Italy, home to a third of the global luxury industry
In a new research “Global Powers of Luxury Goods” by Deloitte, which examines the 100 largest companies in the world of luxury, Italy ranks first, with 29 companies, more than double the US (14 companies).
Taking account of the financial statements by June 30, 2014, the 100 largest luxury companies have generated an annual turnover of 222 billion dollars, up 3.6% from a year earlier.
The margin grew to 11.4%, but has also strengthened the polarization performance. More companies, as experts explain Deloitte, achieved double-digit sales growth.
As for Italy, only the eyewear giant Luxottica is among the top 10 companies – it occupies the fourth place behind number one, LVMH Group followed by Richemont and Estee Lauder.
The highest ranked Italian brands are Prada (in 15th position) and Giorgio Armani (the 21th). In 2014, three groups have achieved almost half of total turnover of the 29 Italian companies. The growth rate of sales of Italian luxury goods amounted to + 6.9% in 2014, from 4.3% the year before.
Deloitte has identified a subgroup in the top 100, the ranking of the “Fastest 20″, ie the 20 companies from the highest annual compound growth rate of sales (CAGR) from 2012 to 2014.
The ranking is led by Kate Spade (with a 2012-2014 CAGR 54.7%), while Italy’s Vicini (Giuseppe Zanotti) ranked third with 40,8%. The fifth ranked brand is Stefano Ricci (32.1%), followed by eyewear company Marcolin (30.1%). The Valentino fashion house came in seventh, with a CAGR of 28.8%. Moncler earned 13th place with 19.1% of the annual compound growth rate.
Italy is the leading country for the “high performer” segment boasting double-digit rise in both sales and operating margin. The listed companies include Giorgio Armani, Moncler, Liu.Jo, Euroitalia, Stefano Ricci and Vicini.
“The global industry of luxury goods – says Ira Kalish, chief economist at Deloitte – is destined to a slow progression in 2016, at a pace that many retailers will find disappointing.”
The rate is slowing in major markets such as China and Russia, “even if other markets continue to perform well and are spaces for interesting opportunities around the world. India, for example, is progressing rapidly and the Middle East offers further development potential. “