What Constitutes the Global Personal Luxury Goods Industry?
The personal luxury goods segment stands as the luxury market’s second largest category, trailing only behind luxury automobiles.
This segment, which includes high-end apparel, accessories, watches, jewelry, and eyewear, has seen consistent revenue growth over the last ten years, with the exception of a downturn due to the coronavirus (COVID-19) outbreak.
The United States is anticipated to emerge as the forefront of the personal luxury goods market, boasting projected revenues of approximately 83.3 billion U.S. dollars, with China following closely behind.
By the year 2028, the United States is expected to maintain its leading position as the primary revenue generator in the global personal luxury goods market.
In parallel, American consumers are identified as the most significant purchasers of luxury items globally.
Leadership and Product Segments in the Personal Luxury Goods Sector
In the realm of personal luxury goods, the fashion and apparel categories stand out as the predominant revenue contributors.
Forecasts indicate that by 2028, the luxury fashion market, which encapsulates both clothing and shoes, is expected to generate in excess of 130 billion U.S. dollars. Nevertheless, for the titans of the personal luxury goods sphere, a variety of luxurious items beyond just clothing significantly bolster sales figures.
For example, LVMH sees its highest revenue streams from fashion and leather products, whereas for Richemont, over 40 percent of its yearly earnings are attributed to jewelry sales. Similarly, Kering Group, which boasts prestigious brands such as Gucci, Bottega Veneta, Balenciaga, and Saint Laurent under its umbrella, reported that leather goods accounted for half of its most recent revenue figures.
Evolving Luxurious Sales Avenues: The Rise of Online Platforms
Traditionally, the luxury retail landscape has been distinguished from the mainstream market through personalized services, dedicated client engagement, and superior in-store experiences.
While physical storefronts continue to capture the largest market share, the luxury sector is witnessing a notable shift towards digital platforms and innovative sales models.
By 2022, the online market for personal luxury goods reached a valuation of 75 billion euros, a clear sign of the digital domain’s growing significance.
This shift is largely driven by established luxury brands expanding into online sales. For example,
The Kering Group saw its online sales jump from seven percent to 15 percent over the last three years.
Similarly, Richemont Group’s online distribution channels, including Watchfinder and the esteemed online luxury goods marketplace Yoox Net-a-Porter, amassed nearly 2.8 billion euros in revenue in 2022.
The push towards adopting more eco-friendly practices in production and consumption has also seen the rise of the luxury resale market as a lucrative and environmentally responsible avenue.
Despite the crucial importance of preserving ownership and authenticity for luxury consumers, the secondhand luxury segment was valued at 33 billion euros globally in 2021.
