Have you ever wondered how much money the world spends on fashion? Well, we found out for you. This is a collection of compelling figures about the global fashion industry and who is leading the race. Among the highest grossing brands we can see known favorites and what I would consider the “classic luxury” labels like Louis Vuitton and Chanel (as measured by Forbes).
I based my numbers out of online surveys and information provided by companies themselves on their financial reports. The Forbes data is interesting, since they don’t value brands solely based on revenue, but rather, they calculate the “brand value” based on:
1. Earnings before taxes and interest (EBIT) over the past 3 years
2. An 8% capital employed
3. The maximum corporate tax rate in each country
4. Role the brand plays in the industry
5. Price to Earnings multiple (or P/E ratio)
Forbes #1 brand is Apple. On the infographic, we included all the fashion brands present in the 100 brands list.
Another important element is the role that “groups” play in this industry, these are brands that operate under a unique parent company, for example: Alexander McQueen, Balenciaga, Gucci and Stella McCartney are part of the Kering group. And you probably haven’t heard too much about Inditex, but they are the parent company for Zara and Bershka, among other.
These statistics are of descriptive nature and they are meant only to offer some perspective on a topic that concerns us all: where is our money going? Whether these brands deserve their revenues and reputation is a matter for a different article.
The company logos used are property of each brand and we are not associated with them in any way, each brand owns the trademark and image for their name and what is presented here is only with illustrative purposes.