About Luxury Goods
Luxury goods refer to the good having a high-level quality and high price. This product shows the status of living for individuals. Increasing disposal income of the people leads to increasing spending capacity that results in a rise in the standard of living are expected to grow the luxury good market with a healthy CAGR. Online platform for Luxury good boosting the overall growth of the luxury market. Changing the preference of the customer towards luxury goods over cost-effective goods can create a huge opportunity for the market. However, the increasing cost of raw material, as well as less customer from the Middle East and Africa region, is limiting the growth of the market. Moreover, technological advancement, particularly in the field of consumer electronics, augmented reality, and artificial intelligence is supplementing overall growth of the market.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
Unit | Value (USD Million) |
CAGR | 3.8% |
Due to their broad presence in most regional markets and excellent product portfolios, leading corporations hold a significant market share. To strengthen their position in the market, luxury firms are concentrating on implementing a variety of initiatives, such as alliances, new product launches, and acquisitions.The Vendors having a strong hold in the market are LVMH Moët HennessyLouis Vuitton SE, The Estée Lauder Companies Inc, Compagnie Financière Richemont SA. Analyst at AMA Research estimates that United States Vendors will contribute the maximum growth to Global Luxury Goods market throughout the forecasted period. Established and emerging Vendors should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
LVMH Moët HennessyLouis Vuitton SE (France), The Estée Lauder Companies Inc (United States), Compagnie Financière Richemont SA (Switzerland), Luxottica Group SpA (Italy), Kering SA (France), L'Oréal Luxe (France), The Swatch Group Ltd. (Switzerland), Ralph Lauren Corporation (United States), PVH Corp. (United States), Chow Tai Fook Jewellery Group Limited (Hong Kong), Hermès International SCA (France) and Rolex SA (Switzerland) are some of the key players that are part of study coverage. Additionally, the Vendors which are also part of the research coverage are Lao Feng Xiang Co., Ltd (China), Michael Kors Holdings Limited (United Kingdom) and Coach, Inc (United States).
Segmentation Overview
AMA Research has segmented the market of Global Luxury Goods market by Type (Clothing and footwear, Bags and accessories, Cosmetics and fragrances, Jewellery and watches, Multiple luxury goods and Others) and Region.
On the basis of geography, the market of Luxury Goods has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by Sales Channel, the sub-segment i.e. Online will boost the Luxury Goods market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by End User, the sub-segment i.e. Men will boost the Luxury Goods market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Rapid Growth of Online Market that Gives Better Platform for Consumers and Attractive Packaging and Marketing Strategies
Market Growth Drivers:
Increasing Disposal Income of Emerging Economies and Changing Standard of Living and Improvement in Economic Conditions Particularly in Asian Countries
Challenges:
Less Traffic of Luxury Goods in the Middle East and Africa
Restraints:
Increasing Raw Material Cost
Opportunities:
Changing Life Style and Behavior of the End Users
Market Leaders and their expansionary development strategies
In 2020, LVMH has announced the cash acquisition of Tiffany & Co. for USD 131.50 per share. The acquisition is expected to strengthen LVMH's portfolio in the luxury jewelry sector.
In 2022, The Estee Lauder Companies and NYKAA Partner to launch BEAUTY & YOU INDIA. By identifying brand goals, accomplishing scale ambitions, and curating product portfolios that appeal to a new generation of Indian consumers, BEAUTY & YOU seeks to assist founders, innovators, and creators in growing their businesses holistically.
Key Target Audience
Luxury Goods Manufacturing Companies, Luxury Goods Suppliers and Distributors, Private Research Organizations and Others
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.