Market Trends of Germany Luxury Goods Industry
This section covers the major market trends shaping the Germany Luxury Goods Market according to our research experts:
Booming E-commerce Fashion Retail
Germany is one of the largest e-commerce markets in Europe, wherein clothing is a widely preferred category for online purchases. A large number of e-commerce users is due to the high penetration of the internet, increased number of smartphone users, and the availability of wide-ranging fashion e-commerce stores. E-commerce stores feature a large collection of luxury brands across different categories such as apparel, footwear, and beauty among others. For instance, the recent report published by The U.S. ITA (The International Trade Administration) shows that in 2021, 59% of online purchases were made through smartphones and 76% of shoppers purchased clothing from online fashion stores. In addition, digital marketing and the widespread use of social media are promoting the trend of online retailing. Therefore, the shift in consumer buying behavior due to the pandemic has driven the online sale of luxury goods in the recent past.
Rise in Demand for Sustainable Luxury Goods
Consumers are looking for sustainable fashion with growing concerns about the environment and are looking for ways to reduce the impact on the planet. Consumers are interested to purchase luxury products manufactured via eco-friendly and ethical methods and are recycling, and upcycling products. In response to evolving consumer perception, industry manufacturers are directing their investments in the development of sustainable product offerings. For instance, Jérome Studio, the Berlin-based luxury bags brand creates modern designs from sustainable leather derived from by-products of meat production. Further, the brand utilizes a 100% sustainable olive leaf tanning agent in the bag tanning process. The major sustainable fashion brands in Germany are Grüne Erde, Hessnatur, and ArmedAngels. Alongside, sustainable online shops include Avocado Store, Waschbär, Mr. & Mrs. Green, and Manufactum among others.