Dhaka, Sunday, 19 May 2019

Rise in disposal income leads to growth of luxury apparel market

Rise in disposal income leads to growth of luxury apparel market

Apparel Desk: A recent Transparency Market Research (TMR) report predicts vendors of the global luxury apparels market may witness remarkable growth opportunities due to the presence of a number of companies in the market. The competitive market landscape is fragmented as various companies are offering numerous growth opportunities either in product or research and development strategies.

As per the TMR report, global luxury apparel market is estimated to be worth US$60.7 billion by the end of 2024. The market is expected to expand at a CAGR of 13.2 per cent within the forecast period 2016 to 2024. The market is dominated by cotton which accounts for 35.87 per cent of the total share. In terms of geographical segmentation, Asia Pacific contributes more number of shares with a CAGR of 14.75 per cent by the end of the forecast period.

Rising incomes increases purchasing power

The global market for luxury apparels is rising due to an increase in disposable incomes of people further leading to a rise in the purchasing capacity of consumers. Moreover, the trend of luxury apparels amongst the young generation is propelling the market for luxury apparels.

Another factor boosting demand is the emergence of online shopping services. It is easier to shop online instead of going tostores and trying out various outfits. The facility of easy returns has further boosted the online market, attracting more consumers. Digital marketing too has no left stone unturned in advertising the benefits of online shopping and increasing a classy taste of fashion amongst people.

Asia Pacific to witness rapid growth

The Asia Pacific market is presumed to witness rapid growth due to rise in disposable incomes, along with the change in lifestyles of people and their improvised standard of living especially in its emerging nations of China, and India in the coming years. Europe, on the other hand, has already attained maturity because of the presence of many luxury brands that have been doing business for the past few decades.

Investment needs hamper growth

However, establishing and running a luxury apparels business requires huge investments. This hinders the overall market growth. Apart from this, major vendors are investing more in innovation and research to outstand other players. Thus, new entrants are finding it difficult to enter the market to compete with such high level set players. This is also projected to hamper the growth of the luxury apparels market in the years to come.