The global luxury goods market is growing steadily at 3.40 per cent. Reason: existence of potentially large players who are focusing hard on making affordable luxury items for luring consumers from emerging economies. Competition between the handful of established vendors is getting intensified as they are vying to gain the attention of millennials and post millennials.

Luxury goods comprise jewelry and watches, fragrance and perfumes, cosmetics and personal care products, apparels, and wine/champagne. Luxury goods are mainly high-value products in terms of quality and price. Such goods have become a status symbol for many individuals. Rising living standards globally and the growing spending capacity of consumers are the main factors driving the growth in the global luxury goods market. Many players in the global luxury goods market are focusing on introducing various tailor-made products matching prevailing trends to meet consumer demand. Growing demand for a variety of luxury goods, and increasingly creative and advanced marketing activities through online platforms, is also propelling growth in the global luxury goods market.

Europe is expected to account for the leading share in the global luxury goods market in coming years. This is attributed to flourishing fashion and luxury brands and the rising number of high-end department stores in the region.