Titan, Kalyan among top luxury brands

Tata Group’s Titan Company has secured 28th position in the top 100 list of luxury goods list by Deloitte in its fifth edition of Global Powers of Luxury Goods report. In all, five Indian brands made it to the list, the other four being Kalyan Jewellers (37), PC Jewellers(43), Joyalukkas India(49) and Tribhovandas Bhimji Zaveri (89).

According to the report, the world’s 100 largest luxury goods companies generated sales of $217 billion in fiscal 2016 and the average luxury goods annual sales for a top 100 company is now $2.2 billion.

The report examines and lists the 100 largest luxury goods companies globally, based on the consolidated sales of luxury goods in FY2016 (defined as financial years ending within the 12 months to 30 June 2017).

The top five largest Fashion & Luxury players are LVMH Moët Hennessy Louis Vuitton SE, The Estée Lauder Companies Inc, Compagnie Financière Richemont SA, Luxottica Group SpA and Kering SA.

Commenting on the socio-economic scenario and the development of Indian luxury goods sector, a Deloitte India spokesperson said, “India is currently undergoing a rapid digital transformation while battling the challenges of high import duties, the introduction of goods and services tax (GST) and unstable price parity. However, with a positive economic outlook, the demand for luxury goods segment is poised to rise in 2018. An aspirational and tech-savvy urban consumer with a higher disposable income continues to invest in newer experiences that are now available digitally and thus augments the growth of luxury products.”

Among key finding from the report included the fact that Italy is once again the leading luxury goods country in terms of the number of companies and France has the highest share of sales. While nine of the top 100 luxury brands are headquartered in China, India is not far behind.

Clothing and footwear segment dominated the list with 38 luxury brands. Jewellery and watches followed closely with 31 brands, including five from India.

China, France, Germany, Italy, Spain, Switzerland, the UK and the US together made up 83% of the top 100 luxury goods companies and 90% of top 100 luxury goods sales.

Spain and France reported the highest growth rates of luxury goods sales.

The average luxury goods sales for the 11 companies in the multiple luxury goods sector was $6.3 billion, and together, they accounted for 32.2% of the top 100 luxury goods sales.

The luxury market has bounced back from economic uncertainty and geopolitical crises in 2016, edging closer to annual sales of $1 trillion at the end of 2017.

“Whether total global market growth is in single or double digits will depend on many factors, including larger geopolitical factors and their impact on tourism. Growth in the luxury goods industry will continue, unlike in several other industries,” said Patrizia Arienti, EMEA Region Fashion & Luxury Leader, Deloitte Italy.