A top 100 luxury company generates $2.8 billion per year on average.ĭeloitte’s luxury goods industry analysis revealed that the top 100 luxury companies generated a combined total of $281 billion in the fiscal year 2019. To increase transparency and prove that all their chief suppliers operate ethically, a growing number of luxury brands now releases the complete list of their Tier 1 partners.Īccording to the latest data, 35% of brands - including Hermes and Tommy Hilfiger - have so far published their Tier 1 info, which millennial and Gen-Z consumers particularly value. In every manufacturer’s production chain, Tier 1 companies and facilities represent the key suppliers. 35% of brands now publish their Tier 1 info, luxury industry statistics show. Dolce & Gabbana’s video boutique proved to be a massive success, which was also true of Prada’s collaboration with Tmall, owned by the Chinese ecommerce giant Alibaba. Some brands launched live streams following the “see now, buy now” principle. These developments made luxury brands change their approach to online commerce. In April, the sales went up by an incredible 209% compared to the same month the previous year. The COVID-19 pandemic inspired brands to change their luxury ecommerce approach.ĭue to partial or complete lockdowns worldwide in 2020, most consumers stayed at home, driving the growth of online retail sales. ![]() The Americas combined held 28% of the entire global luxury market in 2020, followed by China with 20% and Japan with an 8% share. According to statistics on luxury spending by country, the US is in the lead.Īmericans spent $64.8 billion on luxury items in 2020, putting the US ahead of China ($51.8 billion) and Japan ($21.2 billion). At the projected annual growth rate of 2.7%, the luxury items market would take until at least 2029 to once again reach its pre-pandemic value. Originally projected to grow to $349.1 billion, the market instead experienced a severe 32% decline - down to $224.8 billion by the year’s end.Įxperts predict the market will resume growth in the coming years, reaching $312.8 billion by 2027. Many industries saw massive losses in 2020 due to the COVID-19 pandemic, and luxury items were no exception. The global luxury goods market in 2020 fell to $224.8 billion. The market quickly recovered and resumed continuous growth, reaching its peak in 2019 when it totaled $330.9 billion. Its latest drop in value happened in 2009 due to the global financial crisis. The luxury items market has proven to be very resilient to negative trends. From 2008 to 2019, the global luxury goods market was on a steady rise. ![]() Fashion brands - known for timeless rather than seasonal pieces (e.g., Gucci)Ģ.Boutique brands - unique, artisanal products (e.g., handmade clothing).Premium brands - not quite prestige, but still seen as status symbols (e.g., Rolex).Masstige brands - embraced by the masses (e.g., Apple).Prestige brands - known for their quality and rich history (e.g., Aston Martin). ![]() In general, we can distinguish between five types of luxury retail industry brands: A luxury good can be an item (e.g., a car or a yacht) or a service (e.g., a personal chef). ![]() In other words, luxury goods are not about fulfilling people’s basic needs - they’re about indulgence. The term luxury good describes an item that isn’t a necessity but is highly desirable. There are five types of luxury goods brands. You’ll learn the difference between types of luxury brands, find out where the industry is in terms of trends and value, and discover some other interesting facts you might not have known before. In this section, we’ll closely examine the industry’s current state.
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