Titan, PC Jeweller in top 100 global luxury goods list

These are golden times for Indian jewellery and watch companies. Five Indian companies have been featured in the Top 100 Global Luxury Goods list compiled by Deloitte in its fifth annual Global Powers of Luxury Goods report.

The list features Titan Company, a joint venture between the TATA Group and the Tamil Nadu Industrial Development Corporation (TIDCO), ranking at 28. Titan Company also owns Tanishq, Titan Eyeplus, and Fastrack.

It was followed by Kalyan Jewellers (37), PC Jeweller (43), Joyalukkas India (49), and Tribhovandas Bhimji Zaveri (89). PC Jeweller and Joyalukkas India are the among the 20 fastest-growing luxury goods companies globally, with compound annual growth rate sales of 15.5% and 13.9% respectively, for FY14-16.

The reports shows that China, France, Germany, Italy, Spain, Switzerland, the UK, and the US together made up 83% of the Top 100 luxury goods companies and 90% of Top 100 luxury goods sales.

“In India, the luxury goods sector is still in the early stages of development, with a slow but constant growth, and presenting many opportunities for investing companies. Demand for luxury goods is expected to remain strong over the next year,” says the report. “The positive economic prospects for the country seem sufficient for a rise in aspirations among urban consumers with higher disposable income to invest in luxury products.”

However, high import duties on luxury goods, demonetisation, and GST are some of the problems that exist among the luxury segment in India, the report notes.

It also examines and lists the 100 largest luxury goods companies globally, based on the consolidated sales of luxury goods in FY16, and notes that the world’s 100 largest luxury goods companies generated personal luxury goods sales of $217 billion in FY16.

Patrizia Arienti of Deloitte Italy says the luxury market has bounced back from economic uncertainty and geopolitical crises in 2016, edging closer to annual sales of $1 trillion at the end of 2017. “Whether total global market growth is in single or double digits will depend on many factors, including larger geopolitical one, and their impact on tourism. Growth in the luxury goods industry will continue, unlike in several other industries,” adds Arienti.