Upmarket European brands continue to boom in global luxury markets, with dozens of labels including Gucci, Christian Dior, Bvlgari and Hublot recording record growth.
LVMH Moët Hennessy Louis Vuitton increased revenue by 10% in 2018, with €46.8 billion in sales and strong growth in Asia, Japan, the US and Europe.
Fashion and leather goods saw the largest leap with sales up 15% in the last year making it the biggest business group with €18,455 million. Louis Vuitton was a positive influencer despite being the only brand in the world to never hold sales or sell through outlets.
“In an environment that remains uncertain, we can count on the appeal of our brands and the agility of our teams to strengthen, once again in 2019, our leadership in the universe of high-quality products,” – Bernard Arnault
“The desirability of our brands, the creativity and quality of our products, the unique experience offered to our customers, and the talent and the commitment of our teams are the Group’s strengths and have once again made the difference,” LVMH CEO and Chairman Bernard Arnault says. “In an environment that remains uncertain, we can count on the appeal of our brands and the agility of our teams to strengthen, once again in 2019, our leadership in the universe of high-quality products.”
Combining tradition and modernity will be one of the key visions for LVMH’s mission to continue growth this year. The positive cash-flow for the world’s leading luxury products group follows its recent acquisition of opulent travel company Belmond.
Luxury market growth continues to be a strong force in Asia despite China’s economy slowing to its weakest rate in 10 years (which followed the US trade tariff introduction). China is one of the fastest-growing countries for luxury goods where millennials and Generation Z lead the charge.
Kering, the umbrella brand of Gucci, Yves Saint Laurent, Bottega Veneta, Balenciaga and Alexander McQueen to name a few, recorded consolidated revenue of €13,665.2million in 2018 – an increase of 26.3% on the previous year.
French designer Gucci delivered exceptional growth of 42%, bringing its total brand sales to €6.2 billion, according to Deloitte’s 2018 study.
“Our healthy, balanced and profitable growth reflects skillful execution of our strategy, rigorous financial discipline, and a shared culture emphasising responsibility and commitment,” – François-Henri Pinault
The iconic label made history when it became the world’s most popular brand in Q4 2018. The Lyst Index found six million shoppers searched online for a Gucci bag, belt or shoe between October and December.
“Once again, we significantly outperformed our sector,” Kering Chairman and CEO François-Henri Pinault says. “In an environment that was generally favourable but grew increasingly complex, Kering generated €2.8 billion in incremental revenues and €1.3 billion in additional EBIT compared to 2017.
“Our healthy, balanced and profitable growth reflects skillful execution of our strategy, rigorous financial discipline, and a shared culture emphasising responsibility and commitment.”
A sense of responsibility is a key driving factor for the leading luxury businesses, with both Arnaut and Pinault suggesting the inclusion of sustainable and ethical products for 2019.
As conscious fashion continues to gain momentum, find out how three young designers are creating sustainable clothing to stand out from the crowd at the 2019 BT Emerging Fashion Design Awards.
