- Global Luxury Goods Market Set to Rise to US$374.85 bn By 2020.
- The Product Segment of Apparel and Leather Goods is Expected to Lead the Overall Luxury Goods Market.
- Key Players Operating in Global Luxury Goods Market are Tiffany & Co., Prada S.p.A., LVMH, Burberry Group plc, and L’Oreal Group.
Easy internet access has drastically increased the awareness levels among individuals. Be it luxury goods or daily-use products, information about all these is just a click away. Not just that, people are also able to shop them from anywhere at any time. With all these positive factors, the global luxury goods market looks promising in the coming years.
The market has grown at a steady pace in the last few years, and the future beholds promise. It is predicted that the global luxury goods market will grow at a stable rate in the next few years. Besides, the booming e-commerce industry, there are several other factors that influence growth of this market. The global luxury goods market is expected to grow to US$ 374.85 billion by the end of 2020.
What are the other drivers of the global luxury goods market?
Besides e-commerce, the growing per capita income of people is a prominent driver of the global luxury goods market. The average income of an individual has grown exponentially in the last few years in developing economies like India and China. This has increased the percentage of disposable income, thus accelerating demand in the global luxury goods market.
Another important factor in the global luxury products market is the fast-changing fashion, especially among the youth. Leading brands are launching new products online to attract young audience.
What are the types of products in high demand in the global luxury goods market?
Several luxury products like apparels, leather bags, watches, perfumes, liquor, personal care and cosmetic products, and jewelry are among the big sellers. Out of these, leather products and apparels are the most sought-after goods in the global luxury goods market. The boom in the e-commerce sector has enabled many big brands to shift to online space. In this case, people are able to check out clothes without having to physically visit retail stores. Frequent discounts from sellers, credit card vendors, and payment wallets, allows people to save money than buying from a store. At the same time, flexible return policies, multiple payments options, and the facility of comparing with other products, also is a bonus for customers to purchase luxury goods.
Recently, it has come to light that the wealthy population in China wants to spend more on luxury goods this year, thereby driving the luxury goods market. This trend comes despite the economic slowdown in the developing nation. Affluent customers intend to show more interest in luxury goods while leading brands recorded marginal decrease in the revenue.
How is the global luxury goods market distributed regionally?
With constantly increasing demand, Europe is expected to lead the global luxury goods market in the coming years. Presence of a large number of high-end popular brands, shopping outlets in prominent tourist locations, and flourishing online stores, have made Europe a favorite shopping destination. On the other hand, North America is projected to have the second highest market share. The ever-increasing per capita income, booming e-commerce industry, and growing awareness levels among the crowd are the luxury goods market drivers.
At the same time, Asia Pacific region is expected to grow vigorously. Rising youth population fascinated towards modern fashion, growing economic status, and increasing shopping outlets are fuelling the demand here. Countries like India and China are locations to look for in the global luxury goods market.