Global Powers of Luxury Goods 2015

Perspectives

Global Powers of Luxury Goods 2015

Engaging the future luxury consumer

The second annual Global Powers of Luxury Goods report identifies the world’s top 100 largest luxury goods companies and analyses them from multiple perspectives. It also looks at industry trends, M&A activity and the conditions within the global economy.

Deloitte Touche Tohmatsu Limited is pleased to present the second annual Global Powers of Luxury Goods. This report identifies the 100 largest luxury goods companies around the world based on publicly available data for the fiscal year 2013 (encompassing companies’ fiscal years ended through June 2014.

The report also provides an outlook on the global economy, a look at merger & acquisition activity in the industry, and geographic and product sector analysis. There is a section devoted to the “Q Ratio,” which is a way of measuring business potentials based on non-tangible assets such as brand equity and customer loyalty.

David White, Deloitte partner and Australian retail industry leader, commented: “Several key aspects of the luxury sector will be unrecognisable in the next few years. The traveling luxury consumer will change the concept of national boundaries; millennial consumers will represent a significant percentage of sales volume in luxury; and the competitive forces driven by technology will continue to disrupt at a faster pace. As such, global luxury brands must overcome significant challenges in order to maximise engagement with their digitally-savvy, time-sensitive and socially aware consumers or risk being left behind.

“The luxury sector in Australia has seen significant growth in recent years.  This has been fuelled in part by increasingly wealthier Australian consumers with a growing hunger for high end branded products, coupled with strong demand from international tourists visiting Australia, particularly from Asia.  The recent devaluation in the Australian dollar has further encouraged tourist spending on luxury goods in Australia.  Whilst a relatively small market globally, Australia continues to be attractive for luxury brand retailers due to our consumer wealth, spending patterns, and proximity to Asia.”

This year’s edition also includes a special discussion on the importance of technology and channel innovation when connecting with luxury consumers.

Here are a few telling numbers about the luxury marketplace:

  • Current year-over-year luxury goods sales growth: 8.2%
  • Average luxury goods sales of the top 100 companies: US$2.1 billion
  • Composite net profit margin: 10.3%
  • Aggregate net luxury goods sales of top 100: US$214.2 billion.

Luxury goods is a dynamic and increasingly important component of the consumer business industry. Global Powers of Luxury Goods 2015: Engaging the Future Luxury Consumer is a valuable snapshot of where luxury is right now.

Global Powers of Luxury Goods 2015

Global Powers of Luxury Goods

Global luxury brands should take advantage of evolving technological and consumer demands to help boost profits and remain competitive, according to the 2nd annual Global Powers of Luxury Goods report. Several key aspects of the luxury sector will be unrecognisable in the next few years. The traveling luxury consumer will change the concept of national boundaries; millennial consumers will represent a significant percentage of sales volume in luxury; and the competitive forces driven by technology will continue to disrupt at a faster pace.

Previous issue: Global Powers of Luxury Goods 2014: in the hands of the consumer. This first edition of the report focused on four broad categories of luxury goods – designer apparel, handbags and accessories, fine jewelry and watches and cosmetics and fragrances. It identified the 75 largest luxury goods companies around the world and examined the trends shaping the sector. I also provided an outlook for the global economy, an analysis of market capitalisation, an overview of M&A activity and a discussion of key topics, in particular the impact of the digitally empowered consumer.

Global Powers of Luxury Goods 2014
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