The global luxury apparel market is projected to grow, witnessing a CAGR of 4.27% during the forecast period (2020-2025).
- Increasing communication between consumers and key players through social media platforms and online retail stores is driving the sales of the latest trendy luxury apparel. The rise in online transactions is supporting the market growth of luxury apparelfrom the last few years. Consumer's specific offers and attractive promotions and advertising through the magazine and social media are influencing the sales of luxury apparel as nearly half of luxury apparel buying decisions are majorly inclined by what consumers see or hear from offline and online platforms.
- Luxury apparels are mostly considered as status symbols for individuals who are driving discretionary spending with a high purchasing power of consumers. The increasing popularity of luxury apparels among millennial are driving the market growth as they are more likely to be driven by the latest fashion trend than other consumers groups. Improvement in digital marketing and rise in the use of digital media in developing economies for product marketing are playing a key role to drive the luxury apparel market growth for the last few years.
Key Market Trends
Rise in E-commerce Booming the Market
The luxury apparel market is led by e-commerce i.e., the online retail stores segment as consumers are preferring the online platforms over store-based retail stores. Online platforms provide more options to choose and it is convenient for consumers. Many key players in luxury apparels are focusing on marketing and selling products on both their own website and that of selected retail stores or pure luxury e-retailer partners in particular countries. Marketing strategies, such as the involvement of celebrities for brand endorsement, are helping key players to attract more consumers from different financial backgrounds. As offline retail stores have limited growth potential over online retail stores, it is likely to influence sales of luxury apparel in online retail stores in upcoming years. Moreover, the growth of online shopping portals that can deliver a high-quality product right at the customers’ doorsteps is another factor responsible for the pacing growth of the global luxury apparel market.
Europe and North America Region Leading the Global Market
Europe is likely to hold significant market share in the luxury apparel industry followed by the North America region over the forecast period due to the increased demand for luxury goods, including luxury apparel in the region. The growing attraction of luxury lifestyle, high purchasing power, and the influence of celebrity endorsement is driving the market growth in Europe and North America. The global leading luxury apparel brands have been originated from European countries, such as France and Italy, which significantly contributes to the market across the region. The Asia-Pacific region is estimated to witness a significant growth rate in upcoming years, owing to improving distribution networks across the region. However, value-added taxes imposed on luxury apparel and footwear by governments and high dominance of key players is restraining the market growth in developing economies.
Some of the key players operating in the global luxury apparel market are Kering, Versace, Prada, Dolce and Gabbana, Burberry Group Inc., LVMH Moet Hennessy Louis Vuitton SE, and Giorgio Armani S.p.A. These players hold a dominant share in the overall market. The other prominent players in the market are Ermenegildo Zegna, Kiton, Ralph Lauren Corporation, and Hugo Boss AG. The manufacturers are mainly concentrated in Europe and North America. High entry barriers, since most of the consumers are loyal to certain brands only, creates difficulty for small players to enter this market.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support