Luxury goods sales have shown significant recovery momentum post-pandemic, with robust double-digit growth across all product categories in the fiscal year 2022.
According to the 2023 Global Powers of Luxury Goods report, the Top 100 luxury goods companies collectively recorded composite sales of US$347 billion in FY2022, marking a notable increase from US$305 billion in FY2021. This surge in luxury goods sales underscores a thriving state of the luxury industry following the challenges posed by the COVID-19 pandemic.
Luxury brands are increasingly driving initiatives towards sustainability and circularity within the broader fashion industry. Advancements in emerging technologies are aiding companies in accelerating their transition towards greener practices, fostering trust, and enhancing the relationship between brands and consumers.
Karla Martin, Fashion & Luxury industry global co-leader at Deloitte US, remarks, “With the advancements in technology, the world’s Top 100 luxury goods companies witnessed unprecedented growth and profitability in FY2022.” She highlights the across-the-board double-digit sales growth, particularly noting the fashion sector’s robust recovery.
Tianbing Zhang, Deloitte APAC Consumer Product and Retail Sector leader, points out the significant presence of Chinese companies within the Top 100, with 11 Chinese companies making the list in 2023. Zhang emphasizes China’s enduring resilience in the luxury market and the pivotal role of Chinese consumers in driving global luxury demand.
As the luxury sector continues its upward trajectory, companies are increasingly embracing circular economic models and prioritizing sustainability commitments such as net-zero targets and supply chain traceability. Heightened consumer awareness of Environmental, Social, Governance (ESG) issues is shaping luxury companies’ product strategies, alongside evolving regulatory landscapes.
The Top 100 luxury goods companies saw a surge in personal luxury goods revenues, particularly in the beauty sector, reflecting a rebound in consumer demand. Notably, a handful of leading companies significantly contributed to the sector’s growth, with the top 10 companies accounting for a substantial portion of sales and net profit.
Giovanni Faccioli, Fashion and Luxury industry global co-leader at Deloitte Italy, reflects on the industry’s remarkable recovery, culminating in record-high consolidated net profits in FY2022. He anticipates a transition from rapid growth to a phase of market consolidation, projecting a shift towards single-digit growth by 2024.
The Global Powers of Luxury Goods report compiles data based on consolidated sales of luxury goods in the financial year 2022, with inclusion criteria defined by Deloitte for financial years ending within the 12-month period from January 1 to December 31, 2022.
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