Luxury Goods Market- High Demand for Apparels and Leather Goods to Fuel Market Growth

Global Luxury Goods Market: Snapshot

The global luxury goods market is significantly gaining from the rising number of high net worth individuals (HNIs) and increasing disposable income among the growing population. Increasing spending on the luxury products improves the living standard and increases the revenue earned by the players in this market. Prominent players in the market are introducing tailor-made products according to the prevailing trends in order to meet the demand of customer from various regions, which is further benefitting the market by introducing new variety of luxury goods.

E-commerce has also pushed the demand for luxury products across various developed and developing regions due to rise in disposable income of the people in those regions. In addition, the rising use of creative and advanced marketing and campaigning activities through online platforms is fueling the demand for luxury goods across countries.

The global luxury goods market is prophesied to rise at 3.40% of CAGR during the forecast period between 2014 and 2020. The valuation for the market is expected to reach US$ 374.85 bn by the end of 2020.

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High Demand for Apparels and Leather Goods to Fuel Market Growth 

The global luxury goods market is segmented on the basis of product into apparel and leather goods, luxury watches and jewelry, personal care products and cosmetics, wines/champagne and spirits, fragrance and perfumes, and others. Of these, the apparels and leather goods segment is dominating the luxury goods market globally. The luxury watches and jewelry segment has taken the second position after the apparels and leather goods.

The demand for apparels and leather goods is high among other luxury items, few customers from the millennial generation prefer to mix and match luxury apparels with regular products. This trend helps the customers to set their own way of styling. The leading companies are also coming up with varied types of products to meet the demand form the customers and to match up with the prevailing trend.

Europe Emerges Dominant Due to Increasing Presence of High End Customers

On the regional front, the report on the global luxury goods market is segmented into Europe, South America, North America, Asia Pacific, and the Middle East and Africa. Among these regions, Europe dominated to the global market for luxury goods and is followed by North America. It has been projected that during the forecast period Europe will maintain its dominance in this market. As Europe is considered one of the best destinations for fashion and luxury brands making the region lead for this market on the worldwide platform. In addition, the rising number of high-end departmental stores and increasing use of online stores within Europe will further benefit the market to gain traction.

The Middle East and Africa and Asia Pacific also exhibit high demand for luxury goods. The increasing number of high net worth customers in these regions have also grown the need for the luxury goods in past few years. Customers in the regions are equally aware of the changing trends and fashion status prevailing in the other developed countries, which has further augmented the growth of this market.

The report has also analyzed some of the prominent players and their contribution to the global luxury goods market. Some of the leading players are Kering S.A., Rolex S.A., LVMH Group, LVMH Group, Revlon Inc., Tiffany & Co., and L’Oréal Group.