Key Insights
Essential data points from our research
The global luxury fashion market was valued at approximately $107.9 billion in 2023
The luxury fashion segment is projected to grow annually by 3.23% from 2023 to 2028
In 2023, online sales accounted for 26% of total luxury fashion sales
The global personal luxury goods market grew by 8% in 2022 compared to 2021, reaching €353 billion
Millennials and Gen Z accounted for all of the luxury market’s growth in 2022
By 2030, Gen Z and Millennials are expected to represent 70% of the luxury market
China accounted for 25% of the global luxury market in 2022
The luxury resale market was valued at $49.3 billion in 2022
Louis Vuitton remains the most valuable luxury fashion brand in 2023 with a brand value of $124.8 billion
Online sales of personal luxury goods reached €93 billion in 2022, accounting for 30% of all sales
The average luxury consumer age has decreased from 45 to 35 years old in the past decade
78% of Gen Z luxury shoppers prefer brands that align with their personal values
60% of luxury sales are digitally influenced even if the purchase is in-store
Consumer Behavior & Demographics
- Millennials and Gen Z accounted for all of the luxury market’s growth in 2022
- By 2030, Gen Z and Millennials are expected to represent 70% of the luxury market
- The average luxury consumer age has decreased from 45 to 35 years old in the past decade
- 78% of Gen Z luxury shoppers prefer brands that align with their personal values
- 45% of luxury fashion buyers prioritize sustainability in their purchasing decisions
- In 2022, 30% of luxury goods were purchased by tourists
- 31% of luxury fashion sales in 2023 happened through department stores
- 25% of high-income consumers expect luxury brands to offer virtual try-on technology
- Handbags represent 30% of total luxury fashion purchases globally
- 25% of consumers say luxury fashion items are a form of cultural capital
- The average luxury consumer makes 2.8 luxury purchases per year
- TikTok influenced 19% of luxury purchases among Gen Z in 2022
- 37% of luxury consumers expect personalization in digital experiences
- 15% of luxury buyers consider the metaverse when purchasing
- 90% of Gen Z luxury buyers search online before buying
- 33% of Gen Z luxury shoppers prefer direct-to-consumer models
- 41% of luxury shoppers consider loyalty programs important
- 76% of affluent consumers expect luxury brands to demonstrate ethical values
- 58% of luxury fashion executives cited inflation as a top concern in 2023
- The average luxury item return rate online is 12%, lower than fast fashion
- 50% of luxury fashion shoppers consider resale options when buying new
- 85% of luxury shoppers expect seamless omni-channel experiences
- 29% of luxury buyers donate or resell their items within 2 years
- Female consumers make up 69% of luxury fashion buyers worldwide
- Mature luxury customers (age 45+) contribute 40% of sales but shrinking
- 46% of luxury customers follow at least one fashion influencer online
- 74% of luxury consumers say quality is the main reason for brand loyalty
Interpretation
In today’s luxury fashion landscape, where a TikTok scroll can spark a $3,000 purchase and a Gen Z shopper won’t splurge without a cause, heritage houses must trade tradition for transformation if they’re to thrive in a market where youth, values, and virtual flair dictate the price of prestige.
Digital & E-commerce Trends
- In 2023, online sales accounted for 26% of total luxury fashion sales
- Online sales of personal luxury goods reached €93 billion in 2022, accounting for 30% of all sales
- 60% of luxury sales are digitally influenced even if the purchase is in-store
- 82% of luxury shoppers use mobile phones for at least part of the shopping journey
- Burberry’s digital investments boosted their online sales by 50% in 2022
- Over 60% of luxury brands now offer AR features for online shopping
- Online-only luxury fashion brands have grown 16% faster than traditional brands
- 34% of luxury fashion companies offer in-store digital integration like smart mirrors
- The average online luxury purchase value is 33% higher than in-store
- Gucci increased direct-to-consumer channel sales to 62% in 2022
- 21% of luxury brands use blockchain for authentication
- Online marketplaces like Farfetch account for 10% of global luxury sales
- 40% of luxury companies are investing in NFTs and digital assets
- Only 7% of luxury brands offer true customization options online
- 36% of digital luxury sales in 2022 were made via mobile apps
- Personalized recommendations drive a 15% sales uplift for luxury e-retailers
Interpretation
In a world where opulence meets algorithms, luxury fashion has gone digital with high-speed elegance—racking up billion-euro online sales, mobile-first shoppers, and AR-infused mirrors—yet, even amid this high-tech haute couture, fewer than one in ten brands dare offer true online customization, proving that while the runway races ahead, personalization still lags in the pixelated parade.
Market Size & Growth
- The global luxury fashion market was valued at approximately $107.9 billion in 2023
- The luxury fashion segment is projected to grow annually by 3.23% from 2023 to 2028
- The global personal luxury goods market grew by 8% in 2022 compared to 2021, reaching €353 billion
- China accounted for 25% of the global luxury market in 2022
- The luxury resale market was valued at $49.3 billion in 2022
- The luxury sneaker market was valued at $4.8 billion in 2022
- Luxury fashion brands saw combined revenue growth of 21% in 2021
- Dior’s sales grew 22% year-over-year in Q1 2023
- The U.S. represents 32% of the global luxury fashion market
- The Middle East luxury fashion market was valued at $11 billion in 2022
- The luxury lingerie market is projected to reach $5.1 billion by 2026
- Secondhand luxury goods account for 12% of total luxury fashion industry revenue
- The luxury eyewear market was valued at $42.5 billion in 2021
- The luxury accessories market was valued at $75 billion in 2022
- Luxury kidswear grew by 5.6% in 2022, reaching a market value of $7.7 billion
- Prada’s revenue reached €4.2 billion in 2022, a 21% increase YoY
- The average luxury handbag price increased by 7% in 2022
- The online luxury fashion rental market is expected to hit $2.1 billion by 2025
- In 2022, luxury fragrances grew 11% globally
- The luxury watch market reached $46 billion in 2022
- Asia-Pacific luxury fashion revenue grew by 13% in 2022
Interpretation
With billion-dollar growth across categories from kidswear to couture and booming resale and rental markets, the luxury fashion industry is proving that glamour, much like compound interest, always finds a way to grow—especially when China, the U.S., and a global digital army of style-savvy consumers are fueling the fire.
Marketing & Brand Engagement
- Louis Vuitton remains the most valuable luxury fashion brand in 2023 with a brand value of $124.8 billion
- Gucci has over 50 million Instagram followers, making it the most followed luxury brand on the platform
- 40% of luxury fashion brands’ marketing budgets go to digital advertising
- 28% of luxury fashion purchases are influenced by social media
- In-store personalization increases luxury customer satisfaction ratings by 20%
- 83% of luxury companies consider customer experience their top differentiator
Interpretation
In a world where clicks court couture, Louis Vuitton reigns in riches, Gucci rules the feeds, and luxury brands lavish digital dollars to turn tailored experiences into loyalty—and likes—at scale.
Sustainability & Environmental Impact
- Luxury fashion contributes $3.2 billion annually to sustainability programs
- 73% of luxury fashion brands have net-zero emissions targets
- Luxury fashion CO2 emissions are down 8% since 2019 levels
Interpretation
While once notorious for excess, the luxury fashion industry now seems to be tailoring its conscience—investing billions in sustainability, cutting carbon like couture, and proving that style and substance can indeed walk the same runway.
