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Luxury brands are back to pre-pandemic growth levels, with APAC driving sales

By Don-Alvin Adegeest

Jul 5, 2022

Business

Image: State of Art

Luxury apparel will recoup its losses from the pandemic this year, according to a new report by Research and Markets.

The growth in sales is largely driven by heightened demand in APAC and the Americas.

Growth in APAC has been boosted by the rising number of middle class consumers and the shift to domestic purchasing due to international travel restrictions, while sales in the Americas have been bolstered by federal stimulus payments keeping demand for luxury goods high as many consumers invested in these items, such as handbags.

The report states formalwear-centric brands suffered the most in 2020 as the pandemic led to an acceleration in the adoption of athleisure due to consumers preferring to wear comfortable clothing at home.

In contrast, brands that were early adopters of the streetwear and athleisure trends, such as Dior and Louis Vuitton, were more resilient as they benefitted from front-of-mind appeal.

APAC consumers to make up 40 percent of global luxury consumers

International luxury brands must acknowledge the shopping behaviors and preferences of APAC consumers when considering their growth strategies, as the region is expected to make up 40.7 percent of the luxury apparel market by 2025, up from 37.9 percent in 2019. This equates to a forecast value of 71.6bn dollars in 2025.

The report 'Luxury Apparel Market Size, Sector Analysis, Consumer and Retail Trends, Competitive Landscape and Forecast, 2020-2025 can be round at researchandmarkets.com.

Luxury
researchandmarkets.com