eCommerce: Italian Luxury Goods Market

Luxury Market in Italy: Key Insights 

• Italian Luxury Dominance: Italy leads globally in luxury brand presence but lags in online sales compared to France.

• Traditional Retail Focus: Italian luxury brands prioritize traditional retail channels over online platforms.

• Gucci's Niche Excellence: Gucci excels in luxury shoes and bags sales online, showcasing resilience and innovation.

• Prada's Diversification: Prada's partnership with L'Oreal expands its presence into personal care, boosting online sales.

• EuroItalia's Influence: EuroItalia dominates Italian luxury beauty with collaborations and a diverse portfolio.

After the pandemic, remarkable regional changes occurred in the luxury goods industry. Italian brands such as Prada, Gucci, Michael Kors and others have gained a foothold in this unique market, propelling the country to the top in terms of the number of luxury companies. In the process, they outperformed not only competitors in Europe, but also rivals all over the world.

Who holds sway in the luxury goods market? Which countries’ brands are the biggest competition for Italian companies? Find your answer below based on the data from our Luxury eCommerce Market Report.

Luxury Market in Italy: High Share of Companies, Low Share of Sales 

As we talked about in our analysis of the French luxury market, the relationship between the number of luxury companies in a country and its total eCommerce sales is not always straightforward. 

Among the top 100 luxury brands we analyzed, Italy emerges as a central hub, home to almost a quarter (23%) of these companies, while its nearest competitor, the United States, holds a 17% share. Yet, in terms of online sales, Italy contributes just 5%.

This is a stark difference compared to France, which, while hosting only 9% of luxury brands, leads in generating the largest portion of total luxury online sales, accounting for 37%.

Luxury Goods Market in Italy: Focus on Traditional Retail 

Italy's prominence in the luxury sector is largely due to its heritage brands such as Gucci, Prada and Versace. While these names may be somewhat of an exception, many Italian luxury companies are smaller, independent entities that often focus more on traditional retail channels than online, which explains their lower online sales figures. 

In online sales rankings, Italian-origin brands such as Prada Beauty and Gucci are undoubtedly notable players. Although Prada Beauty operates under the French company L'Oreal through a licensing agreement, it's still relevant to include it here due to the distinguished history of the core brand.

In order to better understand the Italian online luxury goods market, let’s have a closer look at two prominent players of the sector, Gucci and Prada.

Gucci: Strong in Luxury Shoes and Bags Sales 

Gucci's journey is a tale of resilience and transformation. Founded in Florence, Italy in 1921 by Guccio Gucci, the 1980s brought internal conflicts within the Gucci family, leading to their complete exit from the company's ownership by 1993. This period of turmoil set the stage for a remarkable comeback. In 1999, Gucci joined the portfolio of the French conglomerate PPR, now known as Kering, marking a new era in its history. 

Beyond its sixth-place position in overall online luxury sales, Gucci has carved out a strong presence in specific niches. Among 250 top luxury brands, it stands third in online luxury shoes sales. In the luxury bags segment, another area where Gucci is a well-recognized name, it ranks fifth in online sales.

Gucci is synonymous with high exclusivity, sharing this prestigious tier with renowned brands like Prada. This status reflects its enduring appeal in the luxury market, a testament to its rich heritage and ongoing innovation. Fittingly, our report considers Gucci in the “classic” segment of luxury brands.

Prada: Expansion into Beauty Through L’Oréal Partnership 

Prada, established in Milan in 1913 by Mario Prada, has become a symbol of luxury and style. Known for its high-quality leather handbags, travel accessories, and shoes, Prada has been at the forefront of fashion since its inception. By the 1990s, it had cemented its status as a luxury brand, known for its innovation and originality.

In January 2021, L’Oréal acquired the licensing rights for Prada Beauty, marking a significant expansion of the Prada brand into the realm of personal care. Under the umbrella of L'Oréal's Luxe division, Prada Beauty is an extension of the Prada universe – a significant one, as it ranks fourth in global online sales among top luxury brands. This collaboration allows Prada to infuse its distinctive sense of luxury into a range of personal care products, including perfumes and makeup, offering consumers an additional dimension to experience the Prada essence. 

For more information on the brand, make sure to check out our analysis based on our Luxury eCommerce Market report.

EuroItalia: Key Player in the Italian Beauty Sector 

Other than brands, EuroItalia is a company that has to be mentioned in this conversation. Founded in 1978, EuroItalia has emerged as a major company in the luxury beauty sector. 

The company excels in its collaboration with Italian designers, skillfully transforming market trends into popular fragrance lines, and oversees everything from fragrance choice to marketing, earning international recognition for its contributions to the “Made in Italy” legacy. 

EuroItalia’s portfolio is a testament to their impact, featuring prominent names like Versace, Moschino, Missoni, Dsquared2, Reporter, and Naj Oleari Beauty, all of which were included in our analysis.

The Luxury eCommerce Market – Buy the Report Now!  

The 2023 Luxury eCommerce Market Report by ECDB provides the comprehensive data set for 250 leading luxury companies in an additional Excel spreadsheet, which includes sales channels, product categories, brand exclusivity and positioning over the three-year-period from 2020 to 2022.   

Order the report here for the full data set, including complete market analysis from our experts.