Editor’s Note
This article highlights a pivotal moment for the luxury sector, as outlined in a recent Morgan Stanley report. The 2024 ranking of top brands by revenue reveals notable shifts, including a new entrant to the top ten, underscoring the industry’s dynamic evolution.
According to a Morgan Stanley report, the top ten luxury brands by revenue in 2024 are: Louis Vuitton (France), Chanel (France), Hermès (France), Dior (France), Rolex (Switzerland), Cartier (France), Gucci (Italy), Tiffany & Co. (USA), Prada (Italy), and Van Cleef & Arpels (France), which entered the top ten for the first time. According to Morgan Stanley’s latest 2024 global luxury brand ranking, the luxury industry is experiencing a critical turning point. France occupies six of the top ten spots, highlighting its absolute dominance in the luxury sector.
Morgan Stanley pointed out in a research report on June 3 that 2024 marks a significant inflection point in the development of the luxury industry. For over two decades, major luxury brands have been gaining market share, leading to industry polarization. Between 2016 and 2024, the top five brands in the fashion and leather goods vertical (Louis Vuitton, Chanel, Hermès, Dior, and Gucci) accounted for approximately 72% of industry growth and about 82% of profit growth.
However, analysis suggests that the trend of industry concentration, which lasted for more than twenty years, reversed for the first time in 2024, with top brands collectively losing market share. The industry may be entering a phase of fragmentation. According to Morgan Stanley estimates, Louis Vuitton’s sales declined for the first full year in 2024 (excluding the pandemic period). Chanel Group’s sales fell 5% to €16.8 billion. Gucci performed even worse, with turnover dropping 22.5% to €7.7 billion, the largest decline among the top ten brands.
Louis Vuitton remains the largest and most profitable luxury brand.
The report states that its 2024 sales were €22.2 billion, with an operating profit of €10.9 billion (a 49% margin). Its profit is equivalent to the sum of the second-ranked Hermès (€6.2 billion) and the third-ranked Chanel (€4.3 billion).
However, a historic turning point has emerged: Louis Vuitton’s sales declined by approximately 1.5% to €22.2 billion in 2024, marking the first recorded full-year sales contraction (excluding the first year of the COVID-19 pandemic with widespread store closures).
Even during the 2008/09 global financial crisis, Louis Vuitton only experienced contraction in one quarter (Q2 2009) and still achieved about 3% growth for the full year.
Analysis points out that the key to this change lies in the limitations of pricing strategy. Louis Vuitton’s cumulative price increases of about 60% between 2019 and 2024 have made it unable to offset volume pressure through significant price hikes as it did during the financial crisis.
The Chanel brand’s sales were €16.3 billion in 2024, solidifying its position as the second-largest brand.
Between 2016 and 2024, Chanel’s sales grew at a compound annual growth rate (CAGR) of 10% to €17.3 billion.
However, Chanel Group’s sales fell 5% to €16.8 billion in 2024. According to company estimates, the leather goods category likely experienced a double-digit decline (in contrast, Hermès leather goods sales grew 16% in 2024).
Against the backdrop of overall industry pressure, Hermès’ performance was particularly outstanding.
The report notes that Hermès grew 13% (in euro terms) in 2024, becoming the fastest-growing brand.
Over the past decade, Hermès brand sales grew at a CAGR of 14%, reaching €14.8 billion in 2024. It tied with Dior as the fastest-growing among the top ten brands.
Although Hermès’ growth quality in 2024 was not as strong as in previous years, analysts expect it to continue strong growth in 2025, with turnover growing 10.2% (11.3% organic growth), gaining significantly more market contribution.
Dior grew at an average of 14% over the past decade, reaching a turnover of €12.2 billion in 2024, but declined 10.1% this year.
Rolex’s 2024 turnover was approximately €11.1 billion, up 5%, rising from sixth to fifth place. Notably, Rolex experienced its first sales volume decline since 2009, with 1.18 million units sold in 2024, down 2%.
Nevertheless, Rolex’s market share in the Swiss watch market reached 32.1%, a dominance far exceeding other brands in their respective fields. For comparison, Louis Vuitton’s share in the luxury handbag market is about 19%.
Cartier’s turnover was €10.9 billion, up 3.3%, breaking the €10 billion mark for the first time.
Gucci performed extremely poorly, with turnover falling 22.5% to €7.7 billion, the largest decline among the top ten brands.
Tiffany & Co. sales were €5.1 billion, down 2%. Prada grew 2.2% to €3.9 billion.
Van Cleef & Arpels entered the top ten luxury brands for the first time in 2024, with sales of approximately €3.9 billion, up about 8%. The brand grew from about €750 million in 2013 to about €3.9 billion in 2024, becoming the best-performing jewelry brand.