Chanel's new creative director Matthieu Blazy sparked 'Blazy mania' with his March debut collection, driving shoppers to queue for €1,350 slingbacks and €9,000 totes. The buzz has revived interest in the luxury sector, where Chanel reported high single-digit sales growth in 2026 against an industry expected to grow just 2.5 percent.

Morgan Stanley estimates Chanel could capture 30 percent of luxury fashion and leather goods growth if sales rise 10 percent this year. Analysts suggest Chanel's revival may come at rivals' expense in what they call a 'zero-sum game.' Dior, under Jonathan Anderson, saw its fashion division contract 2 percent in Q1.

Dior chief executive Delphine Arnault says the brand is taking a longer-term approach, noting Anderson's collections are 'working very, very well.' However, Berenberg's Nick Anderson attributed slower sales to Chanel's 'extraordinary success.' Both houses are raising prices, with Dior's leather goods up 19 percent and Chanel's up 10 percent.

Bernard Arnault considers Chanel his benchmark for Dior, making the competition particularly intense. As luxury growth slows, Jean Revis of consultancy MAD notes the 'new paradigm is conquest'—brands must now poach customers from competitors rather than simply attract new buyers.