The report further states that the luxury goods market size was USD 316.16 billion in 2019. It is projected to grow from USD 257.26 billion in 2020 to USD 352.84 billion in 2027 at a CAGR of 4.6% in the forecast period.
According to Fortune Business Insights™ The global luxury goods market size is set to gain traction from the introduction of fashion-forward and innovatively created products.
COVID-19 Pandemic: Surging Purchase of Essential Items to Affect Growth Negatively
The COVID-19 pandemic has taken a huge toll on the global economy. The demand for luxury goods declined amid the crisis because of the inclination of people toward purchasing only essential products. Working groups have faced reduction in their salaries and loss of employment.
At the same time, stay-at-home orders have drastically lowered the demand for premium goods. We are offering detailed research reports to help you gain a competitive edge in the luxury goods industry. Further Reports you can find on Journal Fact in detail.
How Did We Conduct Our Research?
The report involved four notable activities in projecting the current market size. Exhaustive secondary research was conducted to gather data about the parent and peer markets. Our next step included primary research to authenticate these sizing, assumptions, and findings with numerous luxury goods industry experts. We have also used bottom-up and top-down approaches to calculate the market size.
Clothing Segment to Remain at the Forefront Backed by High Demand from Men & Women
Based on the product type, the clothing segment generated 28.79% in terms of the luxury goods market share in 2019. This growth is attributable to the increasing demand for men and women globally. The bags segment is anticipated to exhibit rapid growth in the upcoming years stoked by the high demand for leather-based products.
Increasing Demand from High-income Groups to Favor Growth
Luxury goods are mainly purchased by the high-income group across the globe. Oxfam International’s data, for instance, declared in January 2020 that approximately 2,153 billionaires residing worldwide possess more wealth than around 4.6 billion people who make up 60% of the global population.
Hence, the increasing wealthy population would bolster the luxury goods market growth in the near future. However, the trends of selling and buying counterfeit products at cheaper rates that resemble original ones may hamper growth.
Key Players Aim to Compete with Rivals by Launching Unique Products & Merging with Others
The global market for luxury goods houses a large number of companies that are mainly aiming to strengthen their positions worldwide. To do so, they are adopting the merger and acquisition strategy. Also, some of the others are introducing novel luxury goods to attract more customers. Below are the two latest industry developments:
- October 2020: Ralph Lauren, a leading provider of digital-first customization, included the packable quilted jacket, its best-selling outerwear piece, in collection. Its exterior is made up of recycled down-alternative insulation, polyester fabrics, and recycled nylon. The company aims to bring 100% sustainability till 2025.
- October 2020: LVMH Moët Hennessy Louis Vuitton SE (LVMH) concluded an agreement with Tiffany & Co. to refine a few terms of their previously accepted merger agreement, showcasing a purchase of 131.50 dollars per share.