Louis Vuitton and Gucci are strong competitors because like Chanel, they
have a very strong brand image conveyed by the easily recognizable logos.
They compete keenly with Chanel in terms of sales of handbags and
accessories. However they specialized in leather while Chanel does not.
According to the Brandz valuation 2010, the top three luxury brands - Louis
Vuitton, Hermes and Gucci - all enjoyed significant increases in brand equity.
But Chanel, at number four, lost 11% of its brand value over the past 12
months.13 Much of Chanelʼs lost brand value can perhaps be explained by the
companyʼs reluctance to enter China.14 In terms of cosmetics market,
Chanelʼs notable competitors would include LʼOrealʼs Lancome, who hold the
largest share in luxury cosmetics,15 Estee Lauder and LVMHʼs Christian
Dior.16