Deloitte recently released its first annual Global Powers of Luxury Goods report
(the Report). The Report, which focuses on
designer apparel (ready-to-wear), handbags and accessories, fine
jewelry and watches, and cosmetics and fragrances, looks at the top
75 luxury goods companies – a mix of both public and private
players. Deloitte reports that mergers and acquisitions
(M&A) activity in the luxury goods sector has
been strong in the past year, and highlights three key factors
which explain why: (i) the globalization of luxury, (ii) value
chain integration, and (iii) company consolidation.
The Globalization of Luxury
There is an ever increasing population of wealthy and upper
middle class consumers in emerging markets that have an appetite
for western luxury brands. This has prompted many luxury goods
companies to expand their presence into new markets, particularly
in Asia and the Middle East.
