France has once again solidified its status as the unrivaled leader in the luxury goods market, leaving competitors such as the USA, Switzerland, and China trailing behind, as revealed in the most recent report from Deloitte. Titled ‘Global Powers of Luxury Goods 2019’, the report shed light on the undeniable dominance of French luxury conglomerates within the industry, with Italy and Asia also making their mark.
The data presented in the report for 2017 showcased a staggering $247 billion in revenue generated by the top 100 luxury goods corporations worldwide, reflecting an impressive 13.8% increase from the previous year. These corporations span across various sectors including ready-to-wear, accessories, high jewelry, watchmaking, cosmetics, and perfumery, with the top 10 groups alone accounting for nearly half of the total revenue.
Leading the charge was LVMH, the French powerhouse responsible for renowned brands such as Louis Vuitton, Christian Dior, Fendi, and Celine, boasting a remarkable revenue of $27.9 billion. Following closely were US-based Estée Lauder and Swiss group Richemont, firmly holding onto their positions from the previous year.
A closer examination of the top 10 luxury groups revealed Kering climbing up the ranks to claim the fourth spot, surpassing the Italian eyewear giant Luxottica. Noteworthy newcomer Chanel made a notable debut in sixth place while Ralph Lauren slipped beyond the top 10, landing in the 12th position.
France emerged as the frontrunner in the ranking, hosting seven luxury groups that collectively contributed a significant 23.5% of the total revenue. With an average revenue of $8.28 billion per group, French corporations displayed an impressive 18.7% increase compared to the previous year. Recognizable brands like Hermès, SMCP, Longchamp, Interparfums, and Zadig & Voltaire showcased the breadth and strength of the French luxury market.
Italy also made a substantial impact in the report, with 24 luxury groups included in the ranking. Leading the pack for Italy was Luxottica, followed by Prada and Giorgio Armani. Brands like Furla and Moncler stood out for their remarkable growth rates and profitability.
In a notable shift, China emerged as the fourth-highest country in terms of total sales within the luxury goods market. With nine groups featured in the ranking, China displayed an average revenue per company of $2.19 billion and a collective growth rate of 13.8%. Chinese jewelry groups like Chow Tai Fook Jewellery Group and Lao Feng Xiang left a lasting impression on the industry, signaling the rise of Asian luxury brands on the global stage.
The Deloitte report underscored France’s unwavering dominance in the luxury goods sector while also acknowledging the significant contributions of Italian and Asian corporations to the industry landscape. As the luxury market continues to evolve, it’s clear that key players worldwide are poised for continued growth and success.
For more information on the luxury goods market, click here. To explore the latest trends and insights in the luxury industry, visit this link.
