Luxury Fashion Market :
The fashion industry has its own aura, and the people who are wearing the fashionable attires are the brand ambassadors of the fashion industry globally.
Today, the fashion industry has developed its own reputation of being unique and one of the most consumer-friendly industries. Fashion has always been the talk of the town, where people always want to wear the latest fashionable clothes, apparel, and footwear, arrive at a party or a function and be the showstopper.
Over the years, fashion has been an industry with constant change that continuously evolves with time according to the customers’ needs. The fashion industry is one of the few industries that evolve continuously with time.
All the credit for taking the fashion industry to the top position in the market gainers goes to the infinite designers who are continuously working hard on making new-age designer clothes and apparel that will offer the requisite comfort and ease to their end customers.
There are various fashion brands that have made it their way to be recognized as one of the top fashion brands globally, some of them are – Nike, Gucci, Luis Vuitton, H&M, Adidas, Rolex, Levi’s, Dolce & Gabbana, etc.
The Gen Z and Millennials population are the primary end-users of luxury fashion and are responsible for the business growth. Their rising focus on style, high willingness to spend more on premium items, and desire to experiment with new products elevates their position as prime end-users in the market. Psycho-graphical as well as demographical parameters of the end-users have evolved dramatically in the past few years. With the rise in internet penetration, high rate of smartphone ownership, and the surge in social media influence over consumers allow them to reach informed decisions while purchasing. This factor encourages the global market growth to a huge extent.
However, the fashion sector has taken a massive blow from the COVID-19 outbreak; given the dramatic turn in consumer sentiment. Consumers now are more focused on purchasing essential items, pushing a lot of fashion brands to even shut down their retail stores. As a result, majority of the luxury fashion brands are shifting their focus on digital solutions. In-store shopping is now no longer a feasible option; therefore, luxury fashion brands are making their online stores more accessible to customers. Chatbots, and various digital solutions are being used by these brands to provide a highly personalized shopping experience, resulting in better customer satisfaction as well as sales. Needless to say, e-commerce/online shopping sites have emerged as major opportunities for the top brands.
Before we move forward, it is essential to understand that luxury fashion doesn’t only mean the clothing industry; it includes apparel, footwear and other fashion wearables that cater to the consumer’s needs according to their ease and comfort.
Most people think that having fashionable luxury wear is way too costly for them to have. But the high price tags that come with these luxury fashionable wears, resemble the high quality and designs it comes with.
If we need to define the term luxury brand, we can define it as a brand which is mostly characterized by a high level of quality, exclusivity and high price tags. And as we discussed in the above paragraph, the high price associated with such brands is due to the quality it offers with comfort and high durability.
Let us understand by an example why people choose such a brand over a local brand. Let us consider a luxury fashion market shoe brand like Adidas, Nike, etc.; when you buy shoes from such brands, it offers the requisite ease and comfort and lasts longer than the usual local brand shoe that will last for less than half the period compared to the branded shoe.
Now, as we have discussed the luxury brands, let us understand some key aspects of the global luxury fashion market.
Global Luxury Fashion Market –
As we have learned some important things about luxury fashion brands, let us have an overview of the global luxury fashion brand. According to the reports published by some of the research leaders, the global luxury fashion market is said to grow at a CAGR of 3.59& over the forecast period of 2019 to 2028 and is expected to earn a whopping revenue of USD 333.8 billion by the end of the year 2028.
This shows how big this market is, and the way it is growing clearly states that the fashion industry is not far behind from leading industrial segments that earn a major share of the global market.
Overview of the global Luxury fashion industry –
Customers from Generation Z and Millennials drive demand for high-end clothing and accessories. Their increasing concern with appearance, propensity to spend lavishly on luxury goods, and enthusiasm for trying out novel products have established them as the market’s most valuable consumers.
Both the demographic and psychological characteristics of consumers have changed significantly in recent years. Consumers are now able to make well-informed decisions thanks to the widespread availability of information online, the wide use of smartphones, and the growing influence of social media. This is a major driving force in the expansion of the international market.
However, given the dramatic shift in consumer sentiment brought on by the COVID-19 outbreak, the luxury fashion industry has taken a massive hit. Many fashion labels have gone out of business as consumers shift their spending priorities to necessities.
Because of this, most high-end fashion houses are looking to implement digital strategies. Since going into a physical store is no longer an option, high-end designers are facilitating online purchasing. These companies are using chatbots and other digital solutions to provide a highly customized purchasing experience, which has been shown to increase both customer satisfaction and revenue. E-commerce and online shopping sites are, needless to say, a huge opportunity for the most successful companies in the world.
What makes the luxury fashion market grow?
The key reasons through which the global luxury fashion market is growing is the increased per capita income along with the social media promotions and celebrity endorsements.
Consumers’ desire to invest in high-end accessories like watches, jewellery, and shoes is on the rise as disposable incomes rise alongside it. The increasing number of HNWIs and well-off consumers is also a major factor in the expansion of the luxury fashion industry.
High-net-worth-income people (HNWIs) are defined as those who have a personal fortune of more than USD 1 million. This number increased by nearly 11% from 2018 to 2019, when the United States was home to 5.9 million HNWIs.
Major countries with a large number of wealthy people include the United States, Japan, Germany, and China. Rapid urbanization in developing nations and an expanding labour force is improving economies everywhere, which in turn is fuelling the expansion of the high-end fashion industry.
Luxury fashion is a highly promotional industry, with celebrity endorsements having a major impact on sales. Particularly in the high-end fashion sector, celebrity endorsements can be priceless for businesses. They carry a lot of clout in the fashion industry, and their input can be crucial to the success or failure of a label.
Endorsing high-end products is a tradition that has long relied on famous people. Additionally, the promotion of products by various celebrities on social media through their blogs and videos has a significant impact on consumers. Launching products and building brands can be facilitated through social media, bringing marketers closer to their target audiences.
So, with all the information we discussed in this article, it is pretty obvious that the global luxury industry is growing and catering to its consumer’s needs with top-quality clothing, apparel, footwear, etc. So, next time you buy any of the luxury brands, be proud as you are contributing to the growth of the luxury fashion industry.
