DUBLIN--(BUSINESS WIRE)--The "Luxury Fashion Market - Focused Insights 2024-2029" report has been added to ResearchAndMarkets.com's offering.
The Luxury Fashion Market was valued at USD 289.46 billion in 2023, and is expected to reach USD 315.88 billion by 2029, rising at a CAGR of 1.47%.
The global luxury fashion market report consists of exclusive data on 33 vendors. The market has a significant number of large players and several small players. Burberry, Capri Holdings, Dolce & Gabbana, The Estee Lauder Companies, Giorgio Armani, HUGO BOSS, Kering, LVMH, PRADA Group and Tapestry are among the key players in the market.
The rising competition is pressuring various vendors to continuously innovate their offerings with a unique value proposition to survive in the market. The companies are required to invest a significant sum of money in research and development to introduce new technologies, enhance their offering, and expand their product portfolio. Although established players dominate the market, there are tremendous growth opportunities for new entrants strategizing to tap the market by entering niche segments.
APAC accounted for the largest share of over 31% in the global luxury fashion market. The continuous rising disposable income of the middle-class population supports the region's luxury fashion market. Likewise, the increased access to international luxury brands will likely push product consumption.
Therefore, several brands are expanding their footprint in the APAC market to serve the large customer base. The Chinese population is one of the attractive markets for luxury fashion brands. As a result, the brands are required to think of new strategies to attract luxury shoppers. Several customers in the Asian region prefer to shop for luxury products outside their home country due to the benefit of lower prices in European countries and as a part of the travel experience.
MARKET TRENDS & DRIVERS
Leveraging Augmented Reality
Augmented Reality (AR) is transforming the luxury fashion industry by allowing consumers to virtually try on products and visualize them in their environments, enhancing the online shopping experience. Brands like Gucci and Burberry have integrated AR into their apps, letting customers see how items like sneakers and handbags look on them in real-time, which reduces return rates and boosts customer satisfaction. This innovative use of technology helps luxury brands offer a more personalized and engaging shopping experience. AR also allows luxury brands to create virtual fashion shows and events, giving customers a front-row seat to exclusive collections without leaving their homes.
For example, Dior's virtual fashion shows create an immersive experience that deepens the connection between the brand and its audience. By adopting AR, luxury brands enhance the shopping experience and position themselves as leaders in innovation. Ultimately, AR helps luxury brands differentiate themselves in a competitive market by offering unique, interactive experiences that go beyond traditional shopping. This technology-driven approach strengthens brand loyalty and appeals to tech-savvy consumers looking for more than just a product purchase.
Ensuring Quality in the Growing Luxury Resale Market
The growth of the luxury resale market presents both opportunities and challenges for luxury brands, particularly in ensuring the quality and authenticity of pre-owned items. As consumers increasingly turn to resale platforms for more affordable luxury options, brands must protect their reputation by guaranteeing that second-hand products meet the same standards as new ones. This is crucial for maintaining brand integrity and customer trust, especially as the resale market becomes a larger part of the luxury ecosystem. Many luxury brands and resale platforms are adopting blockchain technology to authenticate pre-owned items to address these concerns.
For example, LVMH and other leading brands are using blockchain to create digital certificates of authenticity, ensuring that resale items can be traced back to their origin. This not only helps in combating counterfeit products but also reassures customers about the quality and legitimacy of their purchases in the resale market. Moreover, ensuring quality in the resale market allows luxury brands to maintain their high standards across all channels, including second-hand sales. By actively participating in the resale market and implementing robust authentication processes, brands can extend their reach to new customer segments while preserving the exclusivity and prestige that define luxury.
Growing High Net Worth Individuals
The increasing number of High-Net-Worth Individuals (HNWIs) globally is a significant driver for the luxury fashion market. As wealth continues to rise, particularly in regions like Asia-Pacific and the Middle East, the demand for luxury products grows correspondingly. HNWIs have the purchasing power to invest in high-end fashion, often seeking exclusivity, quality, and brand prestige. This demographic's ability to spend on luxury items, including fashion, accessories, and bespoke services, drives sales and fuels market expansion. Luxury brands are tailoring their offerings to cater to this affluent clientele by providing personalized shopping experiences, limited-edition products, and VIP services.
For instance, brands like Louis Vuitton and Chanel offer bespoke services that appeal specifically to HNWIs, enhancing the exclusivity and appeal of their products. This focus on personalization and exclusivity ensures that luxury brands maintain their allure among this high-spending group. Moreover, the rise of HNWIs is not just about individual purchases; it's about the influence they have on broader luxury trends. As they invest in luxury brands, their choices often set trends and shape the aspirations of other consumer segments, further driving the growth of the luxury fashion market.
INDUSTRY RESTRAINTS
Rise of Lower-Priced Premium Brands
The rise of lower-priced premium brands presents a significant challenge to traditional luxury fashion brands, as these competitors offer products of comparable quality without the hefty price tag. Brands like Michael Kors and Tory Burch have gained popularity by providing consumers with high-quality, stylish products at a more accessible price point, attracting a segment of consumers who might otherwise aspire to own luxury items.
Moreover, premium brands' growing popularity can erode traditional luxury brands' customer base, particularly among younger consumers who prioritize value and style over brand prestige. To counter this challenge, luxury brands must reinforce their brand narrative, emphasizing the unique aspects of their heritage, craftsmanship, and exclusivity that set them apart from the increasingly competitive premium market.
KEY QUESTIONS ANSWERED
- How big is the global luxury fashion market?
- What is the growth rate of the global luxury fashion market?
- What are the key drivers of the global luxury fashion market?
- Who are the major global luxury fashion market players?
- Which region dominates the global luxury fashion market?
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 146 |
| Forecast Period | 2023 - 2029 |
| Estimated Market Value (USD) in 2023 | $289.46 Billion |
| Forecasted Market Value (USD) by 2029 | $315.88 Billion |
| Compound Annual Growth Rate | 1.4% |
| Regions Covered | Global |
VENDOR LANDSCAPE
Key Vendors
- Burberry
- Capri Holdings
- Dolce & Gabbana
- The Estee Lauder Companies
- Giorgio Armani
- HUGO BOSS
- Kering
- LVMH
- PRADA Group
- Tapestry
Other Prominent Vendors
- Moncler
- MCM
- Chanel
- Hermes
- OSKLEN
- Salvatore Ferragamo
- The Swatch Group
- Cesare Attolini
- Canali
- Max Mara
- Ralph Lauren
- PVH
- Inditex
- Diesel
- Compagnie Financiere Richemont
- FJ Benjamin
- Mitsui & Co.
- Roberto Cavalli
- Balmain
- Oscar de la Renta
- Valentino
- Swarovski
- Zegna
SEGMENTATION ANALYSIS
By Product Type
- Apparel
- Leather Goods
- Watches
- Footwear
- Jewellery
- Others
By End-users
- Women
- Men
- Children
By Generation
- Gen X
- Millennials & Gen Z
- Baby Boomer & Silent Gen
By Distribution Channel
- Retail
- Wholesale
By Sales Channel
- Online
- Mono Brand Stores
- Specialty Stores
- Departmental Stores
- Off-Price Stores
- Airports
For more information about this report visit https://www.researchandmarkets.com/r/9jqhe6
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