luxury goods global press release 2017

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Indian brands make their way into top 50 luxury goods globally: Deloitte Report

Press release

  • Three companies from India in the global list—Gitanjali Gems, Titan and PC Jewellers feature in the top 50.
  • 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.

Mumbai, 16 May 2017: Deloitte has released the fourth annual Global Powers of Luxury Goods report, titled ‘The new luxury consumer which examines and lists the 100 largest luxury goods companies globally, based on publicly available data for 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. The average luxury goods annual sales for a Top 100 company is now US$2.1 billion. Three India brands Gitanjali Gems Ltd. (#30), Titan Company Limited (#31) and PC Jeweller Ltd. (#44) featured in top 50. 

Among the Top 10 companies globally, three are luxury conglomerates participating in multiple sectors of the luxury good market. The top three companies are LVMH Moet Hennessy-Louis Vuitton SA (Louis Vuitton, Bulgari, Emilio Pucci, DonnaKaran, TAGHeuer), Compaigne Financiere Richemont SA (Cartier, Van Cleef & Arpels, Montblanc, Chloé), and The Estée Lauder Companies Inc (Estée Lauder, M.A.C., Aramis, Clinique, Aveda, Jo Malone).

Emerging consumers 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), according to the fourth annual Global Powers of Luxury Goods report issued by Deloitte Global.

“Travel and tourism is still a great growth opportunity for the luxury sector,” said Patrizia Arienti, EMEA Region Fashion & Luxury Leader, Deloitte Global. “Almost half of luxury purchases are made by consumers who are travelling, either in a foreign market (31 percent) or while at the airport (16 percent). This rises to 60 percent among consumers from emerging markets, who typically do not have access to the same range of products and brands that can be found in more mature markets.”

“The essence of luxury is changing from an emphasis on the physical to a focus on the experiential and how luxury makes you feel”, said Vicky Eng, Retail Sector Leader, Deloitte Global. “However premium quality remains a ‘must have’ and consumers retain a keen eye for craftsmanship and hand-made products”.

Key findings from the report include:
  • Luxury goods sales growth up—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 dollar, which benefited many multinational companies based in other regions who experienced favorable currency effects, driving up reported sales. In the Top 100, only six companies reported double-digit sales decline in FY2015; half of these were jewelers, the product sector which continued to experience volatile demand.
  • Italy is once again the leading luxury goods country in terms of number of companies, while France has the highest share of sales—with 26 companies in the Top 100, Italy has more than double the number based in France. However, the predominantly family-owned Italian companies are much smaller, with average luxury goods size of US$1.3 billion, which is around a quarter of the average US$5.1 billion luxury goods sales for the French companies.
  • 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.

Commenting on the economic outlook of the luxury market in India, and the potential impact it may have on brands, a Deloitte India spokesperson said, “A rapidly rising urban middle class with increasing disposable income is expected to drive sales of luxury goods. The demand for luxury goods is expected to remain strong, and India remains the bright spot among Asian and BRIC countries, despite the tax on luxury goods.”

About the Global Powers of Luxury Goods report

The Global Powers of Luxury Goods report identifies the world’s top 100 largest luxury goods companies based on publicly available data and analyzes them from multiple perspectives. It also examines industry trends and global economic conditions. For the “New luxury consumer” section of the report, Deloitte Global surveyed over 1,300 consumers in 11 countries (China, France, Germany, Italy, Japan, Russia, Spain, Switzerland, UAE, UK and US) to explore their attitudes to luxury goods and their purchase behavior. Full details about the Global Powers of Luxury Goods are available here.  

Notes to the editor for reference purposes only:

This press release has been issued by Deloitte Touche Tohmatsu India LLP.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms.

Deloitte India herein refers to Deloitte Touche Tohmatsu India LLP.

Media Contact:

Sagarika Mamik Gupta
Deloitte Shared Services India LLP
Mobile: +91 9711284005
Email: sagarikagupta@deloitte.com

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