Spain Luxury Goods Market Size

Spain Luxury Brands Market Analysis

The Spain luxury goods market is forecasted to witness a CAGR of 5.1% during the forecast period (2022 - 2027).

The Spain luxury goods industry has been heavily impacted by the Covid-19 crisis. Tourist arrivals have decreased as a result of the lockdown and restrictions enforced, compelling them to stay at home. Online purchasing for luxury items, on the other hand, has flourished and therefore the pandemic has highlighted the need for digitization as a key strategy for luxury brands in the forecasted years. Further, the market performance during the second quarter of 2020 demonstrates that luxury brands are ready to adopt more online channel marketing which in turn is anticipated to increase online sales of luxury goods in the future. For instance, in June 2022, Amazon launched its luxury fashion platforms in key European countries including Spain. In Spain, luxury stores have been launched to showcase ready-to-wear collections from established and emerging brands including Christopher Kane, Dundas, Elie Saab, Mira Mikati, Rianna + Nina, Boglioli, Jonathan Cohen, and Altuzarra. The luxury brands are anticipated to distribute through their own or Amazon's warehouse and will offer free returns and delivery services.

Over the medium term, millennials are considered to be the target consumers for luxury goods, as the generation is more open to spending on life's luxuries supported by financial independence and significant disposable income. Further, the increased exposure to the global and regional fashion trends due to the rising use of social media platforms is the key factor shaping consumer buying behavior. In response to this trend, luxury brands are collaborating with social media influencers to create purposeful promotional campaigns, which in turn encourage affluent consumers to purchase luxury fashion products.

Additionally, modern consumers are concerned about an ever-worsening climate crisis and desire to make a difference by adopting sustainable fashion trends. Therefore, luxury businesses' sustainability practices have a significant impact on the purchasing decisions of millennial consumers, which in turn promotes R&D and innovation to develop a range of luxury goods with the use of eco-friendly materials and ethical manufacturing methods. For instance, Spanish brands specializing in sustainable luxury fashion goods include - AVASAN, Flamingos' Life, Castañer, TwoThirds, and Balenciaga, among others.