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The global luxury apparel market size is forecast to increase by USD 21.37 billion at a CAGR of 4.66%, showing a YoY growth of 4.24% between 2023 and 2028. This market experiences robust growth driven by rising disposable income in emerging countries. Consumers in regions like India, Bangladesh, and South Africa indulge in upscale attire and accessories from top-tier brands due to increased purchasing power.
Luxury fashion brands target the growing middle class in countries such as China, India, Brazil, and Russia, offering premium menswear, premium womenswear, and upscale lingerie to showcase social status. Meanwhile, the market sees a surge in demand for luxury outerwear and upscale swimwear. Additionally, the popularity of luxury sportswear revolutionizes the industry, blending high fashion with athletic functionality. These trends shape market growth and forecasting, reflecting a shift towards more casual and versatile luxury attire.
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Luxury apparel encompasses a wide range of products from top wears like shirts, blouses, and jackets to bottom wears, one-piece dresses, and more. These garments are crafted from high-quality materials such as cotton, leather, silk, denim, and wool, often utilizing the finest manufacturing techniques and skilled artisans. Luxury fashion brands focus on exclusivity, fit, comfort, and personalized shopping experiences to cater to a discerning customer base.
However, the industry faces challenges with counterfeit goods, particularly in online retail outlets and physical stores in tourist destinations. Brands combat this through physical checks, authenticity verifications, and partnerships with multi-brand e-retailers and branded online stores.
The offline segment is estimated to witness significant growth during the forecast period. The significance of offline distribution channels in the global market is largely attributed to their ability to offer customers a sensory and engaging shopping experience. In addition, the customers value the ability to touch and feel fabric, try on garments, and receive personalized support from knowledgeable sales representatives.
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The offline segment was the largest segment and was valued at USD 62.69 billion in 2018. Moreover, the distribution in the offline segment comprises a broad range of retail formats such as high-end department stores, luxury brand boutiques, concept stores, and flagship stores. In addition, this segment enables brands to target different target markets and provide different levels of luxury-experience. For instance, a luxury-brand boutique typically offers a more personalized and exclusive experience, while a flagship store may feature the entire collection on a large scale. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
Europe is estimated to contribute 43% during the forecast period.
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One of the significant regions where there is major growth in the market is Europe due to its rich cultural history, influential fashion capitals, and sophisticated consumer preferences. In addition, several European nations, such as France and Italy, as well as the UK and Germany, have established luxury-industry ecosystems with well-known fashion houses, luxury-labels, and influential fashion events such as Paris Fashion Week. Furthermore, Europe's luxury apparel market offers a vast potential for growth, as it caters to a considerable portion of affluent individuals from all over the globe. Hence, such factors are driving the market growth in Europe during the forecast period.
The market experiences growth propelled by rising disposable income in emerging countries, driving demand for upscale designers and exquisite designs. A notable trend in the market is the growing popularity of luxury sportswear, reflecting changing consumer preferences towards comfortable yet stylish attire.
However, challenges persist in purchasing resale luxury apparel products, as authenticity and quality assurance become paramount considerations for consumers. Despite this, the market continues to thrive, offering prestige accessories such as elegant eyewear, fashionable hats, and deluxe gloves to discerning clientele.
Additionally, premium beauty and skincare items, as well as luxurious perfumes, attract consumers aiming for a lavish lifestyle. Despite challenges, market growth analysis highlights opportunities in upscale travel accessories, deluxe tech gear, and premium kitchenware. This shows the market's ability to adapt to changing consumer demands for luxury apparel and lifestyle products.
The market runs on consumer notions of social acceptance and high-end lifestyles, primarily driven by millionaires and upper-class individuals with ample disposable income. Consumers' preference for luxury clothing hinges on product quality and a certain image associated with top brands. Brand loyalty and consumer perceptions play pivotal roles in shaping product demand. While traditional word-of-mouth conversations still influence consumer choices, online channels and social media platforms have emerged as powerful tools for promotions and advertising.
The market growth is propelled by the escalating disposable income in emerging countries. This rise fosters substantial expansion in the global market as consumers in developing economies experience increased purchasing power. Significantly, countries like India, Bangladesh, and South Africa are experiencing economic growth, allowing consumers to splurge on high-end clothing and accessories. As a result, there's a noticeable increase in demand for premium products such as luxury belts, top-tier haircare, and high-quality skincare. Moreover, there's a growing appetite for luxury bath items, sophisticated home fragrances, and upscale decor, indicating a rising preference for luxury and indulgence among consumers.
Moreover, luxury fashion brands are increasingly targeting the growing middle class, who are increasingly seeking to distinguish themselves and demonstrate their social position through high-end apparel. This is mainly due to the rapid economic growth experienced in emerging markets such as China and India, as well as Brazil and Russia, which has significantly increased the number of middle-class individuals. Hence, such factors positively impact the market.
The market experiences significant growth driven by the growing popularity of luxury sportswear. This trend signifies a notable transformation in the luxury fashion industry, diverging from traditional notions of luxury and exclusivity. High-end brands now embrace a more relaxed and athletic style, appealing to consumers' changing preferences. This shift represents a departure from conventional luxury concepts, with luxury sportswear emerging as a major trend in the international luxury-apparel sector. Additionally, consumers are increasingly drawn to the premium quality and elegance of luxury sportswear, indicating a market shift towards more versatile and functional clothing options.
Moreover, the advent of luxury-sportswear is a result of a combination of high fashion and athletic excellence. Furthermore, this trend is fuelled by the changing preferences of consumers, who are increasingly seeking comfort, practicality, and versatility in their clothing. Hence, such factors positively impact the market.
One of the key challenges hindering the growth of the market is the increasing trend of purchasing resale luxury apparel products. The popularity of the resale market is on the rise as it offers access to luxury items at prices typically unattainable to the public. Moreover, this market caters to a diverse range of customers, providing them with the opportunity to acquire fashionable apparel at discounted rates. This facilitates access to luxury-items without necessitating a substantial financial investment, making luxury fashion more accessible to a broader audience. Additionally, consumers can also find chic scarves, premium makeup, deluxe nail polish, deluxe bodycare, deluxe candles, premium tableware, and other luxurious items in the resale market, further expanding its appeal.
Moreover, the resale market for luxury-apparel products is attractive to consumers who are conscious of their environmental impact. Furthermore, as sustainability becomes a major issue, people are increasingly choosing to purchase second-hand items, which prolongs the life span of clothing and reduces waste. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market growth during the forecast period.
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The market embodies high style and sophistication with a plethora of offerings from renowned designer labels and houses of couture clothing. These establishments curate exclusive collections comprising premium garments, luxury accessories, and luxury fabrics, catering to the discerning tastes of clientele seeking upscale design and prestige labels.
Home indulgence is equally paramount, with offerings ranging from luxury furniture and fine art to premium bedding and high-quality linens. The market's resilience is underscored by thorough market research and growth analysis, guiding market forecasting, and market reports.
As consumers seek deluxe experiences, the market continues to thrive, offering a symphony of elegance and indulgence across deluxe home appliances, premium spa products, and beyond.
With the digital age and e-commerce platforms, luxury companies are adapting growth strategies to engage with a price-sensitive customer base. They offer cost-effective solutions, customized products, and sustainable options like organic cotton and recycled polyester. Initiatives like take-back programs and resale partnerships promote circular fashion practices and sustainability.
Prominent figures like Kylie Jenner, along with fast fashion retailers, influence aspirational purchases among millennials. Despite the allure of rapid fashion, luxury clothes designers maintain a focus on high-quality textiles, printing, and dyeing processes to ensure durability and longevity. As consumer-key actor interaction evolves, diversity, inclusivity, and sustainability become integral to the luxury apparel sector's future.
Companies 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. One of the major companies in the market include:
3.1 Phillip Lim Retail LLC: The company offers products such as leather bodice dress, Alexa aneckle boots, single pleat tapered trousers, and many more.
The market analysis report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Burberry Group Plc, Chanel Ltd., Dolce and Gabbana SRL, Giorgio Armani S.p.A., Hanesbrands Inc., Hermes International SA, Kering SA, Levi Strauss and Co., LVMH Moet Hennessy Louis Vuitton SE, Pearl Global Ltd., Prada S.p.A, PVH Corp., Ralph Lauren Corp., Salvatore Ferragamo Spa, Tapestry Inc., The Estee Lauder Companies Inc., VF Corp., Zara, and Hennes and Mauritz AB
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified. Furthermore, it is also quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2023 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.66% |
Market growth 2024-2028 |
USD 21.37 billion |
Market structure |
Fragmented |
YoY growth (%) |
4.24 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 43% |
Key consumer countries |
US, Canada, China, France, and Germany |
Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
Key companies profiled |
3.1 Phillip Lim Retail LLC, Burberry Group Plc, Chanel Ltd., Dolce and Gabbana SRL, Giorgio Armani S.p.A., Hanesbrands Inc., Hermes International SA, Kering SA, Levi Strauss and Co., LVMH Moet Hennessy Louis Vuitton SE, Pearl Global Ltd., Prada S.p.A, PVH Corp., Ralph Lauren Corp., Salvatore Ferragamo Spa, Tapestry Inc., The Estee Lauder Companies Inc., VF Corp., Zara, and Hennes and Mauritz AB |
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, Market condition analysis for 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. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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