The global market for luxury goods caught a second wind. Aggregate sales jumped to a total of $347 billion.
The names leading the luxury market did not fundamentally surprise — but what is surprising is the speed with which he knocked himself out of the post-covid stupor. While global sales in fiscal 2019 were at $281 billion, the current number is significantly higher.
The French concern LVMH, which owns over sixty luxury brands including Louis Vuitton, Dior, Tiffany & Co., Fendi or Bulgari, is clearly the king of the hundred largest companies.
Behind him was also the French concern Kering SA, which controls brands such as Gucci, Balenciaga, Yves Saint Laurent or Bottega Veneta. The third place belongs to the Swiss concern Compagnie Financière Richemont SA, which includes, for example, Cartier, Montblanc and Piaget SA.
- LVMH Moët Hennessy Louis Vuitton SE
- Kering SA
- Compagnie Financière Richemont SA
- The Estée Lauder Companies Inc.
- Chanel Limited
«The aggregate results of the hundred most successful companies are a reflection of the ongoing trend of recovery from the effects of the pandemic. Shops have already reopened in the vast majority of countries, tourism and consumer demand have recovered, especially in sectors such as cosmetics,» says Michal Černý, director of the retail audit for Deloitte.
At the same time, only seventeen companies from the ranking took care of almost seventy percent of global sales. The speed with which consumers have returned to spending on luxury is also evidenced by the combined net profit margin of the eighty strongest companies: it increased by 1.2 percentage points to 13.4 percent compared to the previous year, surpassing pre-pandemic values.
In addition to France, Italy also remains an important location, where twenty-three selected companies are engaged in the production of luxury goods. Companies from India and China focused on the production of jewelry and watches appeared among the newcomers this year. The most successful new name on the list was India’s Malabar Gold & Diamonds at 19th place.
Artificial intelligence tools and elements of the circular economy are also coming into play intensively. For example, manufacturers are introducing virtual shopping assistants or digital passports and product identification, documenting the journey from design to use. Brands hope for greater consumer confidence from these steps.
