The luxury goods industry has had a good year. As of June 12, 2023, the STOXX Europe Luxury 10 Index has risen by 22.81%, after reaching an all-time high in April. This surge comes as China’s economy begins to recover, reopening after three long years of lockdowns due to the pandemic. In a historical milestone, LVMH Moet Hennessy Louis Vuitton, the world’s biggest luxury conglomerate, became Europe’s most valuable company ever, with its market cap exceeding $500 billion.
It’s against this backdrop that luxury industry publication Luxe Digital released its ranking of the world’s most popular luxury brands online, based on data from multiple sources. Luxe uses Deloitte’s top luxury goods companies list and Forbes’ most valuable brands list as a starting point, and then Google Trends data is employed to measure online search interest for each brand. SimilarWeb and Rival IQ data are also used to assess web traffic and social media engagement, further influencing the ranking.
Read on to discover the top 10 most popular luxury brands of 2023, in descending order.
10. Burberry
In the number 10 spot of the most popular luxury brands online is Burberry, the British heritage brand. With a new CEO and new Chief Creative Officer, Burberry is undergoing a refresh to appeal to a new generation of consumers by emphasizing not just British tradition but also modern luxury aesthetics, featuring talents like Burna Boy and rapper Kano. Aside from exploring new designs in outerwear, Burberry is expanding its leather goods and shoes portfolio, aiming to make accessories more than half of its sales. A digital pioneer, the brand received the inaugural Metaverse World and Gaming Experience Award in December 2022 due to its non-fungible token (NFT) launches and a collaboration with the popular video game Minecraft. It’s also emphasizing sustainability, aiming to reduce production chain emissions by 46% by 2030 and achieve a “climate positive” status by 2040, along with banning the use of exotic skins in its collection.
9. Versace
Italian luxury brand Versace, founded in 1978 by Gianni Versace, cements its spot in the top 10 most popular luxury brands in 2023, having leaped 10 positions in 2021. Acquired by Capri (then Michael Kors Group) in 2018, Versace’s distinct style has been popularized among young consumers through high-profile fashion events and celebrity endorsements. Offering a range from haute couture to home furnishings, Versace aims to increase its accessories revenues to 50% over time. It also plans to enhance its e-commerce capabilities to broaden its global reach, selling products through its own boutiques, e-commerce platforms, multi-brand retailers and e-retailers.
8. Tiffany
American jewelry company Tiffany & Co., purchased in 2021 by French luxury giant LVMH, dropped one spot in popularity this year. The brand is expanding its product range, appealing to younger, more affluent customers, and revamping its retail stores. Following LVMH’s acquisition of the company, Vice President Alexandre Arnault revitalized the brand with successful collaborations and a high-profile ad campaign featuring Beyonce and Jay-Z. Highlight events of the year also included unveiling a 200-carat Tiffany diamond necklace at the Met Gala, appointing K-pop star Jimin as a global ambassador and reopening its flagship New York store.
7. Prada
Family-owned Prada moved up to seventh place in 2023, with website traffic growing an impressive 49% year-over-year. Prada’s online shift has attracted young, affluent consumers, and its use of new technology, such as blockchain and NFTs, is enhancing the customer experience. The launch of sustainable product lines like Eternal Gold jewelry and Prada Paradoxe perfume demonstrates Prada’s commitment to sustainability.
6. Rolex
Maintaining its sixth position in 2023, Rolex remains the most sought-after luxury watch brand online and the largest luxury watch brand globally. This stability is attributed to the ongoing appeal of its core collections, new model releases and growing interest in second-hand watches. Despite not offering e-commerce options, the brand benefits from the rising popularity of luxury resale sites and the launch of its Certified Pre-Owned program. Rolex’s exceptional brand recognition led to estimated retail sales of $10.3 billion in 2022, dominating the global luxury watch market with a remarkable 31% share. The brand’s prestige and growing young, affluent consumer base continue to support sales.
5. Hermès
Retaining its fifth place in the 2023 ranking of the most popular luxury brands online, Hermès saw a 33% increase in website traffic year-over-year. Famous for timeless classics like the Birkin bag, Hermès enjoys high desirability and a strong presence in the secondhand market. The brand adopts a conservative approach to its distribution network but has significantly expanded its product range available on its official website. With a market capitalization surpassing €200 billion ($218 billion) in April 2023, Hermès is now the world’s second-most valuable luxury brand.
4. Louis Vuitton
French luxury house Louis Vuitton holds its fourth position in Luxe’s 2023 ranking, despite a decline in online search interest from 15% in 2020 to 9% in 2023. The brand still boasts the largest website traffic volume in 2023 with an average of 16.5 million visitors per month and an increase of 25% year-over-year. Known for reinventing its iconic product lines and collaborating with artists, Louis Vuitton celebrated its rich history with the immersive LV Dream exhibition in Paris. The brand continues to hold sway in China and ranks among the top 10 most valuable European brands. Recent appointments of Pietro Beccari as CEO and hip-hop artist Pharrell Williams as Creative Director of Menswear are expected to boost the brand’s online popularity.
3. Chanel
Maintaining its third position in the 2023 ranking of the most popular luxury brands online, Chanel, the French fashion house, saw a 26% growth in website traffic despite its traditional resistance to online sales. The brand is globally recognized for its iconic products, particularly the Classic Flap Bag and fragrances like Chanel No. 5. The company’s growth is supported by a growing number of younger consumers, with hot American actor Timothée Chalamet announced as a brand ambassador. Chanel gained significant exposure dressing numerous celebrities at the 2023 Met Gala and opening its largest boutique on the famed Rodeo Drive in Beverly Hills. The brand remains privately held by Alain and Gerard Wertheimer, grandsons of Coco Chanel’s early business partner Pierre Wertheimer.
2. Gucci
Gucci, the Italian fashion house, dropped to second place in 2023 after years of holding the top spot. Despite a decline in online search interest from 22.34% in 2019 to 13.4% in 2023, the brand still performs well digitally, with a 13% growth in website traffic from 2022 to 2023. A subsidiary of Kering, Gucci continues its metaverse exploration in collaboration with Yuga Labs, despite changes in leadership. In April 2023, the company launched its first by-appointment-only ultra-luxury boutique in Los Angeles.
1. Christian Dior
Topping Luxe Digital’s annual ranking for the first time is Christian Dior, marking a steady climb from number seven in 2019. A key member of LVMH’s luxury empire, the Paris-based company has demonstrated a forward-thinking approach such as exploring the metaverse and venturing into new markets. It strengthened its customer engagement through directly operated stores, e-commerce, live streaming and a strong social media presence, including in China. Its first European luxury brand show in India also gained extensive attention. In 2023, Dior’s website traffic grew by 48% compared to the previous year, its growth driven by the popularity of its iconic handbags and perfumes and its premium skincare line.
Read the full article here
