Global Powers of Luxury Goods 2021

The report identifies the 100 largest luxury goods companies globally, based on the consolidated sales of luxury goods in FY2020 (for financial years ending within the 12 months from 1 January to 31 December 2020) using publicly available data, and evaluates their performance across geographies and product sectors. It also discusses the key trends shaping the luxury market.

Key Findings:

• The world’s Top 100 luxury goods companies generated revenues of US$252 billion in FY2020, down from US$281 billion in the previous year (a decrease of US$29 billion). Over 80% of the companies in the Top 100 reported lower luxury goods sales in FY2020, reflecting the adverse impact of the COVID-19 pandemic, with sales down due to store closures, travel bans, shifts in consumer demand, supply chain disruptions, and other factors.
• The minimum revenue threshold required to enter the world’s Top 100 list of luxury goods companies in FY2020 was US$182 million, down by US$56 million from FY2019, with an average company size of US$2.5 billion.
  
• Despite a fall in luxury goods sales growth, the FY2020 composite net profit margin for the 81 Top 100 companies reporting net profits fell by only 5.7 percentage points, to 5.1%.
  
• More than half of the Top 100 companies were profitable in FY2020 and all the total Top 100 companies’ FY2020 net profit came from the very resilient Top 10 global luxury companies.
  
• While Italy has the highest number of luxury goods companies, including five new entrants in FY2020; France contributed 28.1%, the largest share to the Top 100 luxury goods sales.
  
• The multiple luxury goods companies contributed more than one-third of the total Top 100 luxury goods sales, although sales were down 12.7% year-on-year. Cosmetics and fragrances companies saw the smallest fall in luxury goods sales, down 9.6% year-on-year.