Luxury Fashion Market

Global Luxury Fashion Market Size:

The global luxury fashion market size reached US$ 245.5 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 327.1 Billion by 2032, exhibiting a growth rate (CAGR) of 3.14% during 2024-2032. The rising number of affluent consumers and their inflating income levels, growing aspiration for exclusivity and uniqueness, power of branding and brand equity, increasing influence of social media and digital platforms, and rapid globalization are some of the major factors propelling the market.

Global Luxury Fashion Market Analysis:

• Major Market Drivers: The increase in affluent consumers, along with their rising purchasing power is driving the growth of the market across the globe. The rising interest in luxurious and prestigious fashion items is fueling the market growth which is due to more individuals attaining higher level of wealth. The growing demand for uniqueness and exclusivity is further boosting the demand for luxury fashion.
• Key Market Trends: The increasing integration of digital technologies in the fashion industry is influencing the market trends. The widespread adoption of technologies, including online shopping, virtual showrooms, and augmented reality experiences are attracting consumer engagement and accessibility to luxury brands. The rising influence of social media dot com and influences play a significant role in shaping trends and driving brand awareness in the luxury fashion industry trends.
• Competitive Landscape: Some of the major market players in the global luxury fashion market include Burberry Group Plc, Capri Holdings Limited, Chanel S.A., Diesel S.p.A. (OTB Group), Dolce & Gabbana S.r.l., Giorgio Armani S.p.A., Industria de Diseño Textil S.A., Kering SA, LVMH Moët Hennessy Louis Vuitton, Prada S.p.A., PVH Corp., Ralph Lauren Corporation, Rolex SA, and among others.
• Geographical Trends: Europe accounted for the largest region in the luxury fashion market as it is one of the largest consumer markets for luxury goods. The region is well known for its rich heritage, iconic brand, and craftsmanship which is driving the luxury fashion market in Europe. The region holds the most prestigious fashion houses, such as Chanel, Gucci, and Louis Vuitton which represent quality, innovation, and elegance.
• Challenges and Opportunities: The luxury fashion market faces challenges like adapting to digital transformation, rising sustainability concerns, and routing the unstable global economy. The shift in consumer values towards ethical production and environmental stewardship demands a revaluation of supply chain and materials. However, embracing digital innovation provides new ways to engage consumers, while the shift towards sustainability opens avenues for creativity in eco-friendly designs and practices which is likely to create new opportunities in the market.
   

Luxury Fashion Market Trends/Drivers:

Rise in affluent consumers

As individuals attain higher levels of wealth and disposable income, their purchasing power increases. This newfound affluence allows them to indulge in luxury fashion items that were once considered out of reach. Luxury fashion brands cater to this demand by offering exclusive, high-quality products that resonate with the discerning tastes of affluent consumers. These consumers seek to display their elevated social status, personal style, and appreciation for craftsmanship. The increased demand from affluent consumers serves as a driving force for the growth and expansion of the luxury fashion market, prompting brands to innovate, create desirable collections, and provide exceptional customer experiences. According to Forbes, in 2023 Prada announced that it would venture into skin care and color cosmetics. It wasn't the first time that a luxury house specializing in garments and accessories entered the beauty industry. Tom Ford’s fine fragrances and makeup lines have adored significant success. It has also owned the respect of beauty insiders and enthusiasts. Several heritage brands from Chanel to Hermes and Dior have carved out their names across the world of skincare, fragrances, and makeup artistry. This is expected to fuel the market share of luxury fashion brands.

Aspiration for exclusivity and uniqueness

Luxury fashion brands excel at creating limited edition pieces, collaborating with renowned designers, and utilizing rare materials. This emphasis on exclusivity appeals to consumers who desire to stand out and own items that are not easily accessible to the masses. The allure lies in the uniqueness and individuality that comes with owning a rare and coveted fashion item. The aspiration for exclusivity drives consumer demand, as individuals seek to differentiate themselves and showcase their discerning taste and elevated status through owning these exclusive and distinctive luxury fashion pieces. For instance, in July 2023, Givenchy partnered with famous Chinese influencer Tao Liang, known to the world as Mr. bags, to create an exclusive limited edition run of the labels popular Voyou bag. The special edition bag was made available exclusively to China via Mr. bags’ WeChat mini-programme store.

Branding and brand equity

Luxury fashion brands invest heavily in creating a distinct brand identity and reputation. Through meticulous craftsmanship, exclusive collaborations, and captivating storytelling, they establish an aura of desirability and prestige around their products. The strong brand equity enhances consumer perception of value, trust, and quality. This, in turn, drives consumer demand and willingness to pay a premium for luxury fashion items. Branding creates differentiation in a competitive market, fosters customer loyalty, and fuels the aspirational nature of luxury fashion, ultimately catalyzing the market and sustaining the success of luxury fashion brands. For instance, in April 2023, Emporio Armani launched a new initiative, in collaboration with Treedom (a platform that supports agroforestry projects across the globe), to promote the responsible use of natural resources, in the honor of Earth Day.

Luxury Fashion Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global luxury fashion market report, along with forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on product type, distribution channel, and end user.

Breakup by Product Type:

• Clothing & Apparel
  • Jackets & Coats
  • Skirts
  • Shirts & T-Shirts
  • Dresses
  • Trousers & Shorts
  • Denim
  • Underwear & Lingerie
  • Others
• Footwear
• Accessories
  • Gems & Jewellery
  • Belts
  • Bags
  • Watches
     

Clothing & apparel represent the most popular product type

The report has provided a detailed breakup and analysis of the luxury fashion market based on the product type. This includes clothing & apparel (jackets & coats, skirts, shirts & T-shirts, dresses, trousers & shorts, denim, underwear & lingerie, and others), footwear, accessories (gems & jewellery, belts, bags, and watches). According to the report, clothing & apparel accounted for the largest market share.

Clothing and apparel play a pivotal role in driving the luxury market. Luxury fashion brands offer meticulously crafted garments made from high-quality materials and exhibit exceptional attention to detail. These brands often set trends and create unique designs that capture the attention of fashion enthusiasts. The allure of owning luxury clothing lies in the prestige associated with the brand, the superior craftsmanship, and the exclusivity of limited production runs. Luxury clothing allows individuals to express their personal style, enhance their self-image, and showcase their discerning taste, driving the demand for luxury fashion in the market.

Breakup by Distribution Channel:

• Store-Based
• Non-Store Based
   

The majority of the luxury fashion products are distributed through store-based channels

A detailed breakup and analysis of the luxury fashion market based on the distribution channel has also been provided in the report. This includes store-based and non-store based. According to the report, store-based luxury fashion brands represented the largest segment.

Store-based retailing provide a unique and immersive shopping experience, allowing customers to interact with products, feel their quality, and receive personalized assistance from knowledgeable staff. These brick-and-mortar stores serve as showcases for luxury brands, conveying their heritage, craftsmanship, and exclusivity. The luxurious ambiance and attention to detail within these stores align with the brand's image, creating a sense of aspiration and indulgence. In-store events and VIP programs further enhance customer loyalty and engagement.

Breakup by End User:

• Men
• Women
• Unisex
   

Women represents the largest end user segment

A detailed breakup and analysis of the luxury fashion market based on the end user has also been provided in the report. This includes men, women, and unisex. According to the report, women accounted for the largest market share.

Women drive the luxury fashion market through their strong influence and purchasing power. Women have a deep appreciation for fashion and style, making them key consumers of luxury fashion brands. They seek to express their individuality, sophistication, and status through luxurious garments, accessories, and footwear. Women's demand for high-quality, unique designs drives the innovation and creativity within the luxury fashion industry. According to Fashion United, revenue generated from the women's apparel market is much higher compared to men's or children's apparel. In 2018, women's wear made up more than half (53%) of global fashion retail spending. Spending on menswear accounted for 31%and childrenswear for 16%. Luxury fashion brands cater to women's desires by creating collections that reflect their diverse tastes and preferences, offering them a wide range of options to indulge in self-expression and elevate their personal style.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Europe exhibits a clear dominance in the market

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Europe was the largest market for luxury fashion.

Europe drives the luxury fashion market growth as one of the largest consumer markets for luxury goods. With a high concentration of affluent individuals and a strong culture of luxury consumption, Europe offers a significant customer base for luxury fashion brands. The region's economic stability, fashion-forward cities like France and Italy, and a strong desire for prestige and status contribute to the market growth. The growing expenditure on clothing and footwear is driving the growth of the market in the region. According to Fashion United, in 2020, Europeans spent 4.1% of their total household expenditure on clothing and footwear. Europeans spend on average EURO 490 per year on their clothes.

Competitive Landscape:

The key players prioritize innovation and creativity in their product offerings, constantly pushing the boundaries of design and craftsmanship. They invest in research and development (R&D) to develop new materials, techniques, and styles that captivate consumers and set trends. Additionally, luxury fashion brands emphasize brand building and storytelling. They carefully curate their brand image, leveraging their heritage, values, and unique narratives to create emotional connections with consumers. This includes collaborations with renowned artists, designers, and celebrities, creating buzz and excitement around their brand. Other than this, in order to enhance customer experience, luxury fashion players invest in enhancing their retail environments. They create luxurious and immersive physical store experiences, offering personalized services, VIP programs, and exclusive events. Additionally, they prioritize seamless online shopping experiences, providing user-friendly websites, mobile apps, and efficient logistics to cater to the growing demand for e-commerce.

The report has provided a comprehensive analysis of the competitive landscape in the global luxury fashion market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include Burberry Group Plc, Capri Holdings Limited, Chanel S.A., Diesel S.p.A. (OTB Group), Dolce & Gabbana S.r.l., Giorgio Armani S.p.A., Industria de Diseno Textil S.A., Kering SA, LVMH Moet Hennessy Louis Vuitton, Prada S.p.A., PVH Corp., Ralph Lauren Corporation, Rolex SA.

Recent Developments:

• March 2023: Burberry announced the completion of its acquisition of Italian supplier, Pattern, a move it made to boost its value chain in the outwear category. For almost two decades, Burberry has partnered with Pattern to produce luxury ready to wear including quilts and downs at the Italian company’s product development site in Turin, Italy.
• February 2022: Italian luxury group Dolce&Gabbana set up a new company to directly manage the development, production and sale of its perfumes and cosmetics.
• June 2021: French fashion house Chanel is backing a new climate adaptation fund that aims to raise $ 100 million by 2025 to invest in projects to promote sustainable agriculture, protect forests and support small scale farmers in developing countries.

Luxury Fashion Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the luxury fashion market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global luxury fashion market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the luxury fashion industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.