Three Indian companies — Titan, Gitanjali Gems and PC Jewellers — have for the first time featured among the top 100 global luxury goods firms, according to a Deloitte report.
While Titan came in at the 32nd spot, Gitanjali Gems stood at 40 and PC Jewellers at 44, said the ‘Deloitte Global Powers of Luxury Goods 2016’ report.
Among the top 10 companies globally, the top three were luxury conglomerates Louis Vuitton SA, Richemont and Este Lauder, the report said.
Swatch Group, which includes licenced watch brands Breguet, Longines, Omega and Rado, lost the top position as the ‘highest net profit margin top 10 company’ that it had held for the previous two years to Louis Vuitton.
“We are on the verge of entering into the second half of ‘decade of change’ for luxury goods sector with an expectation of remarkable changes by 2020.
“Due to economic challenges, there is a possibility that the global luxury goods sector is likely to grow slow in 2016 in important markets such as China and Russia,” said Anil Talreja, Partner, Deloitte Haskins and Sells.
“However, 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,” he added.
The number of all-round high performers doubled, with 15 companies achieving double-digit growth in luxury goods sales and a double-digit net profit margin in 2014, compared to the previous year’s report.
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, the report noted.