Luxury Apparel Market Analysis Report By End User, By Distribution Channel, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global luxury apparel market size was valued at USD 67.85 billion, in 2018 and is anticipated to grow at a CAGR of 3.5% over the forecasted period, from 2019 to 2025. Rising demand for attractive and stylish luxury products among millionaires has majorly driven the market growth. In addition, luxury products contribute to greater social acceptance is fueling the luxury apparel demand among millionaires. Increasing consumer spending capacity on luxury products due to the rising disposable income is projected to drive product demand over the forecast period.

Most consumers buy luxury apparel to experience high quality and better designs. Hence, brand loyalty plays an important role where the customer is ready to pay slightly extra for its desired brand. Established brands look to maintain a certain level of quality and aim for higher customer satisfaction. Word-of-mouth also plays a vital role in promoting luxury brands.

The style quotient and better designs, quality, and fabric durability are some USP of luxury apparel, however, the easy availability of duplicate luxury products at cheaper prices became a challenge for this market. Low awareness of how to differentiate between original and duplicate products among consumers has further hampered market growth. According to the Assocham study, the fake luxury market is increasing at the rate of 40% to 45% yearly. Therefore, these duplicate products are becoming a major challenge for manufacturers as they gain market share and also hamper brand image.

The luxury clothes have better quality and they offer the latest fashion. For example, the Indian Raymond Group introduced the Raymond Khadi brand to offer luxury khadi appeal.

End-User Insights

By end-user, the luxury apparel market is fragmented into men and women. In 2018, the Men segment accounted for the largest market share of around 56.00%. The high revenue share is attributed to the demand for luxury formals wear among men. According to the study, men spend a high amount on luxury brands and are more likely to buy for others than themselves. The average pay for women and men is also a major factor. This has led to men spending more on luxury goods. The women segment is anticipated to grow with a CAGR of more than 3.0% over the forecast period, 2019 to 2025.

Distribution Channel Insights

By distribution channel, the luxury apparel market is fragmented into offline and online retail channels. In 2018, the offline segment accounted for the largest market share due to the high price and quality attributes of these products. It allows the buyers to check products physically in terms of material, size, and quality, which directly affects the purchasing decision of buyers before spending a high amount on luxury apparel. The specialty stores and multi-branded retail shops provide free alteration to customers. Thus, the above factors have resulted in a high revenue share for this segment.

On the other hand, the online segment is expected to register the highest CAGR from 2019 to 2025. Both own branded online retailers and multi-brand e-retailer are used to interact with customers. Luxury products, especially clothes are not easily available at several shops resulted in limited access to consumers. People who are living in remote places and rural areas can easily purchase these products through online channels. In addition, the online portal, which offers multi-brand, can reach those consumers who do not have more time to browse all mono-brand online portals, thereby expected to open new avenues for this segment in the next few years.

Regional Insights

Europe accounted for the largest market share, in 2018. The U.K., France, Germany, and Italy are the key markets in the region. Europe is one of the most popular tourist destinations that attract many travelers across the globe. Europe is home to some of the biggest luxury brands in the world. Thus is resulted in the revenue share in the region.

The Asia Pacific is projected to witness healthy growth in the next few years due to the increasing demand for luxury apparel among working professionals. In this region, China, India, and Japan are major countries that are expected to contribute growth over the forecast period. China is the largest consumer of these products, as they travel frequently across the world. Some manufacturers have seen potential in the children’s wear market, which is expected, to fuel product demand over the forecast period

Luxury Apparel Market Share Insights

The major players included in this market are Burberry, Georgia Armani, Prada, Dolce & Gabbana, Kate Spade, Phillip Lim, Gucci, PVH Corp. (Calvin Klein), and Coach. The key players are majorly concentrated in North America and Europe. Due to strong brand loyalty, the market has a high entry barrier to entry in this market. 

To sustain in a competitive market, companies are focusing on marketing campaigns hence, they are hiring celebrities for promotional activities to attract consumers. For example, luxury conglomerate LVMH and Rihanna introduced the brand FentyMaisonin in their product range.

Report Scope

Segments Covered in the Report

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, Million Insights has segmented the global luxury apparel market report based on 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
        • U.S.
    • Europe
        • Germany
        • U.K.
        • France
    • the Asia Pacific
        • China
        • Japan
    • Central & South America
    • Middle East & Africa
        • Turkey