Luxury Goods 2017: The Italian charm of (too) small but beautiful

In brief
According to Deloitte's "Global Power of Luxury Goods", there are 26 Italian companies among the top 100 in the world in this sector. However, the problem of dimension remains.

In the 2017 edition of Deloitte’s “Global Powers of Luxury Goods” report, Deloitte, Italy boasts 26 companies in the world rankings of the top 100 for sales in the fashion and luxury goods industry. It is first, but the problem (which, moreover, is not typical of this sector alone) remains of the much greater dimension of its competitors: Italian groups have an average sales volume three times lower than that of the French and twice as much as American and Swiss counterparts. The top ten companies in the Top 100 rankings are LVMH, Richemont, Estée Lauder, Luxottica, Kering, Swatch Group, L’Orèal, Ralph Lauren, Chow Tai Fook (Chinese jewellery and watchmaker giant) and Pvh (U.S. company controlling Calvin Klein and Tommy Hilfiger) and alone account for almost half (48%) of total turnover, which for the brands included in the ranking amounts to 212 billion dollars. For “Global Powers of Luxury Goods”, Luxottica (which will strengthen its global leadership with the approval of the merger with Essilor) is the only Italian company among the top ten, in fourth place followed by Prada (17th) and Giorgio Armani (21st). The data show well-known structural features: in terms of turnover, the average perimeter of Italian companies is 1.3 billion dollars while for French companies it is 5 billion. In the United States and Switzerland, this value is lower (3 billion dollars) but is still more than double. The international market is showing no signs of slowdown: in China, Russia and the United Arab Emirates, 70% of consumers in the last five years have increased their spending on luxury goods compared with 53% in the more mature markets (European Union, United States and Japan). Turning attention to the results of categories, “Global Powers of Luxury Goods” puts bags and accessories (13.4%) in first place, while e-commerce and travel retail, which seem set to record significant results also for the current year, stand out among channels.