eCommerce: Luxury Goods

Luxury Goods Market: Key Insights

• Top Countries: The highest percentage of luxury companies originate in Italy, followed by the U.S.

  Mainland China takes third place, heralding its increasingly important position in the luxury industry.

• Regional Variances: From a regional perspective, Europe is home to the largest share of luxury companies.

  However, the luxury eCommerce sales share of a country is not determined by the number of companies it may house.

• Origin/Sales Difference: France generates the largest portion of luxury online sales, despite being number four when it comes to the top countries of origin.

  The U.S. and Switzerland are next in luxury eCommerce sales output by country.

• France as Key Player: France’s strong status is bolstered by French-origin companies that, over the years, have consolidated their position in the crowded luxury environment and now take ever-larger shares of the luxury market.

Brand origin is a cornerstone in the luxury business, with companies using it to craft narratives of heritage, quality, and prestige. European countries like Italy and France have been important pillars of global luxury historically; many brands originating in the region have achieved legendary status.

Meanwhile, relatively newer markets like the U.S. and China have also produced companies that have since become trendsetters in the luxury industry. Modernity and creativity are also central to their identity, which they use to inspire connections with fresh waves of affluent buyers.

Which country is home to the largest share of luxury companies? Which country stands top in terms of eCommerce sales? Our data confirms: the answer to the two questions is not the same.

Top Luxury Markets: 23% Companies Originate in Italy, Followed by the U.S. at 17%

Of the luxury companies included in our report, more than half are based in Italy, the U.S., or Greater China. This includes some of the top luxury companies that have strengthened their positions across multiple markets over time.

23% of luxury companies in the top 100 are based in Italy, cementing the country's position as the epicenter of luxury. Several original labels, including iconic brands like Gucci and Versace, trace their roots to Italy. With centuries of cultural history and skills passed down through generations, Italy remains a hotbed of innovation in the luxury market.

At 17%, the United States is home to the second largest share of luxury companies. A large base of affluent consumers willing to spend on luxury products and an established network of stores make the U.S. a key region in the luxury landscape, with the country often prompting comparisons to Europe.

11% of luxury companies are based in China. A large population of high-income Chinese consumers make it a rising center for luxury activity in the APAC region. For many of those luxury consumers, country associations with long-standing names may not be the most vital factor shaping their purchase intention. Importantly, China offers lower production costs and access to a large labor market, both of which support luxury manufacturing.

From a regional perspective, Europe retains its place as the capital of global luxury. It boasts good manufacturing capabilities and the availability of skilled artisans that appeal to luxury companies worldwide. Heritage stories that speak of prestige and timelessness also lend credibility to luxury houses that originate in Europe.

Even if origin is often taken as an indicator of quality, the online sales figure is not solely informed by a company’s nationality. Other factors like market expansion and consolidation undertaken by companies are determining factors when it comes to the luxury sales output of different countries.

Luxury Goods Market: France Dominates in Online Sales, Trailed by the U.S.

Sales data by country suggests leading companies in luxury are strategizing to accelerate eCommerce sales. Although France is not home to the highest number of luxury companies – it only ranks fourth on the list – it claims the largest share of total online sales in luxury. Its performance surpasses countries on the second and third position, namely the U.S. and Switzerland, by a mile.

At 37%, France claims the biggest portion of total luxury eCommerce sales, even though only 9% of luxury companies are based there. The country's sales performance is strong as it is home to the top luxury conglomerates, including LVMH and Kering. Fiercely competitive, these companies have built impressive portfolios of some of the most recognizable brands with a global footprint in luxury. LVMH, for example, owns Louis Vuitton, Dior, and Givenchy.

At 24%, the United States is the second largest country for luxury eCommerce sales. Although 17% of luxury companies are U.S.-based, their offerings tend to be at the more accessible end of the luxury spectrum to attract aspirational luxury buyers.

Switzerland is the third most represented country with 10% online sales share. In terms of company numbers, 8% of luxury giants are Swiss origin. This includes Richemont, with its many subsidiary luxury brands, and the Swatch Group, which leads the world-renowned Swiss watch industry. Several Swiss-based brands have above-average levels of exclusivity and pricing, which may contribute to their high sales volumes. However, since Watches as a category is still predominantly sold through offline retail networks, the reported online sales remains smaller.

On the other hand, Italy generates 5% of the total online sales despite being country of origin for the highest number of luxury companies (23%). However, many of these luxury houses are comparatively small and independently owned. The same trend can be seen in other countries such as Germany and India.

Learn More About ECDB

The Luxury eCommerce Market: Players & Category Insights 2023 - Order Now

Are you searching for an in-depth analysis of the online market for luxury goods? Order ECDB’s exclusive report on The Luxury eCommerce Market: Players and Category Insights 2023 here.

The study provides a comprehensive overview of the personal luxury market with a focus on eCommerce. Next to an in-depth market analysis, readers will learn about the impact of Covid on the global luxury market, regional dynamics, sales channels (Business-to-Business and Direct-to-Consumer), as well as insights into different product categories.

The study further features an exclusive list of 250 leading luxury brands, including detailed performance metrics and brand properties, such as exclusivity and brand positioning. All sales numbers are provided for 2020 to 2022.