Market Trends of Luxury Footwear Industry
Increasing Disposable Income and Consumer Spending Power On Luxury Goods
- The luxury footwear market is predicted to experience growth as consumers continue to invest more in designer and branded goods. Luxury footwear pertains to clothing or accessories often worn by affluent or wealthy individuals.
- SaveMyCent, a US-based online discount code company, estimated that US consumers spent around USD 64.8 billion on luxury goods in 2020, making it the highest-spending country. China and Japan followed in second and third place, with expenditures of USD 51.8 billion and USD 21.2 billion, respectively. Therefore, the expansion of the luxury footwear market is primarily fueled by the rising expenditure of consumers on designer and branded luxury goods.
- The growth of the market is being driven by the increasing disposable income of consumers worldwide. For example, in Germany, high disposable income is among the main reasons for the sale of luxury footwear. The Federal Office of Statistics reported that in 2021, disposable income in private German households increased by 2.1% compared to the previous year. Additionally, consumer spending in private households grew by 3.5%. As a result, the spending power of consumers in the country is on the rise, and wearing luxury footwear has become a trend and status symbol among certain individuals.
- Furthermore, the rising female working population globally is also contributing positively to the market's growth, as women are the primary target consumer for luxury footwear. According to the Federal Office of Statistics, approximately 79% of men and 72% of women were employed in Germany in 2021.
- Moreover, the increasing number of fashion events organized by companies influences consumers to purchase luxury products. For instance, in February 2022, Gucci X Adidas launched their Gazelle sneakers during Milan fashion week. All of the aforementioned factors, coupled with the increasing number of luxury product launches and consumers' spending power on luxury products, are expected to drive the market in the years to come.
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North America is Projected to be the Fastest Growing Market During the Forecast Period
- The North American market for luxury footwear is driven by a significant number of wealthy individuals with high disposable income. The rising number of high-net-worth individuals (HNWIs) has increased the demand for luxury products, including footwear.
- The increasing disposable income of consumers in the region is a significant driver of the market. In the United States, high disposable income is one of the primary reasons for the sale of luxury footwear. According to the Bureau of Economic Analysis (BEA), the disposable personal income in the United States was recorded at USD 16,018.8 billion in 2021.
- Last year, in 2022, the United States saw an unprecedented surge in consumer spending on footwear, expanding by 25% to a record high. Footwear imports also saw a similar surge, according to the US Bureau of Economic Analysis. Additionally, North America remains one of the most important destinations for luxury tourism, making it a unique market for luxury retail in the region.
- The emergence of e-commerce has further contributed to the overall growth of the North American luxury footwear market by providing easy access to product-related information and prices through online sources at any time.
- Furthermore, luxury brands are expanding their presence in the region due to the increasing demand by high-worth individuals. For example, over the past few years, French luxury group Kering SA has been opening and renovating Gucci stores across the United States, including the most recent one in Austin, Texas. Approximately 27% of Gucci's revenue comes from North America.
- In April 2022, Gucci leased a 10,000-square-foot space at the American Dream Mall in New Jersey. These factors are driving the sales of luxury footwear in North America, and the market is expected to expand in the coming years in the region.
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