The rise in disposable income has elevated the consumer lifestyle and shifted their preference towards deluxe cosmetics products. Moreover, the escalation in demand for luxury accessories and jewelry due to unique craftsmanship, refinement, quality, and brand name, further fuel the market. In addition, upgradation in product packaging styles and attractive marketing strategies by key players drive this market. However, currency depreciation, increased prices of raw materials, and economic turbulence in some developed countries could hamper the market growth.
This market is segmented on the basis of product type, mode of sale, gender, and geography. The product type segment includes designer apparels & footwear, accessories, cosmetics, jewelry, travel goods, fine wines/champagne & spirits, and others. In the year 2015, designer apparels and jewelry were the most popular segments and held a cumulative share of more than 59% in global luxury goods market.
The mode of sale could either be retail or online sale, wherein retail mode includes brand outlets, franchise stores, flagship stores, and retail outlets. Most customers prefer the retail mode of sale while buying luxury goods. However, online mode of sale is steadily gaining momentum and is expected to grow at the highest CAGR of 6.2% during the forecast period.
Increase in the number of working women and their economic independence are the key reasons for the market growth for female consumers. In the year 2015, female consumers accounted for almost 65% of global luxury goods market. However, increase in inclination of men towards designer apparels, leather bags, and footwear could result in high demand of luxury goods from male consumers. This segment is anticipated to grow at a CAGR of 4.4% during the forecast period.
Luxury goods market is extremely dependent on economic stability of any particular region as these goods are mainly purchased by the upper economic classes. Furthermore, with the advancements in technology and increase in consumer demands, leading market players have developed various products in different categories of luxury goods and adopted different strategies to combat competition. Acquisition is one of the most prominent strategy in the market. For instance, in 2016, LVMH Group, a French luxury giant, purchased a minority stake in Repossi to expand its business in luxury jewelry segment. Similarly, in June 2016, L’Oreal International acquired Atelier Cologne, a French perfume manufacturer, to enhance its luxury perfume product portfolio.
The market is analyzed across four regions-North America, Europe, Asia-Pacific, and LAMEA. Europe is expected to dominate the global market during the analysis period due to the presence of large number of established manufacturers of luxury goods in Italy, France, and UK. The market in Asia-Pacific is expected to grow at a significant rate due to increase in number of high net worth individuals and growing tourism industry.
In the year 2013, Chinese government launched anti-extravagance campaign that resulted in a slight decrease in the sales of luxury goods. However, in 2014, the market slowly gained pace in this sector.
The report includes comprehensive analysis of the key players in this market such as Estee Lauder Companies Inc., L’Oréal International, LVMH Group, Kering SA, The Shiseido Company, Ltd., Prada S.p.A., Ralph Lauren Corporation, Swatch Group, Luxottica Group S.p.A, and Compagnie Financière Richemont SA.
This report provides an in-depth analysis of the global luxury goods market to identify the potential investment pockets.
It outlines the current trends and future scenarios to determine the overall market potential and gain stronger market foothold.
Key drivers, restraints, and opportunities along with their detailed impact analysis have been elucidated.
Quantitative analysis of the market for the period of 2014-2022 are highlighted to recognize the financial competency of the market.
Porter’s Five Forces model illustrates the threat of new entrants, threat of substitutes, strength of the buyers, and strength of suppliers.
Value chain analysis provides a clear understanding on the roles of stakeholders involved.
BY PRODUCT TYPE
Designer Apparels & Footwear
Fine Wines/Champagne and Spirits
Luxury Goods Market by Gender
Luxury Goods Market by Mode of Sale
Luxury Goods Market by Region
Rest of Europe
Rest of Asia-Pacific
1.1. REPORT DESCRIPTION
1.2. KEY BENEFITS
1.3. KEY MARKET SEGMENTS
1.4. RESEARCH METHODOLOGY
1.4.1. Secondary research
1.4.2. Primary research
1.4.3. Analyst tools and models
CHAPTER 2 EXECUTIVE SUMMARY
2.1. CXO PERSPECTIVE
CHAPTER 3 MARKET OVERVIEW
3.1. MARKET DEFINITION AND SCOPE
3.2. KEY FINDINGS
3.2.1. Top impacting factors
3.2.2. Top winning strategies
3.2.3. Top investment pockets
3.3. VALUE CHAIN ANALYSIS
3.4. PORTER'S FIVE FORCE'S ANALYSIS
3.4.1. Large number of manufacturers and low switching cost increases the bargaining power of the buyers
3.4.2. Large number of suppliers and undifferentiated products reduces the bargaining power of suppliers
3.4.3. High capital investment, high brand awareness and stringent regulations across countries reduces the threat of new entrants
3.4.4. Inferior performance and minimum availability of substitutes reduces threat of substitutes
3.4.5. Stiff competition, high exit barriers lead to high industrial rivalry
3.5. MARKET SHARE ANALYSIS, 2015
3.6. MARKET DYNAMICS
18.104.22.168. Growth in urban population
22.214.171.124. Improving economic conditions/growing disposable income
126.96.36.199. Growing online sales
188.8.131.52. Changing lifestyle and behaviour of consumer
184.108.40.206. Changing packaging styles and attractive marketing strategies
220.127.116.11. Increasing cost of raw materials
18.104.22.168. Rise in air traffic
22.214.171.124. Untapped Asia-Pacific and LAMEA markets
CHAPTER 4 LUXURY GOODS MARKET, BY PRODUCT TYPE
4.1.1. Market size and forecast
4.2.1. Key market trends
4.2.2. Key growth factors and opportunities
4.2.3. Market size and forecast
4.3.1. Key market trends
4.3.2. Key growth factors and opportunities
4.3.3. Market size and forecast
4.4.1. Key market trends
4.4.2. Key growth factors and opportunities
4.4.3. Market size and forecast
4.5. TRAVEL GOODS
4.5.1. Key market trends
4.5.2. Key growth factors and opportunities
4.5.3. Market size and forecast
4.6. FINE WINES/CHAMPAGNE AND SPIRITS
4.6.1. Key market trends
4.6.2. Key growth factors and opportunities
4.6.3. Market size and forecast
4.7. DESIGNER APPARELS
4.7.1. Key market trends
4.7.2. Key growth factors and opportunities
4.7.3. Market size and forecast
4.8.1. Key market trends
4.8.2. Key growth factors and opportunities
4.8.3. Market size and forecast
CHAPTER 5 LUXURY GOODS MARKET, BY GENDER
5.1.1. Market size and forecast
5.2.1. Key market trends
5.2.2. Key growth factors and opportunities
5.2.3. Market size and forecast
5.3.1. Key market trends
5.3.2. Key growth factors and opportunities
5.3.3. Market size and forecast
CHAPTER 6 LUXURY GOODS MARKET, BY MODE OF SALE
6.1.1. Market size and forecast
6.2.1. Key market trends
6.2.2. Key growth factors and opportunities
6.2.3. Market size and forecast
6.3.1. Key market trends
6.3.2. Key growth factors and opportunities
6.3.3. Market size and forecast
CHAPTER 7 LUXURY GOODS MARKET, BY GEOGRAPHY
7.2. NORTH AMERICA
7.2.1. Key market trends
7.2.2. Key growth factors and opportunities
7.2.3. Market size and forecast
7.3.1. Key market trends
7.3.2. Key growth factors and opportunities
7.3.3. Market size and forecast
126.96.36.199. United Kingdom
188.8.131.52. Rest of Europe
7.4.1. Key market trends
7.4.2. Key growth factors and opportunities
7.4.3. Market size and forecast
184.108.40.206. South Korea
220.127.116.11. Rest of Asia-Pacific
7.5.1. Key market trends
7.5.2. Key growth factors and opportunities
7.5.3. Market size and forecast
18.104.22.168. Latin America
22.214.171.124. Middle East
CHAPTER 8 COMPANY PROFILES
8.1. COMPAGNIE FINANCIRE RICHEMONT SA
8.1.1. Company overview
8.1.2. Company snapshot
8.1.3. Operating business segments
8.1.4. Business performance
8.2. KERING SA
8.2.1. Company overview
8.2.2. Company snapshot
8.2.3. Operating business segments
8.2.4. Business performance
8.2.5. Key strategic moves and developments
8.3. LORAL INTERNATIONAL
8.3.1. Company overview
8.3.2. Company snapshot
8.3.3. Operating business segments
8.3.4. Business performance
8.3.5. Key strategic moves and developments
8.4. LUXOTTICA GROUP S.P.A.
8.4.1. Company overview
8.4.2. Company snapshot
8.4.3. Operating business segments
8.4.4. Business performance
8.4.5. Key strategic moves and developments
8.5. LVMH GROUP
8.5.1. Company overview
8.5.2. Company snapshot
8.5.3. Operating business segments
8.5.4. Business performance
8.5.5. Key strategic moves and developments
8.6. PRADA S.P.A.
8.6.1. Company overview
8.6.2. Company snapshot
8.6.3. Operating business segments
8.6.4. Business performance
8.6.5. Key strategic moves and developments
8.7. RALPH LAUREN CORPORATION
8.7.1. Company overview
8.7.2. Company snapshot
8.7.3. Operating business segments
8.7.4. Business performance
8.7.5. Key strategic moves and developments
8.8. SHISEIDO COMPANY, LIMITED
8.8.1. Company overview
8.8.2. Company snapshot
8.8.3. Operating business segments
8.8.4. Business performance
8.8.5. Key strategic moves and developments
8.9. SWATCH GROUP
8.9.1. Company overview
8.9.2. Company snapshot
8.9.3. Operating business segments
8.9.4. Business performance
8.9.5. Key strategic moves and developments
8.10. THE ESTEE LAUDER COMPANIES INC.
8.10.1. Company overview
8.10.2. Company snapshot
8.10.3. Operating business segments
8.10.4. Business performance
8.10.5 Key strategic moves and developments
The luxury goods industry comprises products of superior quality and high value. Developing countries such as India, Japan, China, and South Korea are anticipated to exhibit an increase in demand for luxury goods, owing to increased disposable income and rise in the living standards. Manufacturers focus on developing elegantly designed and affordable products for upper-middle and upper class customers.
Based on product type, the global luxury goods market is segmented into designer apparel & footwear, jewelry, accessories, cosmetics & beauty products, fine wines/champagne & spirits, travel goods, and others. The others segment includes luxury products such as writing instruments and electronic gadgets. In terms of revenue, designer apparels & footwear segment was the most popular in 2015 and generated a revenue of $128,167 million and is expected to lead the luxury goods industry during the forecast period. The growth of tourism industry and travel retail is expected to boost the sales of products in the luxury travel goods segment. In developing regions such as Asia-Pacific and LAMEA, higher demand for luxury goods and accessories is anticipated owing to the higher tourism rate and evolving fashion trends.
The luxury cosmetics market witnessed an escalation in demand for skin care products due to varying climatic conditions. In the year 2015, luxury cosmetics generated a revenue of $37,093 million and are estimated to reach $45,998 million by 2022.
The mode of sale is either retail or online. Retail sector is the major channel in terms of revenue generation that includes physical stores, flagship stores, brand outlets, retail shops, and others. It accounted for around 90% share of the global market revenue in 2015 as it is the most approachable and preferred mode among consumers. However, the online sales segment is anticipated to grow at the highest CAGR during the forecast period due to improvements in various digital platforms and increasing e-commerce websites in various regions.
Traditionally, beauty products, cosmetics, accessories, and designer apparel were majorly used by women. However, these products are gradually gaining popularity among men as well. Luxury travel goods, designer apparel, and other products are largely used by men owing to the change in spending habits and improved shopping experiences. Females account for more than 65% share in global luxury goods market while the share of male customers is comparatively lower. However, male consumers segment is anticipated to grow at the highest CAGR of 4.6% during the forecast period.
In the year 2015, Europe and Asia-Pacific collectively accounted for nearly two-third of the worldwide luxury goods market size and are expected to maintain their dominant position throughout the forecast period. However, Asia-Pacific is projected to be the fastest growing region, followed by LAMEA.
Key findings of Luxury Goods Market study
The others segment in product type is expected to witness highest CAGR of 6.0%.
Designer apparels and luxury jewelry segment together accounted for more than half of the luxury goods market share in 2015.
Females accounted for the highest market share in 2015, however, male segment is expected to register highest growth.
Asia-Pacific is estimated to witness significant growth during the forecast period with China and Japan being the major stakeholders.
In the year 2015, U.S. led the global demand in the luxury goods market.
The report provides comprehensive analysis of the key players that operate in the global Luxury Goods Market such as The Estee Lauder Companies Inc., LOral International, LVMH Group, Kering SA, The Shiseido Company, Ltd., Prada S.p.A., Ralph Lauren Corporation, Swatch Group, Luxottica Group S.p.A, and Compagnie Financire Richemont SA. These players occupy a major share in the luxury goods market followed by other tier 2 and tier 3 players worldwide.
- The Estee Lauder Companies Inc.
- L’Oréal International
- LVMH Group
- Kering SA
- The Shiseido Company, Ltd.
- Prada S.p.A.
- Ralph Lauren Corporation
- Swatch Group
- Luxottica Group S.p.A
- Compagnie Financière Richemont SA
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.