Global Powers of Luxury Goods
Three Indian brands – Titan, Gitanjali Gem and PC Jewellers – have been featured for the first time in top 100 luxury goods brands globally as per a study by Deloitte.
The third annual Global Powers of Luxury Goods report identified the world’s top 100 largest luxury goods companies and analyzed them from multiple perspectives. It also looked at industry trends, M&A activity, and the conditions within the global economy.
The report said the world’s 100 largest luxury goods companies generated sales of $222 billion in financial year 2014, 3.6 per cent higher year-on-year.
The top three companies in the list were:
- Louis Vuitton SA (Louis Vuitton, Bulgari, Pucci, DonnaKaran, TAGHeuer)
- Richemont (Cartier, Van Cleef&Arpels, Montblanc, Chloé)
- Estée Lauder (Estée Lauder, M.A.C., Aramis, Clinique, Aveda, Jo Malone; Licensed fragrance brands)
Titan
Rank: 32
About The Company: Titan, established in 1984, is an Indian designer and manufacturer of watches, jewellery, precision engineering components and other accessories including sunglasses, wallets, bags, belts, fragrances and helmets. It is a joint venture between the Tata Group, and the Tamil Nadu Industrial Development Corporation.
Titan is the world’s fifth largest wrist watch manufacturer and exports watches to nearly 32 countries around the world.
Well-known brands of Titan: Fastrack, Sonata, Raga, Edge, Octane, Xylys, Nebula, Zoop, Titan Eye+, Tanishq, Goldplus, Zoya and Skinn.
Expert Speak: Partner Deloitte India, Anil Talreja, said: “We see India as a growing market for luxury goods due to key factors like improved purchasing power, better consumer buying behaviours, the merging of channels and business model, the growing importance of the millennial consumer; and the continued impact of the global economy.”
Gitanjali Gems
Rank: 40
About The Company: Gitanjali Gems was the first major diamond and jewellery house to be launched and run by modern entrepreneurs rather than dynastic jewelers in India.
The company prides itself of being at the forefront of all global breakthroughs in diamond jewellery design and production. It has the distinction of producing the world’s smallest heart shaped diamond (0.03 carat), and developing some 25 patented facet patterns.
Besides changing the face of manufacturing jewellery in India, Gitanjali Gems broke the mould of traditional jewellery marketing by launching multiple brands for multiple markets and price segments.
Well-known brands of Gitanjali Gems: Nakshatra, D’damas, Gili, Asmi, Sangini, Maya, Giantti, World of Solitaire, Shuddhi, Diya
The Rise of E-Commerce: According to the Deloitte report, the luxury sector has not been immune to the rise of e-commerce. The original challenge for luxury brands was how to replicate the luxury shopping experience online, but increasingly the more valuable investment is how to use digital technology to enhance the luxury store experience. The luxury consumer now has a larger range of purchase and delivery options than ever before.
Luxury goods companies’ have acquired cutting-edge technology firms in an effort to turn digital into a competitive advantage. Private equity firms continue to invest in the sector, with the objective of unlocking value in premium and luxury brands and capturing future growth opportunities.
PC Jewellers
Rank: 44
About The Company: PC Jeweller Limited started its operations in April 2005 with one showroom at Karol Bagh, New Delhi. Today, it is one of the fastest growing jewellery retail chains with 61 showrooms across 50 cities and 17 states in India.
Backed by strong promoter team, professional management and a reputed board, the company has followed a meticulously designed business plan that included speedy execution of all sales over the years.
PC Jeweller engages in the manufacture, export, wholesale, and retail of gold and diamond jewelry in India. The company’s business model consists of opening large format, stand-alone stores at high street locations. Its stores stock a wide range of jewellery across all price points, with an increasing focus on diamond jewellery.
According to the Deloitte report, PC Jewellers ranks #8 in the 20 fastest growing companies, globally.
All-Round High Performers: The Deloitte report says that the number of all-round high performers in the luxury goods category has doubled over the years. Fifteen companies achieved double-digit growth in luxury goods sales and a double-digit net profit margin in 2014, compared to last year’s report.
For the 80 reporting companies, asset turnover (the ratio of sales to assets) was stable at 0.8 times, resulting in a composite return on assets of 9.0 per cent in 2014, compared to 8.6 per cent in 2013.The average luxury goods annual sale for a Top 100 company is now $2.2 billion.
