Global Luxury Fashion Market Size is Estimated to Reach USD 198.55 billion by 2031, Growing at a CAGR of 5.46%: Straits Research
Straits Research
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According to Straits Research, “The global luxury fashion market size was valued at USD 123.05 billion in 2022. It is estimated to reach USD 198.55 billion by 2031, growing at a CAGR of 5.46% during the forecast period (2023–2031).”
New York, United States, Jan. 10, 2024 (GLOBE NEWSWIRE) -- "Luxury fashion" refers to apparel and other items made from high-quality materials, frequently with meticulous attention to detail. Luxury fashion consists of exclusive items with original designs, distinctive brand value, and superior raw materials. Luxury fashion items are typically designed to be more comfortable than their less expensive counterparts. Although luxury fashion items are not classified as essential consumer goods, they are associated with people's desire for premium products and are frequently purchased by HNWIs.
Increasing Acceptance by Millennials and Generation Z Drives the Global Market
The Millennial generation and Generation Z consist of individuals born between 1982 and 1999 and 2000 and 2020, respectively. Luxury fashion items are acquiring increasing popularity among these generations. Generation Y is one of the fastest-growing markets for luxury fashion products. As these generations have grown up in the era of mobile technologies, they are extremely familiar with the omnichannel experience. These generations are also extremely knowledgeable about the various luxury fashion brands available and seek luxury products as part of the experience. Moreover, these segments offer luxury brands the opportunity for long-term revenue growth. Therefore, millennials and Generation Z fuel the demand for luxury fashion products.
Numerous businesses use augmented reality (AR) to influence consumers' purchasing decisions and empower them to make more informed choices. Buying fashion goods depends highly on product trials; consequently, many customers prefer to test products before making final purchases. Therefore, this presents a significant growth opportunity for luxury brands to leverage augmented reality technology on their digital sales platform to provide consumers with a superior shopping experience.
Several luxury fashion brands and luxury fashion retailers have begun using augmented reality technology to increase product sales. For instance, In February 2020, Burberry, a luxury fashion brand, partnered with Google to provide consumers with an augmented reality (AR) experience using the Google iOS app. Consequently, AR technology offers significant growth opportunities for luxury fashion brands.
Regional Analysis
Asia-Pacific luxury fashion market share is anticipated to exhibit a CAGR of 6.79% during the forecast period. The region is among the most desirable markets for luxury fashion brands. Therefore, brands must implement new strategies to attract luxury consumers. The escalating number of billionaires in the region is driving increased demand for luxury fashion items. Leather goods, fashion apparel, jewelry, cosmetics, and fragrances are the largest regional segments of luxury goods, driving market expansion. The escalating disposable income of the middle class contributes to the regional market's development. In addition, simple access to international luxury brands will likely increase the demand for luxury fashion items. Therefore, numerous brands are expanding their presence in Asia-Pacific to serve a large customer base.
Europe is estimated to exhibit a CAGR of 3.65% over the forecast period. Europe has become the second-largest market segment for luxury fashion worldwide. Countries like France and Italy have many luxury fashion firms, contributing to the region's high revenue share. Moreover, the high concentration of people with exceedingly high purchasing power in numerous European nations supports the domestic demand for luxury fashion products in the region. The influx of international tourists also considerably influences the demand for luxury fashion products nationwide. Asian consumers favor purchasing luxury fashion items from European markets due to the price advantage. In addition, Western European nations such as Germany, France, and others receive a substantial number of visitors yearly. Therefore, tourism is a major force propelling the European luxury fashion market.
Key Highlights
Based on product type, the global luxury fashion market is segmented into apparel, footwear, and accessories. The apparel segment is the largest revenue contributor to the market and is projected to exhibit a CAGR of 4.55% over the forecast period.
Based on end-user, the global luxury fashion market is bifurcated into men, women, and children. The men's segment dominates the global market and is projected to exhibit a CAGR of 4.41% over the forecast period.
Based on generation, the global luxury fashion market is divided into Gen X, millennials and Gen Z, and baby boomers and silent Gen. The Gen X segment owns the largest market share and is predicted to exhibit a CAGR of 5.35% over the forecast period.
Based on distribution channels, the global luxury fashion market is bifurcated into online, mono-brand stores, specialty stores, departmental stores, off-price stores, and airports. The online channel segment is the highest contributor to the market and is anticipated to exhibit a CAGR of 7.38% over the forecast period.
Asia-Pacific is the most significant global luxury fashion market shareholder and is anticipated to exhibit a CAGR of 6.79% during the forecast period.
Competitive Players
The key players in the global luxury fashion market are Armani Group, Burberry, Chanel, Hermes, Kering, LVMH, Capri Holdings, Moncler, MCM, OSKLEN, Salvatore Ferragamo, Tapestry, Tom Ford, Dolce & Gabbana, Hugo Boss, Max Mara Group, Prada Group, and others.
Market News
In July 2023, Aza Fashions (Aza), the premier multi-designer luxury fashion retailer in India, revealed the grand opening of its new store in the center of Kolkata. With an unrivaled selection of designer clothing and accessories, Aza is poised to revolutionize the city's fashion scene.
Straits Research is a market intelligence company providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision-makers. Straits Research Pvt. Ltd. provides actionable market research data, especially designed and presented for decision making and ROI.
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