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Business News/ Industry / Malabar Gold, Senco debut on Deloitte's global luxury goods list
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Malabar Gold, Senco debut on Deloitte's global luxury goods list

These companies now join major Indian players such as Titan Company, Kalyan Jewellers, and Joyalukkas India in the list, underscoring India's significant influence in the luxury market.

India's jewellery sales soared 32.8% in 2022, propelling these retailers into Deloitte's Global Powers of Luxury Goods rankings. (Image: Pixabay)Premium
India's jewellery sales soared 32.8% in 2022, propelling these retailers into Deloitte's Global Powers of Luxury Goods rankings. (Image: Pixabay)

New Delhi: Indian jewellery retailers Malabar Gold & Diamonds, Senco Gold, and Thangamayil Jewellery have debuted on Deloitte's Global Powers of Luxury Goods rankings that list the top 100 luxury brands worldwide. 

The three companies now join major Indian players such as Titan Company, Kalyan Jewellers, and Joyalukkas India in the list, underscoring India's significant influence in the luxury market.

India's jewellery sales soared 32.8% in 2022, propelling these retailers into Deloitte's Global Powers of Luxury Goods rankings, according to a report by the consulting firm.

Deloitte tracked sales of luxury goods such as designer clothing, footwear, bags, accessories, jewellery, watches, and luxury beauty for its Global Powers of Luxury Goods rankings 2023. However, for India, it included sales for only jewellery retailers. India is the world’s second-largest market for gold jewelry, with more than half of sales related to weddings.

Companies were included among the top 100 according to their consolidated sales of luxury goods for the 12 months ended 31 December 2022. 

“Increasing economic, demographic, and urbanization trends are driving jewelry demand, particularly among middle-class consumers," the report said. 

In India, jewellery retailing is undergoing rapid change as traditional gold retailers, mostly unorganized, are being replaced with modern chains featuring well-known luxury jewelry brands. In 2020, organized retailers accounted for about one-third of the Indian market, up from only 5% in 2000, Deloitte said. 

All Indian companies recorded sales growth of over 20% in 2022 and achieved the second-highest composite luxury goods sales growth of 32.8%. "Their performance was driven by leaders Malabar and Titan, whose sales rebounded after declining in FY2021 likely due to the pandemic. The sales growth for these two companies was 35% and 36.5% respectively. However, the Indian companies reported the third-lowest composite net profit margin, 6.0%," the report said.

Meanwhile, the world’s top 100 luxury goods companies posted revenues of $347 billion in 2022, reporting a sharp increase from $305 billion in the previous year, as the recovery from the impact of the pandemic continued. 

Of those ranked, 37 fashion companies experienced the highest growth rate of 26.5%, rebounding from a 4.7% decline in 2021. One-third of the top 100 companies were in the jewellery and watches sector, achieving sales growth of 21.0%.

The data depicts a positive outlook for the future of luxury goods companies across the world in the longer run expressing the rising trend of premiumization among consumers.

LVMH Moët Hennessy-Louis Vuitton SE, Kering SA, Compagnie Financière Richemont SA, The Estée Lauder Companies Inc, Chanel Limited topped the rankings for the year.

Globally, companies in the jewellery and watches sector make up the second-largest product group by number in the top 100. The sector is dominated by companies from China, Switzerland, and India.

The 10 companies from China and the six from India are all vertically integrated jewellery retailers, reflecting the importance of these countries as leaders in gold and jewelry consumption globally, as well as the trend of moving from independent jewelry retailers to organized retail chains. Half of the Indian jewelers are new additions to the top 100, according to the report.

“With the surge in discretionary spending, Indian consumers are increasingly inclined towards luxury purchases, accentuating India’s pivotal role in shaping the future of luxury retail," said Anand Ramanathan, partner, consumer products and retail sector leader, Deloitte India. The country’s growing economic, demographic, and urbanisation trends are amplifying the demand for jewellery, especially among the burgeoning middle-class, he said.

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ABOUT THE AUTHOR
Suneera Tandon
Suneera Tandon is a New Delhi based reporter covering consumer goods for Mint. Suneera reports on fast moving consumer goods makers, retailers as well as other consumer-facing businesses such as restaurants and malls. She is deeply interested in what consumers across urban and rural India buy, wear and eat. Suneera holds a masters degree in English Literature from the University of Delhi.
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Published: 14 Feb 2024, 07:16 PM IST
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