- The global luxury fashion market is expected to grow at a CAGR of 3.6% from 2023 to 2028.
- The increasing adoption of e-commerce platforms, the growing trend of gifting luxury fashion items, and the rise in demand for sustainable fashion are other factors favouring the growth of the luxury fashion market.
- This has led to increased online money transfers as people take advantage of digital payments.
Luxury fashion is on the rise and set to grow even further over the next five years. According to a new report by the Digital Journal, the global luxury fashion market is expected to increase at a CAGR of 3.6% from 2023 to 2028, reaching a market size of $294.7bn.
The growth in the luxury fashion market is driven by the increasing disposable income of the population, growing fashion consciousness, changing lifestyles and growing demand for luxury fashion brands.
Luxury fashion epitomises non-essential, high-end, exclusive and highly priced products.
The rising demand for luxury fashion among consumers has enabled international players to enter the market.
This has impacted the exchange rate, as more money is being converted from one currency to another. Moreover, the increasing globalisation of the fashion industry has led to increased imports and exports of luxury fashion products.
For that reason, online money transfers are increasing as people take advantage of digital payments. Luxury fashion encompasses unique and artistic items of high desirability in a specific culture or society, often functioning as a status symbol.
These items offer a truly personalised experience, from luxurious packaging to high-touch service, and customers are presented with an affluent in-store atmosphere.
There has been a shift in customer preference to more stylish, high-quality products and this has had a positive effect on the global market.
The report indicates that the expanding utilisation of social media and the escalating promotions and celebrity endorsements add to the market development.
Major players implementing sustainable production procedures, such as sourcing ethically, recycled or eco-friendly materials due to heightened environmental worries, are helping to spur the global market.
The ever-increasing integration of augmented reality into the fashion industry allows consumers to have a virtual in-store shopping experience. This is done from home, making it more accessible and convenient, and this is further stimulating the market’s growth.
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