Global Luxury Goods Market: Snapshot
The market for luxury goods presents an amalgamation of both premium and affordable luxury goods. The rising count of high net worth individuals (HNIs) and the growing disposable incomes has boosted the demand for luxury goods. The top players dominant in the market are introducing tailor-made products keeping in mind the trends and the demands of consumers in numerous regions. The market is also involved in increased luxury products‘ promotion via digital platforms. The players within the market are involved in numerous mergers and acquisitions for gaining a control over the supply of raw materials for the production of exclusive goods and to reduce their overall manufacturing costs.
The global luxury goods market stood at US$296.15 bn in 2013 and is predicted to touch US$374.85 bn in 2020, expanding at 3.40% CAGR between 2014 and 2020. The strong economy of the key developed markets is a prime factor boosting the development of the global luxury goods market. In addition, the growing utilization of cutting-edge marketing activities and campaigns via digital media platforms within the travel retail industry will also positively impact the development of this market. On the other hand, the high tariffs and dearth of raw materials within some promising markets such as China, India and Brazil may impede the development of the overall market.
Leather Goods and Apparels Hold a Dominant Share in Global Luxury Goods Market
In terms of product, the report segments the market into apparels and leather goods, luxury watches and jewelry, wines/campaigns and spirits, fragrances, luxury personal care and cosmetics, and others. At present, the segment of leather goods and apparels is the top segment in the market for luxury goods and is trailed by the segment of luxury jewelry and watches. The companies operating in the luxury goods market are presenting numerous affordable and sophisticated goods for capturing the attention of huge count of customers in all the key segments.
Proliferation of High-End Departmental Stores to Bode Well for Market Growth
In terms of geography, the market is segmented into Europe, North America, Asia Pacific, and Rest of the World (RoW). Of these, the Europe luxury goods market holds the most dominant share and is trailed by North America. Europe is predicted to maintain its superiority all through the forecast period. This is owing to the fact that Europe is considered to be amongst the top destination for international and domestic luxury good consumers. In addition, the proliferation of high-end departmental stores and online stores within Europe will also boost the development of the market in this region. On the other hand, Asia Pacific and RoW are also swiftly developing markets, and had a huge number of high net worth customers in the past five years. The customers residing in these regions have huge purchasing power and are aware about the latest trends and fashions.
The prominent players in the global luxury goods market are LVMH Group, Kering S.A., Rolex S.A., Revlon Inc., Tiffany & Co., L’Oreal Group, Prada S.p.A, Coty Inc., and The Swatch Group Ltd., Hermes International SCA, Compagnie Financière Richemont S.A., Burberry Group plc, Avon Products Inc., and Graff Diamonds, among others.
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