The luxury industry encountered unprecedented challenges in 2020 as a result of the global pandemic. Deloitte’s Global Powers of Luxury Goods 2021 report reveals that the revenue generated by the world’s top 100 luxury companies decreased from $281 billion in 2019 to $252 billion in 2020. This decline can be attributed to several factors, including store closures, travel restrictions, and disruptions in the supply chain.

It is worth noting, however, that despite the decrease in sales, 81 of the top 100 luxury companies were still able to turn a profit in 2020. While the overall sales growth for the ranking decreased by over 20 percentage points compared to the previous year, the composite net profit margin only saw a decrease of 5.7 percentage points, settling at 5.1%.

Interestingly, the revenue and profits were largely concentrated among the top companies in the ranking. In fact, only 15 companies with luxury goods sales exceeding $5 billion accounted for a significant 63% of the total sales generated by the top 100 luxury companies in 2020. On the flip side, the 52 companies with sales of $1 billion or less contributed a mere 9.4% to the overall sales.

In terms of the top 10 companies in the ranking, there were minimal changes from 2019. LVMH, the conglomerate behind iconic brands such as Louis Vuitton, Christian Dior, and Givenchy, claimed the top position with luxury goods sales amounting to $33.98 billion. Kering, the parent company of Gucci, Saint Laurent, and Balenciaga, maintained its second-place position with sales reaching $14.93 billion. The Estée Lauder Companies and Richemont held onto the third and fourth positions, respectively. L’Oréal Luxe, Chanel Limited, and EssilorLuxottica also retained their spots in the ranking.

However, there were a few changes within the lower end of the top 10. PVH Corp., the owner of Tommy Hilfiger and Calvin Klein, moved up one spot to eighth place. Hermès International made its debut in the top 10, securing the ninth position. Chow Tai Fook Jewelry Group from China dropped two places but managed to secure a spot in the top 10.

France emerged as the dominant player in the top 10, with eight companies making substantial contributions to the overall luxury goods sales. France also accounted for the largest share of sales among all the top 100 companies, making up 28.1% of the total. Italy boasted the highest number of companies on the list, with an impressive 26, while the United States followed closely with 15 companies and accounted for 18.8% of the overall sales.

In summary, the luxury industry encountered significant hurdles in 2020, yet certain companies demonstrated resilience and managed to adapt and thrive. As the world gradually recovers from the effects of the pandemic, it will be fascinating to observe how these top luxury companies continue to shape the industry and drive innovation in the years to come.

Useful links:
1. Deloitte’s Global Powers of Luxury Goods 2021 report
2. Vogue Business – Luxury giant interim profits suggest industry resilience