The luxury apparel market size was valued at $109.2 billion in 2020. The market is projected to grow at a CAGR of more than 9% during the forecast period. Luxury apparel will recoup its losses from the pandemic by 2022, driven by heightened demand in APAC and the Americas. Growth in APAC has been boosted by the rising number of middle-class consumers and the shift to domestic purchasing due to COVID-19 international travel restrictions, while sales in the Americas have been bolstered by federal stimulus payments. Formalwear-centric brands suffered the most in 2020 as the pandemic led to an acceleration in the adoption of athleisure. In contrast, brands that were early adopters of streetwear and athleisure trends were more resilient as they benefitted from the front-of-mind appeal.
This luxury apparel market resarch report provides an overview of the global luxury fashion retailing which includes key trends, key retail innovations, regional and sector analysis along with major luxury fashion retailers, and the competitive landscape.
Luxury apparel market overview
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What are the major luxury apparel market drivers?
The growing popularity of luxury apparel among Millennial and Gen-Z shoppers is driving the market due to their enthusiasm for aspirational products. New technologies such as augmented and virtual reality, artificial intelligence, and blockchain are providing brands with new opportunities to boost revenue, with the metaverse recently emerging as a significant potential driver of sales. Moreover, the APAC luxury apparel market saw a boom in demand in 2020 and 2021 due to international travel restrictions, as consumers were unable to purchase luxury items abroad. Athleisure and sportswear will remain an important focus for luxury brands in 2022 and beyond, as consumers continue to gravitate towards comfortable apparel in a wider range of social settings, as well as prioritizing their health and fitness.
What is the regional outlook of the luxury apparel market?
Luxury apparel market in the Asia Pacific
The Asia Pacific region will retain the largest share of luxury apparel out to 2025. This dominance is driven by Chinese consumers’ sustained demand for luxury fashion, the rising middle class, and continued urbanization in the country. Other contributing factors are the high growth rates forecast in major Asian markets such as India and the Philippines.
Luxury apparel market in Europe
E-commerce is well established in Europe, and platforms such as Farfetch and Net-a-Porter have made it easier to purchase luxury items, boosting spend via the channel. But physical stores retain their appeal due to the elevated in-store experiences associated with luxury players. Turkey will grow the fastest out to 2025 However, the conflict in Ukraine might dampen the growth in Eastern European countries due to its widespread consequences within the region.
Luxury apparel market in the Americas
In the Americas, luxury apparel market almost bounced back to pre-pandemic levels in 2021 as disposable income in the dominant market of the US was supplemented by federal stimulus cheques and tax returns. The US will remain the largest market for luxury apparel within the Americas through to 2025, while Canada will grow the fastest. In Latin America, Colombia and Peru will be the fastest-growing countries.
Luxury apparel market in the Middle East and Africa
The luxury apparel market in MEA declined in 2020 due to its reliance on tourist expenditure and the impact of store closures. However, this decline is soft in comparison to other regions thanks to highly affluent domestic individuals supporting luxury apparel sales in the region by shifting their spend domestically due to the lack of international travel. The region saw sales almost totally recover in 2021, as travel restrictions eased and events such as the Dubai Expo 2020 encouraged tourism in the UAE.
Luxury apparel market, by key regions
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What are the key categories in the luxury apparel market?
The key categories in the luxury apparel market are clothing, footwear, and accessories. While clothing will remain the biggest category, accessories will gain the most share of the market in the forecast period.
Luxury apparel market, by categories
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What are the key brands in the luxury apparel market?
Some of the key brands in the luxury apparel market are Gucci, Louis Vuitton, Chanel, Hermès, Dior, Burberry, Saint Laurent, Fendi, Moncler, and Prada. Gucci remained the largest luxury brand in 2020.
Luxury apparel market, by key brands
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Market report scope
|Market size (Year – 2020)||$109.2 billion|
|Growth rate||CAGR of >9%|
|Key categories||Clothing, Footwear, and Accessories|
|Key brands||Gucci, Louis Vuitton, Chanel, Hermès, Dior, Burberry, Saint Laurent, Fendi, Moncler, and Prada|
Reasons to Buy
- Gain a comprehensive knowledge of global luxury fashion market and develop a competitive advantage.
- Investigate current trends in the global luxury fashion market to identify the best opportunities to exploit.
- Analysis of key luxury fashion players operating globally.
- Explore novel opportunities that will allow you to align your product offerings and strategies to meet demand by analyzing the key consumer and technology trends influencing the luxury fashion market globally.
- Analyze the recommended actions to align your marketing strategies with the crucial trends influencing consumer behavior.
- Analysis of key international players operating in the global luxury fashion retail market – including store counts and revenues that give you a competitive edge and identify opportunities to improve your market share.
Table of Contents
Key Trends in the Luxury Apparel Market
Global Market Size & Forecasts 2020 2025
Regional Performance & Forecasts 2020 2025
Category Performance & Forecasts 2020 2025
Competitive Landscape: Top 20 Brands
Competitive Landscape: Brand Profiles
Methodology, Definitions & Contacts
Frequently Asked Questions
The luxury apparel market size was valued at $109.2 billion in 2020.
The luxury apparel market is projected to grow at a CAGR of more than 9% during the forecast period.
The key categories in the luxury apparel market are clothing, footwear, and accessories.
Some of the key brands in the luxury apparel market are Gucci, Louis Vuitton, Chanel, Hermès, Dior, Burberry, Saint Laurent, Fendi, Moncler, and Prada.