Global Powers of Luxury Goods 2016

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.