According to the study, “Luxury Goods Retailing in Europe, 2017-2022: Market & Category Expenditure and Forecasts, Trends and Competitive Landscape” some of the major companies that are currently working in Europe are LVMH, Richemont, Luxottica, Kering, The Swatch Group, L’OréalLuxe, Rolex SA, Hermès, Michael Kors Holdings Ltd, Prada.
Europe is a developed market for luxury goods. Luxury goods refer to services of better quality which are distinguished from normal goods because of their exclusive craftsmanship, exclusivity and the reputation associated. Luxury goods can reach the customers in three ways, through retail, wholesale or online. Retail channels give the opportunity for having direct contact with the customers.
Germany, the United Kingdom, Italy, France and Spain are the five main markets in terms of good retailing in Europe. Moreover Europe has a combined purchasing power volume of 5,500 billion Euros from 5 countries. Europe’s fashion industry is established by some outside brands from Sweden’s like H&M, Spanish Inditex group and the Dutch company C&A. H&M operates approximately has 2,500 branches, with three fourths in Europe. C&A has a total of more than 1,500stores in 19 European countries.
HSBC divides the luxury sector into two categories: hard (such as watches) and soft (apparel). German luxury market is increasing about five percent a year quicker than the overall global luxury market. In Germany prominent luxury goods demand includes glassware and porcelain, cutlery, cars, ornate lamps, bathroom interiors, bespoke kitchens and kitchen appliances, cameras and camera lenses, and furniture. Some of the top brands on the luxury goods include Porsche automobiles, Länge & Söhne watches, Gaggenau ovens, Decon garden furniture and Meissen china.
The ‘Ross’ has opened multiple provisions from two different concepts. Ross has a strategy of building its presence from 1,651 to 2,000 locations and providing discounts chain to 500 stores. Ross may be TJX’s most significant competitor. The Motley Fool reports that Ross has outgrown TJX consistently over a three-year span.
Clothing remains the key type in most luxury retails across Europe, expected to account for a quarter shares in 2019, primarily based on the demand for new designer’s apparels from young fashion designers and global brands. Jewelry is the other growing luxury category as it has an additional advantage particularly for those affected by the recession, the upper middle class and tourists from upward economies. Techno-luxury in wearable’s and use of new in-store technologies to improve consumer experience, are some of the new demand areas in luxury retailing.
Creativity, differentiation, social responsibility and customer relationship are important areas required by retailers to succeed. The UK is expected to emerge as the largest market for luxury retailing by 2019 followed by Italy and France.
Online sale of goods is further adding new opportunities in the luxury goods trade. Increase in the number of online portals with their rising popularity fueled the market growth. Growth in the number of working professionals and busy lifestyle accompanied with technical awareness are the key factors responsible for increasing demand for luxury goods. In addition, online sales offer direct-to-home delivery service, which is one of the key powerful factors among urban as well as semi-urban consumers.
Luxury Goods Market is expected to reach $429,762 Million by 2022, growing at a CAGR of 3.9% from 2016 to 2022. Increase in spending capacity of clients and increase in living standards are expected to boost the market growth over the forecast period.
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Ankur Gupta, Head Marketing & Communications