Global Powers of Luxury Goods 2020

National, 25 November 2020 – Deloitte India today launched its 2020 edition of the Global Powers of Luxury Goods* report that featured four Indian brands– Titan, Kalyan Jewellers, PC Jeweller, and Joyalukkas − consistently for the seventh time in a row. The report also highlights interesting trends on how global brands are keen to reinvent themselves by adopting a new-age approach towards the future of the fashion and luxury industry.

For the first time in seven editions, the top 10 global luxury companies accounted for more than half of the total luxury good sales of the top 100 companies. For the third consecutive year, the same companies made it to the top 10 list.Online retail sales increased during the first half of the year, reaching a peak in April 2019 of 209 percent compared with the previous year. This increase prompted many brands to accelerate digitisation and provide digital e-commerce solutions.A new age for fashion and luxury is set to emerge that shows luxury companies are consciously offering a mix of online and offline retail experience for the connected consumer.

Speaking on the launch of the report, Porus Doctor, Partner and Consumer Industry Leader, Deloitte India said,

“The COVID19 pandemic accelerated the adoption of digital platforms by luxury brands to boost sales in a challenging environment. Initially, luxury brands were reluctant to embrace disruptive digital technologies. However, since the onset of the pandemic, there was a significant uptick in online channels being used by consumers for purchases and today, a number of global luxury goods companies and brands have leveraged digital technologies to augment retail store experiences for consumers.”

To view the Global Report, click here

Additional trends from the report are mentioned below:

• Post COVID-19, shoppers will no longer distinguish between the offline and online channels: The pandemic has accelerated the shift to analyse consumer data through artificial intelligence (AI) and augmented reality (AR) applications. Both ‘showrooming’ and ‘webrooming’ are now integral parts of omnichannel shopping for luxury and fashion goods. Therefore, fashion companies need to enhance their interconnectivity as much as possible. For example, with experience-based services, such as click and collect, localised inventory, click and return, click and try, seek and send, in-store Wi-Fi access, and tech-driven luxury concierge services.

• Growing luxury resale market: Contradicting a belief that the pandemic will affect demand in the primary market, growth in the resale market is leading to an increase in demand in the primary market. Affluent millennial and generation Z consumers are purchasing in both the primary and resale markets. Generation Z customers use resale sites, such as Depop, which experienced triple-digit growth between April 2020 and June 2020, compared with the same period in the previous year. Another reason for the popularity of the resale market is that according to consumers, it is perceived as more sustainable.

• ‘Woke’ fashion, a rising trend among luxury brands: Millennials and generation Z, which are the current market definers, look for culturally sensitive brands. They expect retailers to be ‘woke’, a millennial term meaning ‘awake’. The use of non-sustainable raw materials in products has a negative influence on customers’ purchase decisions.

*About Global Powers of Luxury Goods

The report identifies the 100 largest luxury goods companies globally, based on the consolidated sales of luxury goods in FY2019 (for fiscal years ending through 31 December 2019) *, using publicly available data, and evaluates their performance across geographies and product sectors. It also discusses the key trends shaping the luxury market.

* Since the first Global Powers of Luxury Goods report was produced in 2014, a mid-year fiscal year has been used, i.e. for the Global Powers of Luxury Goods 2019 report, FY2017 meant fiscal year end dates from 1 July 2017 to 30 June 2018. For the Global Powers of Luxury Goods 2020 report, we have changed to a calendar year fiscal year definition, i.e. FY2019 means fiscal year end dates from 1 January to 31 December 2019. Growth calculations (CAGR and year-on-year) are also based on calendar year data for financial years FY2016 to FY2019.

Notes to the editor for reference purposes only 

This press release has been issued by Deloitte Touche Tohmatsu India LLP.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms.
Deloitte India herein refers to Deloitte Touche Tohmatsu India LLP.