In the recently released “Global Power of Luxury Goods 2020” report by Deloitte, the increasing influence of key players in the luxury market has been confirmed. The report reveals a powerful Top 10 luxury ranking, with the top 100 luxury entities generating $281 billion in revenue in 2019, compared to $266 billion in 2018. Notably, for the first time, more than half of this revenue (51.2%) was contributed by the Top 10 players.
Leading the pack is the renowned LVMH group, which generated a staggering $37.5 billion in revenue. Following closely behind are Kering with $17.8 billion and Estée Lauder with $14.9 billion. These three companies alone accounted for over a quarter of the total luxury revenues in 2019. Completing the top ten are Richemont, L’Oréal Luxe, Chanel, Essilor Luxottica, Chow Chow Tai Fook Jewelry Group Limited, PVH Corp., and The Swatch Group Ltd. It is important to note that only The Swatch Group Ltd reported a decrease in sales last year.
While the exact positions within the top ten may have changed over time, the key players themselves have remained largely the same for the third consecutive year. It is also interesting to highlight that France, known for its expertise in luxury, is the leader in this industry. Although the Covid-19 pandemic may impact the landscape in 2020, the figures from 2019 show a positive growth trend. Last year, the minimum revenue required to make it onto the list of top 100 performing companies in the sector was $238 million, which was $20 million higher than in 2018. France has proven to be the most successful nation, accounting for 28.3% of the sales in the top ranking.
Looking ahead, Deloitte experts predict that the consolidation around major players in the luxury industry is likely to continue, as “success breeds success.” The firm supports this claim by pointing out that six out of the top ten brands are currently trading at or above pre-pandemic levels. These positive predictions are reinforced by a prospective study conducted by Bain & Company, which estimates a potential recovery of +10 to +19% for the luxury market as a whole in 2021.
For further information on the luxury market and its key players, you may refer to the following links:
1. Deloitte: Global Powers of Luxury Goods
2. Bain & Company: Luxury Goods Worldwide Market Study
