These Luxury Companies Generate Most of the Sales in the Luxury Industry
A new report by consulting company Deloitte on the Global Powers of Luxury Goods found the world's leading luxury brands are more dominant than ever.
For the third consecutive year, LVMH, Kering, and Estee Lauder figured at the top when it comes to companies with the biggest sales. The three were followed by Richemont, Chanel, and PVH.
Combined, the six companies netted over 51 percent of sales which has been valued at $144 billion.
The report also showed how the pandemic is changing the industry in many different aspects. The most urgent are sustainability and digitalization.
"Although luxury goods companies were initially slow to adopt digital technologies, the pandemic has accelerated the use of artificial intelligence and augmented reality applications to develop rapid responses to the needs of their target of reference in a moment of emergency," said Deloitte's fashion and luxury leader for Italy Giovanni Faccioli.
Still, despite the pandemic and recession this year has brought on, it seems luxury fashion isn't going anywhere anytime soon. Some changes have to made, however.
"The financial impact of the pandemic is yet to be assessed, and whether the concentration of the luxury industry will continue its trajectory is also an unknown question," said Deloitte global EMEA fashion and luxury leader Patrizia Arienti.
She continues, "This prolonged disruptive situation is creating profound changes in consumer behavior and how companies are responding to these changes—prompting a debate about the future of the fashion and luxury industry. There is a general feeling of rethinking luxury and driving it in new directions, considering which business models will be feasible and more relevant in the new normal."