|Market Size in 2020||Market Forecast in 2028||CAGR (in %)||Base Year|
|USD 72,071.5 Million||USD 101,461.9 Million||4.4%||2020|
Luxury Apparels Market
The global luxury apparel market size accounted for USD 72,071.5 Million in 2020 and is expected to reach USD 101,461.9 Million by 2028, growing at a CAGR of 4.4% from 2021 to 2028.
The global Luxury apparel market comprises designer clothing and accessories (Hats, scarves, belts) that are typically made of high-end, pure materials such as cotton, leather, silk, denim, and others. They are typically characterized by high price points, justified by the unique designs and higher quality materials and craftsmanship employed for production.
The rise in disposable income clubbed with a shift in the lifestyle patterns of millennials can be attributed as one of the driving forces of this market. One of the recent trends has been the surge in e-commerce of luxury apparel. Several brands have now resorted to online mediums for marketing as well as sales of their products through their websites and social media platforms. Sales and discount offers offered online have now become ubiquitous, and are almost non-existent in the offline mode. Another rising trend among luxury brands is the adoption of sustainable materials for production, as the Millennials and Generation Z are becoming more conscious of the environmental impact of luxury apparel, for instance, those made of pure leather and other such materials.
The luxury apparel market is anticipated to witness checkered growth, as a result of the unprecedented supply chain disruptions caused by the COVID-19 pandemic. A possible decline is mainly attributable to the disruptions caused in crucial export markets such as India and China. In the offline mode, duty-free shops at airports and luxury stores at malls have been hit hard due to the restrictions imposed on international travel and mall visits. However, with consumers forced to stay at home, online retail sales increased exponentially, further accelerated by active digital campaigns initiated by luxury brands. For instance, Prada and Dolce & Gabanna in collaboration with Alibaba launched their own video boutiques to enhance the online shopping experience.
A major growth driver in this market recently has been the increased communication on social media platforms through influencers and bloggers, who are influencing the sales of luxury apparel as the majority of customers rely on credible reviews and word of mouth before investing in such expensive products
Being the major driver of luxury sales, Millennial and Gen Z consumers are expected to augment this market due to their changing lifestyle patterns, caused by rapid urbanization and rising income levels. Companies such as Louis Vuitton and Christian Dior are actively coming up with engaging digital campaigns and celebrity collaborations to attract this segment.
|Report Attributes||Report Details|
|Report Name||Luxury Apparels Market Research Report|
|Market Size in 2020||USD 72,071.5 Billion|
|Market Forecast in 2028||USD 101,461.9 Million|
|Compound Annual Growth Rate||CAGR of 4.4%|
|Number of Pages||110|
|Forecast Units||Value (USD Billion), and Volume (Units)|
|Key Companies Covered||LVMH Moet Hennessy Louis Vuitton SE, Christian Dior, Ralph Lauren Corporation, Prada, Giorgio Armani S.P.A., Gianni Versace, Hermes International, Gucci, Burberry Group, and Tommy Hilfiger among others.|
|Segments Covered||By Distribution Channel, By End User, And By Region|
|Historical Year||2016 to 2020|
|Forecast Year||2022 - 2030|
|Customization Scope||Avail customized purchase options to meet your exact research needs. Request For Customization|
The online segment held a share of around 30% in 2020. This is attributable to the disruption in offline sales caused by the Covid-19 outbreak. Lockdowns and other restrictions have propelled online sales as people continue to stay at home. Online platforms also provide several options to choose from along with the added benefit of seasonal sales and discount offers. The comfort of shopping from home and the delivery of high-quality luxury products at the doorstep may also augment this segment.
The women segment will grow at a CAGR of over 3.1% from 2021 to 2028. This is attributable to a wide range of products available in female fashion items in terms of color pallets, styles, designs, and materials. Increasing fashion awareness among women through digital media clubbed with a rising disposable income is also anticipated to drive this segment.
The European region held a share of 36.25% in 2020. This is attributable to the presence of globally leading luxury brands such as Louis Vuitton, Versace, Burberry, and Christian Dior among others. Moreover, the growing appeal of a luxurious lifestyle, high buying power, and celebrity endorsements are expected to generate demand in this region.
The Asia Pacific region is projected to grow at a CAGR of 3.6% over the forecast period. This surge is due to a developing standard of living and purchasing power, causing an increased brand awareness and consciousness, especially in countries such as China, India, and South Korea. A number of luxury brands are expected to increase their retail footprint in these countries to attract well-to-do millennials. For instance, industry leader LVMH over the past 10 years has gradually shifted its retail center of gravity towards the Asia Pacific. This region (excluding Japan) now accounts for almost 30 percent of the conglomerate’s retail footprint.
Some of the key players in the luxury apparels market are
With the growth of the online medium, luxury brands will now have to start offering bespoke and exclusive online experiences to customers such as video boutiques, virtual catwalks, private viewings, and other customized services. Digitalization and e-commerce penetration are expected to become mainstream as Covid-19 continues to exist.
The global luxury apparels market is segmented as follows:
By Distribution Channel
By End User
The global luxury apparels market was valued at USD 72,071.5 Million in 2020.
The global luxury apparels market is expected to reach USD 101,461.9 Million by 2028, growing at a CAGR of 4.4% between 2021 to 2028.
Some of the key factors driving the global luxury apparels market growth are changing lifestyle patterns, surge in e-commerce, growing brand awareness and disposable income of consumers.
Europe region held a substantial share of the luxury apparels market in 2020. This is attributable to the presence of major players such as Louis Vuitton, Versace, Burberry and Christian Dior among others. Asia Pacific region is projected to grow at a significant rate owing to the rising demand for luxury apparels in developing economies such as China and India.
Some of the major companies operating in the luxury apparels market are LVMH Moet Hennessy Louis Vuitton SE, Christian Dior, Ralph Lauren Corporation, Prada, Girogio Armani S.P.A., Gianni Versace, Hermes International, Gucci, Burberry Group, and Tommy Hilfiger among others.