In recent decades, the dominance of conglomerates in the fashion industry has become increasingly evident, as we can see large groups controlling various luxury brands.
The dominance of these conglomerates also shapes consumer behavior. Luxury brands have become status symbols globally, and consumers are often attracted by the prestige associated with these names. Globalization and digitalization have amplified this influence, with conglomerates investing in e-commerce and social media presence to reach new markets.
These conglomerates not only set trends, but also control much of the distribution and access to luxury, creating a difficult ecosystem for new competitors. Since the 1980s, these conglomerates have been expanding their portfolios through strategic acquisitions.
Groups like LVMH, Kering and Richemont had increased their power and influence, and as they accumulated portfolios of very prestigious brands, they became more glamorous and exclusive. These conglomerates have transformed the industry with their impact on creativity and innovation, and the implications for the future of fashion. Market share, the acceleration of strategic acquisitions, the impact on diversity and creativity and the influence on consumption monopolize the fashion industry.
Get to know the main conglomerates
LVMH
Founded in 1987 and headquartered in Paris, LVMH is currently the largest luxury conglomerate in the world, with a diversification that covers fashion, perfumes, cosmetics, wines, beverages and jewelry. The group is known for its focus on quality and exclusivity, and frequently acquires brands to strengthen its position in the luxury market. In 2023, LVMH recorded revenues of €79.2 billion, an increase of 23% on the previous year, consolidating its leading position.
Its main and best-known brands are: Louis Vuitton, Dior, Fendi, Givenchy, Marc Jacobs, Celine, Loewe, Sephora, Kenzo, Guerlain, Tiffany & Co. , Bulgari and Fenty Beauty by Rihanna.
Kering
Originally founded as PPR in 1963, the conglomerate focuses exclusively on the luxury market and is known for its strategy of revitalizing historic brands and investing in new acquisitions. The group has a strong commitment to sustainability and is leading green initiatives within the fashion industry.
The Kering group had revenues of €20.4 billion in 2022, with Gucci accounting for around 55% of these revenues.
Its main brands are:
Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen and Brioni.
Richemont
Founded in 1988 with headquarters in Bellevue, Switzerland, Richemont is specifically strong in the luxury watch and jewelry market. The conglomerate takes a highly selective approach to fashion, focusing on brands that offer handcrafted, high-quality products.
The group’s main brands are:
Cartier, Van Cleef & Arpels, Chloé, Montblanc and Jaeger-LeCoultre.
Prada Group
Group founded in 1913 in Milan. Prada is an iconic fashion brand known for its innovative and experimental approach to fashion. The group controls some smaller brands and maintains a strong presence in the luxury market, offering products ranging from clothing to accessories and footwear.
Main brands:
Prada, Miu Miu, Church’s and Car Shoe.
Chanel
Founded in 1910 in Paris, Chanel is a privately owned luxury fashion company that stands out for its timeless style, innovation and design. The brand is known for its fragrances, cosmetics, haute couture clothing and accessories, maintaining strong control over its image and distribution.
PVH Corp
Founded in 1881 in the United States, PVH Corp. is a conglomerate that controls some of the most globally recognized fashion brands. Focusing on a more accessible segment of fashion, the group offers a range of products from clothing to accessories, covering both the mass market and affordable luxury.
Main brands:
Calvin Klein, Tommy Hilfiger, Van Heusen and IZOD.
Inditex
Founded in 1985 in Spain, Inditex is one of the world’s largest fashion retailers, known for its “fast fashion” business model. The company is recognized for its ability to quickly bring the latest trends from the catwalks to the stores, offering affordable and up-to-date fashion.
Main brands:
Zara, Massimo Dutti, Pull & Bear, Bershka, Stradivarius.
All of these fashion conglomerates influence not only aesthetic trends, but also business practices and sustainability in the industry. Many of them, as mentioned earlier, are investing in technology, sustainability and social responsibility, reflecting a growing movement towards more conscious and ethical fashion, but still with a very luxury market inaccessible to most brands.
They represent a huge cultural economic force, determining the direction of fashion through their control over influential and emerging brands.
———————–———————–————–————–
The article above was edited by Giulia Giampietro.
Like ths type of content? Check out Her Campus Casper Libero for more.