DEFINITION

•  The luxury apparel market includes ready-to-wear, designer clothing and accessories.
•  The luxury footwear market includes leather and textile sneakers and athletic footwear.

MARKET SIZE/GROWTH

• The global luxury apparel market is expected to growth at a CAGR of 12.3% through 2023
• According to Statista, the global luxury apparel market is estimated to be worth $76.728 billion, as of 2019, growing at a more conservative CAGR estimate of 1.7% through 2023. The US accounts for $18.979 billion.
•  Footwear accounts for almost half of all US luxury fashion dollars spent, and footwear shoppers buy more often and spend more than other luxury shoppers.
• The global luxury footwear market is estimated to be worth $32.288 billion, growing at a CAGR of 2.9%, while the US market accounts for $7.122 billion.
•  In the footwear market, growth is being driven by increases in urbanization, disposable income, and young shoppers, while increasing raw materials costs may prove a hindrance.

GEOGRAPHIC TRENDS

•  North America is expected to lead in market share, followed by Europe and Asia Pacific through 2023.
•  Value-added taxes are hindering growth in developing economies.

SALES CHANNELS

•  Online shopping is increasing in the luxury apparel market, driven in part by social media engagement.
•  Online sales are outpacing in-store sales because they provide convenience and variety.

MARKETING TRENDS

• Advertising through social media and magazines is influencing luxury apparel sales.
•  Digital marketing, such as the use of live streaming and digital runways, are growing the marketing in developing economies.
•  Celebrity brand endorsements are a trending marketing strategy, as they appeal to a wider economic demographic, especially in North America.
• Burberry and Chanel have partnered with digital fashion marketplace Farfetch with Chanel using its technology in its stores rather than online.
•  Gucci, Chanel, Louis Vuitton, Hermes, and Rolex are the top five luxury apparel brands online, in terms of social media engagement and web traffic.

INDUSTRY TRENDS

•  The millennial generation is driving growth in the luxury apparel market because they are influenced by the latest fashion trends, to a higher degree than other generations.
•  Luxury brands are growing because they are responding to cultural trends, such as a street culture.
•  Luxury sneakers have overtaken handbags as a status symbol

BRANDS

•  Louis Vuitton and Gucci are among the most fastest-growing luxury brands, globally, according to a 2018 ranking by Interbrand.
• Other top brands include "Hermes, Tiffany & Co, Dior and Burberry."