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Is India the Next China? [Chart]

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Is India the Next China? [Chart]

Is India the Next China? [Chart]

The Chart of the Week is a weekly feature in Visual Capitalist on Fridays.

It’s no secret that the most recent bull market in commodities and global growth corresponded with the emergence of China on the world stage. When a country with over 1 billion people can grow at 10% for decades at a time, the power of compound interest starts to add up.

The only problem is that Chinese growth is starting to slow down. To start 2015, the world’s second-biggest economy grew at its slowest pace in six years at a clip of 7.0%, which was down from 7.3% in Q4 2014. Further, the rate of growth in investment, industrial production, and retail sales have been declining consistently over the last four years.

The world is looking for a new China to be the world’s growth engine. Does India fit the bill?

No one is denying that India has the potential to be a game-changer for the global economy. With 1.25 billion people and growing, India will be the most populous country in the world by 2028. The challenge is that the majority of people in the country are terribly poor (GDP per capita of US$1,500) and that the country’s bureaucracy strangles almost and all business endeavours. That said, there are recent economic and bureaucracy reform green shoots that show that India could at least temporarily swing out of its funk.

We did some back of the envelope calculations to see at what rate India would have to grow to be as significant to the world economy as China is today. We looked at India growing at high (10%), medium (7.5%), and low (5%) rates over the coming years. Based on this, India wouldn’t be comparable to today’s China until 21 years, 31 years, or 57 years respectively. (Note: to keep model simple, we had the rest of the world growing at a steady pace of 2%)

The end result shows the staggering power of compound interest: if India grows at a high rate similar to China over the last decades, India could be a world player in the coming decades. If growth is crippled by bureaucracy and it hovers around 5% on average, India won’t become the next China until way in our future: the year 2072.

On the bright side, Brazil may also be a good “bridge” for global growth. China certainly believes so, and that’s why they just announced an investment of $50 billion into the country’s infrastructure projects.

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The World’s Biggest Fashion Companies by Market Cap

LVMH Moët Hennessy Louis Vuitton (LVMH) is the industry’s biggest player by a wide margin.

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Bubble chart showing the world’s biggest fashion companies by market cap.

The World’s Biggest Fashion Companies by Market Cap

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Fashion is one of the largest industries globally, accounting for 2% of the global gross domestic product (GDP).

In this graphic, we use data from CompaniesMarketCap to showcase the world’s 12 largest publicly traded fashion companies, ranked by market capitalization as of Jan. 31, 2024.

LVMH Reigns Supreme

European countries dominate the list of the biggest fashion companies, with six in total. The U.S. boasts four companies, while Japan and Canada each have one.

LVMH Moët Hennessy Louis Vuitton (LVMH) is the industry’s biggest player by a wide margin. The company boasts an extensive portfolio of luxury brands spanning fashion, cosmetics, and liquor, including Marc Jacobs, Givenchy, Fendi, and Dior, the latter of which holds a 41% ownership stake in the global luxury goods company.

RankCountryNameMarket Cap (USD)
1🇫🇷 FranceLVMH421,600,000,000
2🇺🇸 United StatesNike153,830,000,000
3🇫🇷 FranceDior145,861,000,000
4🇪🇸 SpainInditex134,042,000,000
5🇺🇸 United StatesTJX Companies108,167,000,000
6🇯🇵 JapanFast Retailing81,489,917,976
7🇺🇸 United StatesCintas61,285,867,520
8🇨🇦 Canadalululemon57,267,998,720
9🇫🇷 FranceKering50,900,207,000
10🇺🇸 United StatesRoss Stores47,227,502,592
11🇩🇪 GermanyAdidas32,535,078,209
12🇸🇪 SwedenH&M25,564,163,571

As a result of the success of the company, in 2024, LVMH chairman Bernard Arnault overtook Elon Musk as the richest person in the world.

In second place, Nike generated 68% of its revenue in 2023 from footwear. One of the company’s most popular brands, the Jordan Brand, generates around $5 billion in revenue per year.

The list also includes less-known names like Inditex, a corporate entity that owns Zara, as well as several other brands, and Fast Retailing, a Japanese holding company that owns Uniqlo, Theory, and Helmut Lang.

According to McKinsey & Company, the fashion industry is expected to experience modest growth of 2% to 4% in 2024, compared to 5% to 7% in 2023, attributed to subdued economic growth and weakened consumer confidence. The luxury segment is projected to contribute the largest share of economic profit.

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