US$305 billion in revenue generated by Top 100 luxury goods companies. The “green transition” and continuing digital revolution are driving luxury investments
NEW YORK, NY, USA, 30 NOVEMBER 2022 – The world’s Top 100 luxury goods companies generated aggregated revenue of US$305 billion in financial year 2021, representing a composite year-on-year increase of 21.5%, according to the 2022 edition of Global Powers of Luxury Goods, a new report from Deloitte Global, released today.
As the COVID-19 pandemic wanes, luxury goods companies are now presented with new opportunities arising from the “green transition” and progress towards a circular economy. Additionally, the ongoing digital revolution of the metaverse and Web3 is driving innovation and disruption in the luxury industry. The metaverse gives luxury companies an unprecedented opportunity to re-invent the luxury experience, build credibility, brand engagement and brand loyalty. Consumers are now able to interact with brands’ products and their essence in new ways through the digital reality.
“Although the global economic landscape presents many challenges, the appeal of the personal luxury goods sector consolidated over the past years. The sector is reinventing itself and has started a considerable transformation process, incorporating concepts such as sustainability, circular economy, innovation, straight to the core of companies’ growth strategies, shaping a completely new competitive scenario,” says Giovanni Faccioli, Fashion & Luxury Practice Co-Leader, Deloitte Italy. “Today, luxury goods companies highly value consumers’ demand by sharing their values and ethics and thanks to this new approach they can serve better their customers in terms of service, production and communication.”
Global Powers of Luxury Goods Top 100
The world’s Top 100 luxury goods companies generated revenue of US$305 billion in FY2021, rebounding from US$252 billion in the previous year, and exceeding US$281 billion in FY2019 (before the impact of the pandemic).
The composite performance of the Top 100 companies in FY2021 reflects a rebound (an increase of 21.5% year-on-year) as the impact of the pandemic lessened, with store re-openings and recovery in consumer demand. Seventy-three of the Top 100 companies reported growth in luxury goods sales in FY2021, compared to only 20 companies in FY2020.
Other key report findings:
“The future of the luxury goods industry will be greener and more inclusive. The most successful companies in this sector will continue progressing toward a circular economic model and responsible business,” says Karla Martin, Fashion & Luxury Practice Co-Leader, Deloitte Consulting LLP. “Sustainability will continue to be a priority while embracing innovation and disruption. The metaverse helps provide luxury companies with another way to be more sustainable in the real world, providing a way to lessen their carbon footprint while allowing consumers the allows consumers to experience brands in multiple ways.”
About Global Powers of Luxury Goods
The report identifies the 100 largest luxury goods companies globally, based on the consolidated sales of luxury goods in FY2021 (for financial years ending within the 12 months from 1 January to 31 December 2021) using publicly available data, and evaluates their performance across geographies and product sectors. It also discusses the key trends shaping the luxury market.