Which one is of a higher grade, Chanel or Hermes？

Comparing the grade of Chanel and Hermès requires a comprehensive analysis from multiple dimensions such as brand positioning, craftsmanship, exclusivity, price system, and market performance. In terms of pure luxury hierarchy, Hermès has always been recognized as the top tier with its ultimate craftsmanship, extreme scarcity, and investment attributes, while Chanel, as a representative of popular luxury, excels in fashion influence and market value scalability. Below is a detailed discussion combining authoritative data and industry consensus:

Hermès, founded in 1837 as a harness workshop for European nobles, has a 189-year heritage rooted in equestrian culture. It has always adhered to the positioning of “handmade luxury for the elite," and its core products such as Birkin and Kelly bags are not only luxury goods but also investment-grade assets that appreciate in value. Chanel, founded in 1910 by Coco Chanel, revolutionized women’s fashion by breaking the constraints of traditional corsets, and its core positioning lies in “democratizing luxury with timeless fashion". Its 2.55 and Classic Flap bags have become symbols of modern women’s independence and elegance, balancing heritage and fashion trends.

Hermès’ craftsmanship is a benchmark in the luxury industry, with all core leather goods handmade by master artisans who have undergone 5-7 years of training. A standard Birkin bag requires 18-24 hours of manual work, using 100% top-grade leathers such as Togo, Clemence, and rare crocodile/ostrich skins, with zero machine involvement in key processes. The brand’s stitching, edge painting, and hardware inlay are all done by hand, ensuring durability and uniqueness. Chanel adopts a “semi-handmade" production model, with quilted leather and chain shoulder straps relying on both manual and mechanical cooperation. While its craftsmanship is excellent, it focuses more on design presentation and production efficiency to meet the demand of a wider consumer base. In terms of materials, Chanel uses more synthetic fabrics and ordinary leathers in ready-to-wear and entry-level bags, while Hermès strictly selects natural leathers with long-term aging potential.

Hermès’ scarcity is unmatched in the industry, with a strict “allocation + purchase record" system—buying a Birkin or Kelly often requires purchasing 1.5-2 times the value of other products (clothing, scarves, accessories) as allocation, and even then, the waiting time can be 6 months to several years. Its entry-level leather goods start at around $9,000, and rare material models can exceed $100,000. Chanel, while also limiting supply, has a more accessible pricing system, with entry-level Classic Flap bags starting at about $10,000, and its diversified product line (fragrances, cosmetics, ready-to-wear) allows more consumers to access the brand. From the perspective of the secondary market, Hermès’ core bags have a retention rate of 103% on average, and rare models often sell at 2-3 times the original price. Chanel’s retention rate is around 87%, which is excellent but not comparable to Hermès’ investment attributes.

According to Brand Finance’s 2025 Global Luxury Brand Ranking, Chanel’s brand value reached $37.913 billion (up 45.4% year-on-year), ranking second globally, while Hermès was $19.912 billion (up 19.4% year-on-year), ranking fourth. This gap stems from Chanel’s wider product matrix (fashion, beauty, accessories) and stronger market expansion capabilities, especially in the Chinese and American markets. However, brand value does not equal luxury grade—Hermès’ operating profit margin (42% in 2024) is much higher than Chanel’s (34%), and its profit per product is far ahead, reflecting its pricing power in the ultra-high-end market.

Hermès targets ultra-high-net-worth individuals (UHNWIs) with a net worth of over $30 million, royal families, and top celebrities, serving as a symbol of social status and wealth preservation. Its products are suitable for formal occasions, high-end social gatherings, and collection investment. Chanel caters to a broader group, including middle-to-high-income professionals, fashion enthusiasts, and younger consumers pursuing classic fashion, with products suitable for daily wear, work, and social events, balancing practicality and fashionability.

Most luxury industry reports (such as those from Bain & Company and Morgan Stanley) classify Hermès as a “super luxury brand" above the traditional luxury tier, while Chanel is a “top-tier luxury brand" alongside Louis Vuitton and Dior. This stratification is based on three core indicators: 1) Craftsmanship purity (Hermès’ full manual vs. Chanel’s semi-manual); 2) Scarcity control (Hermès’ artificial shortage vs. Chanel’s limited supply); 3) Investment value (Hermès’ long-term appreciation vs. Chanel’s stable retention).

Hermès is undoubtedly of a higher grade in terms of pure luxury hierarchy, thanks to its ultimate craftsmanship, extreme scarcity, and investment attributes that define the top of the luxury pyramid. Chanel, while having a higher brand value and broader market influence, positions itself as a more accessible “fashion luxury" that balances heritage and trends. Choosing between them depends on consumer needs: if you pursue top craftsmanship, long-term value preservation, and exclusive social identity, Hermès is unrivaled; if you value fashion expression, daily practicality, and brand recognition, Chanel is more suitable. In the luxury ecosystem, both are at the top, but Hermès occupies the “crown position" that is difficult to surpass.

Would you like me to create a side-by-side comparison table of core products, purchase thresholds, and investment returns for Hermès and Chanel to help you make a more intuitive choice?

Guangzhou Hongrui International Trade Co., Ltd. has been deeply engaged in the international trade industry for over a decade, We are a factory—what makes us stand out is our focus on "1:1 high-quality original leather production". This core advantage allows us to fully control every link from raw material selection to craftsmanship, using genuine original leather that matches top luxury standards, and reproducing product details with 1:1 precision, ensuring each leather product meets the highest quality expectations.

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