Reinvention of Luxury: How Chanel and Dior adapted to the post-COVID marketplace

This paper examines how two leading luxury fashion houses—Chanel and Dior—adapted their branding, pricing, and communication strategies in response to the COVID-19 pandemic. Using a comparative case study approach, the research analyzes how these brands navigated economic disruption, shifting consumer behavior, and accelerated digitalization while preserving their core luxury identity. Drawing on secondary data, brand communications, and a pilot consumer survey, the study explores how luxury brands balance the tension between accessibility and exclusivity during periods of crisis.

The analysis introduces the concept of the “exclusivity paradox,” which captures the challenge luxury brands face in expanding digital access without diluting symbolic value. Chanel and Dior are shown to adopt distinct yet effective strategies: Chanel emphasizes controlled distance through price increases, curated digital engagement, and strong physical retail presence, while Dior embraces cultural scalability through digital storytelling, livestreamed fashion shows, and platform diversification. Despite these differences, both brands succeed in maintaining brand prestige, illustrating that exclusivity can be preserved through different strategic configurations.

The findings suggest that luxury resilience during crisis depends not on resisting change but on carefully structuring it. Digital transformation, when aligned with brand heritage and symbolic meaning, can enhance rather than weaken luxury positioning. By linking crisis marketing, digital transformation, and luxury branding theory, the paper contributes to understanding how elite brands sustain relevance and value in times of global disruption, offering insights applicable to both academic research and strategic brand management.