ECOMMERCE: LUXURY GOODS SALEs

Luxury Goods Market in France: Key Insights

• Regional Shift in Luxury: Europe, Middle East and Africa (EMEA) fall behind the Americas in post-pandemic luxury market share, for the first time in 2022.

• French Luxury Dominance: French luxury players drive France to lead in eCommerce sales globally, despite housing fewer luxury companies.

• LVMH and Kering's Influence: French conglomerates like LVMH and Kering, home to iconic brands like Louis Vuitton and Dior, propel France's luxury sales success.

• Competing Nations: While countries like Italy house more luxury companies, France maintains dominance in online sales, outpacing competitors significantly.

• Market Consolidation and Future Trends: French-owned brands, along with a pattern of market consolidation, solidify France's position as the top country in luxury online sales, mitigating potential competition in the near future.

After the pandemic, some remarkable changes happened in the regional dynamics of the luxury market. Europe, Middle East and Africa – also known as the EMEA – fell behind Americas for the first time in terms of market share.

Despite the smaller number of luxury companies, the French players have put France at the top of luxury eCommerce sales ahead of others, not only in Europe but also in other regions.

Why does France beat other countries in net online sales despite housing a relatively smaller number of luxury companies? Is France facing significant competition?

Luxury Market in France: Key Luxury Players Power Highest Online Sales

The share of luxury companies that a country may house does not directly correspond to the total eCommerce sales it generates.

Our data reveals: despite being home to only the fourth largest share of luxury companies, France claims the largest slice of the pie in net online sales.

Only 9% of luxury companies in the leading one hundred list come from France. However, when it comes to eCommerce sales, France is at the top, claiming 37% of the total luxury online market.

The reason why France is leagues ahead of other countries in sales can be traced back to the luxury companies that call it home. Luxury mammoths such as LVMH and Kering originate in France. These are conglomerates which not only have large brand portfolios, but are parent to some of the most identifiable names in the luxury landscape.

For instance, LVMH owns Louis Vuitton and Dior, which consistently rank among the most valuable brands in luxury. They also boast impressive sales figures.

In terms of online sales, brands ranked in the top ten include Louis Vuitton, Dior, and Hermès – all are French-owned. In terms of net luxury sales as well, Louis Vuitton stands first and Dior is third. Chanel, which ranks second, is also a French brand. Their performance instates France as a front-runner in the luxury industry.

Market Competitors: Which Countries Challenge France’s Lead in Luxury?

When it comes to housing luxury companies, countries such as Italy outrank France. However, in terms of generating online sales, France’s position is not under threat. As our data shows, France outpaces other countries on the list by a long margin.

Italy is home to the largest percentage of luxury companies at 23%. However, its online sales share is small at just 5%, the lowest of all top five performing countries. Many Italian luxury houses are independently owned and may derive their sales from boutiques, thus posting lower eCommerce revenue.

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Similarly, the United States accounts for 24% of online luxury sales, while housing 17% of luxury companies. Although they take a respectable portion of total online sales, U.S.-based companies are still not close to the larger share captured by France-based companies.

Many U.S.-origin company brands tend to extend beyond high net income customers to cater to aspirational luxury buyers. This keeps prices accessible and, consequently, may limit the country’s share in total luxury eCommerce sales.

Our data also points towards a pattern of market consolidation in luxury. The top ten brands, including several French-owned names, claim 33% of total eCommerce sales. In terms of global net sales, just the top three brands, all French by origin, claim 18% of the total market.

Such domination establishes France as the top country in luxury online sales, quelling chances of tough competition in the foreseeable future.

Luxury Goods Market in France: FAQ

Which French Brand Is the Largest in the World by Total Sales?

Louis Vuitton, a French-origin brand, is the largest luxury brand in the world by total sales as well as eCommerce sales, per ECDB’s report on the Luxury eCommerce Market.

Who Is LVMH’s Biggest Competitor?

LVMH is a French luxury company. Its main competitors include Swiss-based Richemont, France-based Kering, and U.S.-based Estee Lauder.

Does Dior Have Higher Online Sales Than Prada?

Per ECDB’s latest data, at rank 5, Dior is below Prada (rank 4) when it comes to online sales in luxury. However, in terms of total net sales, Dior takes the third spot, above Prada’s 11th position.

Is Gucci Bigger Than Louis Vuitton?

In terms of sales, Gucci is not bigger than Louis Vuitton. Louis Vuitton stands top in both net luxury sales and online luxury sales, whereas Gucci is 8th in net luxury sales and 6th in online luxury sales.