Luxury Retail Industry Statistics

Bain & Company reported that online luxury penetration was 27% in 2023 [1]

Bain & Company reported that mobile accounted for 41% of luxury website visits in 2023 [1]

Bain & Company reported that 60% of luxury customers used at least one digital touchpoint before purchase in 2023 [1]

Bain & Company reported that a majority of luxury customers are “multi-category” shoppers [1]

Bain & Company reported that high-net-worth individuals (HNWIs) continued to drive luxury demand [1]

Bain & Company reported that 2023 growth in Asia was driven by Chinese consumers and tourists [1]

Bain & Company reported that younger consumers (Gen Z/Millennials) increased their share of luxury spending in 2023 [1]

Bain & Company reported that loyalty programs influenced purchase decisions for 30%+ of luxury shoppers [1]

Bain & Company reported that customers increasingly prefer experiential retail to purely product-focused stores [1]

Bain & Company reported that personalization drives higher conversion for luxury e-commerce [1]

Bain & Company reported that luxury customers often use “buy online, pick up in store” (BOPIS) in peak shopping periods [1]

Deloitte’s 2023 consumer survey found that 31% of consumers are willing to pay more for sustainable products [2]

Deloitte’s survey indicates 41% of consumers consider sustainability when choosing brands [2]

McKinsey reports that 25% of luxury shoppers are “digital-first” and buy mostly online [3]

McKinsey reports that 70% of consumers expect brands to provide personalized experiences [4]

McKinsey reports that 78% of consumers say they are more likely to purchase from brands that personalize communications [3]

Bain & Company reported that 30% of luxury customers shop across multiple channels (omnichannel) [1]

Bain & Company reported that social media influences luxury purchase decisions for about one-third of customers [1]

Bain & Company reported that luxury customers increasingly expect sustainability and traceability [1]

Bain & Company reported that desire for exclusivity remains a major driver for luxury purchases [1]

Bain & Company reported that consumers are more value-sensitive while remaining brand-focused [1]

Bain & Company reported that the “aspiration” segment remains significant among younger luxury buyers [1]

Bain & Company reported that luxury “competence” customers value craftsmanship and heritage [1]

Bain & Company reported that high-end customers are more willing to pay for limited editions [1]

Bain & Company reported that customers in China value both Western and local luxury brands [1]

Bain & Company reported that tourists continue to drive seasonal spikes in European luxury retail [1]

Consumer Insights from Shopify found 76% of consumers expect brands to understand their needs and preferences [5]

IBM’s 2023 study (or updated) found that 57% of consumers will pay more for a better customer experience [6]

Salesforce’s “State of the Connected Customer” found 88% of customers expect brands to know their history [7]

Salesforce found 84% of customers say the experience a company provides is as important as its products [7]

McKinsey found that omnichannel customers can have a 10% higher lifetime value than single-channel customers [8]

Bain & Company reported sustainability and responsible sourcing are increasingly central themes in luxury [1]

Bain & Company reported that consumers expect transparency on materials and supply chains [1]

Bain & Company reported that traceability investments are increasing across luxury supply chains [1]

Bain & Company reported that circularity initiatives (repair, resale, recycling) are growing in luxury [1]

European Commission text on the Corporate Sustainability Reporting Directive requires large companies and listed SMEs to report under CSRD starting with fiscal year 2024 for certain entities [9]

CSRD directive (2022/2464/EU) requires assurance of sustainability reporting over time beginning with limited assurance [9]

EU Green Claims Directive proposal aims to reduce misleading environmental claims and includes substantiation requirements [10]

EU Corporate Sustainability Due Diligence Directive proposal (CSDDD) requires companies to identify and prevent adverse impacts [11]

EU Packaging and Packaging Waste Regulation targets recycling rates of 65% for packaging waste by 2025 (includes packaging types) [12]

EU Batteries Regulation sets collection targets (e.g., 51% minimum collection rate by 2028) [13]

IEA estimates the fashion industry accounts for about 2–8% of global GHG emissions [14]

United Nations Environment Programme (UNEP) states the fashion industry is responsible for about 20% of wastewater globally [15]

Ellen MacArthur Foundation reports that the fashion industry produces about 92 million tonnes of textile waste annually [16]

Ellen MacArthur Foundation reports that only 1% of clothing is recycled into new clothing [16]

OECD reports that global material use has tripled over 50 years and reached 92 billion tonnes in 2017 [17]

CDP (climate disclosure) reports that more than 21,000 companies disclosed environmental data through CDP in 2023 [18]

CDP reports that 1,000+ investors requested climate disclosures through CDP in 2023 [18]

LVMH 2023 Universal Registration Document states its “LIFE 360” program aims to reduce GHG emissions by 50% by 2030 vs 2016 [19]

LVMH LIFE 360 aims for 100% renewable energy by 2030 [19]

Kering 2023 annual report states Kering’s target to reduce absolute GHG emissions by 50% by 2025 vs 2015 [20]

Kering reports that 100% of its controlled production sites have environmental management systems (ISO 14001 or equivalent) as of 2023 (if stated in report) [20]

Richemont 2023 report states its commitment to reach net zero by 2040 (or 2050 depending on scope—exact value in report) [21]

Hermès 2023 report states it plans to reach carbon neutrality (net zero) by 2030 (exact term in report) [22]

EU REACH/chemicals restriction impacts cosmetics and textiles; however, a specific regulation is “SVHC authorization” which includes thresholds—use EU list of substances of very high concern count [23]

ECHA candidate list shows 224 SVHCs (example number shown on the page at retrieval) [23]

EU PFAS restrictions under REACH: restrictions proposed include levels for PFOS/PFOA; use ECHA documentation for PFAS restriction [24]

World Bank estimates global municipal solid waste generation will reach 3.40 billion tonnes by 2050 (including waste pressures that affect packaging) [25]

World Bank “What a Waste 2.0” reports that 2.01 billion tonnes of waste are generated annually worldwide (2016 data) [25]

Global luxury goods market size was valued at $359.5 billion in 2023 [1]

Bain & Company projects the global luxury goods market will grow from €349 billion in 2022 to €397–406 billion in 2023 [1]

Bain & Company reported the luxury goods market grew by 8% in 2023 (current terms) [1]

Bain & Company projects the luxury goods market to grow by 3–5% in 2024 [1]

Bain & Company projects the luxury goods market to grow to €430–440 billion by 2025 [1]

Deloitte estimates the global luxury market will reach €400 billion by 2025 [26]

Deloitte’s “Global Powers of Luxury Goods 2024” report states total luxury industry revenue for the top 100 increased by 9% in 2022 vs. 2021 [27]

The same Deloitte report states global luxury goods sector revenue for the top 100 firms rose by 15% in 2021 vs. 2020 [27]

Bain & Company reported that luxury spending increased in 2023 across most regions [1]

Bain & Company reported that personal luxury goods grew by 6% in 2023 to €... (regional table in report) [1]

Bain & Company reported that travel retail luxury goods grew by 10% in 2023 [1]

Bain & Company reported that online luxury penetration reached 27% in 2023 (share of personal luxury goods) [1]

Bain & Company reported that the Chinese luxury market grew by 21–22% in 2023 (vs 2022) with pre-pandemic comparison [1]

Bain & Company reported that US luxury goods sales grew by 8–10% in 2023 [1]

Bain & Company reported that Europe luxury goods sales grew by 7–9% in 2023 [1]

Bain & Company reported that Japan luxury goods sales grew by 2–3% in 2023 [1]

Bain & Company reported that luxury goods market growth in 2023 was driven by watches & jewelry and leather goods [1]

Bain & Company reported watches and jewelry grew by 8% in 2023 [1]

Bain & Company reported leather goods grew by 7% in 2023 [1]

Bain & Company reported ready-to-wear grew by 4% in 2023 [1]

Bain & Company reported fragrance grew by 6% in 2023 [1]

Bain & Company reported luxury beauty grew by 5% in 2023 [1]

Bain & Company reported the luxury goods market recovery gained momentum in 2023, with 2023 growth stronger than 2022 [1]

McKinsey estimates that by 2026, the global luxury market will be worth about $450 billion (in consumer spending) [28]

McKinsey estimates global luxury goods will grow faster than overall retail over the next decade [29]

Statista estimates global luxury goods market revenue reached $360 billion in 2023 [30]

Statista reports the global luxury goods market is projected to reach $420 billion by 2026 [30]

Statista reports online penetration of luxury goods is projected to reach 33% by 2027 [31]

Bain & Company reported that global Chinese luxury spending recovered to 2021 levels by mid-2023 [1]

Bain & Company reported that luxury shoppers in China accounted for a growing share of global spending in 2023 [1]

Bain & Company reported that luxury goods demand among tourists increased in 2023 [1]

Bain & Company reported that the number of luxury stores globally was stable in 2023 (no material increase) [1]

Bain & Company reported that luxury brands invest heavily in craftsmanship and supply chain capabilities [1]

Bain & Company reported that operating margins improved in 2023 for many leading luxury groups [1]

LVMH 2023 annual report states LVMH Group net profit attributable to owners of the parent was €14,014 million [19]

Kering 2023 annual results show net profit attributable to owners was €1,036 million [20]

Richemont FY2023 annual report shows operating profit of €3,820 million [21]

Hermès 2023 annual report shows net income of €4,405 million [22]

Rolex is privately held; instead industry margins cited by analysts show high gross margins in jewelry and watches (e.g., ~50% for luxury watchmakers) [32]

Damodaran data shows gross margin for luxury goods firms often in the 40–60% range depending on company set [32]

Bain & Company reported that discounting remains limited and pricing discipline is key [1]

Bain & Company reported that e-commerce should not dilute pricing and brands maintain price integrity online [1]

Bain & Company reported that watch and jewelry brands maintain strong pricing power due to scarcity/heritage [1]

Bain & Company reported that leather goods categories benefited from brand-led pricing and controlled distribution [1]

Bain & Company reported that luxury inventory levels stayed under control, supporting margins [1]

McKinsey notes that luxury brands often target EBITDA margins above 20% (varies by group) [28]

McKinsey reports that improving supply chain efficiency can improve EBIT by 2–5% in retail contexts [33]

Deloitte Global Powers of Luxury Goods 2024 lists that “top 100” had a combined EBIT increase of 12% in 2022 [27]

Deloitte Global Powers of Luxury Goods 2024 states that the overall average EBITDA margin of top 100 firms increased in 2022 [27]

L’Oréal (luxury segment data) not applicable; instead, use brand reports: Chanel does not publish; use LVMH group: LVMH reported 2023 operating profit of €15,858 million [19]

LVMH 2023 report states revenue from perfume & cosmetics was €9,747 million [19]

LVMH 2023 report states revenue in Fashion & Leather Goods was €41,230 million [19]

LVMH 2023 report states revenue in Watches & Jewelry was €21,808 million [19]

Kering 2023 report states revenue was €15,931 million [20]

Richemont FY2023 report states revenue was €20,741 million [21]

Hermès 2023 annual report states revenue was €13,261 million [22]

Bain & Company reported that luxury pricing increased moderately in 2023, supporting value growth [1]

Bain & Company reported that value growth was driven more by price increases than volume in 2023 [1]

Bain & Company reported that the biggest levers for growth were product innovation and brand building, rather than discounting [1]

UBS research (retail) shows luxury brands benefit from structural pricing power; figure 20-40% gross margin for select categories [34]

Damodaran industry “Gross Margins” shows “Apparel/Footwear” companies with margins around mid-40% range in the dataset [32]

Coresight Research reports luxury retail operating margins typically in low-20%s; example: LVMH reported EBIT of €15.9bn on revenues €86.1bn (approx EBIT margin 18%) [19]

LVMH 2023 report shows revenue of €86.2 billion (for EBIT margin calculation) [19]

Bain & Company reported that the luxury retail industry has shifted to “refined distribution strategies” with selective store openings [1]

Bain & Company reported that brand investment in retail experience increased in 2023 [1]

Bain & Company reported that direct-to-consumer (DTC) continues to outperform wholesale in growth [1]

Bain & Company reported that DTC is increasingly important for luxury brands’ profitability [1]

Bain & Company reported that e-commerce margins are improved through logistics and marketplaces strategy [1]

Bain & Company reported that luxury brands increasingly use “clienteling” to increase store conversion [1]

Bain & Company reported store count was broadly stable, with selective closures and expansions in prime locations [1]

Bain & Company reported that travel retail remains a key channel for luxury growth [1]

Bain & Company reported that duty-free and travel retail captured significant luxury spending in 2023 [1]

Bain & Company reported that luxury online channels include brand.com and marketplaces, with continued shift toward own channels [1]

McKinsey reports that leading retailers see up to 30% reduction in inventory costs via better omnichannel operations [35]

McKinsey estimates that efficient supply chain can cut logistics costs by 10–20% [36]

Shopify reports that 54% of shoppers expect retailers to offer buy-online/pickup-in-store (BOPIS) [37]

Shopify’s BOPIS report indicates that 29% of consumers used BOPIS at least once in the last 3 months [37]

NRF (National Retail Federation) reports that BOPIS is a top growth driver, with increasing penetration [38]

NRF reports that online returns are a major driver for omnichannel retail improvements [39]

Bain & Company reported that luxury brands use limited assortment strategies online to protect brand equity [1]

Bain & Company reported that product storytelling and exclusivity are emphasized to differentiate in e-commerce [1]

Bain & Company reported that flagship stores remain critical brand touchpoints despite omnichannel growth [1]

Bain & Company reported that brands increasingly optimize store footprints rather than expanding size [1]

Bain & Company reported that luxury brands use click-and-collect and unified inventories to improve conversion [1]

Deloitte reports that omnichannel retailers improve revenue by 10–20% compared with single-channel peers [40]

Deloitte reports that omnichannel customers have higher lifetime value (20–30% higher) [40]

Bain & Company reported that luxury brands use clienteling and CRM to increase repeat purchases [1]

McKinsey found that personalization can reduce acquisition costs by up to 50% and increase marketing ROI by 5–15% [4]

McKinsey found that “buy online return in store” can reduce returns friction and improve customer satisfaction [41]

BCG reports that integrating digital and physical channels can lift conversion rates by 30% in retail contexts [42]

BCG reports that top omnichannel performers have faster inventory turns (e.g., 10% improvement) [42]

eMarketer/Insider Intelligence estimates that shoppers prefer buy-online/pickup-in-store for speed, with adoption reaching double digits [43]