According to the finds of a recent study by Transparency Market Research (TMR), the global luxury apparels market is highly fragmented with intense competition. In 2015, top three companies collectively held merely 37% of the shares. These three companies are LVMH, Kering SA, and Hugu Boss AG. LVMH held the leading position with some of the world’s most famous brands such as Louis Vuitton, NUDE, Fendi, and TAG Heuer.
On the other hand, Kering SA held double digit shares in the global luxury apparels market in 2015 with their renowned brands such as Puma, Gucci, and Christopher Kane among others. The leading analyst of the report reveals that “Leading brands are actively reaching out to untapped market via e-commerce, retail outlets, and aggressive marketing of their products.” According to the TMR report, the global luxury apparels market has a valuation of US$1.5 bn in 2015, which will surge to US$60.7 bn by the end of 2024, expanding at a robust CAGR of 13.2% during the forecast period of 2016 to 2024.
Women Continue to Serve Maximum Demand
By material type, the report segments the global luxury apparels market into silk, cotton, denim, leather, and others. Out of these, cotton fabric, by far, remains the most prominent segment, accounting for 35.9% of the overall demand in 2015. This soft, insulating, non-allergic fabric is chosen fabric for many, especially in the hot and humid climate. Cotton fabric is also gaining popularity across both the genders. The report also finds that women have for long been associated with the fashion industry and women has been dominating the industry since the beginning. This segment is forecasted to account for half of the market by the end of the forecast period, around 50.72% of the total share globally. The market for men luxury apparels remains largely untapped, especially in the emerging economies such as India, China, and other Asia Pacific countries.
Geographically, North America and Europe account for most of the demand in the luxury apparels market, owing to high buying ability of consumers in the countries such as the U.S., Canada, the U.K., France, and Germany. However, Asia Pacific and countries such as UAE, South Africa, and the rest of the Middle East and Africa are also anticipated for a healthy growth rate during the forecast period.
Increasing Disposable Income Augmenting Demand
Fueled by the growth in online sales of luxury goods, the market for luxury apparels is expected to witness a steady growth throughout the forecast period. Several e-commerce have penetrated into developed as well as developing countries and have become a platform for high-end luxury products such as Versace, Prada, Gucci, and Dior. Increasing disposable income of the consumers also contribute to the positive growth of this market. Change in global standard of living over time has substantially incremented the demand for luxury apparels. With reduced poverty and increasing disposable income, the market is poised for a healthy growth rate in the near future. Moreover, the demand in the luxury apparels market is also driven by the growing number of high Net-Worth Individuals (HNIs). However, high entry level barrier and the lack of luxury brand awareness are two primary factors challenging the market from reaching its full potential.
According to the author of the report, “Increasing availability of luxury apparels over digital platforms, the creation of familiarity, and targeting the untapped market in under-developed countries is opening new opportunities for the players in the global luxury apparels market.” Despite narrowing income gap, male consumers still have higher income than women, especially in developing and emerging economies. Women, however, tend to spend more on luxury apparels.
The information presented in this review is based on a Transparency Market Research report, titled, “Luxury Apparels Market (Material - Cotton, Leather, Silk, and Denim; Gender - Men and Women) - Global Industry Analysis, Trend, Size, Share and Forecast 2016 - 2024.”
Key Segments of the Global Luxury Apparels Market
Global Luxury Apparels Market, By Material
Global Luxury Apparels Market, By Gender
Global Luxury Apparels Market, By Geography
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