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Global powers of luxury goods
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 analyzes them from multiple perspectives. It also looks at industry trends, M&A activity, and the conditions within the global economy.
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.
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.
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 percent
- Average luxury goods sales of the top 100 companies: US $2.1 billion
- Composite net profit margin: 10.3 percent
- 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 luxury brands should take advantage of evolving technological and consumer demands to help boost profits and remain competitive, according to the second annual "Global powers of luxury goods report." Several key aspects of the luxury sector will be unrecognizable 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.