The world’s top 100 luxury goods companies generated, in aggregated revenues, a whopping £195 billion in the fiscal year of 2017, representing a composite growth of 10.8%, according to a new report by Deloitte Global.

Despite the recent economic slowdown seen by major markets including China, the Eurozone and the US, the luxury goods market looks positive, continued the 2019 edition of “Global Powers of Luxury Goods”.

“In an age of fast changing trends, luxury companies are re-examining the value of brand heritage and history and are adopting an omni-personal approach focusing solely on the new age consumer,” said Herve Ballantyne, partner and Consumer & Industrial Products Industry leader, Deloitte Middle East. “To accomplish this, they are committed to making significant investments in digital technologies.”

“The sustained growth in the United Arab Emirates luxury market can be attributed to an increase in brand omni-channel strategies and the continued rise in the tourism industry. Despite the introduction of VAT, the forecast for the growth of the luxury market is positive. It is expected that the luxury market will continue to experience growth as the market matures and adjusts to global trends,” explained Ballantyne.

The Top 10 companies accounted for nearly half (48.2%) of the total luxury goods sales belonging to the Top 100 companies. Cosmetics and fragrances was the top-performing sector in FY2017 with 16.1% sales growth, which was mainly due to the double-digit year-on-year growth of seven of the 11 companies in the sector.

88 of the Top 100 luxury goods companies are headquartered in just nine countries, and they account for 93.4% of Top 100 luxury goods sales. France has the largest companies with an average size of £6.54 billion, which is much higher than the average Top 100 size of £1.95 billion.

France was also the best-performing country, achieving 18.7% composite sales growth in luxury goods in financial year 2017, and also contributed the largest share to the total sales of Top 100 luxury goods companies. Italy had the highest number of companies (24), but it also had the lowest sales growth rate.