{"id":2030788,"date":"2018-06-20T11:31:14","date_gmt":"2018-06-20T09:31:14","guid":{"rendered":"https:\/\/www.luxsure.fr\/2018\/06\/20\/france-still-leader-in-luxury-goods-sales\/"},"modified":"2026-04-27T03:10:36","modified_gmt":"2026-04-27T01:10:36","slug":"france-still-leader-in-luxury-goods-sales","status":"publish","type":"post","link":"https:\/\/www.luxsure.fr\/en\/2018\/06\/20\/france-still-leader-in-luxury-goods-sales\/","title":{"rendered":"France still leader in luxury goods sales"},"content":{"rendered":"<p><strong>France still leader in luxury goods sales<\/strong><\/p>\n<p><strong>In an ever-changing environment, luxury players are focusing more and more on digital connectivity, the rise of the mobile consumer and impactful business models. Against this backdrop, Deloitte has published the fifth edition of its Global Powers of Luxury Goods study. The report lists the world&#8217;s 100 largest luxury goods companies, examines the key trends shaping the luxury goods market, and provides insights into the global economy.  <\/strong><\/p>\n<ul>\n<li><strong>Sales generated by the Top 100 Champions totaled $217 billion in fiscal 2016, up 1% or 6 points on 2015.<\/strong><\/li>\n<li><strong>China, France, Germany, Italy, Spain, Switzerland, the United Kingdom and the United States account for 83% of sales and 90% of sales in the Top 100; France and Spain have the highest growth rates in the luxury segment.<\/strong><\/li>\n<li><strong>The cosmetics and fragrances sector was the best performer in 2016, and the only one to improve its growth rate in luxury goods, reaching 7.6%.<\/strong><\/li>\n<li><strong>Once again, France leads the sector in terms of market share and sales, while Italy has the most companies.<\/strong><\/li>\n<li><strong>France is home to some of the biggest players in luxury goods in terms of sales, with 4 in the top 12: LVMH (1st), Kering (5th), L&#8217;Or\u00e9al Luxe (6th), and Herm\u00e8s (11th).<\/strong><\/li>\n<li><strong>LVMH retains its world leadership with sales of $23.4 billion in luxury goods, up 5%; the American group Est\u00e9e Lauder occupies 2nd place, ahead of the Swiss group Richemont (3rd).<\/strong><\/li>\n<li><strong>Top 3 fastest-growing luxury companies: Canada Goose, Pandora and Valentino.<\/strong><\/li>\n<\/ul>\n<p>The top 100 global luxury goods manufacturers recorded sales of $217 billion in 2016, equivalent to a small growth of just $5 billion (1%) on the previous year1. The industry is characterized by high economic concentration, with the ten largest companies generating 47% of the total sales of the 100 companies ranked. The Top 5 players in the fashion and luxury goods industry &#8211; LVMH, Est\u00e9e Lauder, Richemont, Luxottica and Kering &#8211; retain their position at the top of the ranking.  <\/p>\n<p>M&amp;A activity this year had a major impact on 4 of the Top 100 players:<\/p>\n<ul>\n<li>Coty completed its $12.5 billion acquisition of Procter &amp; Gamble&#8217;s beauty business in October 2016. This new luxury division at Coty has therefore entered the rankings. <\/li>\n<li>Elizabeth Arden, Fr\u00e9d\u00e9rique Constant (Swiss watchmaker), and Tumi (leather goods manufacturer), were not included in the ranking, due to takeovers.<\/li>\n<\/ul>\n<p>Many other M&amp;A\/partnership deals have significantly changed the rankings since the end of 2016 and continued into 2017.<\/p>\n<p><em>&#8220;Following an uncertain economic context and geopolitical crises in 2016, the luxury market recovered, reaching an annual sales level of $1 trillion at the end of 2017. Whether the overall market in 2018 records single- or double-digit growth will depend on a number of factors, including geopolitical factors that could strongly impact tourism. Growth in luxury goods will continue, unlike in many other sectors,&#8221;<\/em> comments <strong>B\u00e9n\u00e9dicte Sabadie, Partner in charge of the Luxury Goods sector at Deloitte.<\/strong><\/p>\n<p><strong>A French market dominated by LVMH, Kering, L&#8217;Or\u00e9al Luxe and Herm\u00e8s  <\/strong><\/p>\n<p>French luxury goods sales continue to be dominated by LVMH, Kering, L&#8217;Or\u00e9al Luxe and Herm\u00e8s, which together account for 90% of sales in this market for the 9 French-based companies in the Top 100.<\/p>\n<p>The 4 French luxury giants, with sales in excess of $5 billion, have maintained the same positions in the ranking, with the exception of L&#8217;Or\u00e9al Luxe &amp; Herm\u00e8s, which have respectively moved up one place since last year. L&#8217;Or\u00e9al Luxe is in 6th place, overtaking The Swatch Group, while Herm\u00e8s is in 11th place, ahead of Rolex and Chow Tai Fook Jewellery. <\/p>\n<p><strong>LVMH retains top spot in global rankings  <\/strong><\/p>\n<p><img decoding=\"async\" data-src=\"http:\/\/rumeur-publique.fr\/TJBJJKB34\/Luxe2018_148cd0740a.JPG\" alt=\"Luxe2018_148cd0740a.JPG\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" class=\"lazyload\" \/><\/p>\n<p><strong>Geographical breakdown: France and Italy lead the way<\/strong><\/p>\n<p>Once again, France is the champion in terms of sales ($5.8 billion), followed by the USA ($3.5 billion) and Switzerland ($3.1 billion), while Italy leads the ranking in terms of number of companies. Together, China, France, Germany, Italy, Spain, Switzerland, the UK and the USA represent 83% of the luxury goods companies in the Top 100, accounting for 90% of sales. <\/p>\n<p><strong>Constantly changing markets and customer needs  <\/strong><\/p>\n<p>The luxury goods industry has undergone profound changes over the past two decades. Changing economic trends, sustained digital transformation and evolving consumer preferences and tastes are creating a new competitive landscape where traditional strategies are under threat. The growing importance of non-Western markets for the luxury goods industry is driven by leadership in supply chain management, technological innovation, international investment and adaptation to changing demographics. These factors will help perpetuate strong growth in these geographic markets.   <\/p>\n<p>With ever-changing consumer expectations, the growing impact of younger generations and their use of mobile platforms, the ability to move effortlessly from one channel to another has become essential for luxury brands. If they struggle to implement digital distribution networks, they risk being left behind. <\/p>\n<p><em>&#8220;The luxury sector is not spared by the major disruption affecting the entire global consumer ecosystem: &#8220;phygital&#8221; convergence, which requires players to reinvent the in-store experience thanks to digital, at the risk of otherwise losing their customers, particularly Millenials and Generation Z, who will account for around 40% of luxury sales by 2025, compared with 30% today. What&#8217;s more, to attract these new consumers, luxury brands will have to take into account their attraction for products that respect sustainable development values.  &#8221; <\/em>says <strong>Jean-Marc Liduena, Partner in charge of Consumer &amp; Retail Affairs at Deloitte<\/strong>.<\/p>\n<p>1. This 1.0% year-on-year growth is based on the cumulative, currency-adjusted retail sales volume generated by the Top 100 group in fiscal 2016. Adjusted for exchange rate fluctuations between fiscal 2015 and 2016, this growth rate thus represents actual growth. <\/p>\n<p><strong>The Global Powers of Luxury Goods study identifies the world&#8217;s top 100 luxury goods companies, based on publicly available data for consolidated luxury goods sales in fiscal 2016 (12-month fiscal year ending June 30, 2017). It also examines industry trends and global economic conditions. <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>France still leader in luxury goods sales In an ever-changing environment, luxury players are focusing more and more on digital connectivity, the rise of the mobile consumer and impactful business&hellip;<\/p>\n","protected":false},"author":2,"featured_media":1187186,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[30094,52709],"tags":[67453,67455],"class_list":["post-2030788","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-culture-en","category-thefashion","tag-deloitte","tag-global-powers-of-luxury-goods"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>France still leader in luxury goods sales - 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