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The France Luxury Goods Market size is forecast to increase by USD 3.69 billion at a CAGR of 3.57% between 2023 and 2028.
Several factors play a crucial role in the market's growth, such as the increased demand for premium beauty products and cosmetics, the expanding millennial and Gen Z consumer base, and the growth in online retailing of luxury goods. The report provides market size, historical data spanning from 2018 - 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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Our researchers analyzed the data with 2023 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.
Increased demand for premium beauty products and cosmetics is notably driving the market. Personal expensive goods including luxury perfumes and apparel as well as skincare products. In addition, consumers are increasingly spending on businesses and brands launching widespread products that have the right combination of high-quality ingredients and premium cosmetics, especially skincare products, because of the rising disposable incomes. Furthermore, consumers are increasingly becoming aware of skin-related issues through various channels such as spots, acne, and pigmentation and are willing to pay for premium skincare products.
Moreover, french fashion cosmetics and skincare brands focus on differentiating themselves from pharmaceutical companies. Thus, they invest in innovative skincare ingredients and technologies. In addition, consumers, especially the aging population, look for skincare products that can help retain their youthful appearance. Furthermore, anti-aging creams were used to temporarily plump up the skin to reduce the appearance of fine lines and wrinkles. In addition, technological advances, however, have increased the number of premiums for advanced anti-aging products. Hence, such factors are boosting the market growth during the forecast period.
The rise of sustainable luxury is an emerging trend in the market. Consumers, especially in younger demographics, are becoming more environmentally conscious. In addition, the demand for sustainable costly reflects a desire to minimize the ecological footprint associated with expensive goods, appealing to those who prioritize eco-friendly and ethical practices. Furthermore, embracing sustainability allows brands to differentiate themselves in a competitive market.
Moreover, highlighting eco-conscious initiatives enhances brand image, fostering trust and loyalty among value-driven consumers. In addition, brands leverage storytelling to showcase their commitment to sustainability, creating a deeper emotional connection. Furthermore, consumers are increasingly willing to pay a premium for sustainable goods. Hence, such factors are driving the market growth during the forecast period.
The growing issue of counterfeit luxury goods is a major challenge hindering market growth. Counterfeits dilute the exclusivity and prestige related to genuine expensive items, diminishing brand value and consumer perception. In addition, this tarnishes the image of legitimate brands and their products, potentially leading to customer disengagement and declining brand loyalty. Furthermore, the prevalence of counterfeits fuels distrust and frustration among consumers who unknowingly purchase fake goods.
This leads to negative word-of-mouth, damaged customer relationships, and reluctance to purchase genuine costly items due to fear of being deceived. The prevalence of counterfeit products results in revenue loss for authentic brands. It affects sales, as consumers may opt for cheaper imitations, negatively impacting the financial performance of legitimate businesses. This revenue loss can hinder investments in innovation, marketing, and expansion strategies.
The market forecasting 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 market growth analysis strategies.
Customer Landscape
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.
Capri Holdings Ltd: The company offers luxury goods such as Medusa 95 small tote bag, Medusa 95 tote bag, Barocco Athena small tote bag and Contasto Athena Tote bag through the subsidiary brand Versace.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 21 market companies, including:
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; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The offline segment is estimated to witness significant growth during the forecast period. The growth of the offline segment comes from the sales of costly goods through specialty stores, including brand-owned stores, multi-brand stores, apparel stores, fashion, and personal accessory stores, sports equipment stores, hypermarkets, supermarkets, convenience stores, clubhouse stores, and department stores. In addition, the sales from this segment have been declining gradually over the years due to the increasing preference for online shopping.
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The offline segment was the largest segment and was valued at USD 14.46 billion in 2018. Moreover, this scenario has also intensified the competition in the market in focus. In addition, to survive in such a competitive market and to overcome the declining preference for offline shopping, retailers are introducing new business and retail strategies, such as better pricing strategies and a wide range of products. Furthermore, several expensive brands have established a strong presence in the offline segment in France. Some notable companies with brick-and-mortar stores include Louis Vuitton, Gucci, and Chanel. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
The market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
France, known as the fashion capital and the birthplace of many country-origin luxury brands, stands at the forefront of the global market. The industry caters to diverse consumers through both online and offline channels, attracting international tourists and millennial buyers. The French luxury goods sector is increasingly aligning with environmental concerns, emphasizing ethical sourcing, and adopting labeling schemes. Established fashion houses offer a digital ecosystem, providing luxury perfumes, cologne, and cruelty-free cosmetics. Key trends include popup-style marketing, government regulations, and the growing tendency for online shopping. The industry showcases a mix of domestic and international players, often collaborating with regional brands to introduce innovative luxury products. Capsule collections, eye-catching offers, and a commitment to premium quality and comfort define the diverse and dynamic landscape of the market in France.
Luxury goods in France are experiencing a transformation, with fashion-focused trips to Paris, the global capital of style, playing a crucial role. The apparel manufacturing industry is adapting to fur-free trends and prioritizing sustainability, aligning with customers' values. Fashion e-commerce platforms facilitate per capita consumption of luxury goods, offering a diverse range of products. The market also embraces natural ingredients-infused grooming products, attar, and exotic fragrances, particularly in the menswear category. Established brands with widespread presence adopt a popup-style approach, engaging customers online. The luxury fashion landscape in France includes collaborations with regional brands, innovative packaging, and a commitment to curated product offerings, reinforcing the country's position as a leader in the global luxury goods market.
France Luxury Goods Market Scope |
|
Report Coverage |
Details |
Page number |
146 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.57% |
Market Growth 2024-2028 |
USD 3.69 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.25 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Capri Holdings Ltd., Chanel Ltd., Chow Tai Fook Jewellery Group Ltd., Compagnie Financiere Richemont SA, Coty Inc., Dolce and Gabbana SRL, Giorgio Armani S.p.A., Hermes International SA, Kering SA, LOreal SA, LVMH Moet Hennessy Louis Vuitton SE, Prada S.p.A, PVH Corp., Ralph Lauren Corp., Rolex SA, Safilo Group Spa, Swarovski AG, Tapestry Inc., The Estee Lauder Companies Inc., The Swatch Group Ltd., and Shiseido Co. Ltd. |
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. |
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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 Market Segmentation by Product
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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