Search Ranking Shows How Merger of Tapestry and Capri Would Change the Luxury Market

If it clears an antitrust court challenge, the merger would create contender for the #2 luxury group by consumer interest

The luxury goods market stands to be reshaped if Tapestry Inc.’s proposed $8.5 billion acquisition of Capri Holdings can get past a US Federal Trade Commission challenge. A Similarweb analysis of worldwide desktop and mobile search for the brands of the major luxury goods companies finds that Tapestry is currently trending at #3 worldwide and, with the addition of Capri, could be a contender for the #2 spot currently held by Kering.

As explained in Glossy’s reporting, “If successful, the acquisition would combine Tapestry’s brand portfolio of Coach, Kate Spade and Stuart Weitzman with Capri’s roster of Michael Kors, Versace and Jimmy Choo, creating a U.S. powerhouse in a space typically dominated by European brands.” Announced a year ago, the proposed merger was challenged by the FTC in April, and court proceedings began this month.

While branded search volume does not directly translate into sales, it’s a strong indicator of the brand’s strength and consumer interest, whether products are being researched for purchase online or in brick-and-mortar storefronts.

Here is what the rankings look like by that measure.

Methodology: Branded google search volume on desktop & mobile web for the 102 luxury fashion/jewellery/accessories brands rolled up to the 27 parent companies-  inclusive of the brand name but not necessarily of the “iconic” product name (kelly bag may not be included in the Hermès keywords if searched standalone, for instance)

The luxury goods market is under stress because of fading sales from Asia, partly as a result of China’s economic crisis, making gaining share all the more important for luxury goods players.

Based on the data presented in this chart, which shows the share of branded search for luxury apparel and accessories brands rolled up by the parent company from Q3 2023 to Q2 2024, here are the key insights:

LVMH maintains a dominant position

• LVMH Moët Hennessy Louis Vuitton SE, the French multinational commonly known as LVMH, consistently holds the largest share of branded searches from Q3 2023-Q2 2024s, fluctuating slightly between 30% and 31% of search volume. This indicates LVMH’s strong brand presence and continued dominance in the luxury market.
• The stable share implies that LVMH’s brands are consistently attracting consumer interest, regardless of seasonal changes or market conditions.

Tapestry Inc.’s gradual growth

• Tapestry Inc. shows a steady increase in branded search share, growing from 7% in Q3 2023 to 9% in Q1 2024 and maintaining 8% in Q2 2024.
• This growth suggests that Tapestry’s efforts to enhance brand awareness and consumer engagement are paying off, potentially positioning it as a more prominent player in the luxury market.

Kering’s consistent performance

• For Kering, which owns brands like Yves Saint Laurent, Gucci, Balenciaga, Bottega Veneta, Creed, and Alexander McQueen, branded search share hovers around 14-15% across the observed quarters, indicating a relatively stable but unchanging market position.
• This consistency might suggest brand loyalty among its customer base but also hints at a possible plateau, with limited signs of significant growth in consumer interest.

Capri Holdings’ modest but stable market share

• Capri Holdings holds a smaller share of branded searches, remaining steady at 4% across all quarters. This suggests that while Capri Holdings maintains a niche presence, it is not currently experiencing notable growth in consumer interest.
• The modest share highlights the challenge Capri faces in capturing a larger market segment, especially when compared to more dominant players like LVMH and Kering.

Emerging brands and “Others”

• The “Others” category accounts for a significant portion of search volume, around 22-23%, indicating that smaller or emerging luxury brands such as Hugo Boss AG, Burberry Group PLC, which collectively have considerable presence.
• This diverse set of brands contributes to market dynamism and suggests that consumer interest is not entirely concentrated among the established giants.

Potential impact of a Tapestry-Capri merger

• Combined Share: If Tapestry Inc. and Capri Holdings were to merge, their combined share would be around 12-13% in each quarter. This would position the merged entity more closely with Kering, which holds 14-15%, and further establish it as a key player in the luxury market.
• Competitive Pressure: A merger could create a more formidable competitor for Kering, given that the merged Tapestry-Capri entity would be just a few percentage points behind. However, it would still trail LVMH’s dominant position significantly.

Other players

• Rolex and Richemont: These companies each capture a consistent 6-7% share of branded searches, indicating a solid but not dominant presence. Their stable share suggests niche market segments with loyal customer bases.
• Chanel and Prada Group: Both maintain smaller shares, with Chanel at 3% and Prada at 4%, showing that while they are recognized brands, they face stiff competition from larger luxury groups.

Conclusion

The chart suggests that while LVMH remains the clear leader in terms of branded search volume, other players like Tapestry Inc. are showing growth. A potential merger between Tapestry Inc. and Capri Holdings could increase their market presence and intensify competition with Kering, even if their brands are not associated as much with high-end luxury.

Most luxury groups maintain steady market shares, indicating strong brand loyalty but also hinting at a market that may be relatively saturated, with limited short-term changes in consumer interest distribution.

The Similarweb Insights & Communications team is available to pull additional or updated data on request for the news media (journalists are invited to write to press@similarweb.com). When citing our data, please reference Similarweb as the source and link back to the most relevant blog post or similarweb.com/blog/insights/.

Contact: For more information, please write to press@similarweb.com.

Methodology

Disclaimer: All names, brands, trademarks, and registered trademarks are the property of their respective owners. The data, reports, and other materials provided or made available by Similarweb consist of or include estimated metrics and digital insights generated by Similarweb using its proprietary algorithms, based on information collected by Similarweb from multiple sources using its advanced data methodologies. Similarweb shall not be responsible for the accuracy of such data, reports, and materials and shall have no liability for any decision by any third party based in whole or in part on such data, reports, and materials.

by Inès Durand

Inès provides market research insights in Retail, CPG, and Financial Services. Her work has appeared in Retail Today, CNBC, and AFP.