Deloitte Global report finds 76% of the Top 100 luxury goods companies reported sales growth
Source: Deloitte , Author: Posted by BI-ME staff
Posted: Mon June 3, 2019 1:23 pm

UAE. The world’s Top 100 luxury goods companies generated aggregated revenues of US$247 billion in fiscal year 2017, representing composite growth of 10.8 percent, according to the 2019 edition of Global Powers of Luxury Goods, a new report from Deloitte Global.

Despite the recent slowdown of economic growth in major markets including China, the Eurozone and the US, the luxury goods market looks positive.

In an age of fast changing trends, luxury companies are re-examining the value of brand heritage and history and are adopting an omni-personal approach focusing solely on the new age consumer,” says Herve Ballantyne, Partner and Consumer & Industrial Products Industry Leader, Deloitte Middle East . “To accomplish this, they are committed to making significant investments in digital technologies.”

The sustained growth in the United Arab Emirates luxury market, can be attributed to an increase in brand omni-channel strategies and the continued rise in the tourism industry. Despite the introduction of VAT, the forecast for the growth of the luxury market is positive. It is expected that the luxury market will continue to experience growth as the market matures and adjusts to global trends,” explains Ballantyne.

Global Powers of Luxury Goods Top 100
The world’s Top 100 luxury goods companies generated aggregated revenues of US$247 billion in FY2017, up from US$217 billion in the previous year (an increase of US$30 billion). Annual growth also jumped to 10.8 percent, on a currency-adjusted composite basis, much higher than the previous year’s 1.0 percent growth. Seventy-six percent of the companies reported growth in their luxury sales, with nearly half of these recording double-digit year-on-year growth.

The minimum revenue threshold required to enter the world’s Top 100 list of luxury goods companies in FY2017 was US$218 million, up by US$7 million from FY2016, with an average company size of US$2.47 billion.

The Top 10 companies accounted for nearly half (48.2%) of the total luxury goods sales of Top 100 companies. Among these, while the top three companies maintained their positions, the remaining ones moved up or down by one position.

Cosmetics and fragrances was the top-performing sector in FY2017 with 16.1 percent sales growth, which was mainly due to the double-digit year-on-year growth of seven companies out of the total 11 in the sector.

Eighty-eight of the Top 100 luxury goods companies are headquartered in nine countries, and they account for 93.4% of Top 100 luxury goods sales. France has the largest companies with an average size of US$8.29 billion, which is much higher than the average Top 100 size of US$2.47 billion.

France was also the best-performing country, achieving 18.7 percent composite sales growth in luxury goods in FY2017, and also contributed the largest share to the total sales of Top 100 luxury goods companies. Although Italy has the highest number of companies (24), it had the lowest sales growth rate.

About Global Powers of Luxury Goods
The Deloitte report identifies the 100 largest luxury goods companies globally, based on the consolidated sales of luxury goods in FY2017 (for fiscal years ending through 30 June 2018), using publicly available data, and evaluates their performance across geographies and product sectors. It also provides a global economic outlook and discusses the key trends shaping the luxury market.

The report can be found online here.

Photo Caption: Herve Ballantyne, Partner and Consumer & Industrial Products Industry Leader, Deloitte Middle East

About Deloitte:
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.

Deloitte is a leading global provider of audit and assurance, consulting, financial advisory, risk advisory, tax and related services. Our network of member firms in more than 150 counties and territories, serves four out of five Fortune Global 500® companies. Learn how Deloitte’s approximately 280,000 people make an impact that matters at www.deloitte.com.

About Deloitte & Touche (M.E.):
Deloitte & Touche (M.E.) (DME) is a licensed member firm of Deloitte Touche Tohmatsu Limited (DTTL) and is a leading professional services firm established in the Middle East region with uninterrupted presence since 1926.

 DME’s presence in the Middle East region is established through its affiliated independent legal entities which are licensed to operate and to provide services under the applicable laws and regulations of the relevant country. DME’s affiliates and related entities cannot oblige each other and/or DME, and when providing services, each affiliate and related entity engages directly and independently with its own clients and shall only be liable for its own acts or omissions and not those of any other affiliate.

DME provides audit and assurance, tax, consulting, financial advisory and risk advisory services through 25 offices in 14 countries with more than 3,300 partners, directors and staff. It has also received numerous awards in the last few years which include, Middle East Best Continuity and Resilience provider (2016), World Tax Awards (2017), Best Advisory and Consultancy Firm (2016), the Middle East Training & Development Excellence Award by the Institute of Chartered Accountants in England and Wales (ICAEW), as well as the best CSR integrated organization.

The information contained in this press release is correct at the time of going to press.

 

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