion claiming 70% of that pie. And yes, France still runs the show.
But while others coast on legacy, Chanel is doing the most—with style, with strategy, and with a wink. And somehow, it’s working. In 2025, they’re not just in the conversation. They are the conversation.
So if you hear a faint rustle in the fashion wind, that’s just Gabrielle Chanel rolling over to smirk in approval.
This Story Appeared First On La Mode Uk
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