Competitor Strategies in Luxury Goods

March 2024

The COVID-19 pandemic, the cost-of-living crisis and high inflation continue to have a substantial impact on affluent populations, their wealth and their spending habits on luxury goods. The top wealth segments stand out now more than ever before, and remain the key consumers and drivers of luxury goods. This report provides a top-line overview of market performance across the major competitors, and outlines key trends within the global luxury goods business landscape.

USD 1,325
Request More Information


This report comes in PPT.

Key Findings

Macroeconomic factors continue to weigh heavily on key player recovery

The global luxury goods industry continued on its road to recovery in 2023, with just under 3% year-on-year growth, driven by Asia Pacific and the US. However, challenges persist, thanks to slower global growth and high inflation, coupled with ongoing energy pressures, rising cost of capital, tight labour markets, geopolitical risks and a reset of globalisation.

Emerging markets are becoming the focal point for luxury industry expansion

Emerging markets are increasingly a focal point for industry expansion, driven by growing populations and increasing wealth. Luxury brands are strategically targeting these markets to tap into new consumer bases, adapt products to diverse cultural preferences and capitalise on the untapped potential for significant growth in regions such as Latin America.

Shifting consumer mindsets benefit brands that strengthen the wellbeing of consumers and the planet

Becoming a purpose-driven luxury brand or company that recognises the importance of bringing value beyond profits has become increasingly important to appeal to high-income consumers and avoid collateral damage. In a crowded marketplace, a growing number of consumers are turning to brands that align with their values.

Leveraging luxury lifestyle for enhanced customer experience and brand engagement

Wealthy consumers are increasingly regarding luxury goods as long-term investments in themselves, prioritising the pursuit of richer and more authentic experiences for a fuller life. This is giving further opportunity for luxury brands to side-step into this area by venturing into branded cafés, restaurants, food and wine pop-ups, as well as luxury hotels, spas and wellness.

Generative AI set to make a significant contribution among multiple and complex challenges

As more consumers adopt Gen AI applications, luxury businesses will find more use cases to optimise design processes and enhance creativity. Gen AI also has the potential to reshape the industry towards a more sustainable future, from creating virtual prototypes to predicting consumer preferences and fostering innovation throughout the entire value chain.

Key findings
Luxury market continues to show relative resilience amid a new economic reality
Performance across different categories continues to exhibit mixed results
Luxury competitors grapple with persistent pressure on discretionary spending
Luxury players remain cautious with only two out of seven regions at pre-pandemic levels
Competitive landscape to be boosted by number of affluent consumers in emerging markets
Five out of the top 10 global economies will be emerging markets
Expansion into new territories continues to drive leading players’ long-term strategies
Global top 10 continue to control a significant proportion of the luxury goods industry
Global powerhouse LVMH increases s hare of wallet across the luxury industry
Leading luxury players continue to show resilience amid unprecedented disruption
LVMH, Kering, Richemont and Chanel all outperform the industry
M&A activity brings some of the biggest names in luxury and fashion together
Acquisition of Tiffany & Co boosts LVMH Moët Hennessy Louis Vuitton SA’s ranking
Further consolation in luxury eyewear expected as leading players streamline operations
Luxury competitive landscape to remain dynamic and resilient, poised for further growth
Lifestyle extensions to provide untapped revenue and brand equity for luxury players
Exploring new horizons for luxury brands to venture into home, hospitality and lifestyle
Boom in lifestyle category helps sustain brand equity and tap into new pockets of wealth
Rise of luxury residences and digital nomadism creates a whole new competitive landscape
Luxury consumers seek escape from daily stress and anxieties through d elightful distractions
Dolce & Gabbana takes brand to the next frontier by moving into real estate development
LVMH-owned Celine brand makes foray into luxury colour cosmetics
Luxury department store Liberty elevates brand experiences with its new Fragrance Lounge
Luxury players to increase investments in greener sourcing, energy and shorter supply chains
Luxury consumers urge brands to do more than pay lip service on sustainability
More luxury companies bring the re-sell model in-house
Chloé and Pangaia adopt E.On digital product passports (DPPs) to enable instant resale
LVMH introduces Nona Source, the first online resale platform for materials
The Mulberry Exchange buy back programme goes from strength to strength
Generative AI to help luxury companies reach the next-level shopping experience
Consumer empowerment: Luxury brand engagement and co-creation with generative AI
A pivotal time for luxury corporates to understand and integrate generative AI solutions
More luxury brands use social media and s-commerce to cultivate deeper engagement
More luxury consumers flock to TikTok and Douyin with China leading the pack
Luxury brands expand to livestreaming on social media to increase exposure in China
Case study: Alibaba uses generative AI to optimise the Tmall shopping experience
Key strategies in the luxury goods industry

Luxury Goods

This is an aggregation of: Personal Luxury, Fine Wines/Champagne and Spirits, Luxury Cars and Experiential Luxury.

See All of Our Definitions


If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!