The luxury fashion segment has gone from strength to strength over the past decade, with accelerated growth post-2020. But how did it actually grow ? When you start listening to consumers and their biggest complaint about luxury being its rapidly rising price points, things look much less rosy.
Zegna, for example, while undergoing a strategic repositioning from a tailoring to a lifestyle brand, has not only pivoted its product offering to leisurewear, which accounts for more than half of its revenues, but also raised prices across the board by around 50%. Below, you can find the individual breakdowns of brands and their respective halo products, or in the case of Bottega, one that’s been easiest to verify price points over the years.
Zegna
Triple Stitch
2020: $650
2024: $950
Revenue
2020: $1.24 B
(Zegna Branded Products: EUR 342.3 million)
2023: $1.9 B 136M
(Zegna Branded Products €1,109 billion, footwear accounted for 13% / €144.17 million)
Chanel
Classic Flap
2024: $10,800
Revenues
2020: $10.1 billion
2024: 19.7 billion
Hermes
Birkin 30 in Togo
2024: $12.500
Revenues
2020: 6,389 billion euros
2023: 13,427 billion euros
2024 H1 - 41.7, Q1-3 - 61
LVMH
Louis Vuitton Neverfull MM
2020: $1,430
2024: $2,030
Revenues
2020: 14.3 billion euros
Kering
Gucci Marmont
2021: $1,890
2024: $2,590
Revenues
2020: Gucci $7,44b
2023: Gucci $9,87b
Bottega Veneta padded cassette
2024: $4,900
Revenues
2020: €1,210b
leather goods account for 77% of Bottega Veneta's revenue
2023: €1.6 billion
Brunello Cucinelli
V- and round neck cashmere sweater
2020: $790
2024: $1,295
CAGR 12.9%
Revenues
2020: €544 million
2023: €1.14 billion
CAGR 29.6%
Key Observations:
1. Revenue Growth Rankings (2020-2023):
- Hermès: 110.0% (28.1% annually)
- Chanel: 95.0% (24.9% annually)
- Zegna: 53.2% (15.3% annually)
- Gucci: 32.7% (9.9% annually)
- Bottega Veneta: 32.7% (9.9% annually)
- Louis Vuitton: 2.8% (0.9% annually)
2. Product Price Increase Rankings (2020-2024):
- Chanel Classic Flap: 66.2% (13.5% annually)
- Zegna Triple Stitch: 46.2% (10.0% annually)
- Louis Vuitton Neverfull: 41.9% (9.2% annually)
- Gucci Marmont Mini: 37.0% (8.2% annually)
- Bottega Veneta cassette padded: 32.2% (9.7% annually)
- Hermès Birkin: 14.7% (3.5% annually)
3. Interesting Trends:
- Hermès shows the strongest revenue growth but the most conservative price increases
- Chanel leads in both revenue growth and price increases
- Louis Vuitton shows minimal revenue growth but significant price increases
- Most brands raised prices more aggressively than their revenue growth would suggest
Editor’s note - this is an imperfect comparison with MSRPs and revenues in USD and EUR and a three-year revenue time horizon vs. a four-year ASP period.