As we are in the process of updating our year-end and 2025 luxury industry sales and stock price forecasts, we updated our figure on the level of industry concentration.
As the below line plot illustrates, LVMH’s share of industry sales has, so far, ticked down slightly this year from 35 to 34 percent given the relatively weak growth that the industry’s giant has reported this year.
Yet, overall it is still a picture of a moderately concentrated industry, which is not uncommon in retail sectors. There remains room for competitive pricing and innovation does not appear to be stymied by the current level of concentration.
Having said that, many have noted that the level of industry creativity is flat lining, though it is not clear to us that this is function of industry concentration so much as the impact of structural market pressures (e.g., mainstreaming of e-commerce, creator economy, rising supply chain and manufacturing costs) that has left brands struggling to keep up and differentiate themselves.