Chanel is China's favourite fashion brand: Cosmetics collections give French fashion house the edge over other luxury labels

French fashion label came third overall in country's 2013 World Luxury Index

Helped by lucrative beauty offerings



Audi and BMW ranked first and second respectively

Estée Lauder came in at four, followed by Louis Vuitton at number five

Chanel is officially China's favourite luxury fashion brand, knocking last year's winner Louis Vuitton from the top spot.



French fashion label Chanel came third in the country's 2013 World Luxury Index, beaten only by Audi and BMW - who ranked first and second respectively.

The luxury index, which is produced by research and market intelligence firm, Digital Luxury Group, believe that Chanel's position was helped by their lucrative beauty offerings.

Top spot: Chanel is officially China's favourite luxury fashion brand, according to the country's 2013 World Luxury Index

Other fashion and beauty brands that made the top 10 included Estée Lauder at four, followed by Louis Vuitton at number five.



In eighth position was Dior, Lancôme ranked at 11, Gucci made 12th position, before Hermès at 13.

The rest of the top ten was dominated by European brands such as Prada, Dior, Burberry, Giorgio Armani and Versace.



Giorgio Armani claimed fastest growing fashion brand accolade as it shot up 17 spots this year.

Beauty offerings: The luxury index, which is produced by research and market intelligence firm, Digital Luxury Group, believe that Chanel's position was helped by their lucrative beauty offerings

Luxurious: David Sadigh, founder and chief executive officer of Digital Luxury Group, said there is strong interest in Chanel's beauty products, which Louis Vuitton does not have

Salvatore Ferragamo and Moncler, however, dropped out of this year’s rankings.

Speaking to WWD, David Sadigh, founder and chief executive officer of Digital Luxury Group, said:



'Chanel is benefitting from an important level of interest in China, mostly emanating from strong interest from Chinese consumers in its beauty products, which Louis Vuitton does not have.'

Overall winner: Audi took the overall top spot in the luxury index

Sadigh added: 'In order to stay ahead of the game, brands must have the ability to adapt quickly thus reducing the risk of brand saturation.



'In the case of Louis Vuitton, LVMH has already shifted gears, putting the brakes on its global expansion, whilst raising prices and developing more leather upmarket products.'



Louis Vuitton will soon attempt to capitalise on China's obsession with beauty by launching its first fragrance since the Eighties.



Fashion's finest: Louis Vuitton came in fifth place while Dior took eighth position



TOP TEN: CHINA'S MOST SOUGHT-AFTER BRANDS

AUDI BMW CHANEL ESTEE LAUDER LOUIS VUITTON LEXUS MERCEDES BENZ DIOR PORSCHE LAMBORGHINI