Business Chief takes a look at Deloitte’s Global Powers of Luxury Goods list to find out which European luxury companies and their high-end brands made the top 10.
10. Prada Group
Italian fashion house Prada owns much more than the name suggests, also controlling the Miu Miu, Church’s and Car Shoe brands. The company was ranked at 17th globally by Deloitte, which put its revenue as a luxury goods provider at $3.92bn. Prada boasts over 12,000 employees who work across 70 countries. The company is best known for its speciality handbags, shoes and ready-to-wear clothing lines as well as perfumes and other accessories. Founded in 1913 by Mario Prada, the company originally sold animal goods and luggage imported from England, before being taken over by Prada’s granddaughter at which point it began selling its own fashion items.
9. Michael Kors Holdings Ltd
Overall, Michael Kors comes in at 14th on Deloitte’s list. Unlike most other luxury companies on the list, the UK-based business has kept to its own brands: Michael Kors and MICHAEL by Michael Kors. Deloitte puts its revenue at just over $4.7bn. The company was established by the designer of the same name in 1981, and produces a range of clothing, accessories, jewellery, eyewear and fragrances. The firm has over 550 stores as well as over 1,500 in-store presences around the world. In July 2017, Michael Kors purchased Jimmy Choo Ltd for $1.2bn.
8. Hermès International SCA
The Hermès International company is based in Paris, France and owns the luxury Hermès and John Lobb brands. Established as far back as 1837, the company creates and sells a range of leather items, perfume, jewellery, watches and clothing. Thanks to its $5.4bn revenue, the company is ranked at 12 globally according to Deloitte. As a whole, the Hermès Group employs around 13,500 people and has 304 exclusive stores around the world, 212 of which it operates directly.
7. Rolex SA
With $5.7bn revenue according to Deloitte and a global 11th ranking, Switzerland-based Rolex owns both the Rolex and Tudor brands, with the latter being produced by its subsidiary Montres Tudor SA. The Swiss luxury watchmaker works end to end across design, manufacturing, distribution and after-sales service. Forbes ranks Rolex at 64 on its list of the world’s most powerful brands. Rolex produces around 2,000 watches per day. The Rolex brand dates back as far as 1905.
6. L’Oréal Luxe
Coming in at seventh overall on the global Deloittle list, L’Oréal Luxe owns Lancôme, Biotherm, Helena Rubinstein, Urban Decay and Kiehl’s as well as licensed brands. Deloitte states L’Oréal Luxe’s overall revenue to be $8.03bn. The ‘Luxe’ business is a division of the wider L’Oréal Group alongside the Active Cosmetics division (including brands like Vichy and La Roche-Posay), Consumer Products (including Garnier, Essie and Maybelline New York), and the Professional Products Division which supplies salons around the world. As a whole, the Group owns 34 beauty brands and employs over 82,000 people, boasting almost 500 registered patents to date.
5. The Swatch Group Ltd
The famous Swiss watchmaker ranks at six globally and manufactures for licensed brands as well as owning Omega, Longines, Breguet, Harry Winston, Rado and Blancpain. The luxury company’s revenue is put at $8.8bn. Founded 1983 by Nicolas G Hayek, grew out of the merger of Swiss watch companies ASUAG and SSIH. Initially, ‘swatch’ was a contraction of ‘second watch’ as the company made disposable accessories, but the household name has since taken on a decidedly luxury slant with some of the brands it owns.
4. Kering SA
Globally, Kering SA ranks fifth on the Deloitte list with a total revenue of $12.87bn. The company owns a variety of luxury brands including Gucci, Bottega Veneta, Saint Laurent, Balenciaga, Brioni, Sergio Rossi, Pomellato, Girard-Perregaux and Ulysse Nardin. Kering is based in France and its brands encompass fashion, leather goods, jewellery and watchmaking. The group employs about 29,000 people in total. Kering was created in 1963 by François Pinault who founded it as a wood and building materials business. It entered the distribution business in the 1990s and became a luxury company in 1999 with the acquisition of Gucci.
3. Luxottica Group SPA
Eyewear company Luxottica encompasses several popular luxury brands including Ray-Ban, Oakley, Vogue Eyewear, Persol and Oliver Peoples as well as manufacturing for various licensed brands. The Italian company has a revenue of $11.26bn according to Deloitte, which ranks it at fourth globally. Based in Milan, Luxottica is involved in all aspects of the eyewear under its brands, from design, manufacturing and distribution to retail. In 2017, the company merged with Essilor.
2. Compagnie Financière Richemont SA
Both second on our list and globally according to Deloitte, with a recorded $12.32bn in revenue, Swiss-based Richemont owns the famous Cartier, as well as Van Cleef & Arpels, Montblanc, Jaeger-LeCoultre, Vacheron, Constantin, IWC, Plaget, Chloé and Officine Panerai. The business is based in Switzerland and acts as a holding company for its luxury brands, having been founded in 1988. Altogether, its brands are involved in the design, manufacturing and distribution of their variety of luxury products.
1. LVMH Moët Hennery Louis Vuitton SE
The biggest luxury brand company both in Europe and the top ranked by Deloitte, LVMH Moët Hennery Louis Vuitton is more commonly known as LVMH and was founded in 1987 when Louis Vuitton merged with Moët Hennessy (which itself was a merger between champagne maker Moët & Chandon and cognac maker Hennessy). Based in France, the company now not only owns these luxury brands but also Fendi, Bulgari, Loro Piana, Emilio Pucci, Acqua di Parma, Donna Karan, Loewe, Marc Jacobs, TAG Heuer and Benefit Cosmetics. This luxury giant’s revenue on the Deloitte list comes in far above the rest, at $39.62bn.