Increase in disposable incomes of the world’s elite leads to the success of the Apparel, accessories and luxury industry!



The apparel, accessories and luxury goods industry consists of the clothing, accessories, luxury products, food, cars, yachts, wines and spirits, etc. Luxury goods are basically those goods that are characterized by their premium quality, exclusivity and reputation. There has been a general increase in the consumption of these high end goods because of an increase in disposable incomes of a certain class of people globally. The economic growth, urbanization and rising wealth/income levels as well as the psychological needs of people are fuelling the consumption of apparel, accessories and luxury goods globally. Additionally, the growth of online companies that sell luxury goods has also increased the spending on these types of products. In 2013, the apparel, accessories and luxury goods industry was worth $217 billion as compared to $212 billion in 2012. The industry grew sharply by 13% from 2009 to 2010 and ever since then has been on a constant increase. The industry has both wholesale and retail components of selling and while wholesale forms a higher proportion of the sales, retail sales have increased from 2012 to 2013 slightly.
The major players in this industry include Wal-Mart Stock Hermes International, Richemont, Louis Vuitton, Gucci, Prada, Chanel, Rolex, Burberry, Dolce & Gabbana, Versace and the likes. In terms of fashion luxury brands, Louis Vuitton had been in the lead globally other names such as Gucci and Prada have been emerging as potential market leaders. It is commonly believed that Gucci and Prada experienced this high growth in brand value due to the Asian customers at home and abroad. Gucci has been operating merely in North America and Western Europe, where as Prada has been opening stores world-wide. Louis Vuitton has dropped its brand value by 12%. For further details regarding the stock price movements and financial information analysis of the apparel, accessories and luxury goods industry visit Bidnessetc.com.
An emerging trend is for luxury and apparel brands to sell online is emerging and brands are leveraging internet for both sales and communication. There were more than 5000 country based stores online in the US alone. According to research, the online luxury market is enormously skewed to the US which dominates 60% of all online luxury brands. Accessories on the other hand have the highest online penetration. Compared to the world luxury market, USA is accelerating in real terms accounting for almost $69 billion of total luxury, apparel and accessories across the globe in 2013. This figure increased by 14% since 2011. In terms of gender, men make up 40% of the luxury goods customer base and the remaining 60% consists of women. In 2012, the French gained the largest share of the luxury industry followed by the Italians, Americans and others.
In terms of maturity, while China is becoming a mature market, new emerging countries are retracing China’s economic growth path to success. Currently the confidence in the US markets is high. For more details regarding the industry breakup and ratio analysis please visit Bidnessetc.com.

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