Top Trending Most Popular Luxury Brands to Watch in 2023 and 2024

The luxury market is undergoing a major evolution. New generations, new markets, and digital disruption are transforming the competitive landscape.

I analyzed the latest online popularity data to identify the top luxury brands gaining momentum - and ones to watch as the leaders of tomorrow. These brands are setting the trends and capturing people's attention across social media and word of mouth.

The rankings combine brand value, search share of voice, and social media buzz.

Historic Changing of the Guard

For the first time ever, Dior dethrones Gucci as the #1 most popular luxury brand online. This signals a historic shift.

Dior gained 7 positions over 6 years to reach the summit, with its search share soaring from 5% in 2019 to 16% in 2023.

Gucci lost the lead for the first time after dominating online popularity for years. Its search share plunged from 22% in 2019 to just 13% in 2023.

Dior is future-proofing itself with digital innovation and global expansion into new markets like India.

Meanwhile Gucci, despite remaining a digital leader, needs a revamp to get back on top after years of creative stagnation.

Ecommerce Acceleration Fuels Growth

Ecommerce and digital marketing are increasingly driving the luxury industry's growth. Brands investing here are pulling ahead of digital laggards.

Dior's website traffic grew a remarkable 48% in 2023 as it expands online categories.

Gucci still grew traffic 13% despite losing #1 rank. But it needs fresh creative direction.

Prada's website traffic jumped 49% as it focuses online with new artistic leadership.

Brands making digital excellence central to their strategy will continue accelerating in 2024. Physical-first brands risk decline.

Sustainability Becomes Expected

Consumers now demand sustainability. Brands delivering it gain a competitive edge.

Prada debuted 100% recycled gold jewelry and refillable perfumes.

Gucci launched upcycled and resale collections, key moves for revival.

Burberry banned exotic animal skins as part of its net-zero push.

Sustainable luxury is going mainstream. Laggard brands will fall behind proactive rivals.

1. Dior: Leading the 2023 Luxury Brand Race

Dior, the iconic French luxury brand, has taken the top position as the most popular luxury brand online in 2023, dethroning Gucci. This marks a remarkable ascent, as Dior climbed from #7 in 2019 to #5 in 2020, #4 in 2021, #2 in 2022, and finally claimed the number one spot this year.

Innovative and Forward-Thinking

Dior's journey to the top is marked by groundbreaking moves, such as collaborations with virtual idols and venturing into the metaverse. Their commitment to innovation and pioneering spirit has set them apart.

Strengthening Customer Connections

Dior is not only creating exceptional fashion but also building direct relationships with customers. They achieve this through an expanding network of directly operated stores, tight control over e-commerce distribution, live streaming, and a robust social media presence, especially in China.

Global Reach

Recognizing the importance of the Indian market, Dior held its Pre-Fall 2023 collection show in India, drawing attention worldwide. The show's visuals against the backdrop of the Gateway of India made a strong impact on social media.

Impressive Online Growth

In 2023, Dior's website experienced a staggering 48% year-over-year traffic increase. While selective about multibrand retailers, Dior continues to expand its product offerings on its website, attracting new customers.

Product Highlights

Dior's iconic handbags and popular fragrances, including Sauvage, Miss Dior, and J'Adore, contributed to its success. The global launch of Parfum d'Eau, an alcohol-free Dior formula, further enriched their fragrance portfolio. Their makeup (Dior Addict and Rouge Dior) and premium skincare (Prestige) also played significant roles in their dynamic growth.

New Leadership

Delphine Arnault, daughter of LVMH owner Bernard Arnault, assumed the role of Chief Executive of Christian Dior in January 2023, adding to the brand's anticipation for future developments.

Dior's remarkable journey to the top of the luxury brand hierarchy showcases their relentless commitment to innovation, customer engagement, and global appeal.

2. Gucci: A New Position in the Digital Luxury Landscape

In 2023, Gucci, the renowned Italian luxury fashion house, finds itself in the second spot in the online luxury brand rankings. This is a shift from its prior reign as the leading luxury brand online, marking a significant change in the digital luxury landscape.

A Gradual Decline in Online Dominance

The change in Gucci's position was anticipated, given the brand's gradual decline over recent years. Gucci's share of online search interest fell from 22.34% in 2019 to 13.4% in 2023.

Staying Digitally Strong

Although it relinquished its top spot, Gucci remains a digital powerhouse within the industry. In 2023, the brand witnessed a 13% year-on-year increase in traffic to its website, a testament to its efforts in growing direct online sales through Gucci.com.

Exploring the Metaverse

Gucci's foray into the Metaverse continues with a multi-year collaboration with Yuga Labs, the creator of web3-native projects like Bored Ape Yacht Club and CryptoPunks. However, the recent departure of the CEO of Metaverse Ventures raises questions about the brand's Metaverse plans.

A New Creative Direction

Alessandro Michele, known for his maximalist designs worn by celebrities like Harry Styles and Lady Gaga, left in November 2022. Gucci's new Creative Director, Sabato De Sarno, a senior fashion designer from Valentino, is tasked with charting a new design direction. His debut runway collection is set to make its mark in September 2023 during Milan Fashion Week.

Sustainability and Inclusivity

In addition to digital innovations, Gucci remains committed to sustainability and inclusivity. The brand launched new deadstock and resale programs in March 2023, aligning with the growing demand for environmentally responsible and ethical practices in the fashion industry.

Gucci's dynamic response to changing digital dynamics and its dedication to sustainability demonstrate its commitment to remaining a relevant and forward-thinking luxury brand in the ever-evolving market.

3. Chanel: Resilient Elegance in the Digital Era

Chanel, the epitome of luxury French fashion, maintains its prestigious third position in the realm of online luxury brands for 2023. While historically cautious about digital trends, Chanel continues to uphold its distinctive brand values.

A Digital Classic

Chanel stands out in the luxury industry for its hesitancy to embrace resale and refrain from direct online sales. Nevertheless, it's worth noting that second-hand Chanel items can be found on trusted luxury resale websites like The RealReal, Fashionphile, and Vestiaire Collective.

Impressive Website Growth

In 2023, Chanel achieved a remarkable 26% increase in its website traffic, a significant feat for a brand that has traditionally been more reserved in the digital sphere.

Iconic Elegance

Chanel's iconic "little black dress" remains a symbol of timeless luxury. The brand is celebrated internationally, thanks to the enduring appeal of its products, including the highly sought-after quilted Classic Flap Bag, which now has a purchase limit of 2 classics per person per year.

Exclusivity Reinforced

Chanel's commitment to exclusivity is evident through the introduction of a quota system and regular price increases for its bags. The promise of invite-only private boutiques for top customers in 2023 further solidifies the brand's aura of exclusivity.

Fragrance and Beauty

Chanel No. 5 perfume, along with the success of Coco Mademoiselle and Bleu de Chanel, continues to contribute to the brand's growth in the Fragrance category. The appointment of 27-year-old actor Timothée Chalamet as the new ambassador for Bleu de Chanel signals Chanel's interest in capturing a younger audience. Skincare also plays a role in the growth of the beauty segment.

Chanel's American Dream

Chanel's presence at the Met Gala, dressing top celebrities such as Dua Lipa, Nicole Kidman, Blackpink's Jennie, and Penelope Cruz, garnered significant brand exposure. The theme, "Karl Lagerfeld: A Line of Beauty," paid homage to the brand's longtime creative director, Karl Lagerfeld. Chanel was the top-performing brand at the event, generating $110.7 million in Media Impact Value according to Launchmetrics.

Chanel remains a privately held company, owned by Alain and Gerard Wertheimer, grandsons of Pierre Wertheimer, an early business partner of Coco Chanel. Chanel's enduring elegance and selective approach to the digital world make it a distinguished player in the luxury market.

Luxury Thriving Amid Global Challenges

Surprisingly, despite economic uncertainties and global turbulence, the luxury sector remains robust. By 2030, 33% of global luxury sales are projected to occur online, reflecting the industry's enduring resilience.

LVMH: Pinnacle of Luxury

In April 2023, LVMH, the parent company of esteemed brands like Louis Vuitton and Dior, set new records. LVMH soared past $500 billion in market value, securing its status as Europe's most valuable firm. Bernard Arnault, LVMH's owner, became the world's wealthiest individual.

The Evolving Luxury Landscape

In a rapidly shifting world, luxury brands must adapt while preserving their identity. The challenge is to find the perfect balance between tradition and innovation.

Three Key Trends for Luxury in 2023

Embracing Digital: Luxury brands must go digital to appeal to new generations.

Global Sales Growth: The global market for personal luxury goods is set to reach $607 billion by 2030.

Outlook for 2024

We can expect digital immersion, sustainability, and Gen Z-centric marketing to shape the luxury arena in 2024.

China, India, and younger luxury shoppers offer strong expansion opportunities. But brand heritage, quality craftsmanship, and human service remain vital pillars.

Shooting stars in 2023 like Dior and Prada could displace declining heritage giants like Gucci if momentum continues into 2024. But fresh creative direction and digital mastery will determine who leads next.