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1、Global Powers of Luxury Goods 2023Game changing steps in luxuryForewordWelcome to the tenth edition of Global Powers of Luxury Goods.During FY2022 the Top 100 luxury goods companies generated composite sales of US$347 billion,up from the US$305 billion registered in FY2021.This sharp increase in lux

2、ury goods sales signals the good state of the luxury industry after the COVID-19 pandemic years.Luxury goods companies continue their process of moving toward an environmentally responsible,circular economy business model,pushed by customer demand and increasing regulations.In this phase of change,t

3、echnology can help accelerate the green transition while improving the relationship between companies and their customers.Several recent developments in digital technology,including artificial intelligence(AI),machine learning,and the Internet of Things(IoT),may change the luxurymarketforever.The re

4、port presents the Top 100 largest luxury goods companies globally,based on their consolidated luxury goods sales in FY2022,which we define as financial years ending within the 12 months from 1 January to 31 December 2022.In FY2022,personal luxury goods sales for the Top 10 luxury companies increased

5、 by 22.8%.However,the share of their sales in the combined luxury goods sales of the Top 100 companies showed little changeit decreased by only 0.2 percentage points to 56.0%.Companies registered double-digit sales growth in all product sectors,in particular fashion sector returned to growth with th

6、e strongest recovery in FY2022.Luxury goods sales of the Top 100 companies across all countries considered in this report increased by double digits in FY2022.France confirms its leadership in luxury with seven companies that accounted for nearly one-third of the Top 100 luxury goods sales.We hope y

7、ou find this report interesting and useful,and welcome your feedback.Giovanni FaccioliFashion&Luxury industry global coleadDeloitte ItalyKarla MartinFashion&Luxury industry global coleadDeloitte USIda PalombellaFashion and Luxury industry globalcoleadDeloitte ItalyGlobal Powers of Luxury Goods 2023|

8、Game changing steps in luxury3Top 100 quick statistics FY2022US$347 billionAggregate luxury goods salesUS$3.5 billionAverage size of Top 100 companies(luxury goods sales)US$284 millionMinimum luxury goods sales required to be in the Top 100 list8.4%FY2019-FY2022 compound annual growth rate in Top 10

9、0 companies luxury goods salesThe worlds Top 100 luxury goods companies generated personal luxury goods revenues higher than the previous year as consumer demand recovered,especially in the beauty sector13.4%Composite net profit marginIn FY2022 the worlds Top 100 luxury goods companies are bigger an

10、d more profitable than ever.Luxury goods sales in the Top 10 are up 23%The Top 10 companies contributed nearly 63%of the year-on-year growth in sales value and 76,4%of the combined net profit of the Top 100 luxury goods companies.LVMH consolidates its position as leadercontributing31%of the Top 10 s

11、ales inFY2022Richemont regains third place;PVH Corp returns to the Top 10Top 10 share of Top 100 luxury goods sales 56%Top 1044%Other 90Global Powers of Luxury Goods 2023|Game changing steps in luxury4Global Powers of Luxury Goods 2023|Game changing steps in luxury5Game changing steps in luxuryLuxur

12、y goods companies play an important role in moving the broader fashion industry toward an environmentally responsible,circular economy.Technology can help accelerate the green transition and improve the relationship between companies and their customers.Several recent developments in digital technol

13、ogy,including artificial intelligence(AI),machine learning,and the Internet of Things(IoT),may change the luxurymarket forever.The Luxury industry embraces Artificial Intelligence(AI)The Luxury industry is synonymous with exclusivity,craftsmanship,and innovation.It has thrived for decades by caterin

14、g to a discerning clientele seeking distinctive and personalized experiences.However,it has been affected by technological advancements and innovation.With the omnichannel revolution,digital IDs,and the metaverse incursion,Luxury has been among the industries experimenting most with technology and d

15、igitization inrecentyears.In the business world,AI and generative AI(GenAI)are becoming increasingly important and exciting tools for enhancing customer service,simplifying repetitive tasks,and improving productivity.Even though AI has been around since the 1950s,the popularity of this technology ha

16、s risen since the emergence of GenAI.Global revenue from GenAI technology is expected to reach US$36 billion by 2028,a compound annual growth rate(CAGR)of 58%from 2023 to 2028.1GenAI can create new ideas and content,including conversations,stories,images,videos and music that appear to be generated

17、by humans.Content ranges from business insights to creativity and productivity.GenAI relies on machine learning models(algorithms trained on large amounts of data)as does any other form of AI.Figure 1.The six modalities of Generative AIText Written language outputspresented in an accessibletone and

18、quality,withdetails and complexityaligned with the usersneeds.CodeComputer code in avariety of programminglanguages with thecapacity to autonomouslysummarize,document,and annotate the code forhuman developers.AudioMuch like textual outputs,audio outputted innatural,conversational,and even colloquial

19、styles with the capacityto rapidly shift amonglanguages,tone,anddegrees of complexity.ImageTextual or visual promptslead the model to createimages with varyingdegrees of realism,variability,and“creativity.”VideoSimilar to imagery,Generative AI modelscan take user promptsand output videos,withscenes,

20、people,andobjects that are entirelyfictitious and created bythe model.3D/SpecializedFrom text or two dimensionalinputs(e.g.,images),models canextrapolate and generatedata representing 3Dobjects.ExamplesSummarizing documents,writing customer-facingmaterials,and explainingcomplex topics in naturallang

21、uage.Generating code fromnatural languagedescriptions andautonomously maintainingcode across differentplatforms.Generative AI-poweredcall centers andtroubleshooting supportfor technicians in the field.Simulating how a productmight look in a customershomeAutonomouslygeneratingmarketing videos toshowc

22、ase a new productCreatingvirtual renderings in anomniverse environmentand AI-assisted prototypingand design in a purelyvirtual space.Source:The Generative AI Dossier,Deloitte AI Institute2Global Powers of Luxury Goods 2023|Game changing steps in luxury6Even the timeless world of luxury has not been

23、immune to GenAIs transformative influence.GenAI and luxury may have once seemed like an odd pairing but is now proving to be a successful alliance.Professionals in the Luxury sector could benefit from GenAI by creating better selling methods and personalized designs.Additionally,it could help reduce

24、 marketing costs and create more targeted and personalized communications.Supply chains and logistic processes may also be reshaped,as may store operations and support functions.Enhanced personalization and customer profilingUnderstanding customers is important in an industry that thrives on exclusi

25、vity.Brands are better able to gain a deeper understanding of customer behavior with GenAI,thereby taking customer experience to the next level.Luxury companies can analyze customer data from a wide variety of touchpoints using machine learning algorithms to gain insights about individual preference

26、s.Through such detailed information,companies can create detailed profiles of customers buying habits and gain a deeper understanding of their lifestyles,aspirations,and experiencesthereby enhancing customers satisfaction and loyalty by creating hyperpersonalized customer journeys,marketing and comm

27、unication campaigns,product recommendations,and customer interactions.Luxury companies are increasingly using GenAI-powered chatbots and virtual shopping assistants to provide personalized product recommendations,styling advice,and real-time customer support to make the shopping experience more dist

28、inctiveandenjoyable.Supply chain and logistics:demand forecasting,predictive pricing and inventory management AI also enables luxury brands to develop pricing and inventory management strategies.By analyzing historical sales data,market trends,and demand forecasts,AI algorithms can suggest optimal p

29、ricing strategies and help make sure that products are readily available when and where customers want them.As a result,customer preferences and market dynamics are responded to more rapidly.AI-driven supply chain optimization helps ensure that luxury products reach the market in a timely and cost-e

30、fficient manner.Through predictive modeling,algorithms can assess the most efficient shipping routes,monitor inventory levels,and even predict potential supply chain disruptions,helping enable companies to proactively address potential issues before they escalate.The result is a reduction in overpro

31、duction and waste,as well as minimizing luxury goods companies environmentalimpacts.Authenticity verification In the Luxury industry,counterfeit goods have long caused financial losses and damaged brand reputations.In the fight against counterfeiting,technologies such as computer vision and machine

32、learning can be crucial.With training,AI algorithms can scrutinize product images and detect even the most sophisticated counterfeits,helping to protect both consumers and brands.Blockchain technology is also revolutionizing authenticity verification,especially when combined with AI.Luxury consumers

33、 can now trace the origins and authenticities of their purchases through immutable records stored on the blockchain.Product innovation and design creation using GenAIThe use of AI is not limited to analytical tasks,it has also made significant progress in the creative realm.A brands archive of image

34、s and designs,customer preferences data,and new market trends can be analyzed and combined to train GenAI,generating a range of design options for designers to explore.Hence,GenAI in fashion provides designers with the ability to explore new directions that were unimagined before,while reducing time

35、 to market at the same time.Jewelry designers,for instance,can more easily design intricate patterns,elaborate motifs,and innovative structures with the help oftechnologicaltools.GenAI can be used to create innovative brand-new products or to update traditional designs with fresh elements that refle

36、ct current trends.As a result,brands can pay homage to their own heritages while meeting the demands of their new customers.Moreover,AI can assist companies with meeting sustainability standards by helping identify sustainable and ethically sourced materials.The preferences of customers can be consi

37、dered when designing a product,which allows designers to create one-of-a-kind,custom-made items.They can also assess a new products potential success before launching it,potentially reducing costly mistakes.Global Powers of Luxury Goods 2023|Game changing steps in luxury7GenAI and luxury companies:a

38、 flourishing collaborationRichemont,the Swiss luxury conglomerate specializing in jewelry,watches,fashion,and accessories,has recently collaborated with Google to use AI to collect and combine customer insights3 to create tailored marketing strategies based on relevant advice to engage consumers at

39、the right time.Using Google Cloud and its AI and machine learning capabilities,it developed an integrated client platform for analyzing customer engagement data and providing tailoredproductrecommendations.As one of the pioneers of technology adoption,Burberry uses AI to identify counterfeit product

40、s.4 With Entrupys AI-powered image-recognition technology,the genuineness of a product can be assessed with confidence.Moreover,Burberry uses AI-enabled analytics to improve the shopping experience and understand customers better.The industry-leading chat platform GameOn Technology and Valentino ann

41、ounced a partnership to incorporate AI-powered chat into the Spring/Summer 2023 global activation of“Unboxing Valentino”,a digital experience that showcases the work of renowned stylists and artists in eight citiesNew York,London,Paris,Milan,Dubai,Shanghai,Seoul,and Tokyo.5 Through the use of GenAI

42、technology,the chat platform creates conversation experiences and dynamic social interactions.The partnership marks Valentinos adoption of chat and GenAI,and GameOns entrance into the luxury market.To engage with Generation Z,6 Tiffany and Cartier collaborated with Snap to let people try on their pr

43、oducts virtually through AR technology.Using ray tracing technology(common in video games),Tiffany translates the sparkle of metals and diamonds into AR objects that mimic the movement of light.Using an AR filter,Cartier created“the Cartier Tank watch experience”that transports the users mind to Pon

44、t Alexandre III.The customer can view four editions of the watch from over 106 years,as well as observe images of pedestrians on the bridge to gain a sense of the four different eras.The GemologicalInstituteofAmerica(GIA),which examines millions of diamonds every year,teamed up with IBM to create a

45、cloud-based AI approach to grading diamonds.GIA provided images and data from diamonds analyzed by its experts over the years,while IBM provided AI capabilities and computing power.7 LVMH joined with Google to develop cloud-based AI solutions.8 Together,the two companies will create new,personalized

46、 customer experiences to support LVMHs long-term growth goals.Under their agreement,Google will provide new AI and machine learning technologies to enhance demand forecasting and inventory optimization,as well as elevating customer experiences through personalization,while complying with privacy and

47、 security requirements.Theaimisto integrate AI solutions into every part of the value chain of the LVMH brands.This includes the product design and development process,the supply chain,and the interfaces with employees,collaborators,and customers.LVMH employees will also be provided with training pr

48、ograms to reskill and upskill.To accelerate their proficiency and innovation in these fields,the two companies will launch a data and AI academy in Paris.Introducing GenAI solutions is helping Este Lauder Companies enhance the online customers experience of its luxury brands.9 The collaboration with

49、 Google Cloud involves introducing AI-powered solutions to better understand consumer sentiments,inform Research and Development efforts,and translate the exclusivity of prestige beauty brands into best-in-class,high-touch digital experiences.A consumer sentiment map can assist in proactively addres

50、sing consumer concerns,detecting external trends in a timely manner,and ultimately help improve consumer experiences across social media and call center operations.GenAI will also be used to help reduce operating costs by streamlining operations and simplifying business workflows.In an effort to hel

51、p visually impaired people use cosmetics,Este Lauder Companies recently launched a voice-enabled makeup assistant based onAI and AR.Moncler Genius10 launched its first GenAI-created commercial campaign in collaboration with Maison Meta and Creative Agency WeSayHi during London Fashion Week in Februa

52、ry 2023.It was Monclers first campaign to be created entirely with AI,featuring collaborations with various fashion designers and brands,including Adidas Originals,Pharrell,Palm Angels,andothers.Ralph Lauren is testing AI across a number of business functions,11 including inventory optimization,fore

53、casting,and consumer engagement.GenAI will be tested for copy editing,graphics and computer programming.This experiment follows other pilots launched by the company,including its first nonfungible tokens(NFTs)in collaboration with Poolsuite and its Web3 platform.The launch campaign for Maison Valent

54、ino Essentials,12 Valentinos mens collection,was created using GenAI.This was an edgy collection that offered a new perspective on traditional mens clothing.This new and contemporary approach was reflected in the advertising campaign.GenAI helped develop a dynamic,engaging campaign aligned with the

55、collections core message.Global Powers of Luxury Goods 2023|Game changing steps in luxury8Artificial Intelligence Fashion WeekThe first Artificial Intelligence Fashion Week,organized by Maison Meta and backed by Revolve,took place at Spring Studios in New York in April 2023.13 In spite of its name,A

56、I Fashion Week is a competition aimed at finding and launching new designers,just like the LVMH Prize and other luxury companies competitions.More than 350 contestants designed“runway”images with GenAI and displayed them on 24 screens.Many of them looked like standard catwalk images,while others wer

57、e pictures taken in exotic settings.Interested members of the audience could either walk around the room to see the models and designs or visit the AI Fashion Week website and vote for their favorite collections.After the top 10 collections had been voted by people,a panel of industry leaders judged

58、 them(including Tiffany Godoy,head of editorial content at Vogue Japan,and Erika Wykes-Sneyd,studio manager at Adidas).Three winners were chosen and Revolve produced and sold their work in the real world.Maison Meta is a creative studio based in New York that uses AI to make creative projects,mostly

59、 for luxury brands.Their work is done with GenAI,and some of their collaborations were with Moncler,Victorias Secret,Mugler,Pangaia,and Pandora.Challenges posed by AI to the Luxury industryThe use of AI presents some challenges that require thoughtful consideration by its users.As the Luxury industr

60、y continues to evolve in the digital age,addressing these challenges will be crucial to its continued success and relevance.Table 1.The challenges of AI for LuxuryData privacy and securityIn order to deliver highly personalized experiences,brands have to collect huge amounts of customer data.Data br

61、eaches or mishandling sensitive customer information can have legal and reputational consequences.To safeguard customers trust,luxury brands must implement robust data protection and security measures and strictly comply with data privacy regulations.Striking the right balance between the human elem

62、ent andGenAICraftsmanship and human expertise have long been at the core of the luxury industry.The use of AI in luxury operations has the potential to automate many aspects,but this may lead to the loss of the human touch that has historically characterized the industry.Luxury brands need to strike

63、 the right balance between AI-driven efficiency and irreplaceable human creativity.Ethical considerations and biasAlgorithms trained on AI data can only be as bias-free as the data on which they are trained.In an industry that values diversity,inclusion,and cultural sensitivity,AIs potential to perp

64、etuate bias is an issue of great concern.Efforts must be made to ensure that AI-driven decisions align with the values of luxury brands and their commitment to ethical businesspractices.Adapting to technological changeA potential barrier to the use of AI is the cost of the rapidly-evolving technolog

65、y.In order to fully utilize AIs potential,luxury companies must invest in ongoing education and training fortheirstaff.Source:Deloitte Touche Tohmatsu Limited.Global Powers of Luxury Goods 2023.Global Powers of Luxury Goods 2023|Game changing steps in luxury9How can AI help luxury companies be more

66、sustainable?There is a growing connection between technology and sustainability in the Luxury industry.AI has the potential to accelerate the adoption of sustainability-oriented practices in the Luxury industry by enabling more efficient and responsible practices.Table 2.AI can enhance sustainabilit

67、y in LuxurySupply chain optimizationUsing AI-driven algorithms,supply chain data can be analyzed to identify inefficiencies and areas for improvement.This includes optimizing transportation routes to reduce emissions,monitoring energy usage in manufacturing processes,and identifying eco-friendly sou

68、rcing options for materials.Waste reductionAI-powered analytics can help companies predict demand accurately,reducing overproduction and excess inventory,reducing waste and resource consumption.In addition,AI can assist with minimizing waste and optimizing patterns and material usage in the design o

69、f products.Sustainable design and material selectionThrough the analysis of market trends,consumer preferences,and sustainability criteria,AI can enhance sustainable design by offering insights into how to design products that are environmentally friendly.By using machine learning algorithms,compani

70、es can compare the environmental impacts of different materials and choose options that are more aligned with their sustainability goals.This can include selecting ethically sourced,biodegradable,or recycled materials.Product life cycle managementA luxury products entire life cycle can be tracked us

71、ing AI,including how it is used and maintained,as well as its potential for recycling and repurposing.When luxury brands have a complete understanding of a products lifespan,they can make informed decisions about recycling,refurbishing,and reselling items,thus contributing to the circular economy.En

72、ergy efficiencySensors and AI algorithms can continuously monitor energy usage and make real-time adjustments to reduce energy waste in manufacturing facilities and stores,lowering a companys carbon footprint.Transparency and traceabilityBy combining blockchain technology with AI,supply chains can b

73、e made transparent and traceable.Blockchain technology can be used by luxury companies to provide customers with verified information about their products sourcing and production,assuring them of their ethical and sustainable credentials.Additionally,AI-powered image recognition and authentication t

74、echnologies can help prevent counterfeit products from entering the market.Source:Deloitte Touche Tohmatsu Limited.Global Powers of Luxury Goods 2023.The interconnectedness of sustainability:how technology is supporting a shift by the Luxury industry toward acircular economyAs reported in the 2022 e

75、dition of this report,luxury companies are adopting strategies for moving toward a circular economic model.They are also tracking their sustainability commitments,such as a net-zero target.In addition to driving demand for greener products,consumer awareness of Environmental,Social,Governance(ESG)ma

76、tters is influencing luxury companies product offerings.However,this is not the only factor driving change.Fashion companies are being forced to change their production systems due to increasinggovernmentregulations.Global Powers of Luxury Goods 2023|Game changing steps in luxury10The European Union

77、(EU)is developing a new set of regulations intended to hold fashion companies accountable for the impacts they have on the environment and society.For example,the Strategy for Sustainable and Circular Textiles,14 adopted in 2022,addresses the challenge of overproduction and responsible sourcing and

78、consumption of textiles,implementing commitments made by the European Green Deal,the Circular Economy Action Plan,and the European Industrial Strategy.It aims to encourage the adoption of circularity practices throughout the European Union.In both the United Kingdom and the European Union,legislatio

79、n has been passed to mitigate“greenwashing”.The British Competition and Markets Authority15 has created a Green Claims Code and the European Union has an EU-wide Green Claims Directive.16 The rules aim to prevent companies from providing misleading information about the environmental benefits of the

80、ir products,services,or operations.In the United States,New York State passed a new law called“New York Fashion Act”17 that created,for the first time,legally binding standards for the fashion industry.According to the law,fashion companies doing business in New York with revenues over US$100 millio

81、n are required to disclose their environmental performance.In response to institutional calls for the introduction of systematic sustainability solutions in fashion and luxury,the industry is improving its environmental,social,and governance(ESG)reporting standards,progressively adopting sustainable

82、 strategies,and increasing the use of digital tools such as digital identity and digital product passports to achieve greatertransparency.DPPs and digital IDs have the potential to be game changers for companies battling the counterfeit goods trade by identifying the last party that owned a product.

83、They could also assist manufacturers and their stakeholders to manage products efficiently throughout their life cycles,including after sale,resale,repair,and recycling,in a circular economy environment.There are multiple benefits that can flow from the use of these tools,such as increased consumer

84、trust,improved brand sentiment,reduced risk of greenwashing,comprehensive product tracking,reduction in the amount of goods in circulation,and exploration of potential new business models.Digital product passports(DPP)and digital IDsThe Digital Product Passport(DPP)is a digital tool proposed by the

85、European Commission to promote transparency and circularity.A DPP documents a products sustainabilityandcircularity through its entire life cycle,from design to end-of-life.18 The DPP works as an archive,integrating information about the entire life cycle of a product,including raw materials and wat

86、er usage,energy consumption,manufacturing processes,production sites,transport details,sustainability certifications,and other relevant environmental impacts.The data is stored securely and accessed by authorized users,making it accurate and reliable.DPPs should be accessible throughout aproductslif

87、etime.A digital ID is a QR code or NFC tag inside a product that contains information about its origin(s),care instructions,styling tips,and repair/resale/recycling services.In addition to finished products,digital IDs can refer to fabrics,materials,or components.This helps customers to make conscio

88、us andinformed decisions.The aim of both DPPs and digital IDs is to help enable luxury brand companies to scale circular business models.Companies using digital IDs to protect their productsMulberry will add digital IDs to its products by 2025,starting with its vintage bags belonging to the brands c

89、ircular economy program Mulberry Exchange.19 With the ID(an NFC-enabled tag on every bag),customers can view information about their items and services such as authentication,repair,and resale directly from their smartphones.Chlo is another brand that has introduced the use of Digital IDs for tracea

90、bility and resale purposes,20 starting with its Spring-Summer 2023 collection.The ID can be scanned with a smartphone and shows how the purchased item should be cared for.Also included are instructions for reselling it through the fashion resale marketplace Vestiaire Collective.The initiative is pow

91、ered by EON and Trust Place.Suppliers and manufacturers are also involved,registering information about linen,silk,wool and leather used in bags,shoes,and ready-to-wear apparel.Initially,the project will be trialed in the United States,Europe,and the United Kingdom for one year prior to being rolled

92、 out elsewhere.Global Powers of Luxury Goods 2023|Game changing steps in luxury11Figure 2.The future of a timeless brand:Deloitte collaborates with luxury Swiss watchmaker Moser&Cie.In the Genesis Project,Deloitte collaborates with luxury watchmaker Moser&Cie.and leading players in technology and in

93、surance.The result is an ecosystem that offers product authentication based on blockchain,exclusive customer privileges enabled by digital assets ownership,and a metaverse space that showcases the products in an immersive space.The collaboration offers a full omnichannel experience provided by the G

94、enesis watch and the connection to its mobile application.By accessing the app,the watch owner can enter the Genesis digital and virtual worlds where a personal VIP keypass and digital assets are available.The customer can also access the metaverse to discover the history of the brand and meet the M

95、oser team.For watch owners,it is a way to ensure their watchs authenticity and preserve its value,all in one mobile app.For its part,Moser gains access to deeper user engagement and a new generationofcustomers.Source:H.Moser&Cie:Reimagining the future of a timeless brand,21 DeloitteSwitzerlandSettin

96、g the rules forcircularityAs shown in previous editions of this report,the adoption of sustainable practices has become a priority for luxury goods companies.Companies are incorporating sustainability principles at the cores of their strategies,paving the way for a new paradigm on consumption of lux

97、ury goods.Although this paradigm shift has been evolving in recent years,upcoming sustainability regulations could cement the need for the sectors transformation.In particular,as companies work toward building circularity into their business models,they should design their strategies such that they

98、are ready for the evolving regulatory landscape,able to catalyze the creation of a resilient business model and help generate competitive advantage.This new landscape could mean that fashion companies will have to change the way they produce and operate,increasing their responsibility for the produc

99、ts impacts,and foster the adoption of circular economy models.The complexity of this transformation will likely be increased by the need to consider the companys purpose for decision making,as well as the need to integrate these new initiatives into their business models and corporate strategies.In

100、this context,the Deloitte Circular Economy Hub for Fashion and Deloitte EMEA Sustainability Regulation Hub are working together to develop insights to help business leaders unpack the strategic,operational,and financial implications of a circular transformation on their business models.Analyzing amo

101、ng others the potential implications of the Ecodesign for Sustainable Products Regulation,the revision of the EU Waste Framework Directive and the revision of the Packaging and PackagingWasteDirective.Global Powers of Luxury Goods 2023|Game changing steps in luxury12The digitally enabled experientia

102、l luxury store ofthefutureWith new technological solutions and innovations,luxury retail channels are becoming increasingly digitized.For example,total sales from e-commerce have grown substantially over the past couple of years and there has been a double-digit increase in luxury products purchases

103、 made on social media.22 However,it is predicted that offline retail could still generate over 70%of luxury companies revenues in 2025.23Despite the sharp increase in digital channels during the COVID-19 pandemic,physical luxury stores will still be crucial to customers,thanks to their experiential

104、value.A luxury store allows consumers to interact intensively and immersively with luxury brands from shopping products to receiving exclusive,personalized services,which is not possible in an online-only store.According to Deloitte Global research,24 about 60%of customers prefer to shop in physical

105、 stores;47%prefer to touch and try products before buying,and 70%regard shop assistants as crucial to their shopping experiences,because of their professionalism and knowledge of the products.Figure 3.Areas of application of technologies inluxurystoresSales Strengthen the relationship with the custo

106、mer by offering tailored services in store,specific products suggestions based on customers historical data,etc.Sales assistants empowerment Marketing Enhance the customer journey by offering multiple occasions to get to know new products and experience newly launched collections Develop brands stor

107、ytelling beyond the store visit Create/Strengthen brand engagement across different touchpoints and platformsSupply chain/Operations Customer centric,seamless omnichannel journey Allow sales assistants to control in real time product inventories(check products availability,location and assortment)Sh

108、opping assistants and customers can be informed about forthcoming products releases Execute fast and efficient delivery,returns and exchangesSource:Deloitte Touche Tohmatsu Limited.Global Powers of LuxuryGoods2023Global Powers of Luxury Goods 2023|Game changing steps in luxury13Luxury customers incr

109、easingly purchase products via the ROPO approach(Research Online Purchase Offline)and want seamless omnichannel experiences,easily switching between physical,digital and virtual stores.As a result,creating an in-store experience tailored to their personalized needs is crucial to maintaining brand lo

110、yalty and improvingcustomersatisfaction.Luxury brands are already investing in the creation of experiential customer-centric omnichannel stores that offer immersive customer experiences,supported by disruptive technologies such as video shopping,Extended Reality,IOT,and AI.By doing so,luxury brands

111、can make their customers experiences more interactive,exciting,and personal while establishing customer loyalty and increasing brand equity long after a product is purchased.The“store of the future”will have to be not just digital,but also sustainable.One of the main challenges for luxury brands wil

112、l be the creation of the Unified Commerce Augmented Store,which synthesizes customers expectations of an omnichannel experience and the need for brands to have eco-sustainable and efficient stores.Figure 4.Deloitte collaborates with Larusmiani to open the first luxury store of the future in MilanAs

113、part of its collaboration with Deloitte,Larusmiani has recently launched its renewed Milanese boutique,presenting its first hybrid store at the Quadrilatero della moda in Milan.This store of the future combines disruptive technologies and innovative ideas to create an experience that is highly perso

114、nalized,unique,and one-of-a-kind experience for customers.Among the most impactful features is the use of a hologram for the shop window,which displays three-dimensional images of the products.Using this innovation,customers are able to view items in detail even before they enter a store.The virtual

115、 fitting room allows customers to try on clothing virtually without having to try them on physically.By experimenting with different combinations and sizes of products in the fitting room,customers can simplify their decision-making process and enhance their shopping experience.Additionally,in-store

116、 intelligent cameras analyze traffic data to provide valuable information about customer behavior and enable a strategic product display.Source:Larusmiani Luxury Store of the Future,Deloitte Italy,2023Global Powers of Luxury Goods 2023|Game changing steps in luxury14Gearing up the luxury store of th

117、e futureIn March 2023,The Prada Group announced a new relationship with Adobe to help elevate its customer experiences online and in-store with real-time personalization.25(The Prada Group produces brands such as Prada,Miu Miu,and Churchs).Through the Adobe Experience Clouds Adobe Real-Time Customer

118、 Data Platform and Adobe Journey Optimizer,the Group can provide its customers with relevant content whenever it is convenient for them to access it.Customers who have consented to the use of their data enable sales assistants to know when they visit stores and what their preferences are,allowing br

119、ands to deliver richer,more personalized experiences.Additionally,Adobe Creative Cloud applications will be used to develop marketing campaigns,brand activations,and product development support as part ofthe collaboration.Richemont has collaborated with Google on technology-based innovations to crea

120、te valuable instore customer experiences.26 Using in-store applications,the company was able to divide customers into two groups:those with a strong propensity to buy were invited to special boutique visits,while those at a different stage of their buying journey were offered options tailored to the

121、ir preferences.The AI solution is now being used across 11 Richemont Maisons in over 25 countries to help improve customer experience and increase loyalty.Recently,Zegna has focused on a customer-centric strategy that has resulted in the launch of Zegna X,27 a digital ecosystem and customization too

122、l that aims to bridge the gap between physical stores and digital channels.Zegna X includes the brands outreach app,which accounts for about 45%of its full-price retail revenues.This tool has helped empower style advisors in the fashion house to deliver a highly customized service to customers.As pa

123、rt of Zegna Xs latest update,a 3D configurator has been added that addresses customers specific needs,from cut-and-color to measurements-and-materials.Zegna X announced its 3D Configurator In-Store Maxi Screen in April 2023;a tailoring service is anticipated to be available by the end of 2023;and co

124、nsumers will be able to customize looks of the collection using their personal devices by 2024.To implement this in-store technology,Zegna collaborated with Microsoft to integrate Microsoft Azure services,including AI.To celebrate 100 years of its No.5 fragrance,Chanel launched a limited-edition col

125、lection of 16 products that will be sold exclusively in dedicated pop-up stores called“Chanel Factory 5”,28 in London and Paris.For this collection,the brand created a special package by selecting ordinary items such as a paint can,an oil tin or a squeezable bottle,and converted them into appealing

126、luxury products.As part of the experience,the stores were highly visual and innovative and designed to look like factories with technology,including features such as moving robotic arms handling merchandise.Burberry opened its first social store in Shenzen29 called“Burberry Open Spaces”,in collabora

127、tion with Tencent(the Chinese multinational technology and entertainment company behind many popular videogames and WeChat).A special WeChat mini program was developed to bring the store to life through exclusive content and personalized experiences.With the program,customers can book appointments,t

128、ry on items,contact customer service,learn about new products and exclusive content,and share their experiences with their friends on WeChat.Products in the store have QR codes that can be scanned in order to explore additional content like“product storytelling”.Each social action taken in-store is

129、rewarded with social currency.Additionally,customers can experience the“trench experience”,a digitally enhanced room designed to help them create social media content.Since 2019,Farfetch has invested in its“Store of the Future”.30 The company launched a new retail innovation division and its vision

130、for“augmented retail”,which seeks to address the key needs of the Luxury fashion industry in bricks-and-mortar stores,creating an omnichannel shopping experience.With augmented reality and innovative payment solutions,its“Store of the Future”will offer a personalized shopping experience and improve

131、the Farfetch customer journey.Global Powers of Luxury Goods 2023|Game changing steps in luxury15Global Powers of Luxury Goods 2023|Game changing steps in luxury16Top 10 highlightsTop 10 luxury goods companies by sales,FY2022FY2022 Luxury goods sales rankChange in rank from FY2021CompanyCountry of or

132、iginFY2022 Luxury goods sales(US$M)FY2022 Total revenue(US$M)FY2022 Luxury goods sales growthFY2022 Net profit margin1*FY2022 Return on assets*FY2019-2022 Luxury goods sales CAGR2*1 0LVMH Mot Hennessy-Louis Vuitton SEFrance59,869 83,241 22.6%18.6%11.0%19.4%2 0Kering SAFrance21,394 21,394 15.3%18.3%1

133、1.0%8.6%3 3Compagnie Financire Richemont SASwitzerland19,248 22,276 50.1%10.8%5.2%11.5%4-1The Este Lauder Companies Inc.United States17,737 17,737 9.4%13.6%11.5%6.1%5-1Chanel LimitedUnited Kingdom17,224 17,224 10.1%26.7%25.5%12.0%6-1LOral LuxeFrance 15,388 15,388 18.6%n/an/a9.9%7 1Chow Tai Fook Jewe

134、llery GroupLimited 周大福珠寶集團有限公司 China/HK SAR 12,563 12,709 41.1%7.0%7.8%14.0%8-1Herms International SCAFrance 12,196 12,196 29.2%29.1%19.4%19.0%9 0Rolex SASwitzerland 10,336 e 10,336 e 20.4%n/an/a13.8%10 3PVH Corp.United States 8,364 9,155 33.3%10.4%7.7%1.2%Top 10*194,319221,65622.8%17.5%11.2%12.8%To

135、p 100*346,989 386,96320.0%12.2%7.7%8.4%Top 10 share of Top 10056.0%57.3%62.5%76.4%e=estimate|n/a=not available|ne=not in existence(created by reorganization)1 Net profit margin based on total consolidated revenue and net income Compound annual growth rate3 Top 10 companies share of total net profit

136、for Top 100 companiesbased on the 80 companies reporting net profits*Top 10 and Top 100 sales growth rates are sales-weighted,currency-adjusted composites*Top 10 and Top 100 net profit margin and return on assets are sales-weighted compositesSource:Deloitte Touche Tohmatsu Limited.Global Powers of L

137、uxury Goods 2023.Analysis of financial performance and operations for financial years ended through 31 December 2022 using company annual reports,industry estimates,and other sources.Luxury goods sales in the Top10are up 23%;Richemont regains third place;PVH Corp returns to the Top 10Major luxury ac

138、quisitions each worth more than US$2 billion by Kering(Creed,Valentino),Este Lauder Companies(TomFord),LOral(Asop),and Rolex(Bucherer)In FY2022,personal luxury goods sales for the Top 10 luxury companies increased by 22.8%.However,the share of their sales in the combined luxury goods sales of the To

139、p 100 companies showed little changeit decreased by 0.2 percentage points to 56.0%.They contributed 62.5%to the Top 100 companies year-on-year sales growth,as well as 76.4%to their net profit growth.Global Powers of Luxury Goods 2023|Game changing steps in luxury17Top 10 share of the Top 100 for lux

140、ury goods sales,YoY growth,and net profit,FY202210%56.0%62.3%73.5%90%44.0%37.7%26.5%-10%10%30%50%70%90%of companies%of luxury goods sales%of luxury goods sales YoYgrowth%of luxury goods net profit Top 10 Other 90For 80 companies in the Top 100 reporting net profit,and for eight companies in the Top

141、10 reporting net profitSource:Deloitte Touche Tohmatsu Limited.Global Powers of Luxury Goods 2023.Analysis of financial performance and operations for financial years ended through 31 December 2022 using company annual reports,industry estimates,and other sources.A significant reduction in the impac

142、t of COVID-19 pandemic on company results was observed in FY2022 compared to FY2021.Richemont regained the three positions it lost in last years report,returning to third place in the rankings.The rise of Richemont resulted in Este Lauder Companies,Chanel,and LOral Luxe all moving down by one positi

143、on.Chow Tai Fook also rebounded from the pandemic,overtaking Herms to move into seventh place.PVH Corp returned to the Top 10 in tenth place,as its Tommy Hilfiger and Calvin Klein luxury brands regained most of the sales lost due to the pandemic.Last years new entrant to the Top 10,China National Go

144、ld,saw its sales decline in FY2022,dropping out of this leading group.In FY2022,the minimum luxury goods sales threshold for a company to enter the Top 10 was more than US$8.3 billion,an increaseof US$0.5 billion.Global Powers of Luxury Goods 2023|Game changing steps in luxury18Luxury goods sales fo

145、r the Top 10 companies:YoY growth%for FY2020,FY2021 and FY2022-11.0%-11.0%-17.5%-0.7%-3.8%-17.6%-7.6%-14.7%-7.2%-13.4%3.8%19.5%55.9%34.7%-6.9%13.4%54.7%21.3%23.2%40.6%41.3%-25.1%20.0%22.6%15.3%50.1%9.4%10.1%18.6%41.1%29.2%20.4%33.3%-30.0%-20.0%-10.0%0.0%10.0%20.0%30.0%40.0%50.0%60.0%Top100LVMHKering

146、EsteLauderCompaniesChanelLOralLuxeChow TaiFook*HermsRolexPVH*FY2020FY2021FY2022Richemont*Companies with Q1 financial year end:Richemont,Chow Tai Fook,PVHSource:Deloitte Touche Tohmatsu Limited.Global Powers of Luxury Goods 2023.Analysis of financial performance and operations for financial years end

147、ed through 31 December 2022 using company annual reports,industry estimates,and other sources.The three companies with financial year-ends in Q1,Richemont,Chow Tai Fook,and PVH,saw the highest sales growth in FY2022(50%,41%,and 33%,respectively),as the pandemics impact faded.Other companies in the T

148、op 10 also saw sales increase between9%and 29%.Global Powers of Luxury Goods 2023|Game changing steps in luxury19Number of Top 10 luxury goods companies by country and product sector,FY2022Clothing and footwearBags and accessoriesBeautyJewelry and watchesMultiple luxury goodsTop 10China11France134Sw

149、itzerland22United Kingdom11United States112Top 10123410France is home to four of the worlds leading luxury companies.Even though Chanel is classified as a United Kingdom company,as its headquarters are in London,it is also widely perceived to be a French company.Major strategic moves by Top 10 luxur

150、y companies 2022 to 2023During the period 1 January 2022 to 1 September 2023,luxury goods companies in the Top 10 made more strategic moves than usual.These included multibillion-dollar acquisitions,as well as launches and disposals in the luxury beauty sector,luxury watch sector and retail,and taki

151、ng licensee business back in house.The following table summarizes the biggest deals.Also included is Tapestry at the bottom of this list as it is likely to become a Top 10 company in FY2023/FY2024(if the deal is approved).Top 10 companyActivityDeal valueDate announcedKeringLaunched Kering BeautAcqui

152、red Maui Jim eyewearAcquired Creed luxury fragranceAcquired Valentino(30%with 100%option)Est 1.5 billionEst 3.5 billion1.7 billionFebruary 2023March 2022June 2023July 2023RichemontSale of controlling interest in online luxury retailer YOOX NET-A-PORTER(YNAP)Acquired Gianvito Rossi(Italian shoemaker)

153、Est 3.4 billionn/aAugust 2022July 2023Este Lauder CompaniesWound down Designer Fragrance Licensing DivisionAcquired TOM FORD brandn/aUS$2.8 billionJuly 2022November 2022LOral Acquired Asop brand from Natura&CoUS$2.525 billionApril 2023PVHWill bring Calvin Klein and Tommy Hilfiger womens North Americ

154、a wholesale business back in house by 2025-2027.n/aNovember 2022Potential future Top 10 companyActivityDeal valueDate announcedTapestryAcquired Capri Holdings Limited(Michael Kors,Versace,Jimmy Choo brands)which will likely take Tapestry into the Top 10 luxury companies in FY2023/FY2024.US$8.5 billi

155、onAugust 2023Global Powers of Luxury Goods 2023|Game changing steps in luxury201LVMHLVMH strengthened its leading position among the worlds luxury goods companies in FY2022,with nearly US$60 billion sales of personal luxury goods,up 22.6%year-on-year.This was a record year,with significant revenue g

156、rowth for all its business groups and gains in market share worldwide.The group saw high revenue growth in Europe,Japan,and the United States.Analysts noted that in April 2023 LVMH became the first European company to have a market value of more than US$500 billion,as its share price hit record high

157、s.31 Sales in its Fashion and Leather Goods business group grew by 25%,up nearly 8 billion year-on-year.The performance of LVMHs primary business group(which contributed more than two-thirds of LVMH personal luxury revenue)was driven by the continuing creative momentum of its leading luxury brandsLo

158、uis Vuitton and Christian Dior,as well as Cline,Fendi,Loro Piana,Loewe,and Marc Jacobs,which all gained market share to achieve record levels of revenues and earnings.In 2022,Louis Vuitton,the worlds largest luxury brand,had 20 billion revenue for the first time.The perfumes and cosmetics business s

159、egment achieved 10%organic sales growth,with strong momentum in perfume.LVMH continued the policy of selective distribution for its prestige brands,which led to a small reduction in profit from recurring operations.LVMH reported that Christian Dior enjoyed strong performance,with growth from Miss Di

160、or in fragrance and Dior Addict in makeup.Sauvage confirmed its position as the highest selling fragrance in the world(womens and mens lines combined).Guerlains Abeille Royale prestige skincare and Aqua Allegoria fragrance collection contributed to the brands sustained growth,and Fenty Beauty double

161、d its revenue thanks to the expansion of its distribution network and successful product launches.Sales in the watches and jewelry business segment grew by 17%,to over 10 billion for the first time.Tiffany&Co.(acquired in January 2021)had another record year.The new Lock bracelet collection,rolled o

162、ut in North America,enjoyed great success,and High Jewelry revenue doubled.Bulgaris iconic Serpenti line and the High Jewelry and High Watchmaking collections had strong growth momentum,particularly in Europe,Japan,and the United States.TAG Heuer,Chaumet,and Fred also performed well.LVMH continued i

163、ts exceptional level of profitability,delivering a net profit margin of 18.6%,the seventh-highest among the Top 100 companies.Group profit from recurring operations was over 21 billion in FY2022,up 23%year-on-year.Operating profit margin,at 26.7%,remained at the same level asinFY2021.LVMHs personal

164、luxury acquisitions in 2022 were significantly less than the number of acquisitions in 2021.Many of the recent acquisitions and investments have focused on expansion of jewelry manufacturing.In November 2022,LVMH announced the acquisition of Pedemonte Group,a jewelry manufacturer with locations in I

165、taly and France,from the Equinox III SLP SIF investment fund.32 This equity investment is anticipated to be consolidated in 2023.In January 2023,Bulgari announced it would expand its Italian manufacturing plant to double its production capacity by 2025.In April 2023,LVMH acquired a majority stake in

166、 another French jewelry manufacturer,Platinum Invest group,in order to“supplement and enhance Tiffany&Co.s existing manufacturing and production.”Platinum Invest group consists of two jewelry manufacturers,Orest,and Abysse,which will help Tiffany accelerate production of fine and high-end jewelry.33

167、,34 In fashion,LVMH acquired an additional 40%stake in growing luxury streetwear company Off-White LLC in September 2022,bringing its ownership interest to 100%.In June 2023,LVMH announced a formal business relationship with Epic Games,creator of Fortnite and Unreal Engine,to transform the Groups cr

168、eative pipeline and offer customers new types of immersive product discovery experiences.35 This strategic collaboration will enable LVMH and its Maisons to utilize Epics powerful 3D creation tools to offer experiences like virtual fitting rooms and fashions shows,360 product carousels,augmented rea

169、lity,creating digital twins,and more.LVMH has already worked with with Epic in creating Bulgaris“Virtual Rome”metaverse experience,and Louis Vuittons“Digital Show Experience”at theLVMH Pavilion.36Global Powers of Luxury Goods 2023|Game changing steps in luxury212KeringKerings net sales of luxury goo

170、ds exceeded 20 billion for the first time in FY2022,up 15.3%.Revenue from the directly operated retail network,which includes the directly operated brand e-commerce sites,increased by 10%on a comparable basis in FY2022,driven in particular by growth in Western Europe and Japan.Online sales account f

171、or around 15%of retail sales.In 2021 and 2022,the Groups brands took greater control of multibrand distribution,moving away from wholesale models and toward e-concession models.Kerings leading luxury brand,Gucci,achieved sales of more than 10 billion for the first time in FY2022,up by 8%year-on-year

172、.However,the year ended on a challenging note:in Q4 FY2022 Guccis revenue was down 14%compared to the same period in FY2021,with its directly operated stores being significantly affected by the situation in China during the quarter.Kering appointed Sabato de Sarno(from Valentino)as the new creative

173、director for Gucci in January 2023.37 The groups second largest brand,Yves Saint Laurent(YSL),saw revenues jump by 31%to 3.3 billion.Sales from YSLs directly operated retail network rose sharply,up 28%,while wholesale revenue was up 6%.Sales of Kerings third largest brand,Bottega Veneta,also achieve

174、d another record year,with revenue growth of 15%,driven by the directly operatedretailnetwork.Amongst Kerings other luxury brands,Balenciaga had an excellent 2022,despite a difficult month in December.Alexander McQueen performed well in the handbags and ready-to-wear categories,and Brioni confirmed

175、its recovery.Kerings Jewelry Houses progressed once again;Boucheron posted steady growth;Pomellato continued to perform well in Western Europe and Japan;and Qeelin grew rapidly.Kering Eyewear saw sales grow by 55%in FY2022,to more than 1 billion for the first time.This outcome was partly attributabl

176、e to the acquisitions of Danish luxury eyewear brand Lindberg in September 2021 and high-end US eyewear brand Maui Jim inOctober 2022.38,39For the second successive year,Kering achieved the eighth-highest net profit margin(18.3%)of the Top 100 companies,down just 0.2 percentage points from FY2021.Ke

177、rings strategy is to prioritize the luxury brands which it believes have“the potential to become sizeable assets within the Group,and to which it can provide decisive support over time”.As part of this strategy,in May 2022,Kering completed the sale to its current management of its 100%stake in Sowin

178、d Group SA,which owns the Swiss watch manufacturers Girard-Perregaux and Ulysse Nardin.40 In February 2023,Kering announced the launch of Kering Beaut,hiring Raffaella Cornaggia,whose beauty experience includes positions at LOral,Chanel,and Este Lauder Companies,to lead the new division.41 The initi

179、al strategy is to develop expertise in the Beauty category for Kerings Bottega Veneta,Balenciaga,Alexander McQueen,Pomellato,and Qeelin brands.In June 2023,Kering Beaut announced that it had signed an agreement to acquire 100%of Creed,the largest independent global player in the fast-growing high-en

180、d luxury fragrance segment.42 Press reports suggest that Kering paid 3.5 billion for the company,which had sales of more than 250 million in the year to the end of March 2023.Kering stated in a press release:“The acquisition is a major step for Kering Beaut,creating a sizeable platform for future gr

181、owth.A perfect fit with its portfolio of renowned luxury brands,it immediately provides Kering Beaut with the required scale,an outstanding financial profile,as well as a platform,supporting the future development of other Kering Beaut fragrance franchises by leveraging in particular Creeds global d

182、istribution network.”Franois-Henri Pinault,chairman and chief executive officer of Kering,commented:“The acquisition of Creed represents Kering Beauts first strategic initiative,and demonstrates our commitment to developing a strong position in the luxury beauty segment.”In July 2023,Kering announce

183、d the acquisition of a 30%shareholding in Valentino,for a cash consideration of 1.7 billion.The agreement with Valentino owner Mayhoola includes an option for Kering to acquire 100%of the share capital of Valentino by no later than 2028.The transaction is part of a broader strategic relationship bet

184、ween Kering and Mayhoola.Valentino has 211 directly operated stores in more than 25 countries,with revenues of 1.4 billion in 2022.The transaction is expected to close by the end of 2023,subject to clearance by the relevant competition authorities.43 Global Powers of Luxury Goods 2023|Game changing

185、steps in luxury223RichemontSwitzerland-based Richemont reported the strongest growth among the Top 10 companies in FY2022(year end 31st March 2022),with sales from its luxury goods brands up 50.1%(excluding sales of third-party brands in Richemonts Online Distributors segment through its e-commerce

186、platforms YNAP and Watchfinder).This was the fourth-highest year-on-year growth among the Top 100 companies.Richemont regained third place in the Top 10 ranking,after dropping to sixth place in last years report,when its results reflected less of the recoveryfrom the pandemic than companies with lat

187、er financialyear-end dates.Richemont recorded double-digit growth in FY2022 across all its business areas,regions,and channels.In FY2022,retail registered a strong performance(+17%),reaching the share of 68%of total revenues,while online sales registered just a+6%increase.This is quite remarkable as

188、 Richemont has been traditionally oriented towards wholesale retail,and has been working to strengthening its positioninretail.Richemont sustained this growth in FY2023(financial year ended 31 March 2023),with sales of nearly 20 billion(excluding discontinued operation YNAP),up by 19%.FY2022 perform

189、ance was led by the jewellery Maisons,which achieved sales of more than 11 billion for the first time.It contributed 67%of luxury goods sales for Richemont brands,growing by 48.6%year-on-year.Growth was strongest in the jewellery Maisons directly operated store network,which contributed over three-q

190、uarters of the business areas sales,as the post-pandemic recovery accelerated.Cartier Maison revenues grew in all regions,with the successful launch new collections,and strong e-commerce performance.Buccellati continued the expansion of its boutique and online network,and also invested in its produc

191、t range,including the launch of the Giardino High Jewellery collection.Van Cleef&Arpels also saw success from its collections,including Alhambra and Perle,and expanded its retail network and online distribution.Specialist watchmakers sales rebounded by 52.9%in FY2022,driven by double-digit growth at

192、 all Maisons and across regions,with particular strength in the Americas.Previous investments in offline and online retail resulted in direct-to-client sales exceeding 50%of sales for the first time.There was strong demand for the companys leading watch brands including IWC Schaffhausen,Vacheron Con

193、stantin,Jaeger-LeCoultre,Panerai,and Piaget.Other Maisons(Montblanc and the Groups Fashion&Accessories brands Alfred Dunhill,Chlo,Purdey,Peter Millar,Alaa,Serapian and 2021 acquisition Delvaux)posted sales up by 52.9%to more than 2 billion.The Americas and Europe were the leading growth regions and

194、all channels posted double-digit sales increases.Peter Millar,including the G/FORE brand,continued to deliver excellent results,while Chlo and Alaa started to reap the benefits of the new creative leadership under Gabriela Hearst and Pieter Mulier,respectively.Group net profit for the year increased

195、 by 61%.On October 23,2023 the European Commission has unconditionally cleared the acquisition by Farfetech of a 47.5%stake in YOOX NET-A-PORTER(“YNAP”)in exchange for the issuance of Farfetch Class A ordinary shares to Richemont.When the deal was announced in August 2022,Richemont stated that this

196、was a significant step toward its vision of an independent online platform for the luxury industry.Under the terms of the deal,the partnership between Farfetch and Richemont includes the acquisition by Symphony Global,one of the investment vehicles of Mohamed Alabbar(Richemonts Gulf States collabora

197、tor),of a 3.2%stake in YNAP,making YNAP a neutral online platform for the luxury industry;the adoption by YNAP and the Richemont Maisons of Farfetch Platform Solutions and the launch of e-concessions on the Farfetch Marketplace44 by most Richemont Maisons.Richemont and Farfetch are working towards f

198、ulfilling and completion of the agreement in the next months.Richemonts only other M&A activity up to the end of August 2023 was the acquisition of a controlling stake in privately owned luxury Italian shoemaker Gianvito Rossi,announced in July 2023.45 Founder,CEO and Creative Director Gianvito Ross

199、i will retain a stake in the company and collaborate with Richemont.Global Powers of Luxury Goods 2023|Game changing steps in luxury234Este Lauder CompaniesLuxury goods sales of US-based beauty giant The Este Lauder Companies(ELC)grew by 9%in FY2022,with double-digit growth in the Americas and EMEA(

200、Europe,Middle East and Africa).This reflected a recovery in brick-and-mortar retail stores,as well as double-digit growth in global online sales and growth in travel retail,as Este Lauder Companies capitalized on reopenings,extended its consumer reach in high-growth channels,and amplified its omnich

201、annel capabilities.Net sales in Asia Pacific declined slightly,reflecting variability across the region in COVID restrictions and the recovery fromthepandemic.Fragrance sales soared,and growth in makeup returned due to usage occasions increasing in most regions.Nine brands achieved double-digit orga

202、nic sales growth,with the biggest growth coming from La Mer,MAC,and Jo Malone.Fragrance was the best-performing category for ELC in FY2022.Net sales grew across all regions,and for every brand,to deliver 30%year-on-year growth.The strongest brand growth came from Jo Malone London,Tom Ford Beauty,and

203、 Le Labo.FY2022 makeup net sales were up 11%,reflecting continued recovery in western markets.Most makeup brands saw growth,led by double-digit net sales growth from both MAC and Este Lauder.Skincare was the weakest category,as growth in the Americas was offset by a decline in the EMEA region,to giv

204、e total net sales growth of 4%.In Asia Pacific,high single-digit growth in the first nine months of the fiscal year was offset by a negative impact from increased COVID-related restrictions in China in Q4,including temporarily reduced capacity at the companys distribution facilities in Shanghai,with

205、 the result that skin care revenues were flat in the fiscal year.Double-digit growth from La Mer,Clinique,and Bobbi Brown was offset by a decline from Este Lauder.The net profit margin in FY2022,at 13.6%,was 4.1 percentage points lower than the high margin reported in FY2021.Este Lauder Companies an

206、nounced in November 2022 that it had agreed to acquire the Tom Ford brand,and all its intellectual property,for US$2.3 billion.46 This major deal valued Tom Ford at US$2.8 billion and included long-term license agreements with Ermenegildo Zegna Group for Tom Ford fashion,and Marcolin for Tom Ford ey

207、ewear.Tom Ford Beauty,first introduced by Este Lauder under license in 2006,is an iconic luxury beauty brand with collections of fragrance,makeup,and skincare.The brand has achieved strong double-digit net sales growth on a compound annual basis from fiscal years 2012 through 2022 and is forecast to

208、 achieve annual net sales of US$1 billion in a couple of years.Fabrizio Freda,president and chief executive officer of The Este Lauder Companies,said in a press release:“As an owned brand,this strategic acquisition will unlock new opportunities and fortify our growth plans for TOM FORD BEAUTY.It wil

209、l also further help to propel our momentum in the promising category of luxury beauty for the long-term,while reaffirming our commitment to being the leading pure player in global prestige beauty.”The deal was completed in April 2023.ELCs took the decision to wind down its Designer Fragrance Licensi

210、ng Division,terminating early(from end June 2022)its existing license agreements for Donna Karan New York,DKNY,Michael Kors,Tommy Hilfiger,and Ermenegildo Zegna.Its luxury beauty portfolio was enhanced with the September 2022 announcement of a license agreement with Balmain to develop Balmain Beauty

211、 luxury products.47 The collection is expected to launch in late 2024.Global Powers of Luxury Goods 2023|Game changing steps in luxury245ChanelChanel Limited reported net sales growth of 10.1%in FY2022,(17.0%at constant currency exchange rates),with around half coming from increased sales volumes an

212、d half from price increases in line with inflation in 2021 and 2022.Despite ongoing COVID pandemic restrictions in some regions,the retail teams continued to nurture local clientele,which led to its travel retail business doubling in 2022.As part of its strategy to deliver a luxury in-person custome

213、r experience through in-store advisors,Chanel now operates more than 200 fashion boutiques.With the launch of their digitally enhanced boutique experience in 2022,Chanel launched the“in Chanel”app internationally,which helped strengthen the bond between advisors and clients.It does not sell watches,

214、fine jewelry,or fashion online,but around 20%of its fragrance and beauty sales are sold online.Chanels net sales in FY2022,which were over US$17 billion,again reached a record high,making it the worlds second largest luxury brand after Louis Vuitton.With sales ahead of prepandemic levels in all mark

215、ets,the brand achieved double-digit growth across all product categories.Its Fashion division saw double-digit sales growth in all product lines,particularly in leather goods and shoes.Watches and fine jewellery had sustained momentum,driven in particular by the strong performance of the COCO CRUSH

216、collections and the successful relaunch of the PREMIRE watch.Chanels Fragrance&Beauty category has benefitted from the recovery in travel retail,as well as sustained demand from local clientele.A new generation of eco-friendly beauty products with eco-designed packaging and formulas that contain up

217、to 97%naturally derived ingredients was launched by Chanel at the beginning of the year.Geographically,Europe was the best-performing region in FY2022,with sales up 16.8%,followed by the Americas,up 9.4%.The Asia Pacific region,which contributes half of Chanels revenue,saw sales grow by 7.2%.Chanel

218、maintained its exceptionally high profitability in FY2022,delivering an operating profit of nearly US$5.8 billion and a record net profit margin of 26.7%.This was the second-highest net profit margin among the Top 100 companies,surpassed only by Herms.Chanel continued to increase its investments in

219、brand support activities,up 14.3%to US$2 billion in FY2022.Chanels M&A strategy is focused on vertical integration of the supply chain,and innovation in sustainable materials.Chanel states that it is not planning any acquisitions of big luxury brands.In a May 2023 interview,Chanel CEO Leena Nair(who

220、 joined from Unilever in January 2022),said that there are no plans for the brand to expand into menswear or other sectors such as hospitality.CFO Philippe Blondiaux revealed that in the 10 years to the end of 2022,Chanel acquired or took a stake in 47 companies(mainly small factories and specialist

221、s essential to the supply of its luxury products)to give them a competitive edge in access to high-quality materials,and sustainability and traceability of raw materials.48 In 2022,Chanel invested in a minority share of French sustainability-focused company Authentic Material,and acquired 60%of Ital

222、ian specialist denim apparel manufacturer Fashionart.49,50 In May 2023,Chanel unusually made an acquisition in collaboration with Brunello Cucinelli:the companies will each take a 24.5%stake in Italian wool and cashmere manufacturer Cariaggi Lanificio,which is known for its top-quality animal and ve

223、getable yarns.The Cariaggi family will maintain a majority share of 51%.51Global Powers of Luxury Goods 2023|Game changing steps in luxury256LOral LuxeLOral Luxe sales grew by 18.6%in FY2022,with 10.2%like-for-like growth,higher than the dynamic global luxury beauty market average.The Luxe Division

224、is now the LOral Groups primary division,with 38.3%of total Group sales.The proportion of the groups sales represented by e-commerce(through owned brand and third-party websites)increased by nearly six times between 2015 and 2022(from 5%to 28%),with growth in all zones and divisions.LOral aims to in

225、crease its e-commerce business to up to 50%of its total sales.LOral Luxe reported that its FY2022 skincare sales grew three times faster than the market average,spurred on by the ultra-premium segment,with a spectacular performance from Helena Rubinstein,leading-edge innovations such as Lancmes Rner

226、gie H.C.F Triple Serum,and the success of recent acquisitions including the Japanese prestige skincare brand Takami(acquired in February 2021).LOral Luxe strengthened its leadership in the fragrances sector,the fastest-growing category in the luxury/prestige market.This performance was driven by glo

227、bal bestsellers,such as Libre by Yves Saint Laurent,La Vie Est Belle by Lancme,and Acqua di Gio by Armani,as well as launches that had an impressive start,including Prada Paradoxe.The makeup sector continued its recovery,with growth driven by Yves Saint Laurent and Urban Decay.LOral Luxe did not mak

228、e any prestige/luxury beauty acquisitions in 2022 but made several investments in biotech companies in 2022 and the first half of 2023,through its corporate venture capital fund BOLD,as part of its strategy to“invent the future of beauty and become a Beauty Tech powerhouse”.The relationship establis

229、hed in January 2022 with Verily aims to decode and discover the links between exposome,skin aging,and deep biology of the skin,and to explore the development of new technologies and tele-diagnosis solutions such as sensors and AI algorithms for dermatology and skincare,that can form the basis for ne

230、w services.52 The March 2022 joint effort with neurotechnology company Emotiv will offer consumers a unique fragrance consultation experience by connecting neuro responses to fragrance preferences through a multisensor EEG(electroencephalography)based headset.53 In May 2022,LOral made a minority inv

231、estment in Japanese beauty startup Sparty Inc.,which has a direct-to-consumer personalized beauty business model.54 There were further minority investments in Microphyt,a French“green sciences”biotech company,in November 2022,and in Debut,a US biotech company that manufactures breakthrough ingredien

232、ts to be used in cosmetics,skincare,and packaging,in June 2023.55 Together with Unilever and Kao,in March 2023 the company invested as a founding member in a venture led by Geno,a biotechnology company,to create sustainable alternatives to key ingredients in beauty products.56In 2023,LOral made its

233、largest ever brand acquisition,with an agreement to acquire Australian luxury beauty brand Asop from Natura&Co,for US$2.525 billion.Asop,which posted sales of US$537 million in 2022,operates about 400 points of sale across the Americas,Europe,Australia,New Zealand,and Asia.57 The acquisition was com

234、pleted at the end ofAugust2023.58Global Powers of Luxury Goods 2023|Game changing steps in luxury267Chow Tai FookChinas Chow Tai Fook Jewellery Group moved up in the Top 10 list to seventh place in FY2022.Luxury goods net sales soared,up by 41.1%year-on-year.Growth was driven by new store openings,a

235、s well as increased same-store sales,with resilient demand for gold jewelry as the pandemic recovery continued.The companys smart retail business(e-commerce,online-to-offline(O2O)platforms,and O2O-related business)recorded growth of 62.7%in retail sales value(RSV),contributing 8.6%of Group RSV(5.2%o

236、f this came from e-commerce,and 3.4%from smart retail digital tools,such as CloudSales 365,Cloud Kiosk,and Smart Tray).Chow Tai Fooks main business strategy is expansion through wholesale sales to regional distributors and franchisees.In FY2022 these increased by 79.5%and they now contribute 45%of t

237、he groups luxury revenue,while directly-operated retail sales were up 20.2%.Sales in Mainland China rose by 45.6%,supported by new franchise openings and recovering consumer demand.In Hong Kong,Macau,and other markets,sales were up by 63%,recovering strongly from the fall in the previous year.Macau

238、sales nearly doubled,as tourist spending recovered and local demand stabilized.New points of sale were opened in other markets with stronger local retail growth potential,including Malaysia and Singapore.The company saw growth in all product categories in FY2022.Sales of gold jewelry and products in

239、creased by 52.5%,contributing 73.7%of group sales.This growth was driven by the continual success of the CTF HU Collection and the retail expansion strategy in Mainland Chinas lower tier cities.Gem-set,platinum,and K-gold jewelry sales increased by 19.1%.Watches growth moderated in the second half o

240、f FY2022 partly due to a temporary supply shortage,and also when compared to a higher sales level in the second half of FY2021.Chow Tai Fook continued to expand its owned and franchised retail network in FY2022,with 1,311 net additional points of sale(POS).In Mainland China,the number of POS has mor

241、e than doubled since FY2018,to 5,764.At financial year end March 2022,approximately 74%of CHOW TAI FOOK JEWELLERY POS in Mainland China were franchises.Chow Tai Fook,like Richemont,has an early financial year end date of 31 March.The companys FY2022 growth was not sustained in FY2023,with sales for

242、the year ending 31 March 2023 down 4%,due to the ongoing impact of the pandemic in Mainland China.The company did not announce any M&A activity in 2022 to 2023.8Herms InternationalHerms International fell one place to eighth position in the Top 10 rankings,despite 29%sales growth in FY2022(23%at con

243、stant exchange rates),as it was overtaken by Chow Tai Fook.The company saw growth in all regions,led by America(up 32%,including sales from new stores in Austin,Texas,and New York).France also saw strong growth(27%),with high demand from both national and international clients.Sales in Asia(excludin

244、g Japan)were up 22%,contributing nearly half of total group revenue,thanks to sustained performance in China,and store openings and renovations.Japan and Europe(excluding France)saw constant currency sales increase by 20%and 18%respectively.Revenue from the groups store network increased by 23%at co

245、nstant exchange rates,while wholesale sales were up 26%,benefitting from the recovery in travel retail.Herms continued to develop its exclusive distribution network,and online sales rose again,with a 29%increase in traffic year-on-year.Seventy-nine percent of buyers on the site were new to Herms.Her

246、ms International achieved double-digit growth in all its product sectors.The largest product category,Leather Goods and Saddlery(primarily the iconic luxury Herms bags such as the Birkin bag),delivered 42.8%of the companys revenue in FY2022,with sales growth of 16%.The Ready-to-Wear and Accessories

247、division saw sales increase by 36%,thanks to the success of the ready-to-wear,fashion accessories,and footwear collections.The Watches business again reported the strongest growth in sales,up 46%,which Herms attributed to their creativity,unique style,and exceptional watchmaking know-how.Jewelry con

248、tinued an upward trend.Herms International again achieved industry-leading net profit margins.In FY2022,it had the highest net profit margin of all the companies in the Top 100,29.1%(up by 1.8 percentage points).The company has consistently been one of the most profitable companies in the Top 100,de

249、livering net profit margins of more than 20%in each of the past seven years FY2016 to FY2022.Herms did not report any M&A activity in 2022 and up to September 2023.Global Powers of Luxury Goods 2023|Game changing steps in luxury279RolexSwiss company Rolex retained its position as the ninth largest l

250、uxury goods company in FY2022.Privately owned Rolex does not publish its financial results and rarely makes official comments about its business.Industry analysts estimate continued strong growth of around 20%in Rolex brand sales during 2022,despite ongoing capacity and supply restrictions.The compa

251、ny is reported to be building three temporary new production sites in Switzerland to meet the rising demand,with operations commencing by 2025.59 These growth estimates are supported by published figures from Rolex official retailers such as Watches of Switzerland,a leading Rolex distributor in the

252、United Kingdom and United States,which reported retail sales of luxury watches up by 28%in its financial year to April 2023,driven by a combination of increased average selling price as well as higher volume.60 Rolex reportedly raised prices twice in 2022 in Europe,by around 10-11%in total.Historica

253、lly Rolex has increased its prices once a year but froze prices for two years during the pandemic.It made its usual January price increase in 2023,but according to industry analysts limited the average increase to around 2.5%,with 2.6%in the United Kingdom,and 2.2%in the United States.In December 20

254、22,Rolex announced the launch of the Rolex certified preowned program,enabling retailers in the brands official distribution network to sell second-hand models that are certified as authentic and which come with a new two-year international guarantee.61 The program was launched in Bucherer boutiques

255、 in Switzerland,Austria,Germany,France,Denmark,and the United Kingdom,with other official Rolex retailers able to join the program from spring 2023.Watches of Switzerland will launch its preowned relationship with Rolex in the United Kingdom and United States in 2024.The Deloitte Swiss Watch Industr

256、y Study 2022 estimated that by 2030,the preowned market is likely to grow to CHF35 billion,more than half the size of the primary market.62In August 2023,Rolex made a surprise announcement that it was acquiring exclusive international watch and jewelry retailer Bucherer after owner Jrg G.Bucherer de

257、cided to sell.63 Jrg G.Bucherer sadly passed away at the beginning ofNovember2023.According to the Deloitte Swiss Watch Industry Study 2023,Bucherer brand will retain its name and will continue to operate its more than 100 retail outlets independently,while Rolexs relationships with its other author

258、ised retailers willremainunchanged.The acquisition gives Rolex access to Bucherers prime real estate locations and distribution channels,strengthening Rolexs presence in key markets,such as Europe and the US through Bucherers subsidiary,Tourneau.64,65Rolex,that has limited direct-to-consumer retaili

259、ng experience,will now have more control and consistency over its entire customer journey,from purchase to after-sales service and will rely on Bucherers vast experience to extend its brand management,and identity,to the retail space.Global Powers of Luxury Goods 2023|Game changing steps in luxury28

260、10PVH Corp.PVH Corp.re-entered the Top 10 in FY2022,as it recovered from a pandemic-related sales decline in FY2021.Group revenue for FYE January 2022 was up 28.4%,still slightly below prepandemic levels,although the international business reported revenues higher than in 2019.Sales from PVHs two lu

261、xury fashion brands,Tommy Hilfiger and Calvin Klein,increased by one-third year-on-year.Calvin Klein saw the strongest recovery,with sales up 39%to US$3.66 billion.The brand expanded its global market leadership in underwear,while growing in casual categories such as athleisure,and in lifestyle prod

262、ucts including footwear.Tommy Hilfiger sales rose 29%,to US$4.7 billion,and the brands casual lifestyle range was expanded across its two lifestyles,TOMMY HILFIGER and TOMMY JEANS.It launched the first TOMMY HILFIGER circular denim collection in alliance with the Ellen MacArthur Foundation.E-commerc

263、e is an important part of the“PVH+Plan”strategy,announced in 2022,to drive brand,digital,and direct-to-consumer-led growth and accelerate financial performance.In FY2022,the Group reported approximately 30%growth across digital channels,maintaining total digital penetration of 25%as a percentage of

264、total revenue,which is double its 2019 prepandemic levels.It improved the consumer experience on its owned and operated sites,while strengthening its digital pure-player and traditional wholesale relationships,including those with Zalando,Tmall,and Amazon,where it created exclusive capsules and diff

265、erentiated consumer engagementcampaigns.PVHs FY2022 financial performance also recovered,with net profits of nearly US$1 billion,reversing the losses of more than US$1.1 billion in the previous year.Its 10.4%net profit margin was higher than the prepandemic levels of 4-8%reported in FY2016 to FY2019

266、.In November 2022,PVH announced a plan to bring the core product categories licensed to G-III Apparel Group back in house by 2025 to 2027.These relate mainly to the Calvin Klein and TOMMY HILFIGER womens North America wholesale business.Most of the license agreements with G-III in the United States

267、and Canada have been extended,with staggered expiration dates from 2025 through 2027.66 PVH Corps reported luxury goods sales in the FYE January 2023 were up by less than 1%year-on-year,due to adverse currency effects,as the US dollar strengthened against o ther currencies.At constant currency,Tommy

268、 Hilfiger and Calvin Klein revenues rose by 7%and 10%respectively.Tapestry acquisition of Capri Holdings will take Tapestry into the Top 10 global luxury companiesIn August 2023,Tapestry,Inc.announced an agreement to buy Capri Holdings for approximately US$8.5 billion.The deal is expected to close i

269、n 2024,subject to approval by regulators and Capris shareholders.Tapestry and Capri Holdings rank in 14th and 16th place respectively in the Top 100.Their combined FY2022 sales of US$12.4 billion would make them the eighth largest luxury goods company,with a presence in over 75 countries.Tapestry an

270、d Capri Holdings have complementary geographic strength in Asia and Europe.Joanne Crevoiserat,chief executive officer of Tapestry,said in the companys press release,“We are ready to leverage our competitive advantages across a broader portfolio of brands.The combination of Coach,Kate Spade,and Stuar

271、t Weitzman together with Versace,Jimmy Choo,and Michael Kors creates a new powerful global luxury house,unlocking a unique opportunity to driveenhanced value”.Global Powers of Luxury Goods 2023|Game changing steps in luxury29Global Powers of Luxury Goods 2023|Game changing steps in luxury30Global Po

272、wers of LuxuryGoods Top 100Luxury goods company sales soar,profitability higher than prepandemic levelsThe worlds Top 100 luxury goods companies generated personal luxury goods revenues of US$347 billion in FY2022(financial years ending between 1 January and 31 December 2022),up sharply from US$305

273、billion in the previous year,as the recovery from the impact of the COVID-19 pandemic continued.The importance of the biggest luxury goods companies is clear:the 17 companies with luxury goods sales of more than US$5 billion contributed nearly 70%of the total Top 100 luxury goods sales.The 43 compan

274、ies with sales of US$1 billion or less contributed only 6.4%.The minimum revenue threshold to enter the Top 100 was US$284 million.Top 100 companies by size:luxury goods sales in US$,FY202217%69.2%40%24.4%20%4.0%23%2.5%0%10%20%30%40%50%60%70%80%90%100%of companies%of luxury goods salesUS$5BUS$1-5BUS

275、$0.5-1BUS$0.5BSource:Deloitte Touche Tohmatsu Limited.Global Powers of Luxury Goods 2023.Analysis of financial performance and operations for financial years ending from 1 January to 31 December 2022 using company annual reports,industry estimates,and other sources.The composite performance of the T

276、op 100 companies in FY2022 reflects the continuing recovery from the impact of the COVID-19 pandemic,with stores open most of the year in most countries,travel and tourism returning,and consumer demand recovering especially in sectors such as makeup(see the separate box on the Impact of COVID-19 pan

277、demic and company financial year end dates on FY2022 Top 100 ranking).For the 80 Top 100 companies reporting net profits in FY2022,the composite net profit margin was 1.2 percentage points higher than last year,at 13.4%,and higher than prepandemic levels.Global Powers of Luxury Goods 2023|Game chang

278、ing steps in luxury31Top 100 companies:luxury goods sales YoY growth,net profit margin,return on assets,FY2020-2022-11.0%5.6%3.4%19.5%12.2%7.7%20.0%13.4%9.5%-15.0%-10.0%-5.0%0.0%5.0%10.0%15.0%20.0%25.0%Luxury goods sales growthNet profit marginReturn on assetsFY2020FY2021FY2022111Analysis of the FY2

279、022 Top 100 companies reporting net profits and/or total assets in each yearSource:Deloitte Touche Tohmatsu Limited.Global Powers of Luxury Goods 2023.Analysis of financial performance and operations for financial years ending from 1 January to 31 December 2022 using company annual reports,industry

280、estimates,and other sources.Global Powers of Luxury Goods 2023|Game changing steps in luxury32Top 100 companies by growth:%of companies with double/single digit growth or decline in luxury goods sales YoY58%22%3%18%6%6%15%11%13%8%61%78%0%10%20%30%40%50%60%70%80%90%100%FY2020 on FY2019FY2021 on FY202

281、0FY2022 on FY202110%Source:Deloitte Touche Tohmatsu Limited.Global Powers of Luxury Goods 2023.Analysis of financial performance and operations for financial years ending from 1 January to 31 December 2022 using company annual reports,industry estimates,and other sources.Ninety-one of the Top 100 co

282、mpanies reported growth in luxury goods sales in FY2022,compared to 72 in FY2021 and only 23 in FY2020.Seventy-seven companies reported double-digit sales growth;and Aritzia,Damiani,Textil Lonia,TFG Brands,and Richemont all saw luxury goods sales jump by more than 50%.Only Fossil Group,Amore Pacific

283、 Corporation,and DR Corporation reported a double-digit decline in luxury goods sales in FY2022,due mainly to the continuing impacts of the pandemic,particularly in Mainland China and on travel retail.This compares to 22 companies reporting double-digit sales declines in the previous year.Global Pow

284、ers of Luxury Goods 2023|Game changing steps in luxury33Top 100 companies by net profit margin:%of companies with double/single digit net profit margin gain or loss,FY2020-202217%10%1%22%10%9%44%51%53%16%30%38%0%10%20%30%40%50%60%70%80%90%100%FY2020FY2021FY202210%Analysis of the FY2022 Top 100 compa

285、nies reporting net profits in each yearSource:Deloitte Touche Tohmatsu Limited.Global Powers of Luxury Goods 2023.Analysis of financial performance and operations for financial years ending from 1 January to 31 December 2022 using company annual reports,industry estimates,and other sources.The net p

286、rofit margins continued to recover in FY2022,with 90%of the Top 100 companies achieving profitability,compared with 80%in FY2021 and 60%in FY2020,and 30 companies achieving double-digit net profit margins.The Top 10 global luxury companies contributed over three-quarters of the Top 100s total net pr

287、ofits in FY2022.LVMH,Kering,Chanel,Herms,Pandora,Moncler,Barbour and Pandora sustained their profitability throughout the pandemic,reporting double-digit net profit margins in each of the past six years.Overall high performersIn FY2022,23 companies reported both double-digit luxury goods sales growt

288、h and double-digit net profit margins.These included eight of the 10 multiple luxury goods companies,and half of the Top 10 luxury giants.LVMH,Kering,Chanel,Herms and Italys Moncler are notable for their consistent high growth and profitability over the past five years(excluding FY2020 due to the pa

289、ndemic).Global Powers of Luxury Goods 2023|Game changing steps in luxury34M&A,disposals and partnership activityAfter a surge in 2021 following the COVID-19 pandemic,mergers and acquisitions activity in the personal luxury goods Top 100 slowed slightly in 2022 and the first eight months of 2023.Delo

290、ittes Global Fashion&Luxury Investment and Private Equity Survey 2023 reported that there were 30 fewer deals in 2022 compared to 2021.The survey identified cosmetics and fragrances as the most attractive sector for investors in 2023,followed by apparel and accessories.The greatest number of deals b

291、y the Top 100 companies were intheareas of:Clean Beauty:brand acquisition in this growth sector Brand growth in other sectors through acquisition andlicensing Specialist supplier acquisition:continued vertical integration of the supply chain,primarily by fashion companies Distribution:physical store

292、 and online acquisition andexpansion Private equity(PE)and family controlling share acquisitionSignificant acquisition,disposal,and relationship activity by luxury goods companies below the Top 10 in 2022-2023(to endAugust)include:Clean Beauty Shiseido continued its fundamental business transformati

293、on“WIN 2023 and Beyond”,positioning premium skin beauty as its core business.It has carried out a series of disposals of its noncore businesses.In February 2022,it announced the transfer of its Professional Business to Henkel,retaining a 20%share in the company.67 This followed the 2021 sale of its

294、Personal Care business and prestige makeup brands bareMinerals,BUXOM,and Laura Mercier.68,69 In September 2022,Shiseido agreed to acquire Galline Ltd,a UK-based microbiome skincare-focused brand.70 Puig acquired majority stakes in several local luxury companies in 2022,as part of its international e

295、xpansion strategy:Swedens Byredo,Colombias Loto del Sur(which offers a complete range of natural products made from Latin American flora),and Indias leading authentic Ayurvedic brand of beauty and personal care products,Kama Ayurveda.71,72,73 South Koreas Amore Pacific announced in September 2022 th

296、at it had agreed to acquire US luxury clean beauty brand Tata Harper,in a move that further signals the companys intention to continue its penetration of global markets,with a focus on consumers in North America.74 LOccitane International added two new brands to its portfolio in its FY2022Sol de Jan

297、eiro in December 2021 and Grown Alchemist in April 2022accelerating its strategy to build a leading portfolio of premium beauty brands.Sol de Janeiro is a US-based fast-growing,award-winning lifestyle skincare brand,known for its best-selling Brazilian Bum Bum Cream.75 Grown Alchemist is an Australi

298、an cosmeceutical,clean skincare brand,with a focus on futuristic anti-aging technology and unique botanical skincare formulas for optimal skin health.76 Famille C,the holding company of the Courtin-Clarins family,bought stakes in two Clean Beauty brands.It took a minority stake in US brand Ilia Beau

299、ty,which will remain independent,in February 2022,and a majority stake in UK-based Pai Skincare,which specializes in organic,vegan and cruelty-free skincare,in April 2023.77,78Brand growth:acquisition and licensing In August 2023,Tapestry,Inc.announced an agreement to buy Capri Holdings for US$8.5 b

300、illion.The deal is expected to close in 2024,subject to approval by regulators and Capris shareholders.Tapestry and Capri Holdings rank in 14th and 16th place respectively in the Top 100.Their combined FY2022 sales of US$12.4 billion would make them the eighth largest luxury goods company,with a pre

301、sence in over 75 countries.Tapestry and Capri Holdings have complementary geographic strength in Asia and Europe.Joanne Crevoiserat,chief executive officer of Tapestry,said in the companys press release,“We are ready to leverage our competitive advantages across a broader portfolio of brands.The com

302、bination of Coach,Kate Spade,and Stuart Weitzman together with Versace,Jimmy Choo,and Michael Kors creates a new powerful global luxury house,unlocking a unique opportunity to drive enhanced value”.79,80 G-III Apparel,owner of the DKNY and Donna Karan brands,took full ownership of Karl Lagerfeld in

303、May 2022.81 Around half of G-III Apparels sales come from exclusive distribution agreements with PVH Corp.for a range of Calvin Klein and Tommy Hilfiger product categories in North America,although PVH announced that a number of these will expire in 2025 to 2027,as PVH takes its North American women

304、s wholesale business in-house.82 In March 2023,the company announced that it had signed a long-term license with Authentic Brands Group for the Nautica brand in North America.83 In May 2023,OTB announced a licensing agreement with Max Mara for the development,production,and exclusive worldwide distr

305、ibution of the new Max&Co.girl line,starting in the Spring/Summer 2024 season.84 OTB Group has stated its interest in potential acquisitions in the luxury sector.Global Powers of Luxury Goods 2023|Game changing steps in luxury35 In April 2023 Ermenegildo Zegna Group completed its acquisition of Tom

306、Ford International(TFI)and entered into a long-term licensing agreement with The Este Lauder Companies Inc.(ELC)for TOM FORD FASHION,as part of Este Lauder Companies TOM FORD brand acquisition.Zegna already owned 15%of TFI,the company that owns and operates the TOM FORD fashion business and acquired

307、 the remaining 85%as part of this transaction.Zegna Group has become a long-term licensee of ELC for all TOM FORD mens and womens fashion,as well as accessories and underwear,fine jewelry,childrens wear,textile,and home design products.The company will be in charge of the end-to-end TOM FORD FASHION

308、 business,from collection creation and development to merchandising,production,and retail andwholesaledistribution.85 Dolce&Gabbana launched a new legal entity,Dolce&Gabbana Beauty,in January 2023,after the company decided to take its 1 billion beauty business in-house.86 The move was partly due to

309、a change in strategy by its former beauty licensee entity Shiseido,as it cut costs following theCOVID-19pandemic.87 Safilo increased its controlling stake in Priv Revaux to 81.9%in January 2022.88 The company agreed a new exclusive license with Etro in June 2023,but its Jimmy Choo license will not b

310、e renewed when it expires at the end of 2023.Inter Parfums signed a licensing agreement with G-III Apparel for Donna Karan and DKNY fragrances from 1 July 2022,as Este Lauder Companies rationalized its designer fragrances license range.89 It also signed a 15-year worldwide licensing agreement for pe

311、rfumes and cosmetics with Lacoste,effective 1January2024.90 Authentic Brands Group completed the acquisition of several luxury companies.Ted Baker,a struggling UK luxury fashion company,was acquired for 211 million(US$254 million)in October 2022.Luxury US sportswear brand Vince was acquired in May 2

312、023 and UK footwear company Hunter in June 2023.91,92,93 Authentic Brands has made multiple luxury and nonluxury brand acquisitions in recent years,including Reebok,and has a strategy of diversifying its portfolio with brands that originate outside the United States.In November 2022,Marcolin SpA sig

313、ned an agreement with The Este Lauder Companies Inc.(ELC)to enter into a long-term licensing relationship for TOM FORD eyewear,as part of Este Lauders TOM FORD brand acquisition.The agreement is a significant extension of the current licensing agreement and grants a perpetual license to TOM FORD aga

314、inst payment by Marcolin of US$250 million.94 Rigo signed license agreements for eyewear luxury brands Philosophy di Lorenzo Serafini(owned by Aeffe),Roberto Cavalli and Just Cavalli in 2022.95,96 In December 2022,De Rigo announced the acquisition of Rodenstocks eyewear division,which includes premi

315、um brands Rodenstock Eyewear and Porsche Design Eyewear,as part of De Rigos strategic plan for further international expansion and growth in the premium eyewear segment.97 In 2023,De Rigo signed further license agreements with Twinset and Barrow.98,99Global Powers of Luxury Goods 2023|Game changing

316、steps in luxury36Specialist supplier/craftsmanship acquisitions Burberry acquired Pattern SpA,its Italian supplier of luxury ready-to-wear including quilts and downs,for 21 million in March 2023.Burberry said that this investment enabled it to secure capacity,build technical outerwear capability,and

317、 further embed sustainability into its value chain.100 In September 2022,Prada acquired 43.65%of Tuscan calfskin tannery Superior SpA,which it said was“another important step in the strategic direction toward vertical integration of the Prada Groups supply chain”.101 In June 2023,Prada and Zegna Gro

318、up each acquired 15%of luxury knitwear manufacturer and Fedeli brand owner Luigi Fedeli e Figlio Srl.Prada CEO Patrizio Bertelli said:“This agreement for a Prada Groups acquisition of a shareholding in Fedeli represents a strategic investment to preserve the know-how and tradition of an Italian exce

319、llence in fine yarn.”102 Patek Philippe acquired an undisclosed stake in Salanitro S.A.,Switzerlands biggest gem-setting and jewelry specialist watchmakers supplier,in September 2022.“Salanitro is ideally positioned to continue to grow and develop its production capacity in the jewellery watch segme

320、nt,which offers significant potential for development,”said Thierry Stern,president of Patek Philippe.103 OTB acquired a majority stake in Italian leather goods manufacturer Frassineti,in May 2023.Frassineti has been a long-term supplier of Jil Sander,one of OTBs star portfolio brands.Renzo Rosso,th

321、e chairman and founder of OTB Group,stated that their luxury brands prioritize craftsmanship and high-quality raw materials,made possible through collaborations with companies like Frassineti.104 Brunello Cucinelli reduced its stake in Lanificio Cariaggi Cashmere,in a business relationship with Chan

322、el,where each company now has a 24.5%stake in their supplier of cashmere yarn for knitwear,in May 2023.105 Brunello Cucinelli had previously taken a 43%stake in Lanificio Cariaggi in 2021.106 Golden Goose,the Italian luxury sneakers specialist,made a series of acquisitions in 2022,in line with its s

323、trategy for vertical integration of its supply chain.In April 2022,the company acquired 40%of Coronet,an Italian manufacturer of plant-based synthetic leather and eco-leather,in a relationship to develop sustainable solutions.The first sustainable sneaker by the relationship was launched under the Y

324、atay brand name.107 This was followed by the companys September 2022 acquisition of a 30%stake in its supplier Calzaturificio Sirio,with an option to take majority control in 2023.108 In December 2022,Golden Goose completed the acquisition of its main supplier,the Italian Fashion Team(IFT)company.IF

325、T specializes in designing,producing,and commercializing high-end sneakers,with 80%of its output in 2022 supplied to Golden Goose.109 CEO Silvio Campara commented in 2023 that they would continue their acquisition strategy:“What we did last year is not going to be the last one.for sure we have other

326、 acquisitions inthepipeline”.110Luxury watchmaker Hublot,a brand of LVMH,has acquired a 70%stake for$23.1 million from the Korean ceramic supplier Ecco.Hublot has also acquired an option to purchase the other 30%stake in the future.Ecco started providing key components like ceramic to Hublot in 2008

327、.The manufacturers ceramics have attracted the attention of global luxury watchmakers thanks to their exceptional quality,hardness and color.Global Powers of Luxury Goods 2023|Game changing steps in luxury37Distribution:Stores and online Pandoras merger and acquisition activity was driven by its“Pho

328、enix”growth strategy,which includes expanding in core markets,with particular focus on the United States and China(which together represent more than 50%of the global jewelry market).It acquired 49 franchise stores in the United States and Canada in 2022(Ben Bridge Jewelers and Panbor)and also annou

329、nced a formal business relationship with Macys for a nationwide rollout of Pandora shop-in-shops in key market locations across the United States.111,112 In June 2022,Pandora acquired 34 locations from its distributor Viso do Tempo,to assume full ownership of itsPortuguesebusiness.113 Farfetch made

330、a series of acquisitions and investments which confirmed its position as the leading global platform for the luxury fashion industry.In August 2022,it acquired 47.5%of Richemonts YOOX NET-A-PORTER(YNAP)online platform,with an option to acquire the remainder.YNAP is adopting Farfetch Platform Solutio

331、ns to advance growth and shift toward a hybrid business model.114 In January 2022,the company announced it was acquiring US-based B2B luxury beauty retailer Violet Grey,and in April 2022 announced the launch of Beauty across Farfetch companies,Browns,F and Off-White to“provide a curated edit of the

332、best luxury beauty products to serve customers across ages,races,cultures,and genders in an“Only on Farfetch”way”.115,116 Farfetch also acquired the remaining shares in Palm Angels,to take full ownership of the company.Following its acquisition of Reebok in 2022,Authentic Brands Group collaborated w

333、ith Farfetch to operate its business in Europe,replatform its European e-commerce sites and drive the evolution of the brand by expanding its luxury collaboration offerings globally.The relationship is being managed by wholly owned Farfetch company New Guards Group(NGG),through a newdivision,NGG+.117 De Rigo extended its strategy for direct distribution control in key markets,with the opening of D