Over the past five years consumer spending on luxury goods has remained relatively robust, with only 4% claiming to have cut back on their spending, according to the 'Global Powers of Luxury Goods' report from Deloitte. This article is copyright 2018 The Best Customer Guide.

The report examines and lists the 100 largest luxury goods companies globally, based on the consolidated sales of luxury goods, and examines trends shaping the luxury market.

The world's 100 largest luxury goods companies generated sales of US$212 billion in FY2015, 4.5% down year-on-year. The average luxury goods annual sales for a Top 100 company is now US$2.1 billion.

Growth continues to be driven by consumers in emerging markets. In China, Russia and the United Arab Emirates (UAE), markets that we have categorised as emerging luxury markets, the percentage of consumers claiming to have increased their spending stood at 70%, compared to 53% in the more mature markets (EU, US and Japan).

Travel/tourism is still the greatest growth opportunity. Almost half of luxury purchases are made by consumers who are travelling, either in a foreign market (31%) or while at the airport (16%). This proportion rises to 60% among consumers from emerging markets, who typically do not have access to the same range of products and brands that can be found in more mature markets.

Key findings from the report include:

  • Luxury goods sales growth is accelerated by currency volatility - sales for the world's 100 largest luxury goods companies grew by more than 3percentage points in FY2015. Most currencies weakened significantly against the US dollar, which benefited many multinational companies based in other regions who experienced favorable currency effects, driving up reported sales.
  • Italy is once again the leading luxury goods country in terms of number of companies, while France has the highest share of sales.
  • Multiple luxury goods companies double sales growth and lead profitability, while bags and accessories continues to be the fastest growth sector.

The full report has been made available for free here: https://www2.deloitte.com