Malabar Gold & Diamonds, Senco Gold debuts on Deloitte's prestigious global luxury goods list

Indian jewellery retailers such as Malabar Gold & Diamonds, Senco Gold, and Thangamayil Jewellery have recently earned their place on Deloitte's prestigious Global Powers of Luxury Goods rankings, joining the ranks of well-established Indian players like Titan Company, Kalyan Jewellers, and Joyalukkas India. This development underscores the expanding influence of India within the global luxury market.

A report by the consulting firm reveals that India experienced a remarkable surge of 32.8% in jewellery sales in 2022, thrusting these retailers onto the international stage. Deloitte's rankings, which assess the sales of various luxury goods including jewellery, designer clothing, footwear, and accessories, positioned these Indian companies among the top 100 based on their consolidated sales for the 12 months ending December 31, 2022.

The robust performance of these Indian jewellers mirrors the escalating demand, particularly among middle-class consumers, driven by factors such as economic growth, demographic shifts, and urbanization trends. This shift is witnessing traditional gold retailers being replaced by modern chains offering renowned luxury jewellery brands, thereby reshaping India's jewellery retail landscape significantly.

Despite navigating challenges posed by the pandemic, Indian companies like Malabar and Titan exhibited strong rebounds in 2022, boasting impressive sales growth rates of 35% and 36.5%, respectively. However, despite their stellar sales figures, Indian companies reported the third-lowest composite net profit margin at 6.0%.

Globally, the luxury goods industry witnessed a notable recovery in 2022, with the top 100 companies collectively generating revenues amounting to $347 billion, marking a substantial increase from the previous year. Fashion companies experienced the highest growth rate, rebounding from a decline in 2021, while the jewellery and watches sector also made significant contributions to the overall growth.

The inclusion of Indian jewellers among the top 100 underscores India's prominence as a crucial player in the global luxury market, alongside nations like China and Switzerland. With discretionary spending on the rise and a burgeoning middle class, India is poised to exert a pivotal influence on the trajectory of luxury retail globally.

Anand Ramanathan, Partner and Consumer Products & Retail Sector Leader at Deloitte India, accentuated the significance of India's economic, demographic, and urbanization trends in fueling demand for luxury goods, particularly jewellery. This underscores a positive outlook for luxury goods companies worldwide and reflects the increasing trend of premiumization among consumers.