In this article, we will discuss the 15 Biggest Luxury Companies in the World. You can skip our industry overview and go directly to the 5 Biggest Luxury Companies in the World.
The luxury industry consists of manufacturers of personal luxury goods and companies that sell luxury experiences, such as those in the hospitality business. The demand in this sector is frequently correlated to income levels, especially in developed economies where the primary target market is located. However, in 2022, the global luxury market defied this logic, as it continued to grow under uncertain economic times, as per a report issued by Bain & Company. The luxury sector experienced a sales boom in 2021 following COVID-19, and this trend persisted in 2022. According to Bain, the market for personal luxury products was expected to reach €353 billion by the end of 2022, a 22% YoY rise. Bain also forecasted the global luxury market to grow by 21% in 2022, closing the year at €1.4 trillion.
An expanding customer base and the use of a multi-touchpoint ecosystem make the luxury market resilient against economic upheavals. Luxury companies are expanding this ecosystem to the virtual world, with several brands launching their metaverse strategies in 2022. LMVH, home to luxury brands like Louis Vuitton and Dior, launched its immersive virtual world at VivaTech, allowing customers to experience its innovations. L'Oréal has been dabbling in NFTs and is even considering adopting crypto as a payment method. Gucci also launched Gucci Town, a Roblox-based online marketplace for virtual clothing and games.
Demand from Generation Z is the other main factor driving expansion. Millennials and Gen Z accounted for 72% of the global luxury market in 2022. Explaining the rise in demand from these younger customers, a Morgan Stanley report notes that a rising number of these younger customers have not yet moved out of their parents' houses. When young individuals free up their budget for daily essentials, they are left with more disposable income to spend on wants, which explains the rising demand for luxury items. The RealReal 2022 Luxury Resale Report also finds that, due to the development of a solid resale market, more customers, particularly Gen-Z, are viewing their luxury purchases as investments.
The future of luxury corporations thus depends not only on macroeconomic conditions but also on how they can maintain their appeal to the socially and politically active Gen-Z and launch successful omnichannel marketing campaigns.
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Our Methodology
We focused more on the luxury clothing space for this article and picked the biggest luxury companies operating in the clothing, apparel, footwear and related industries.
Founded in 1984, Gildan Activewear Inc. (NYSE:GIL) is a Canadian apparel company that manufactures and sells t-shirts, socks, and other clothing products. The company is a leading manufacturer of branded and private-label apparel products, including t-shirts, fleece, sports shirts, socks, and underwear. It operates manufacturing facilities in the Americas, Europe, and Asia, and its products are sold in more than 60 countries around the world. Gildan Activewear is one of only two North American companies to be included in the Dow Jones Sustainability World Index in the textiles, apparel and luxury goods sector.
In addition to Gildan Activewear Inc. (NYSE:GIL), The Swatch Group AG (OTC:SWGAY), Hermès International Société en commandite par actions (RMS.PA), and LVMH Moët Hennessy - Louis Vuitton, Société Européenne (OTC:LVMUY) are included in our list of 15 biggest luxury companies in the world.
Columbia Sportswear Company (NASDAQ:COLM) is a global apparel, footwear, and accessories company that designs, develops, and markets products under the Columbia, Mountain Hardwear, SOREL, and prAna brands. Columbia Sportswear Company (NASDAQ:COLM) has a strong presence in the United States and Canada, as well as a significant international business in Europe, Asia, and Latin America.
In addition to its core apparel and footwear products, Columbia Sportswear Company (NASDAQ:COLM) also offers a range of accessories, including hats, gloves, and backpacks.
Founded in 1853, Levi Strauss & Co. (NYSE:LEVI) is a global apparel company that designs, develops, and markets a range of products, including jeans, clothing, and accessories. Levi Strauss & Co. (NYSE:LEVI) is best known for its iconic Levi's brand of jeans, which are sold in more than 110 countries around the world. In addition to jeans, the company also offers a range of other clothing and accessories products under a variety of brand names, including Levi's, Dockers, and Signature by Levi Strauss & Co. (NYSE:LEVI).
With a market cap of $6.95 billion, Ralph Lauren Corporation (NYSE:RL) ranks 12th on our list of 15 biggest luxury companies in the world. Ralph Lauren Corporation (NYSE:RL) is a global fashion company that designs, develops, and markets a range of products, including apparel, accessories, home furnishings, and fragrances. Ralph Lauren Corporation (NYSE:RL) is known for its high-end fashion products, which are sold under a variety of brand names, including Ralph Lauren, Ralph Lauren Purple Label, Ralph Lauren Collection, and Double RL. The company's products are sold through a variety of channels, including department stores, specialty retailers, and e-commerce. The company has a significant international presence, with operations in more than 50 countries around the world.
Capri Holdings Limited (NYSE:CPRI) is a global fashion company that designs, develops, and sells a range of products through its Michael Kors, Jimmy Choo, and Versace brands. Capri Holdings Limited (NYSE:CPRI) operates a number of retail stores and e-commerce websites around the world and also sells its products through department stores, specialty stores, and other retail channels.
Tapestry, Inc. (NYSE:TPR) ranks 10th on our list of 15 biggest luxury companies in the world. Founded in 1941, Tapestry, Inc. (NYSE:TPR) is an American multinational luxury fashion holding company based in New York City. The company's portfolio of brands includes Coach, Kate Spade, and Stuart Weitzman. Tapestry, Inc. (NYSE:TPR) designs, develops, and sells a range of fashion products, including handbags, accessories, and apparel, and it operates a number of retail stores and e-commerce websites around the world.
Here is what Ariel International & Ariel Global Fund has to say about Tapestry, Inc. (NYSE:TPR) in its Q3 2021 investor letter:
Luxury accessory and lifestyle brand, Tapestry, Inc. was the top contributor to performance over the trailing one-year period. Revenue improvement across all three brands with a notable increase in consumer demand, particularly for the Coach business, triple-digit growth in e-commerce, and better than expected pricing, drove margins higher. Looking ahead, we expect Tapestry’s supply chain and SKU rationalization initiatives to continue to deliver margin expansion. Together, with early signs of improved receptivity for the Kate Spade brand, we believe a significant value creation opportunity lies ahead.
Market Cap as of December 31, 2022: $10.63 billion
V.F. Corporation (NYSE:VFC) is an American multinational apparel and footwear company based in Greensboro, North Carolina. The company's portfolio of brands includes Vans, The North Face, Timberland, and Wrangler, among others. V.F. Corporation designs, develops, and sells a wide range of products, including apparel, footwear, and accessories, and it operates several retail stores and e-commerce websites around the world.
8. Prada S.p.A. (1913.HK)
Market Cap as of December 31, 2022: HK$112.84 billion
Headquartered in Milan, Italy, Prada S.p.A. (1913.HK) is an Italian luxury fashion company that was founded in 1913 by Mario Prada. Prada S.p.A. (1913.HK) designs, develops and sells a range of high-end fashion products, including handbags, clothing, footwear, and accessories, and it operates a number of retail stores and e-commerce websites around the world. The company is known for its distinctive style and its use of high-quality materials, and it has a reputation for luxury and exclusivity.
7. adidas AG (ADS.DE)
Market Cap as of December 31, 2022: €23.26 billion
Founded in 1949, adidas AG (ADS.DE) is a multinational corporation that designs and manufactures sports shoes, clothing, and accessories. The company is headquartered in Herzogenaurach, Germany. It is one of the largest sports apparel and footwear companies in the world, operating a number of retail stores and e-commerce websites around the globe.
Market Cap as of December 31, 2022: $40.53 billion
With a market cap of $40.53 billion, Lululemon Athletica Inc. (NASDAQ:LULU) ranks 6th on our list of 15 biggest luxury companies in the world. Founded in 1998, Lululemon Athletica Inc. (NASDAQ:LULU) is a Canadian athleisure company that designs, develops, and sells a range of athletic apparel, footwear, and accessories for men and women, and it operates a number of retail stores and e-commerce websites around the world. Lululemon Athletica Inc. (NASDAQ:LULU) is known for its high-quality, technical athletic apparel and its focus on health and wellness. Despite being a sportswear brand, Lululemon Athletica Inc. (NASDAQ:LULU) falls in the luxury category since its products are made with high-quality materials and several of its items have hefty price tags. The company also has partnerships with notable celebrities.
