The world’s 75 largest luxury goods companies generated sales of $171.8 billion in the last fiscal year ended June 2013 despite a slowdown in the global economy, says ‘Global Powers of Luxury Goods’ report by Deloitte Global. The average size of the leading 75 companies was $2.3 billion in luxury goods sales with France’s LVMH again ranking number one.
“Despite operating in a troubled economic environment, luxury goods companies fared better than consumer product companies and global economies generally. For the remainder of this year, we expect growth in developed economies to pick up speed while significant risks in emerging markets remain. Overall performance of the luxury sector will depend not only on economic growth, but on factors such as volume of travel, protection of intellectual property, consumer propensity to save and changing income distribution,” says Ira Kalish, chief economist at Deloitte Global.
France, Italy, Spain, Switzerland, the UK and the US, where the majority of luxury goods companies are concentrated, represented nearly 87% of those top 75 companies and accounted for more than 90% of related global sales in 2012. France, Italy and Switzerland achieved strong composite luxury sales growth in 2012, with France and Switzerland outpacing the 12.6% composite growth at 19.4% and 14.8%, respectively. Italian luxury goods companies grew in tandem with the top 75 at 12.4%. Countries trailing the top 75 composite were Spain, the UK and the US, with the US recording smallest growth at just 5.6%.
“In the US, luxury goods should benefit from both domestic consumers and international travellers. A broader product selection and price advantage compared to travellers’ home countries makes the US an attractive luxury market for international tourists, which include an expanding middle and upper income groups from emerging markets. In the US, an increasing positive outlook is a result of income growth among higher-income households and the seeming wealth effect of the stock market’s recent gains,” said Alison Paul, vice chairman and US retail & distribution leader, Deloitte LLP.
The report added that the growth of wealthy and upper middle class consumers in emerging markets has been the biggest driver of merger and acquisition activity in the luxury and premium goods space in recent years. Asia-Pacific, Latin America and the Middle East & Africa accounted for a combined 19% of the luxury market in 2013 and the regions are projected to grow to 25% in 2025, according to Euromonitor International.
How much technology is too much technology? Tech has inevitably become asApril 15, 2021 | By Shruthi Nair
According to a report by the United Nations, the fashion industry accountsFebruary 18, 2021 | By Shruthi Nair
UAE-based Carrefour announced its theme and plans for Ramadan 2021. The brand
Locally owned supermarket Spinneys celebrates 60 years of doing business in the
UAE-based Carrefour will become the first retailer in the region to offer new levels
The Organic Farmers’ Market is back in Bay Avenue for its 12th
UAE-based Lulu Group recently inaugurated its first-ever all-female staff store in Jeddah,
Jones the Grocer, the gourmet grocer and cheese retailer launches the Jones
UAE-based Al Maya Supermarkets is hosting a two-week food festival at select
Locally-owned supermarket Spinneys has launched its ‘Power of Plants’ initiative in the
Carrefour UAE has launched “Cookit Yourself” — a curated recipe box created
UAE-based Al Islami Foods, one of the largest frozen food companies in
Marks & Spencer’s plant-based range now offers over 25 vegan products including meat-free
World’s largest fully integrated online brand in fresh fish and meat e-commerce
Who isn’t a sucker for discounts? Customers today are spoiled for choice
The various e-commerce and virtual retail stores that cater to different product
A private helicopter carrying the chairman and managing director of Lulu Group,
Tighter restrictions on hotels, restaurants, shopping malls and entertainment venues on account of
All hotels and restaurants have been directed to temporarily hold entertainment activities
The new Dubai Gold Souk is “very much on track”, according to
Gone are the days of traditional brick-and-mortar as well as purely e-commerce
The Dubai Gold & Jewellery Group’s ongoing jewellery campaign, held in association
Retail Abu Dhabi, the retail platform of the Department of Culture and
Gulf Marketing Group (GMG) is gearing up for a continued surge in
UAE-based Emaar Malls have announced the resignation of its CEO, Rajiv Suri
The Lumière Co, a new e-commerce platform, has launched to offer young