Luxury Apparel Market Size, Share & Trends Analysis Report By End-user (Men, Women), By Distribution Channel (Offline Retail, Online Retail), By Region, And Segment Forecasts, 2019 - 2025

Report Overview

The global luxury apparel market size to be valued at USD 84.04 billion by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 3.5% during the forecast period. The rising number of millionaires and brand loyalty among customers are anticipated to fuel the growth. The rising perception among consumers that luxury goods contribute to greater social acceptance, is driving the product demand. Increasing disposable income and consumer spending on luxury products are also prominent factors driving demand.

Many first-time buyers of luxury apparel go for the products to experience high quality and to portray a certain image in society. Most of the time, this converts into brand loyalty and as a result, they do not mind spending some extra amount for purchasing from their favorite brands. Recognized luxury brands have some consistency in the quality of the product and take extra care of consumer sentiments. This contributes to the evolution of the brand names. Word-of-mouth conversation from the public also plays a key role in promoting luxury clothing.

The higher price range and style quotient are some of the USPs of luxury apparel but the easy availability of duplicate products of top brands at cheaper prices is one of the major restraints for the market. Lack of awareness among consumers regarding the authenticity of these products leads them to purchase fake products, thereby affecting their brand loyalty. As per a study by Assocham, the fake luxury market in India is growing at a rate of 40% to 45% annually. This is one of the serious concerns for many manufacturers since it not only eats up their market share but also destroys the brand image with low-quality products.

Luxury clothes are usually fashionable, trendy or high class, and expensive. Brands not only focus on providing the latest young looks, but they also cater to the cultural trends and street culture to attract different consumers. For instance, Indian brand Raymond Group has introduced its new brand called Raymond Khadi to provide luxury khadi apparel. These kinds of innovations and developments are anticipated to continue attracting luxury customers and driving the market.

Luxury Apparel Market Trends

With the growing number of high-net-worth individuals, the luxury clothing business is gaining more traction. Increasing sales of the trendiest luxury clothes and growing interaction between users and market players via social media platforms & online retail outlets are contributing significantly to the market growth.

Government-imposed value-added taxes on luxury clothes and footwear restrains the industry growth. The new entrants in the industry face issues including supplier basing, market scaling, and survival problems because of the consolidated industry nature, which limits the market growth.

The growing popularity of luxury apparel among millennials is lucrative for industry expansion, as they are more likely to be influenced by the latest fashion trend. The improvements in digital marketing, as well as an increase in the use of social media for product marketing in developing countries, have created several new business opportunities for the industry players.

End-User Insights

By end-user, the market is divided into men and women. Men accounted for the largest market share of approximately 56.00% in 2018. Increasing the sale of luxury workwear for men is propelling the segment growth. As per a survey, it was found that men spend more on luxury and are more likely to buy things for others than for themselves. Whereas it was also found that men and women shop for luxury items at around the same rate with the difference being in the spending per item.

The average pay for men and women across the world is also one of the prominent factors leading to men spending more on luxury apparel. The market for women's luxury apparel is anticipated to register a CAGR of 3.5% during the forecast period.

Distribution Channel Insights

On the basis of distribution channel, the market has been divided into offline retail and online retail. Offline retail was the highest contributor to the market in 2018 owing to the high pricing and quality of luxury products. Consumers prefer to do physical checks in terms of material, fit, and other such factors before spending a huge amount on luxury clothes. As a result, the offline channel is anticipated to hold the largest industry share. The multi-branded shops and specialist stores also provide leverage of free alteration if it is required in certain clothes. The above factors drive the expansion of the offline distribution channels.

The online channel is expected to register the fastest CAGR over the forecast period. Both multi-brand e-retailers and own branded online stores interact with the consumers. The luxury dresses for all brands are not readily available at various shops and hence are accessible to limited consumers. People living in different countries can easily purchase such items through online channels. Also, the multi-brand online platform can reach out to time-pressed consumers who do not have much time to browse through different mono-brand sites giving a wider opportunity for online retailing of luxury apparel.

Regional Insights

Europe was the largest regional market for luxury apparel in 2018, with Europe, Germany, the U.K., and France being the prominent countries. Europe being one of the most attractive tourist destinations always attracts millions of travelers from across the world. Business tycoons to high-class women travelers buy expensive clothes while holidaying in Europe. Product sale is also on the rise, due to innovative retail concepts and business models in the region.

The Asia Pacific has been witnessing strong growth over the past few years on account of increasing consumer awareness and brand consciousness among regional consumers. China, Hong Kong, and India have the largest penetration rate for luxury clothing. A number of brands are exploring the untapped markets in the region and are establishing their stores owing to the rising demand. Some of the companies have also examined the potential in the luxury children's wear market and are trying to enter such a market.

Key Companies & Market Share Insights

Some of the key market players are Georgia Armani, Burberry, Prada, and Dolce & Gabbana among others. The manufacturers are mainly concentrated in Europe and North America. High entry barriers, since most of the consumers are loyal to certain brands only, create difficulty for small players to enter this market.

With a relatively concentrated competitive landscape, robust marketing campaigning is the key factor to retain consumer interest. As a result, the key players are hiring various renowned celebrities for their marketing and promotional activities. For instance, Rihanna and luxury conglomerate LVMH launched a brand Fenty Maison in the luxury products segment.

Recent Developments

• In March 2023, Burberry announced a €21 million deal to acquire Pattern SpA, its long-term technical outerwear supplier, to secure capacity, build capability, and embed sustainability in its value chain.

• In November 2022, Burberry and Minecraft partnered to create a unique game and fashion collection that blends creativity, exploration, and self-expression. Players can discover a Burberry x Minecraft world and unlock exclusive digital outfits.

Luxury Apparel Market Report Scope

Global Luxury Apparel Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global luxury apparel market report on the basis of end-user, distribution channel, and region:

• End-User Outlook (Revenue, USD Billion, 2015 - 2025)

  • Men

  • Women

• Distribution Channel Outlook (Revenue, USD Billion, 2015 - 2025)

  • Offline Retail

  • Online Retail

• Regional Outlook (Revenue, USD Billion, 2015 - 2025)

  • North America

    •  The U.S.

  • Europe

    • The U.K.

    • Germany

    •  France

  • Asia Pacific

    • Japan

    •  China

  • Central & South America

  • Middle East & Africa

    • Turkey