With a large pool of established vendors, the global hard luxury goods market is witnessing a high degree of competition, which is expected to intensify further over the coming years due to the escalating number of new players venturing into this market, states a new study by Transparency Market Research (TMR). The leading participants in this market are Graff Diamonds, LVMH, Giorgio Armani, Swatch Group, Richemont, Bulgari, Chanel, Ralph Lauren, Tiffany & Co., and Harry Wintson.
According to the study, the global hard luxury goods market is expected to reach US$75.24 bn by the end of 2017. Further, the market’s opportunity is projected to rise at an exponential CAGR of 10.90% during the period from 2017 to 2022, arriving at a whopping sum of US$126.11 bn by the end of the period of the forecast. Watches are the most valued hard luxury products across the world and are expected to remain so over the next few years, with their revenue contribution to this market rising at a CAGR of 8.30% over the forecast period. Women are expected to remain the most prominent consumers of hard luxury goods, worldwide, in the near future.
Europe, which has been leading the global hard luxury goods market over the last few years, is anticipated to keep up with the trend in the years to come. The presence of a large pool of players is expected to surface as the prime factor behind the growth of this regional market, reports the study.
Increasing Preference of Branded Products to Reflect Positively on Market’s Progress
“The increasing preference of branded products among consumers across the world is propelling the global hard luxury goods market significantly,” says a TMR analyst. Consumers, nowadays, are preferring sophisticated products, leading to a rise in the demand for innovative craftsmanship and superior quality products, which has reflected greatly on the sales of branded items, especially hard luxury goods.
In addition to this, the increasing initiatives related to product marketing and the rise in ad campaigns using digital media platforms, specifically in the retail industry, will impact the growth of the worldwide market for hard luxury goods positively in the near future, notes the market study.
Continual Surge in Tariffs May Impede Growth
The economic strengthening and the augmenting disposable income of consumers, particularly in developing nations, are also boosting this market substantially. However, the continual surge in tariffs among some of the lucrative domestic Asian and Latin American markets, such as India, China, and Brazil, may limit the growth of this market over the next few years. The lack of raw materials and their price volatility may also impede the market’s growth in the years to come.
Nevertheless, the companies operating in this market are expected present affordable and budget luxury products in both of the hard luxury goods product segments over the forthcoming years in a bid to expand their consumer base, thus driving the overall growth of this market, states the research report.
The review is based on a report by Transparency Market Research (TMR), titled “Hard Luxury Goods Market (Product Type - Watches and Jewelry; Gender - Men and Women; Sales Channel - Monobrand Store, Department Store, Specialty Store, and Online Store) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2017 - 2022.”