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The 100 top luxury goods companies reported aggregate revenues amounting to USD 247 billion in 2017. It represents year-on-year growth of 10.8%. The growth is attributed to large investments in digital marketing and communication on social networks. These are just a few of the conclusions of Deloitte’s global study on luxury goods (Global Powers of Luxury Goods).

“Even despite the economic slowdown on key markets, which include the Eurozone countries or China, business with luxury goods has kept its positive prospects for the future,” says Anna Bezděková, Director in the Audit Function at Deloitte.

The LVMH group is still at the top of the global ranking. Its sales amounted to USD 28 billion. The ranking of the Top 10 companies has not changed much in the past four years. The last change is the replacement of Ralph Lauren by a new player, namely Chanel Limited. The dominant position of the top ten companies is confirmed by their percentage share on the aggregated revenues of luxury goods companies, which amounts to almost one half (48.2%).

More than three quarters (76%) of luxury goods companies reported growth. In half of the companies, the year-on-year sales grew by a two digit number. The highest revenue growth was reported in France, the cradle of fashion, where companies reported growth of 18.7%. On the contrary, Italy was a disappointment as it experienced the slowest sales growth rate despite the fact that most of the top 100 companies – in total 24 - are headquartered in Italy.

“In 2017, the revenues were mostly generated in the segments of cosmetics and perfumes. Seven out of 11 companies in the cosmetics and perfumes segments grew by a two digit number, in total by 16.1%. Customers buy mostly shoes and clothes. Within the 100 top luxury goods companies, definitely the highest number of companies are focused on clothes and shoes, and generally fashion,“ comments Anna Bezděková.

88% of the most successful luxury goods companies are headquartered in nine countries in the world (China/Hong Kong, France, Germany, Italy, Japan, Spain, Switzerland, USA and United Kingdom). The average value of a luxury goods company in France, which is the seat of seven companies, is USD 8.29 billion. The average value of a Top 100 company amounts to USD 2.47 billion.
“Nowadays, moral attitude and ethics are more important for customers than they used to be in the past. The environment, sustainability, recycled materials etc. are all aspects that customers take into account in selecting and buying goods. And luxury goods are no exception. We can already see that brands such as Prada, Rolex or Tiffany have chosen to follow this path,” adds Anna Bezděková.

The whole study Global Powers of Luxury Goods is available here.