The global luxury apparel products market was valued at USD 180.2 billion in 2022 and is expected to expand at a CAGR of 9.4% from 2023 to 2030. The market is driven by a rise in disposable income, increasing consumer spending on luxury apparel, and changing consumer preferences. The demand for luxury apparel has increased due to the emergence of new fashion trends, increasing consumer preference for premium products, and the rise in e-commerce sales. Furthermore, the increasing support of celebrities and influencers towards luxury apparel has further propelled the market growth.

The increasing demand for high-end apparel from the younger population is another factor driving the market. Millennials and Gen Z are the key target consumers for luxury apparel. According to a survey conducted by Deloitte, in December 2021, around 42% of millennials and Gen Z prefer to purchase luxury apparel over non-luxury apparel. The rising demand for luxury apparel from young consumers has led to an increase in the number of luxury apparel companies, leading to high competition in the market.

Moreover, the increasing use of eco-friendly fabrics and materials has also contributed to the growth of the market. For instance, in May 2021, the fashion house Gucci announced the launch of the ‘Gucci Off The Grid’ collection. The collection features eco-friendly materials such as recycled polyester, organic cotton, and ECONYL, a regenerated nylon fabric made from fishing nets and other nylon waste. Furthermore, the increasing awareness among consumers regarding the ethical production of these products is expected to support the growth of the market in the coming years.

The increasing use of digital marketing to promote luxury apparel is also driving the market. Market players are utilizing digital marketing tools to reach their target customers and promote their products. For instance, in November 2021, Prada launched a digital campaign to promote their spring/summer 2021 collection. The campaign featured digital influencers such as Kaia Gerber, Liu Wen, and Mica Arganaraz and was designed to reach customers through a wide range of digital media, including Instagram, YouTube, and TikTok.

Furthermore, the rising trend of customization is also driving the market. Consumers prefer to purchase customized clothing and accessories, as it allows them to express their individual style and personality. For instance, in April 2021, H&M launched its customization service, ‘Your Own’, which allows customers to customize their clothing items with unique patterns and colors. The growing trend of customization is expected to drive the demand for luxury apparel in the coming years.

The luxury apparel market is expected to register a CAGR of 5.5% through 2022. The growing disposable income of consumers and changing lifestyles, coupled with increasing acceptance of luxury fashion products are some of the major factors driving the growth of the global luxury apparel market. According to a report by the Boston Consulting Group, in 2019, the global personal luxury goods market was estimated to be worth US$292 billion, with the apparel segment accounting for around 36.2% of the total market.

The menswear segment accounted for a market share of around 48.6% in 2022. The rising focus on modern lifestyle and changing fashion trends are some of the key factors driving the menswear segment. Increasing demand from young consumers, who are willing to spend more on fashion products and apparel, has been driving the growth of the menswear segment. Furthermore, the growing number of male fashion influencers and bloggers has been creating awareness among men regarding luxury apparel products.

The specialty stores segment is estimated to hold the major share of 47.2% in 2022. Consumers prefer specialty stores over other retail formats in the luxury apparel market as they provide superior service, convenience, and exclusive product offerings. The specialty stores are well-organized and offer a wide range of luxury apparel products from international brands. Moreover, most of these stores provide personalized services to customers, such as tailoring and style advice. As a result, luxury apparel customers prefer to visit specialty stores to purchase their desired items.

The e-commerce segment is projected to expand at the highest CAGR of 16.4% over the forecast period. The growth of this segment is mainly attributed to the convenience that it provides to luxury apparel customers. Online shopping has become more popular in recent years due to easy accessibility and the availability of a wide variety of products. In addition, customers can compare prices and easily find the best deals online. Moreover, online stores provide customers with the option to customize their products, which is expected to further drive the demand for luxury apparel products.

The apparel segment accounted for the largest revenue share of 72.5% in the year 2022. The rising trends of wearing luxury apparel among millennials and the growing influence of social media platforms, such as Instagram and Twitter, are the major factors driving the segment. Millennials are increasingly spending on luxury apparel items such as designer dresses, shoes, and bags, which is further propelling the segment growth. Additionally, leading luxury brands such as Gucci, Versace, and Louis Vuitton are offering customization options for their products to attract customers and boost their sales.

The accessories segment is estimated to expand at the highest CAGR of 8.7% over the forecast period. Increasing demands for luxury accessories such as jewelry, watches, and sunglasses among millennials is driving the segment growth. Furthermore, the growing trend of online shopping and e-commerce portals, such as Myntra and Flipkart, are offering a wide range of luxury accessories at competitive prices, which is further fuelling the segment growth. Additionally, leading luxury brands such as Cartier, Tiffany & Co., and Bulgari are offering customization options for their accessories to attract customers and boost their sales.

Europe accounted for the largest revenue share in 2021 and is expected to continue its dominance through the forecast period. This is attributed to the presence of a large number of luxury apparel brands in the region, such as Gucci, Prada, and Burberry. Moreover, the increasing disposable income of consumers in the region is expected to further drive the growth of the market.

The Asia Pacific region is expected to witness the fastest growth in the coming years. This is due to the rising spending power of consumers in the region, which has led to an increase in the demand for luxury apparel. Furthermore, the presence of a large population base in the region, especially in countries such as China, is expected to further drive the growth of the market. For instance, in January 2021, the Chinese luxury apparel brand, Bosideng, opened its first store in London.

In this part of the luxury apparel products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions

The main source of revenue for a luxury apparel products business comes from sales of the products. Here you will find a list with a description of the different sources of revenue such as direct sales, wholesale, ecommerce, and other distribution channels.

Projecting Expenses

In this section, all the regular expenses related to keeping the luxury apparel products business running will be described. The list of operating expenses includes costs associated with manufacturing, marketing, advertising, shipping, inventory, rent and utilities, payroll, and legal and professional fees.

Some of the key companies operating in the luxury apparel market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:

– In June 2022, Louis Vuitton launched the new Cruise 2022 collection, featuring a range of ready-to-wear apparel and accessories.

– In August 2022, Gucci launched its new collection of luxury apparel, featuring a range of clothing and accessories.

– In October 2022, Prada launched its new luxury apparel collection, featuring a range of clothing, shoes and accessories.

Some of the prominent players in the luxury apparel market include:

– Louis Vuitton
– Gucci
– Prada
– Burberry
– Versace
– Michael Kors
– Dolce & Gabbana
– Givenchy
– Fendi
– Hermes

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global luxury apparel products market based on product, distribution channel, gender, and region:

1. Product Outlook (Revenue, USD Million, 2017 – 2030)

– Suits
– Shirts
– Shoes
– Accessories
– Outerwear
– Others

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Department Stores
– Online
– Specialty Stores
– Others

3. Gender Outlook (Revenue, USD Million, 2017 – 2030)

– Men
– Women
– Unisex

4. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What are the Factors Driving the Global Luxury Apparel Products Market?
[A]: The growing demand for luxury fashion apparel, the rise in disposable income, and the growing demand for fashion apparel among the younger population are some of the key factors driving the global luxury apparel products market. Additionally, the emergence of e-commerce and the proliferation of social media platforms are also driving the market.

[Q]: Who are the Key Players in the Global Luxury Apparel Products Market?
[A]: Some of the key players in the global luxury apparel products market include Prada S.p.A, Kering SA, LVMH Group, Hermès International, Burberry Group, Richemont, Ralph Lauren Corporation, Giorgio Armani S.p.A, Nike, Inc., and Adidas AG.

[Q]: What are the Major Segments of the Global Luxury Apparel Products Market?
[A]: The global luxury apparel products market is segmented by product type, distribution channel, and region. Product type segment includes jackets, jeans, T-shirts, and others. Distribution channels segment includes online and offline. Region segment includes North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

[Q]: What is the Potential of Sustainability in the Global Luxury Apparel Products Market?
[A]: Sustainability is becoming increasingly important in the luxury apparel market. Companies are focusing on sustainable production processes, using recycled fabrics and organic materials, and reducing their carbon footprint. Additionally, they are also using sustainable packaging and incorporating technologies such as digital printing to reduce waste. This is expected to create significant opportunities for growth in the global luxury apparel products market.

[Q]: What are the Major Opportunities for Growth in the Global Luxury Apparel Products Market?
[A]: The growing demand for luxury fashion apparel and the increasing influence of social media platforms are expected to provide major opportunities for growth in the global luxury apparel products market. Additionally, the emergence of e-commerce is also expected to create opportunities for market players to expand their customer base.