Vertical Integration in the Luxury Sector: Objectives, Methods, Effects

The luxury market has grown impressively over the past three decades. The figures supplied by Bain & Company testify to this fact: sales of luxury products went from 72 billion Euros in 1994 to 168 billion Euros in 2010, which makes an annual growth rate average of 5%. Fashion items (ready-to-wear, shoes, leather goods) still retain a considerable market share as they represent half of this figure. In addition to its economic weight, the luxury fashion sector merits analysis due to the evolution in its structure (number, size and organisation of companies) over the past few years. Companies whose main profession is fashion have experienced much more structural change than other companies that began as jewellery makers, watchmakers or perfumers.