The question of whether Fendi is underrated is complex. The Roman house, founded in 1925, sits in a fascinating contradiction: it is a heritage brand with iconic products and a clear identity, yet it is often overshadowed by its larger LVMH siblings and faces significant commercial headwinds. The evidence suggests Fendi may be undervalued in terms of its heritage, craftsmanship, and recent strategic moves, but whether this quiet strength will translate into a triumphant comeback is still an open question.
Fendi’s argument for being underrated rests on a foundation of unparalleled history and a unique position in the luxury market.
1. Mastery of a Unique Craft: Fur
Fendi's identity is inseparable from fur. The brand was built on a workshop specializing in fur and leather goods, and this remains its "unique identifier" in the industry. Even as other luxury brands abandoned fur, Fendi stayed true to its roots. This commitment is not just sentimental; it's a powerful differentiator. A 2025 study by data analyst Retviews by Lectra noted that Fendi's expertise in this area remains "unmatched in the industry". The brand has also adapted, placing "great importance on ethical sourcing" through certifications like Furmark. This mastery allows Fendi to command significantly higher prices for outerwear—an average of 7,659 euros, compared to Bottega Veneta's 3,583 euros—demonstrating that its unique expertise is recognized by a high-end clientele.
2. The "It-Bag" Pioneer
Fendi didn't just make handbags; it created the concept of the "it-bag." In 1997, Silvia Venturini Fendi designed the Baguette, a small, elongated bag that became a cultural phenomenon after appearing on Sex and the City. It is widely considered the first modern "it-bag". This was followed by other icons like the Peekaboo. Today, leather goods represent 40.9% of Fendi's assortment, a high proportion that rivals even Bottega Veneta. This deep heritage in creating covetable, timeless accessories is a core brand asset.
3. A Strategic Pivot to Heritage
Perhaps the strongest evidence for Fendi's underrated status is its recent performance in the court of public opinion. After a period of being "out of fashion," Fendi made a "spectacular comeback" in the Tagwalk Fall 2025 search ranking, jumping from 24th place to number three. This surge was credited to the brand's centenary celebrations and a "return to its core values" under designer Silvia Venturini Fendi. The fashion search engine's founder noted that brands like Fendi, who "really respected their DNA," garnered more attention because they "know exactly who they are". This signals that a quiet, heritage-focused strategy can create significant cultural relevance.
4. A New Creative Era Under Maria Grazia Chiuri
In a significant move, LVMH appointed Maria Grazia Chiuri as Fendi's sole creative director in late 2025, a position she began in 2026. Her debut collection was notable for its restraint. She didn't seek to create a sensational "first show" but instead focused on building a "practical wardrobe" that unifies menswear and womenswear. This strategic refocusing under a star designer known for her commercial success at Dior suggests LVMH is now seriously investing in Fendi's future. Her clear message, "Less I, More Us," aims to put the spotlight back on the brand itself, not just the creative director. This is a strong indicator that the brand is quietly repositioning for long-term strength.
Despite these strengths, several factors suggest Fendi's current market position is not an oversight but a reflection of genuine challenges.
1. Underperformance in the LVMH Portfolio
While Fendi has around $2 billion in estimated annual sales, it is "ten times smaller than Vuitton" and "4 or 5 times smaller than Dior". It has been overtaken by former peers like Celine, which saw its revenue grow past 20 billion euros while Fendi stagnated. The brand has been described as "treading water" with a "strategic vacuum," cycling through four CEOs in ten years. This suggests a lack of focus and investment from LVMH, which has prioritized its mega-brands.
2. A Vanishing Act in the "Desirability Index"
While Fendi's search ranking spiked, its overall desirability appears low. A 2025 analysis of search data placed Fendi at the "base of the ranking" alongside Balenciaga and Versace, noting that "awareness alone no longer guarantees desirability". This means that while people know Fendi, they aren't actively searching for it in the same way they search for Louis Vuitton, Chanel, or even Miu Miu. This is a clear sign of waning brand heat and cultural resonance.
3. Commercial Headwinds
The data shows tangible commercial struggles. In 2024, Fendi's sales in South Korea fell by 22%, and the brand has been operating at a net loss since 2023. This led to the closure of a store in the Galleria Gwanggyo, a prime retail location. These financial pressures reflect a broader shift in the luxury market, where consumers are moving away from fashion and handbags towards "practical" investments like jewelry and watches.
4. A "Humbling" of the Brand
The industry itself has noted a "humbling" of luxury handbag brands, with demand concentrating on a few select houses like Hermès and Chanel. An industry official commented that Fendi "does not have as strong a fan base" as these top-tier brands. This suggests that Fendi's appeal, while deep, may be too niche or lacks the broad, fanatical loyalty needed to weather economic downturns.
Is Fendi underrated? The answer appears to be a qualified yes. Its unmatched heritage in fur, its status as the inventor of the "it-bag," and its recent successful pivot back to core values point to a brand with immense, undervalued equity. The appointment of Maria Grazia Chiuri signals that LVMH sees this potential and is ready to invest. However, this quiet strength is battling a noisy market where the brand has lost significant ground. The commercial underperformance, low desirability metrics, and intense competition mean Fendi is not simply a hidden gem but a brand at a crossroads. It is a sleeping giant in a luxury landscape that increasingly favors the awakened. Whether its current quiet strategy will lead to a loud triumph remains to be seen.