The global luxury goods industry, which includes cars, jets, drinks, fashion, cosmetics, fragrances, jewelry, and leather goods, has increased in value for many years. Although the technical term 'luxury good' is independent of the goods' quality, they are generally considered to be goods at the highest end of the market in terms of quality and price. Within the industry for luxury goods, the luxury car sector is the most valuable, bringing in 503 billion Euros in 2020 due to widely recognized brands such as Mercedes Benz, BMW, Porsche, Audi, Rolls-Royce and Bentley. Personal luxury goods, the second most lucrative category, increased consistently over the past couple of decades.
The global luxury goods market is expected to increase from US$285.1 billion in 2020 to US$388 billion in 2025. However, revenues in 2020 are expected to dip sharply compared to 2019 due to the COVID-19 pandemic. Asia is expected to witness the highest spending riding on the back of Mainland China's resurgence, followed by Europe, North America, South America, Middle East, and Africa.
Even though luxury online sales are gaining market share worldwide, the importance of the physical store continues to increase. Interestingly, digital-born luxury companies are now opening physical stores to increase traffic to their eCommerce stores, enhance brand legitimacy, provide the touch-and-feel lacking in an online store, and improve local community engagement.
On the other hand, the segment Luxury Leather Goods covers highly exclusive handbags, suitcases and briefcases as well as small leather goods such as wallets that convey the taste and status of their owners. The five most important players in this category are LVMH (with brands such as Louis Vuitton, Rimowa, Moynat and Loewe), Kering (Gucci, Saint Laurent, Bottega-Veneta and others), Coach, Michael Kors, Hermès and Tumi (which has been acquired by Samsonite but is still listed independently here). Leather Goods have proven to be one the fastest-growing segments within the market for personal luxury goods and are projected to grow at rates above market average up to 2025.
Luxury Leather Goods Report 2020The segment Luxury Leather Goods accounted for 15% of the Luxury Goods revenue in 2019. The worldwide revenue of US$48 billion in 2019 is expected to increase to US$64 billion by 2025. © Statista