Global Powers of Luxury Goods 2019
3 Indian brands rule the fastest 20 list of Global Powers of Luxury Goods– Deloitte 2019 Report
- Titan Company Ltd. is the fourth fastest growing global luxury goods company.
- 5 Indian luxury brands are in the Deloitte’s Global Luxury Top 100 listings including: Titan Company Limited (#Rank 27), Kalyan Jewellers India Ptv. Ltd. (#Rank 35), PC Jewellers (#Rank 40), Joylukkas India Pvt. Limited (#Rank 47), Tribhovandas Bhimji Zaveri Limited or TBZ (#Rank 87)
- The world’s 100 largest luxury goods companies generated personal luxury goods sales of US$247 billion in FY2017.
Mumbai, India, 17 April 2019 – According to Deloitte’s Global Powers of Luxury Goods 2019 report, Titan Company Limited had a sales growth of 23.6 % in FY 2017 and a CAGR of 19.7% between FY2015 and FY2017, emerging as the fourth fastest growing global luxury goods company.
PC Jeweller Ltd. (#Rank 40) and Joyalukkas India Pvt. Limited (#Rank 47) also featured on the list of fastest 20 growing companies along with Titan with a sales growth of 13.4% and 9.6%, respectively. Kalyan Jewellers (#Rank 35)and Tribhovandas Bhimji Zaveri Limited (#Rank 87) were amongst the other five Indian brands who made to the Top 100 list.
Despite the recent slowdown of economic growth globally in major markets including China, the Eurozone and the US, the top 100 luxury goods companies generated aggregated revenues of US$247 billion in FY2017, representing a composite growth of 10.8%.
Overall, 76% companies reported growth in their luxury sales, with nearly half of these recording double-digit year-on-year growth.
According to the report, mergers and acquisitions, continue to play an important role, especially to adopt the bricks and clicks strategy; for instance Titan’s recorded high sales performance in its retail segment was attributed to new stores, new brand launches, and robust e-commerce performance through their website, Caratlane.com.
Commenting on the report Deloitte India spokesperson said “India continues to experience a high growth rate on the back of growing markets beyond the major metros and the emergence of HENRYs (High-Earners-Not–Rich-Yet).
With adoption of technology in retail, the traditional definitions and characteristics of luxury are evolving, thereby creating new opportunities for both existing players and entrants. The next few years are going to be dynamic for the Indian luxury market with increasing growth and competition seen especially in the bridge to luxury segment.
Indian luxury brands that wish to be profitable by targetting the affluent need to revisit strategies in a way that their products are inclusive and personalised and demonstrate a strong value proposition through authenticity. One critical index that deserves to be watched is the retail inflation index as this has a direct bearing on the luxury segment.”
“In an age of fast changing trends, luxury companies are re-examining the value of brand heritage and history and are adopting an omni-personal approach focusing solely on the new age consumer,” says Patrizia Arienti, Deloitte EMEA Fashion and Luxury Leader. “To accomplish this, they are committed to making significant investments in digital technologies.”
Following are the notable trends in the global luxury market:
Re-examining the value of brand history and heritage: To appeal to the growing global affluent millennial population, high-end companies are abandoning previous long-held beliefs that exclusivity and high prices were essential brand characteristics. The reality today is that new luxury consumers only care about the brands that have created value for them in the last 24 hours.
Building relationships based on data—luxury brands is the new focus: To focus on specific audience segments while adopting an omni-personal approach, luxury brands are redesigning customer engagement techniques by using data analytics tools. For instance, Kering created a data science team at group level to improve the service and shopping experience of its clients by assessing the data. Kering intends to get real-time 360-degree view of its customers to deliver rich and personalised experiences and meet their specific needs.
Finding the right balance between personalisation and privacy commitments: Recently, the luxury world has been characterised by offering a knowledgeable, tailored, and seamless service. However, given the implementation of data privacy laws the landscape is changing. Data privacy laws and other regulations are limiting the extent to which brands can provide customised shopping experiences.
Luxury goods companies’ revenues soar; profits improve
- The world’s top 100 luxury goods companies generated luxury goods revenues of US$247 billion in FY2017, up from US$217 billion in the previous year. Annual growth jumped to 10.8%, on a currency-adjusted composite basis, much higher than the previous year’s 1.0% growth.
- Seventy-six percent of the companies reported growth in their luxury sales, with nearly half of these recording double-digit y-o-y growth.
About Global Powers of Luxury Goods
The report identifies the 100 largest luxury goods companies globally, based on the consolidated sales of luxury goods in FY2017 (for fiscal years ending through 30 June 2018), using publicly available data, and evaluates their performance across geographies and product sectors. It also provides a global economic outlook and discusses the key trends shaping the luxury market.
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