Global Luxury Goods Market: Snapshot
The global luxury goods market is significantly gaining from the rising number of high net worth individuals (HNIs) and increasing disposable income among the growing population. Increasing spending on the luxury products improves the living standard and increases the revenue earned by the players in this market. Prominent players in the market are introducing tailor-made products according to the prevailing trends in order to meet the demand of customer from various regions, which is further benefitting the market by introducing new variety of luxury goods.
E-commerce has also pushed the demand for luxury products across various developed and developing regions due to rise in disposable income of the people in those regions. In addition, the rising use of creative and advanced marketing and campaigning activities through online platforms is fueling the demand for luxury goods across countries.
The global luxury goods market is prophesied to rise at 3.40% of CAGR during the forecast period between 2014 and 2020. The valuation for the market is expected to reach US$ 374.85 bn by the end of 2020.
High Demand for Apparels and Leather Goods to Fuel Market Growth
The global luxury goods market is segmented on the basis of product into apparel and leather goods, luxury watches and jewelry, personal care products and cosmetics, wines/champagne and spirits, fragrance and perfumes, and others. Of these, the apparels and leather goods segment is dominating the luxury goods market globally. The luxury watches and jewelry segment has taken the second position after the apparels and leather goods.
The demand for apparels and leather goods is high among other luxury items, few customers from the millennial generation prefer to mix and match luxury apparels with regular products. This trend helps the customers to set their own way of styling. The leading companies are also coming up with varied types of products to meet the demand form the customers and to match up with the prevailing trend.
Europe Emerges Dominant Due to Increasing Presence of High End Customers
On the regional front, the report on the global luxury goods market is segmented into Europe, South America, North America, Asia Pacific, and the Middle East and Africa. Among these regions, Europe dominated to the global market for luxury goods and is followed by North America. It has been projected that during the forecast period Europe will maintain its dominance in this market. As Europe is considered one of the best destinations for fashion and luxury brands making the region lead for this market on the worldwide platform. In addition, the rising number of high-end departmental stores and increasing use of online stores within Europe will further benefit the market to gain traction.
The Middle East and Africa and Asia Pacific also exhibit high demand for luxury goods. The increasing number of high net worth customers in these regions have also grown the need for the luxury goods in past few years. Customers in the regions are equally aware of the changing trends and fashion status prevailing in the other developed countries, which has further augmented the growth of this market.
The report has also analyzed some of the prominent players and their contribution to the global luxury goods market. Some of the leading players are Kering S.A., Rolex S.A., LVMH Group, LVMH Group, Revlon Inc., Tiffany & Co., and L’Oréal Group.
The global luxury goods market is immensely growing owing to shifting preferences of individuals toward cutting-edge and sophisticated products. Although, there is economic turbulence seen in a number of developed markets and this is why there is an increasing currency devaluation, still the growth of the market is poised to rise in the coming years. The market is also positively impacted by the soaring count of high net-worth individuals globally.
This study presents an in-depth understanding of the market for luxury goods by presenting a comprehensive perspective of the supply, demand, drivers, trends, and restraints influencing the growth of the market for luxury goods. This market has been categorized on a number of attributes and macro and micro level insights into the market have also been encapsulated.
The report also delves into the factors driving and restraining the growth of the market. The prime opportunities in the market have also been showcased by presenting their future impact on the development of the market. The competitive landscape section of the report encapsulates highlights on the top players dominant in the market. This section also includes the key product introductions by these players and their main strengths and weaknesses.
Global Luxury Goods Market: Drivers and Restraints
The consumer goods possessing cutting-edge craftsmanship, quality, refinement, and a reputed brand name are known as luxury goods. Things such as fragrances and perfumes, watches, fine liquor, apparels, jewelry, etc. all fall under the category of luxury goods. Luxury goods’ demand is highly dependent on the economic stability of a particular regions owing to the fact that these goods can be purchased mainly by the upper economic classes. The companies operating in this market are now presenting more affordable luxury products in order to increase their customer base in all these product segments, thus boosting the overall growth of the market.
The superior living standards of individuals, particularly in emerging nations, is a prime factor fuelling the growth of the market for luxury goods. In addition, the rising employment of marketing activities and campaigns via digital media platforms in the industry of travel retail will positively impact the development of the global luxury goods market. On the other hand, the soaring tariffs within some lucrative markets such as China, India, and Brazil and the dearth of raw materials may impede the growth of this market in the coming years.
Global Luxury Goods Market: Region-wise Outlook
Geographically, the report segments the market into North America, Europe, Asia Pacific, and Rest of the World (RoW). Europe led the market in the past and is predicted to maintain its superiority in the coming years, on the basis of revenue. This is due to the established presence of a number of manufacturers of luxury goods in nations such as Germany, Switzerland, France, and Italy. In addition, this region is also characterized with a huge count of duty-free shops and an immensely dense travel retail network, thus shifting customers’ preference toward luxury goods.
On the other hand, Asia Pacific and RoW have also emerged as swiftly developing markets having a huge count of newly listed high net-worth individuals residing in these regions since past few years.
Key players Mentioned in the Report are:
The top players in this market are Hermes International S.A., LVMH, Prada S.p.A., Kering Group, The L'Oréal Group, Coty, Inc., Compagnie Financière Richemont S.A. (hereby referred as Richemont), Rolex S.A., Tiffany & Company, and others.
Major regions analyzed under this research report are:
- North America
- Asia Pacific
- Rest of the World
This report gives you access to decisive data such as:
- Market growth drivers
- Factors limiting market growth
- Current market trends
- Market structure
- Market projections for the coming years
Key highlights of this report:
- Overview of key market forces propelling and restraining market growth
- Up-to-date analyses of market trends and technological improvements
- Pin-point analyses of market competition dynamics to offer you a competitive edge
- An analysis of strategies of major competitors
- An array of graphics and SWOT analysis of major industry segments
- Detailed analyses of industry trends
- A well-defined technological growth map with an impact-analysis
- Offers a clear understanding of the competitive landscape and key product segments