The global luxury apparels market is exceptionally fragmented with a presence of several luxury brands in the market. Thus, Transparency Market Research states that the global market has intense competition. Currently, the leading player in the global market is LVMH Moet Hennessy Louis Vuitton SE or LVMH as it enjoyed a dominant share of 17% in 2015. With an array of brands under its umbrella, LVMH is expected to continue to hold its lion’s share in the coming years as well. “Reaching out to a wider consumer through retailing outlets, e-commerce, and increase presence in developing economies will fetch luxury brands bigger revenue,” states the lead author of this research report.
Rising Disposable Income in Developing Countries Favors Asia Pacific
According to the research report, the global luxury apparels market is expected to be worth US$ 60.7 bn by the end of 2024 from US$ 1.8 bn in 2015. The report states that the global market will pace ahead at a CAGR of 13.2% during the forecast period of 2016 and 2024. Women are anticipated to be the leading consumers in the luxury apparels market in the coming years. Analysts predict that women will hold a share of 50.72% in the overall market due to their close association with fashion. In terms of regions, Asia Pacific is anticipated to assume the lead as the luxury market in the region will expand at a CAGR of 14.5% during the forecast period of 2016 and 2024.
Growing Number of HNWIs Triggers Monumental Demand for Branded Items
The increasing accessibility of luxury fashion to a wider clientele is the primary reason for the growth of the overall market. The global market has been thriving on due to the increasing affordability of these products along with a rising demand for branded items in developing economies. The rising disposable incomes, improving standards of living, emergence of e-commerce, and growing awareness about high fashion have all contributed towards rise of the luxury apparels market in recent years. All of these factors have especially been catalysts in setting up the luxury apparels market in the emerging economies of Asia Pacific. The market is also being driven by growing number high net worth individuals (HNWI) across the globe.
The adoption of mass production techniques has also triggered a significant growth of the overall market. Previously, high fashion was limited to production of few garments, which largely restricted sale and revenue. However, over the past few years techniques of mass production and strategic partnerships to outsource production of luxury garments has worked in favor of the global apparels market. The growing presence of international brands such as Versace, Gucci, Prada, and Kiton in developing countries is expected to boost their familiarity with consumers, which is anticipated to have a positive influence on the market revenue.
Hefty Investments Dissuade New Entrants
Despite the strong market drivers, the global luxury apparels is projected to experience a few challenges. The entry of new players will be challenged by high capital investment required to design high fashion clothing. The high costs and hefty investments required to build a brand and retain its heritage and quality is expected to hamper the growth of the overall market. Furthermore, the vulnerability of global economy is also likely to create a negative impact on the trajectory of the overall market.
The review is based on Transparency Market Research’s report, titled “Luxury Apparels Market - Global Industry Analysis, Trend, Size, Share and Forecast 2016 - 2024.”
Global Luxury Apparels Market, By Material
Global Luxury Apparels Market, By Gender
Global Luxury Apparels Market, By Geography
- North America
- The U.S.
- The U.K.
- Rest of Europe
- Asia Pacific
- Rest of APAC
- Latin America
- Rest of LATAM
- Middle East and Africa
- South Africa
- Rest of MEA