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The Global Luxury Market: Slowdown and Emerging Challenges

In 2024, the luxury market stagnated after a decade of continuous growth, impacted by disappointing Chinese demand, inflationary pressures, and high fixed costs.

Companies responded by diversifying their activities, targeting less mature regions (Latin America, India, the Middle East) and expanding their product offerings (beauty, jewelry, lifestyle). Innovation (new collections, AI) and digital transformation (e-commerce, omnichannel, CRM, augmented reality) accelerated, while CSR initiatives (traceability, circular economy, carbon reduction) became imperative.

Distribution control was reinforced through direct retail and optimization of travel retail. Ultra-luxury houses proved particularly resilient thanks to positioning based on rarity, artisanal know-how, balanced geographic diversification, strong brand equity, and family governance providing long-term stability.

In the medium term, recovery will depend on strategic execution, cost control, and the normalization of global demand.

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LVMH                   

Louis Vuitton Moët Hennessy (LVMH) is a global leader in the luxury sector, bringing together over 70 prestigious maisons across fashion, leather goods, perfumes, spirits, watches, and cosmetics. Founded in 1987 through the merger of Moët Hennessy and Louis Vuitton, the group owns iconic brands such as Louis Vuitton, Dior, Fendi, and Moët & Chandon, with most of its revenue generated internationally, especially in Asia, Europe, and the Americas. Through vertical integration and strong investment in innovation, LVMH sustains high profitability while preserving the exclusivity and craftsmanship of each of its maisons.

​​Hermès

Hermès is an iconic French luxury house, founded in 1837, specializing in leather goods, saddlery, silk, ready-to-wear, perfumes, watches, and jewelry. Renowned for its artisanal craftsmanship and product exclusivity, the group is over 70% family-owned. It relies on fully controlled production, limited volumes, and premium pricing to maintain rarity and prestige. Operating in over 50 countries, Hermès maintains strong growth and profitability through its iconic brands (Birkin, Kelly, Carré de soie) and a loyal clientele, particularly in Asia, Europe, and the United States.

Kering      

Kering is a French luxury group focused on fashion and accessories, owning iconic maisons such as Gucci, Saint Laurent, Bottega Veneta, and Balenciaga. The group emphasizes sustainable development and innovation, standing out for its commitment to social and environmental responsibility while maintaining solid revenue growth. Operating in over 120 countries, Kering achieves a significant share of its sales in North America and Asia, appealing to international customers seeking high-end and avant-garde products.

​​​Richemont 

Richemont is a Swiss luxury group primarily focused on high jewelry and watchmaking, with prestigious brands such as Cartier, Van Cleef & Arpels, IWC Schaffhausen, and Montblanc. Founded in 1988 and controlled by Compagnie Financière Richemont, the group generates most of its revenue from high-quality jewelry, watches, and accessories, with a strong presence in Europe, America, and Asia. With investments in exceptional craftsmanship and digital development, Richemont sustains steady growth while preserving the exclusivity and high-end image of its maisons.

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​​Prada

Prada is an Italian fashion house founded in 1913 by Mario Prada, known for its sophisticated handbags, shoes, ready-to-wear, and bold, minimalist accessories. Majority-owned by the Prada family through Prada Holding, the brand is distinguished by avant-garde aesthetics and textile innovation (Lineapelle, nylon), blending traditional craftsmanship with modernity. Operating in over 70 countries, Prada maintains exclusivity through selective distribution via flagship stores and premium pricing, attracting international clients seeking contemporary elegance.

Moncler

Moncler is an Italian high-end outerwear brand founded in 1952, renowned for its technical yet stylish down jackets, combining alpine performance with urban aesthetics. Majority-owned by the Remo Ruffini Group since 2003, the house leverages textile innovation and exclusive collaborations to strengthen its premium image. Present in over 70 countries, Moncler generates most of its revenue from an international clientele seeking both functionality and luxury.

Burberry

Burberry is a British fashion house founded in 1856 by Thomas Burberry, known for its iconic trench coats and distinctive tartan pattern. Today, the group offers ready-to-wear, leather goods, accessories, and perfumes, blending British heritage, artisanal craftsmanship, and digital innovation. Listed on the London Stock Exchange, Burberry generates most of its revenue in Europe, Asia, and the Americas, thanks to flagship stores and a strong online presence.

Tapestry

Tapestry is an American accessible luxury fashion group, formed from the merger of Coach, Kate Spade, and Stuart Weitzman, offering prestige handbags, accessories, and shoes. Listed on NASDAQ and present in over 40 countries, the group follows an omnichannel strategy and "accessible luxury" positioning to attract a broad clientele, especially in North America and Asia. Through product innovation and frequent collaborations, Tapestry maintains stable growth while enhancing the premium image of each of its brands.

Brunello Cucinelli

Brunello Cucinelli is an Italian luxury house founded in 1978 by Brunello Cucinelli, specializing in high-end cashmere and ready-to-wear that blends relaxed elegance with artisanal craftsmanship. Known for its ethical and humanistic business model, the brand emphasizes material quality, sustainability, and artisan well-being, while preserving the exclusivity of its collections. Operating in over 50 countries, Brunello Cucinelli generates significant revenue in Europe, North America, and Asia, appealing to clients seeking refinement and authenticity.

Salvatore Ferragamo

Salvatore Ferragamo is an Italian luxury house founded in 1927 in Florence by Salvatore Ferragamo, specializing in handcrafted shoes, leather goods, ready-to-wear, accessories, and perfumes. Majority-owned by the Ferragamo family, the group relies on artisanal expertise, innovation, and exceptional materials to maintain the exclusivity of its collections. Present in over 90 countries through its own boutiques and department store counters, Ferragamo attracts an international clientele seeking elegance, tradition, and timeless quality.​

Ermenegildo Zegna

Ermenegildo Zegna is an Italian luxury house founded in 1910, specializing in high-end menswear, fabrics, and accessories, renowned for its excellence in custom suit manufacturing. Family-owned, the company controls the entire value chain, from wool spinning to retail, ensuring consistent quality and unique vertical integration in the industry. Operating in over 100 countries, Zegna appeals to international clients through elegant design, sustainability commitments, and textile innovation.

Tod’s 

Tod’s is an Italian luxury house founded in the 1970s by Diego Della Valle, specializing in high-quality leather shoes and goods, especially the iconic “Gommino” driving loafers. Controlled by the Della Valle family, the brand promotes traditional artisanal craftsmanship, premium leathers, and refined, minimalist design, blending elegance and comfort. Operating in over 50 countries through own stores and shop-in-shops, Tod’s attracts international clients seeking timeless pieces and refined style.

Swatch

Swatch is a Swiss watch brand created in 1983 by Nicolas Hayek, part of The Swatch Group, which revolutionized the watch industry by offering colorful, playful, and affordable plastic watches. It stands out for its innovative design, artistic collaborations, and patented technologies, while maintaining partial production in Switzerland. Present in over 60 countries, Swatch has established itself as a key player in affordable “Swiss Made” timepieces, helping democratize luxury watchmaking and uphold the image of Swiss horology.

Pandora

Pandora is a Danish jewelry company founded in 1982, known for its modular charm bracelets and customizable jewelry. Listed on the Copenhagen Stock Exchange, the brand designs, manufactures, and sells rings, necklaces, earrings, and watches inspired by Scandinavian design, with part of its production based in Vietnam and Thailand. With a network of over 2,700 retail points across more than 100 countries, Pandora appeals to an international clientele thanks to its accessible luxury positioning, emotionally driven marketing, and frequently refreshed collections.

L’Oréal

L’Oréal is the global leader in cosmetics, structured around four complementary divisions: Consumer Products (L’Oréal Paris, Garnier…), Luxe (Lancôme, Yves Saint Laurent…), Professional Products (Kérastase, L’Oréal Professionnel…), and Active Cosmetics (Vichy, La Roche-Posay…). Present in over 150 countries, the company controls the entire value chain from R&D to distribution and generates significant revenue in North America, Europe, and Asia, particularly in China. Thanks to continuous innovation, targeted acquisitions, and a strong commitment to sustainability (“L’Oréal for the Future” programs), the group sustains strong growth and high margins while reinforcing the premium image of each brand.

Estée Lauder

Estée Lauder is an American cosmetics and skincare company founded in 1946 by Estée and Joseph Lauder, known for iconic brands such as Estée Lauder, Clinique, MAC, La Mer, and Jo Malone. Listed on the New York Stock Exchange, it generates most of its revenue in North America, Asia-Pacific, and Europe, leveraging a multichannel distribution strategy (own stores, department stores, duty-free, and e-commerce). Through science-driven innovation, strategic acquisitions, and premium positioning, Estée Lauder maintains strong growth while reinforcing the luxury image of each of its brands.

Coty

Coty is an American beauty and fragrance company founded in 1904 by François Coty, specializing in the creation, production, and distribution of perfumes, makeup, and skincare products. Its diversified brand portfolio includes Gucci and Burberry (licensed fragrances), CoverGirl, Clairol, and Rimmel, with strong presence in North America, Europe, and Asia-Pacific. With a strategy focused on product innovation, fashion house licensing, and e-commerce development, Coty sustains solid growth while strengthening its position in the premium segment.

Interparfums

Interparfums is a French company specialized in the design, licensed production, and distribution of luxury fragrances, operating without owned production facilities by relying on European subcontractors for bottling. Its portfolio includes about forty brands such as Montblanc, Jimmy Choo, Coach, and since 2024, Lacoste, generating a large share of revenue through long-term licensing agreements. Thanks to its asset-light model and ability to secure new strategic licenses, Interparfums maintains strong growth and high profitability while minimizing capital investment.

Ferrari

Ferrari is an iconic Italian luxury sports car manufacturer founded in 1947 by Enzo Ferrari, renowned for its high-performance vehicles and exceptional Formula 1 record. Majority-owned by Exor (the holding company of the Elkann-Marchionne family), it combines artisanal craftsmanship, technological innovation, and iconic design to preserve the exclusivity of each model. Present in over 60 countries through a selective dealership network, Ferrari attracts an international clientele passionate about performance, heritage, and the rarity of limited editions.

Porsche

Porsche is a German manufacturer of luxury sports cars founded in 1931 by Ferdinand Porsche, known for iconic models such as the 911, Cayenne, and Taycan. A subsidiary of the Volkswagen Group since 2012, the brand blends performance, technological innovation, and refined design, while maintaining part of its production in Zuffenhausen. Present in over 100 countries, Porsche benefits from a loyal global customer base and strong brand awareness due to its racing heritage and craftsmanship quality.

 

Aston Martin

Aston Martin is a British manufacturer of luxury sports and grand touring cars founded in 1913, combining elegant design, high performance, and refined craftsmanship. Majority-owned by a consortium of investors (with Mercedes-Benz holding a minority stake), the brand focuses on exclusive limited series and cultural associations (e.g., James Bond) to enhance its image. Operating in over 50 countries through a selective dealer network, Aston Martin appeals to international clients seeking British refinement and a unique driving experience.

Sanlorenzo

Sanlorenzo is an Italian shipyard founded in 1958, specialized in custom-built luxury yachts, known for its innovative design and exceptional craftsmanship. Listed on the Milan Stock Exchange and part of Industrie Navali Italiane, the company controls the entire production process—from design to assembly—ensuring impeccable quality and advanced customization. With a global presence through subsidiaries and exclusive distributors, Sanlorenzo serves high-net-worth individuals seeking artisanal expertise and cutting-edge technology.

Ferretti

Ferretti is an Italian luxury yacht builder founded in 1968, specializing in the design and production of high-end yachts and superyachts. Owned by Chinese group Weichai Power since 2012, it encompasses prestigious brands such as Riva, Pershing, Custom Line, and CRN, offering a wide range of models that blend technological innovation with artisanal craftsmanship. With a global dealer network and shipyards, Ferretti attracts wealthy clients seeking bespoke solutions and exceptional maritime performance.

The Italian Sea Group

The Italian Sea Group is a luxury shipbuilding company specialized in the design and construction of yachts and superyachts, bringing together brands such as Palumbo, Mondomarine, and ISA Yachts. Founded in 2019 through the merger of several shipyards, the group controls the entire production chain from design to finishing, combining artisanal expertise with advanced technologies. With an international footprint, it caters to affluent clients seeking personalized vessels that combine marine performance and refined design.

Rémy Cointreau

Rémy Cointreau is a French group specializing in premium spirits, formed in 1990 from the merger of Rémy Martin and Cointreau. It owns iconic brands such as Rémy Martin (cognac), Cointreau (liqueur), and Bruichladdich (Scotch whisky), with most of its revenue generated internationally, especially in North America, Asia, and Europe. The group focuses on artisanal quality, product innovation, and selective distribution to preserve the premium image of its maisons and drive sustainable growth.

Laurent-Perrier 

Laurent-Perrier is a French champagne house founded in 1812 and taken over in 1939 by André and Marie-Louise Perrier, known for its innovative approach and elegant, fresh style. Family-owned and independent, the house produces exceptional champagnes such as Brut Sans Année, Cuvée Rosé, and Grand Siècle, emphasizing hand-harvesting and meticulous winemaking. Present in over 150 countries, Laurent-Perrier enjoys strong international recognition for the quality of its cuvées and its unwavering commitment to excellence.

Vranken-Pommery

Vranken-Pommery Monopole is a French group specializing in wines and champagnes, encompassing brands such as Champagne Pommery, Château La Gordonne, and Domaines Paul Mas, with strong presence in Champagne and Provence. Independently owned and managed by the Vranken family, the group focuses on sustainable viticulture, oenological innovation, and the promotion of exceptional terroirs. Present in over 100 countries, Vranken-Pommery Monopole appeals to an international clientele seeking refined champagnes and high-quality Mediterranean wines.

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