Global Powers of Luxury Goods 2017

The fourth annual Global Powers of Luxury Goods report examines and lists the 100 largest luxury goods companies globally, based on the consolidated sales of luxury goods in FY2015 (which we define as financial years ending within the 12 months to 30 June 2016). It also discusses the key trends shaping the luxury market and provides a global economic outlook.

The world’s 100 largest luxury goods companies generated sales of US$212 billion in FY2015, 4.5% down year-on-year, and the average luxury goods annual sales for a Top 100 company is now US$2.1 billion.

Consumers in emerging markets continue to drive luxury market growth. In China, Russia and the United Arab Emirates, markets that we have categorized as emerging luxury markets, the percentage of consumers claiming to have increased their spending in the last 5 years was 70 percent, compared to 53 percent in the more mature markets (EU, US and Japan).

Travel and tourism is still the great growth opportunity for the luxury sector. Almost half of luxury purchases are made by consumers who are traveling, either in a foreign market (31%) or while at the airport (16%).

Key findings from the report include:

• The top 4 luxury goods companies maintained their positions on the leader board.
• Consumers are clear that they see the future of luxury as digital. Over 37% surveyed feel that luxury products and technology will become more closely linked. Digital channels are creating a need for large-scale, high-quality personalized content.
• Luxury goods sales growth is accelerated by currency volatility—sales for the world's 100 largest luxury goods companies grew by more than 3 percentage points in FY2015. Most currencies weakened significantly against the US$, which benefited many multinational companies based in other regions who experienced favorable currency effects, driving up reported sales.
• Italy is once again the leading luxury goods country in terms of number of companies, while France has the highest share of sales.
• Companies in the multiple luxury goods sector nearly double sales growth – compared to the previous year and leads profitability, while bags and accessories continues to be the fastest growth sector.

Deloitte Touche Tohmatsu Limited is pleased to present the third annual Global Powers of Luxury Goods. The report examines and lists the 100 largest luxury goods companies globally, based on publicly available data for consolidated sales of luxury goods in financial year 2014 (which we define as financial years ending within the 12 months to 30 June 2015). It also provides an outlook on the global economy; an analysis of merger and acquisition activity in the industry and discusses the key forces shaping the luxury market.

The world’s 100 largest luxury goods companies generated sales of $222 billion in financial year 2014, 3.6 percent higher year-on-year. The average luxury goods annual sales for a Top 100 company is now $2.2 billion.

Key findings from the report include:

• Discipline by design: luxury’s new normal – The luxury goods sector has now passed the mid-point of the ‘decade of change.’ The first half was characterized by the Chinese consumer and the explosion in the use of digital technology. The second half of the decade is expected to be characterized by discipline. The external environment is likely to change in a number of crucial areas: an evolution in consumer buying behaviors; the merging of channels and business model complexity; an increase in international travel; the growing importance of the millennial consumer; and the continued impact of the global economy. All of these factors create opportunities for the luxury goods sector.
• Demand for luxury goods still growing profitably – Sales for the world's 100 largest luxury goods companies continued to grow despite economic challenges, although the rate of growth was less than in previous years. Profit margins were higher than the previous year and the polarization of company performance was greater, with more high performers achieving double-digit luxury goods sales growth and profit margins, and also more companies experiencing double-digit sales decline.
• Italy is once again the leading luxury goods country in terms of number of companies – With 29 companies in the Top 100 it has more than double the number based in the US, which has the second-largest number. However, Italian companies account for only 17 percent of luxury goods sales in the Top 100 – these predominantly family-owned Italian companies are much smaller, with average luxury goods size of $1.3 billion, compared to $3.1 billion for US companies.
  

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.

The 2015 edition also includes a special discussion on the importance of technology and channel innovation when connecting with luxury consumers.

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 capitalization, an overview of M&A activity, and a discussion of key topics, in particular the impact of the digitally empowered consumer.