Enjoy complimentary customisation on priority with our Enterprise License!
The Europe affordable luxury market size is estimated to grow at a CAGR of 3% between 2022 and 2027. The market size is forecast to increase by USD 3,553.06 million. The growth of the market depends on several factors such as changing consumer behavior, the growing influence of different marketing strategies on customers' purchase decisions, and the rise in disposable income of people in Europe.
This Europe affordable luxury market report extensively covers market segmentation by type (clothing, cosmetics, accessories, footwear, and others) and distribution channel (offline and online). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, View Report Sample
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the Europe affordable luxury market growth is the rise in disposable income of people in the region. There is an increase in discretionary spending power among consumers in Europe due to the factors such as economic growth and the rise in incomes in the region. As a result, it enabled them to allocate a portion of their income toward luxury goods and experiences, including affordable luxury offerings.
For instance, according to Organization for Economic Cooperation and Development (OECD), the third quarter of 2022 saw the first increase in real household income since the first quarter of 2021 in Europe. Hence, due to the increase in disposable incomes, consumers have more flexibility in terms of their purchasing decisions and are ready to invest in products that offer a sense of luxury and high quality. Hence, such factors are expected to drive Europe's affordable luxury market growth during the forecast period.
A key factor shaping the Europe affordable luxury market growth is the increasing focus on influencer marketing and social media engagement. Influencer marketing and social media engagement are revolutionizing the way brands connect with their target audience which is significantly contributing to the Europe affordable luxury market growth. Due to the increasing use of social media platforms. consumers are looking up to influencers for inspiration, recommendations, and reviews. Hence, vendors leverage influencer marketing a key strategy for reaching and engaging with potential customers.
Hence, vendors use these influencers on social media who align with their brand values and the target audience to create authentic and relatable content to promote their products. By collaborating with several prominent influencers, vendors are able to access the influencer's established audience, gaining exposure to a highly engaged and relevant group of potential customers. Hence, such factors are expected to drive Europe affordable luxury market growth during the forecast period.
Increasing labor costs and fluctuating raw material prices are one of the key challenges hindering Europe affordable luxury market growth. A lot of international vendors who sell their affordable luxury goods in Europe have their manufacturing plants in Asian countries like China, Indonesia, Bangladesh, and Vietnam. One of the main reasons for this is that the labor costs in developed countries in Europe have grown rapidly in the last decade, leading to high manufacturing costs.
Hence, as a result of these high production costs, it is significantly affecting the profit margins of several vendors in the Europe affordable luxury market. Additionally, transportation cost is also factored in when deciding the pricing of the products. These transportation costs comprise of cost of supply of raw materials to factories, the supply of intermediary goods to production sites, the transportation of end products to warehouses, and the delivery of finished goods to end-users.Hence, such factors are expected to hinder Europe affordable luxury market growth during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Europe Affordable Luxury Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BA and SH: The company offers affordable luxury such as jumpsuits, tops, and bottom wear.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The clothing segment is estimated to witness significant growth during the forecast period. This segment mainly caters to the consumer segment who appreciates fine craftsmanship, stylish designs, and high-quality fabrics but does not have high disposable income to invest in branded luxury products. One of the main factors for the growth of Europe affordable luxury market is that it strikes a balance between exclusivity and accessibility.
Get a glance at the market contribution of various segments View the PDF Sample
The clothing segment was the largest segment and was valued at USD 9,692.02 million in 2017. This market offers a wide variety of garments for men, women, and children that reflect the latest fashion trends but also have attention to detail and superior construction. There is a growing preference for this segment among consumers in Europe as the brands in the market often emphasize the use of luxurious fabrics, such as fine cotton, silk, or cashmere, to provide a luxurious touch to their collections. Furthermore, most of the designs which are offered by the vendors in this segment are often influenced by the latest runway trends, providing consumers with fashionable options that are relevant and in demand. Hence, such factors are expected to drive the growth of this segment during the forecast period.
The Europe affordable luxury market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Europe Affordable Luxury Market Scope |
|
Report Coverage |
Details |
Page number |
152 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3% |
Market growth 2023-2027 |
USD 3,553.06 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
2.55 |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
BA and SH, Burberry Group Plc, EXQUISITE Luxury, Geox S.p.A, IC Group AS, Industria de Diseno Textil SA, Kering SA, LES BOUTIQUES LONGCHAMP, LOreal SA, Maison Balzac Pty Ltd., MakersValley, Prada S.p.A, Royal RepubliQ, s.Oliver Bernd Freier GmbH and Co. KG, Shandong Ruyi Technology Group Co. Ltd., SISLEY, Stella McCartney Ltd., Tessilform S.p.a, YOOX NET A PORTER GROUP S.p.A., and ZV France SAS |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.