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Italy leads Top 100 luxury list with 26 companies, says Deloitte

by Lorenzo Zanini

Italy is the country with the highest number of companies in the Deloitte “Global Power of Luxury Goods” 2017 report, the consultancy said.

Italian companies account for around 16% of total revenues of $212 billion generated by the top 100 luxury groups in the world. Revenues made by Italian companies increased 9.3% from the year before, above the top 100 average growth of 6.8%. However, the average size of the Italian luxury goods makers is smaller than their French, US and Swiss rivals.

According to the report, Luxottica is the fourth-largest luxury goods group by revenue, with $9.8 billion, and the only Italian firm in the top 10.

The ranking is dominated by LVMH (22.4 billion dollars), followed by Richemont ($12.2 billion) and The Estee Lauder Companies ($11.3 billion). Among the Italian companies, Prada sits in the 17th place, followed by Giorgio Armani (21th). Italy also has led in terms of compound annual growth rate (CAGR, 2013-2015), with companies including Marcolin Group (+43.1% CAGR) and Valentino (+37.8%) being the first and the second among the Top 20 Fastest Growing Companies.

Consumers from emerging countries continue to lead the luxury market. In China, Russia, and United Arab Emirates, around 70% of consumers say they have spent more on luxury goods in the past five years. That compares with 53% of consumers from advanced markets like the European Union, the United States and Japan.

Luxury is seen as an experience but quality remains a “must have,” according to the report. Most consumers polled said they prefer to buy in store, but the share of online shoppers is growing, especially among the millennials.

“Again in 2017 tourism will be a great opportunity of growth for the luxury sector,” said Patrizia Arienti, Deloitte EMEA Fashion & Luxury Leader. Almost half of luxury purchases are made by consumers who are traveling, either in store (31%) or airport (16%). The share grows to 60% among emerging market consumers, who don't have access to the same range of products and brands.

The top 100 ranking shows that sales of apparel and shoes increased 4.4% in 2015, while cosmetics and perfumes performed slightly below average (up 6.5%). Handbags and accessories were the best performing category (up 13.4%), while sales of watches and jewelry increased only 2%.