International Journal For Multidisciplinary Research

E-ISSN: 2582-2160   •   Impact Factor: 9.24

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Reinvention of Luxury: How Chanel and Dior Adapted to the Post-COVID Marketplace

Author(s) Rianna Jain
Country India
Abstract The COVID-19 pandemic has significantly impacted the global luxury industry, making even the world's leading luxury brands rethink their marketing and branding strategies. To stay relevant and valuable, brands had to adapt rapidly to the damage done. This paper focuses on the leading luxury brands Chanel and Dior, and explores how they have adapted their strategies in response to the economic shock caused by the pandemic. The study has a comparative design, which analyses changes in both of the brands’ pre vs. post-COVID (2019-2022) branding strategies, presence of digital campaigns, and consumer engagement. Findings show that Chanel reinforced the brand value through exclusivity via price signaling (increase in prices), focused digital interactions (app, heavy digital spend) to strengthen the luxury story, and physical store presence; whereas, Dior focused heavily on the global rebranding, localized heritage storytelling/cultural branding to bolster its brand value. However, these seemingly different strategies lead to the same outcome – digital intimacy with the consumer and signal scarcity. This paradoxical outcome is a result of a carefully navigated strategy to balance both accessibility and exclusivity in a period of uncertainty. We provide a broad framework (crisis to strategic adaptation via pricing, communication, and promotions to brand value) to understand the brands’ response to external shocks. This paper contributes to the crisis-marketing and luxury-branding literature by analysing how luxury brand houses navigate the structural tension between accessibility and exclusivity in the post-COVID marketplace.
Keywords Luxury Branding; Chanel; Dior; COVID-19; Digital Transformation; Exclusivity Paradox; Crisis Marketing; Digital Intimacy
Field Sociology > Economics
Published In Volume 7, Issue 6, November-December 2025
Published On 2025-12-14
DOI https://doi.org/10.36948/ijfmr.2025.v07i06.63297
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