The global Luxury Fashion market is projected to reach $333.8 billion by 2028, growing at a CAGR of 3.59%
It could be concluded with the behold data that the fashion industry is going through a seismic shift. There overarching and interconnected forces are expected to shape and drive the trends in upcoming years.
Based on luxury fashion industry analysis, factors are driving the growth are increasing online access and smartphone penetration, expanding global markets outside the West, innovating technologies to create experiential ecommerce and emerging worldwide middle-classes with disposable income.
Luxury fashion brands are steady to adapt e-commerce while shoppers are more comfortable in buying high-end stuff online. With the online collaboration, fashion companies have experienced a major decline in brick-and-mortar traffic. This has resulted in reduced store operating costs, innovated the in-store experience and re-evaluated store networks to attract customers. The digital shift has led brands to move direct-to-consumer models. The hurdles remain high with intricate operational, technology implications, logistical, governance and organizational headaches.
As a result omnichannel efforts proved to deliver difficult profitably. However, the market is being disrupted by varied and innovative business model such as data-driven subscription-based services like Stitch Fix, peer-to-peer selling at Grailed and sharing economy startups such as VillageLuxe, etc.
On the basis of Product-type, the global luxury fashion market is segmented into shoes, clothing, watches, jewelry and accessories. Shoes and accessories is expected to be the dynamic driving force of the luxury fashion market, in the category of luxury as well as premium. Category of cloth appears to exhibit a healthy rate for both segments. However, it is predicted that the market for watches and jewelry may fall down.
Europe and the US has the largest luxury fashion market size in terms of sales. It appears that US lower-end and premium luxury segment will register an average growth rate and modest growth rate in traditional luxury. As compared to the US, Europe’s premium market is anticipated to lag a bit in terms of growth.
In Asia-Pacific, China is the fastest growing market in the global luxury fashion market owing to the largest consumer of luxury goods. Chinese luxury consumers are described as “mix and match” shoppers or combining high-end fashion with lower-end premium products. This trend has encouraged the premium segment market growth in China. It is foretell that there will a slowdown in the traditional luxury segment. In contrast, standard and premium luxury segment is anticipated to continue growing unabated.
Chanel gowns, Prada handbags, Jimmy Choo pumps, Patek Philippe watches are some of the brands that signify money and status, the luxuries of the super-wealthy. Traditional luxury fashion products will hold bulk of the market. Some of the lower-end premium brands are going to emerge in the luxury fashion market like Tommy Hilfiger, Diesel, Guess, and Calvin Klein.
Key segments of ‘Global Luxury Fashion Market’
Based on Product, the market has been segmented into,
- Designer apparels & Footwear
The market breakdown on basis of,
Others Based on region, the market has been segmented into,
- North America
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- Latin America
- Middle East
What to expect from the upcoming report on ‘Global Luxury Fashion Market:
- Future prospects and current trends of the global luxury fashion market by the end of forecast period (2018-2025)
- Information regarding technological progressions as well as innovations taking place in developing economies
- Supportive initiatives by government likely to influence the market dynamics
- Trends, drivers, opportunities, restraints, challenges and key developments in the market
- In-depth analysis of different market segmentations including regional segmentations, and product types
- Deep analysis about the competitive landscape of the market and the initiatives by them to improve this market