Gitanjali Gems, Titan, PC Jeweller among world's top 50 luxury goods companies
Three Indian companies Gitanjali Gems, Titan and PC Jeweller have been named in the list of top 50 luxury goods firms globally that was topped by Louis Vuitton, according to Deloitte's fourth annual Global Powers of Luxury Goods report, titled ‘The new luxury consumer’.
Gitanjali Gems Ltd was placed in the 30th rank, followed by Titan Company (31st) and PC Jeweller (44th) in the Deloitte fourth annual Global Powers of Luxury Goods report.
Gitanjali Gems Ltd has moved up 10 spots from the 40th position last year to 30 while Titan has climbed up just one position from 32 to 31 whereas PC jeweller has maintained its position at 44.
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, Chloe), and The Estee Lauder Companies Inc (Estee Lauder, M.A.C., Aramis, Clinique, Aveda, Jo Malone).
Emerging consumer markets continue to drive luxury market growth, the report said. In China, Russia and the United Arab Emirates, that are categorised as emerging luxury markets, 70 per cent of consumers claimed to have increased their spending in the last five years as compared to 53 per cent in the more mature markets (EU, US and Japan).
The report noted that the world's 100 largest luxury goods companies generated sales of USD 212 billion in 2014-15. The average luxury goods annual sales for a top 100 company stood at USD 2.1 billion.
“Travel and tourism is still a great growth opportunity for the luxury sector,” said Patrizia Arienti, EMEA Region Fashion & Luxury Leader, Deloitte Global in a statement. “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.
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