Digitalization and sustainability have become increasingly important among luxury goods companies, according to the 2021 edition of Deloitte Global's new Global Powers of Luxury Goods report.
The world's top 100 luxury goods companies realized total revenues of US$252 billion in fiscal 2020. This represents a compound annual decline of 12.2%.
According to Deloitte, there is a growing awareness of environmental concerns. But there is a need for sustainability in the way goods are produced and used. Luxury goods companies have been looking for new ways to reach their customers. This is changing their approach and mindset. They are integrating sustainability and digitalisation into their long-term strategies. This was revealed by Giovanni Faccioli, Deloitte Northern and Southern Europe head of fashion and luxury goods.
“They focus on using technology to develop environmentally friendly materials. They are finding new ways to be more sustainable in design, production, distribution and communication.”.
A total of 33 jewellery and watch companies made the latest list. It includes 10 Swiss-based companies. Also seven global luxury watch brands, including Rolex, Patek Philippe and Audemars Piguet.
Deloitte notes that the importance of China and India in the global jewellery market is high. Fourteen vertically integrated jewellery retailers from these countries are in the Top 100. Nine companies are from China and Hong Kong. Among them, two new entrants (China National Gold Group Jewellery Co and Guangdong CHJ Industry Co) and India's Titan Company also made the list. Meanwhile, Chow Tai Fook Jewelry Group dropped to 10th place on the top 10 list for fiscal 2020.
Annual luxury goods sales for fiscal 2020 for jewelry and watch companies have been reduced by 12.8%. Only six companies reported an increase in sales. India's Titan, Kalyan and TBZ, US-based Movado, China's Lao Feng Xiang and Italian jeweller Morellato.
