• 20 major companies lead the global fashion industry right now, according to the McKinsey Global Fashion Index. These companies account for 97% of global economic profit in the sector.
  • Nike, Adidas, and H&M are among the well-known names on the list.
  • According to the report, mid-market players are increasingly losing out to luxury and value brands.

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The global fashion market is dominated by 20 companies, according to new research from management consultancy firm McKinsey & Company.

In its “Global Fashion Index,” released last week, McKinsey ranked the top fashion companies across the world by economic profit, which it defines as “a measure for value-add created by businesses, whereby opportunity costs are deducted from revenues earned.”

Dubbed the “super winners,” these companies currently account for 97% of global economic profit in the retail sector and own some of the biggest and best-known brands in the business, including Nike, H&M, and Zara.

“The lesson from 2017 is that size continues to matter,” the report said. “There is a demonstrable advantage to scale. The one caveat is that if you can’t be big, be nimble.”

Noticeably absent from this list are online players and US department stores — the latter dominated the list 10 years ago, according to the report. The companies are ranked by economic profit, which is net operating profit, less adjusted taxes minus capital charge.

Find out which companies made the top 10 list below:

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10. Kering — Gucci, Alexander McQueen, Balenciaga

10. Kering — Gucci, Alexander McQueen, Balenciaga
Gucci bags at a store in Manhattan’s Brookfield Place.
Business Insider/Jessica Tyler

Economic profit: $943 million

Luxury conglomerate Kering has some of the best-known high-end labels in its empire. They include Gucci, Alexander McQueen, and Balenciaga, among others.

Gucci has exploded in popularity in recent months, especially among millennial and teen shoppers. It was ranked the second-hottest brand on a recent survey by Lyst and was ranked as the 10th most popular apparel brand in a survey of teen spending in April. Sales grew 46.6% in the first quarter of 2018 at Gucci and were up 35.1% in its most recent quarter, according to Kering.

Read more: Gucci has become hugely popular with teens and millennials. We visited a store and saw why they love it despite the high price tags.

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9. Adidas

9. Adidas
Photo by Vianney Le Caer/Invision/AP

Economic profit: $1.06 billion

German athletics brand Adidas continues to be one of the leading global fashion companies.

In recent years, it has been doubling down on the US market and has seen positive results because of this, capturing more market share and reporting 30-40% gains.

Read more: Adidas CEO reveals how the company pulled off a startling American turnaround, what he thinks the future of sportswear will be, and why Kanye West is still good for business

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8. Ross Stores

8. Ross Stores
Shutterstock/Ken Wolter

Economic profit: $1.06 billion

Off-price retailer Ross Stores is known for offering a wide selection of well-known brands at discounted prices and providing customers with a treasure-hunt shopping experience that’s hard to replicate online. It has been hailed as a “retail treasure” by…