How the luxury industry grew from royal suppliers and Paris couture houses into today’s global groups.
By Shreya S · Last reviewed 31 October 2026
On this page: The timeline · The turning points
The timeline
How did the luxury industry develop?
| Era | What happened |
|---|---|
| 1700s | Craftspeople supply royal courts; Rose Bertin dresses Marie Antoinette and is often called the first fashion designer |
| 1830s–1850s | Saddle-maker Hermès (1837), jeweller Cartier (1847) and trunk-maker Louis Vuitton (1854) open in Paris |
| 1858 | Charles Frederick Worth opens the first couture house in Paris |
| 1910s–1930s | Paul Poiret, Coco Chanel and Elsa Schiaparelli modernise fashion; Chanel N°5 (1921) shows perfume’s power |
| 1947 | Christian Dior’s New Look restores Paris after the Second World War |
| 1960s | Ready-to-wear arrives: Yves Saint Laurent opens Rive Gauche in 1966 |
| 1970s–1980s | Licensing booms; Milan rises with Armani and Versace; designer logos spread |
| 1987–1989 | LVMH is formed and Bernard Arnault takes control, beginning the age of conglomerates |
| 1990s | Tom Ford’s Gucci and Marc Jacobs’s Louis Vuitton turn old houses into fashion powerhouses; the battle for Gucci leads to the group now called Kering |
| 2000s | The It-bag era; luxury expands rapidly into China and other new markets |
| 2010s | Social media, streetwear and logomania; collaborations such as Louis Vuitton x Supreme |
| 2020s | A post-pandemic boom, then a slowdown, quiet luxury and a wave of new creative directors |
Read on Ayerhs: The History of Haute Couture · The Evolution of Paris Fashion Week · The Evolution of Milan Fashion Week
The turning points
Why is Paris the capital of luxury?
France made luxury a matter of national pride from the court of Louis XIV onwards, building industries in silk, lace and fine crafts. Couture was born there in the 19th century, and the French state still protects the couture title. Today the two largest luxury groups, LVMH and Kering, are French.
Why was Dior’s New Look so important?
After years of wartime rationing, Dior’s 1947 collection of full skirts and cinched waists brought extravagance back and made Paris the centre of fashion again. It also showed how one collection could launch a global business.
Read on Ayerhs: Christian Dior – The complete guide · Dior in the Library
When did luxury become big business?
In the late 1980s and 1990s, when Bernard Arnault built LVMH by buying heritage houses and hiring star designers. Rivals followed, and family workshops became parts of listed global companies.
Read on Ayerhs: The Rise of Fashion Conglomerates · What is LVMH? · 50 Greatest Fashion Designers of All Time
← Luxury · The Library