Digitalisation and sustainability are rising in importance among luxury goods companies, according to the 2021 edition of Global Powers of Luxury Goods, a new report from Deloitte Global.

The world’s Top 100 luxury goods companies generated aggregated revenues of US$252 billion in financial year 2020, representing a composite year-on-year decline of 12.2 per cent. 

According to Deloitte, there is growing awareness of environmental concerns and the need for sustainability in how goods are produced and used. “As luxury goods companies seek new ways to connect with their customers, they are changing their approach and mindset by incorporating sustainability and digitalisation into their long-term strategies,” revealed Giovanni Faccioli, Deloitte North and South Europe Fashion & Luxury leader. “They are focusing on the use of technology to develop environmentally friendly materials and find new ways to be more sustainable—in design, production, distribution, and communication.”

A total of 33 jewellery and watch companies made it to the latest list, including 10 Switzerland-based businesses: Richemont, Swatch Group, Swarovski Crystal and seven privately owned global luxury watch brands such as Rolex, Patek Philippe, and Audemars Piguet. 

“The importance of China and India in the global jewellery market is reflected in the 14 vertically integrated jewellery retailers from these countries in the Top 100,” noted Deloitte. Nine companies from China and Hong Kong, including two new entrants - China National Gold Group Jewellery Co and Guangdong CHJ Industry Co - and India’s Titan Company also made the cut. Chow Tai Fook Jewelry Group meanwhile dropped to 10th place in the Top 10 list in FY2020.

The composite FY2020 year-on-year luxury goods sales for the jewellery and watches companies fell by 12.8 per cent. Only six companies reported growth in sales – India’s Titan, Kalyan, and TBZ; US company Movado; China’s Lao Feng Xiang and Italian jeweller Morellato.