New Delhi: Watches and jewellery maker Titan Company is the fourth fastest growing luxury company in the world with a compound annual growth rate (CAGR) of 19.7 per cent during the financial years 2015-2017, a Deloitte report said on Wednesday.
Titan is a joint venture between the Tata Group and state-run Tamil Nadu Industrial Development Corporation (TIDCO).
The company ranks 27th among the top 100 global luxury companies. The list prepared by Deloitte includes four other companies in the top 100 with Kalyan Jewellers in the 35th position, followed by PC Jeweller (40), Joyalukkas India Pvt Ltd (47) and Tribhovandas Bhimji Zaveri (87).
"Titan Company Ltd had a sales growth of 23.6 per cent in FY2017 and a CAGR of 19.7 per cent between FY2015 and FY2017, emerging as the fourth fastest growing global luxury goods company," it said.
The report attribued the Titan's high sales performance in its retail segment to new stores, new brand launches, and robust e-commerce performance through their website, caratlane.com.
According to the report, despite the recent slowdown of economic growth globally in major markets including China, the Eurozone and the US, the top 100 luxury goods companies generated aggregated revenues of $247 billion in FY2017, representing a composite growth of 10.8 per cent. Overall, 76 per cent companies reported growth in their luxury sales, with nearly half of these recording double-digit year-on-year growth, it said.
Commenting on the report Anil Talreja, Partner, Deloitte India said: "India continues to experience a high growth rate on the back of growing markets beyond the major metros and the emergence of HENRYs (High-Earners-Not-Rich-Yet)."
With adoption of technology in retail, the traditional definitions and characteristics of luxury are evolving, thereby creating new opportunities for both existing players and entrants, said that report, adding that the next few years are going to be dynamic for the Indian luxury market with increasing growth and competition seen especially in the bridge to luxury segment.
"Indian luxury brands that wish to be profitable by targetting the affluent, need to revisit strategies in a way that their products are inclusive and personalised and demonstrate a strong value proposition through authenticity. One critical index that deserves to be watched is the retail inflation index as this has a direct bearing on the luxury segment," the report said.