Deloitte’s annual “Global Powers of Luxury Goods” report pin-pointed and ranked the largest personal luxury goods companies in the world by sales for the year ending June 30, 2018. On the list of the world’s largest purveyors of luxury-level garments, accessories, cosmetics and fragrances (i.e., personal luxury goods), LVMH, Estée Lauder, Richemont, Kering, Luxottica Group, Chanel, L’Oréal Luxe, Swatch Group, Chow Tai Fook Jewellery, and PVH Corp, in that order, took the top spots, with minimal variations from last year’s findings.
According to the London-headquartered consultancy’s annual report, which examines and lists the 100 largest personal luxury goods companies (and luxury goods groups) based on sales, the aforementioned “top 10” brought in a whopping $247 billion in revenue for the “2017 fiscal year,” or almost half of all of the revenues of the 100 companies on Deloitte’s list.
Even more striking than that, however, is how that $247 billion figure stands up to the total sales of personal luxury goods across the globe.
In a separate luxury study released late last year, Bain & Company found that the global market for personal luxury goods is worth $294 billion. To put the two financial institutions’ findings into perspective, of the nearly $300 billion personal luxury goods market, a mere 10 luxury groups are responsible for virtually all of it.
Another takeaway from the Deloitte report comes in the form of the top 20 fastest growing personal luxury goods companies, based on their compound annual growth rate over a two year period. Just as last year, Canada Goose Goldings topped the list with $461 million in annual revenue and a growth rate of 46.4 percent, followed by cosmetics and fragrance giant Coty, Italian fashion company Furla, Indian consumer goods company Titan, and Japanese cosmetics company Shiseido.
As a whole, the top 100 companies experienced growth compared to last year. “Seventy- six percent of the companies reported growth in their luxury sales, with nearly half of these recording double-digit year-on-year growth,” per Deloitte, with “just 18 companies [seeing]luxury goods sales down” compared the last year’s report. Of the companies that experienced a “single digit percentage drop in sales,” the majority were clothing and footwear companies, including Ralph Lauren, Fossil Group, Giorgio Armani, Dolce & Gabbana, Safilo Group and Tod's.”
In terms of the most striking fashion entities on the top 10 list, Deloitte notes that “Kering achieved the strongest Top 10 luxury sales growth, of 27.5 percent, overtaking Luxottica to rank as the fourth-largest luxury goods company in FY2017. The group’s luxury goods revenue touched the US$12 billion mark, driven by organic growth across all product categories, regions and distribution channels.” It also revealed that Chanel, having published their financial results for the first time in 2018, jumped into the Top 100 global luxury goods companies in sixth position.
The report further states that Chanel is “reportedly the second largest luxury brand in the world, behind LVMH’s Louis Vuitton and ahead of Kering’s Gucci, with operations in all four personal luxury goods product sectors, delivering revenue approaching US$10 billion. The company recorded the highest net pro t margin in the Top 10, at 18.6 percent, and the fifth highest in the Top 100.”