On The Rise: How The Luxury Market Is Bouncing Back This 2024

Things are looking good for the luxury market despite its concerning slowdown during the latter half of 2023, with one particular conglomerate experiencing an over 12 percent increase in earnings. 

The luxury market experienced a concerning period during the last quarter of 2023, as prices of luxury stock dropped by $245 billion amid economic instability and geopolitical issues. Even industry giants like LVMH took quite the hit with shares falling by around 8.5 percent. Yet 2024 may mark new and better beginnings for the market, as it seems to be bouncing back. LVMH’s fourth quarter results are a large indicator of the luxury industry’s performance, as earnings of the megacorporation have increased by over 12 percent according to Elliot Smith of CNBC


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Financial Times adds that the S&P global Luxury Index is seeing a three percent increase as well, which certainly assuages fears surrounding the market’s performance. This is likely due to the improving performance of China’s luxury market, as the country’s consumers continue to be a key growth sector on a global scale. In a CNBC feature, Evelyn Cheng reports that more Chinese consumers have been purchasing luxury goods from the comfort of their homes. Last year, China’s personal luxury market grew by 12 percent to 400 billion yuan (around $56.43 billion) based on data from consulting firm Bain & Company, Cheng adds. 

Fei Fei Sun for Louis Vuitton’s “Horizons Never End”
Fei Fei Sun for Louis Vuitton’s “Horizons Never End”/Photo via Instagram @lvmh

LVMH Emerges Strong

LVMH is among the world’s biggest luxury conglomerates, housing several prestigious brands like Louis Vuitton, Givenchy, Dior, Bulgari, Sephora, Moët & Chandon, and Hennessy, just to name a few. As such, people can view it as a microcosm of the luxury industry as a whole, showing what sectors are doing great, and which ones are lagging behind. 

The LVMH headquarters in Avenue Montaigne, Paris
The LVMH headquarters in Avenue Montaigne, Paris/Photo by UHF via Wikimedia Commons

Recently, the company announced that its 2023 sales amounted to 86.15 billion euros (roughly $93.34 billion), with organic revenue up by 10% in the fourth quarter, as per Elliot Smith of CNBC. The company’s highest performing brands were those in the fashion and leather goods sector with a 14 percent annual growth, closely followed by perfumes and cosmetics at 11 percent. 

Bernard Arnault: The Reigning King of Luxury Goods

LVMH CEO and founder Bernard Arnault continues to tighten his grip on his luxury empire, and with his sharp business acumen, has been taking the top spot both the Bloomberg Billionaires Index and Forbes’ Real Time Billionaires list for years. Only Elon Musk, the tech tycoon behind Tesla and SpaceX, has taken the title of world’s richest man from Arnault a number of times.

The two billionaires have unseated one another so quickly and frequently that it’s been rather difficult to keep track of who’s on the top spot. In just the span of a day or so, Arnault took over as the world’s richest, before Elon unseated him, then Arnault came on top, before Elon finally took over top spot once more on both Bloomberg and Forbes’ list, as Melvin Backman and Laura Bratton discuss in their article for Quartz

LVMH’s steady rise in the luxury market comes at around the same time Arnault made one of his younger sons, Frédéric (29), the CEO of LVMH’s watch unit. At present, all of his children hold significant positions in the company, showing Arnault’s determination to secure the family’s hold over the conglomerate for years to come. 

Banner photo via Instagram @lvmh

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