'Affordable' UK claims 10 spots in Deloitte top 100 global luxury ranking
The UK is heading towards being the West’s most affordable luxury market and also has as many as 10 names in the list of the top 100 luxury firms. That’s according to the new Global Powers of Luxury Goods report for 2018 from Deloitte. Those 10 companies put the UK a long way behind Italy’s 24, but it’s edging closer to the 13 companies for the US and is ahead of France’s nine.
Not that the UK figures in the top 10 where the dominant names are LVMH, Estée Lauder, Richemont, Luxottica, Kering, L'Oréal Luxe, Swatch Group, Ralph Lauren Corp, PVH Corp, and Chow Tai Fook Jewellery Group. France may only have nine companies but they include the dominant names, while Italy’s huge proliferation of successful luxury firms makes it a force to be reckoned with.
Back with the UK, Ted Baker, which may only be number 55 on the overall list, is nonetheless the 12th fastest-growing company.
That said, the ranking does rather unfairly flatter Britain with its top ranked company at number 14 being Michael Kors Holdings. This is listed with its country of origin being the UK, although most would see it as a US firm.
However, it does now own a major British luxury brand, Jimmy Choo, and as the figures relate to a period before its takeover of Choo was complete, and with Jimmy Choo itself on the list at number 66, Kors should rise even higher in next year’s ranking.
The highest-ranked company we’d actually recognise as being British is Burberry at number 18, unchanged year-on-year. You then have to scroll way down the list before you get to the next British name, Ted Baker, with Graff Diamonds the third-placed UK firm at number 62 (down three places year-on-year). Jimmy Choo is next, as mentioned, followed by Kurt Geiger at number 74, down from 69th place.
Meanwhile Paul Smith is down to number 87 from number 82 and Charles Tyrwhitt is down to 88 from 86. Barbour fell from number 92 to 93 and Mulberry is the last UK name in the top 100, although it’s perilously close to dropping out at number 98, down from number 90.
Deloitte also said in the report that the general situation for the British luxury market “is still unclear due to the high level of uncertainty surrounding Brexit.”
But there are favourable trends, such as a flourishing tourist trade and domestic luxury customers reducing their shopping abroad because of the unfavourable exchange rates, which are making it more convenient to spend in the UK.
Overseas shoppers looking for a bargain benefit from travelling to London because, compared with China, prices are on average 22% cheaper in the UK, narrowly beating Italy (21.6% cheaper) and France (21.4%), Deloitte said. “Given current conditions, the UK is fast becoming the most affordable luxury market in the western world,” it added.
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