Market Size of Italy Luxury Goods Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 4.90 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Italy Luxury Goods Market Analysis
Italy luxury goods market is expected to grow at a CAGR of 4.9% during the forecast period (2022-2027).
The COVID-19 pandemic affected the sales of luxury items in Italy due to the cross-border travel restrictions, as the country is a luxury shopping destination for many American and Asian tourists due to the reduced tax benefits as well as purchasing a brand locally evokes a sense of excitement and authenticity. Apart from the demand side, the pandemic also affected the upstream of the supply chain. For instance, Almax, a Scandicci-based factory engaged in the production of bags for 10 luxury brands including Kering, Gucci, and LVMH labels reported a decline in orders from March to April 2020.
However, the pandemic offered new opportunities in e-retailing and key luxury brands began to plan and diversify their online distribution strategies to offset the sales downturn resulting due to the closure of brick-and-mortar stores with the commencement of COVID-19. To narrow the buyer-seller divide, the bulk of the players began establishing their digital platforms.
In the medium term, the market is expected to grow with the expansion of e-commerce fashion and the rising number of luxury brand boutiques. For instance, in December 2021, luxury brand Fendi opened its new boutique in Milan, inside Galleria Vittorio Emanuele II, showcasing luxury bags, shoes, and apparel for both men and women.
Italy Luxury Goods Industry Segmentation
Luxury products are often more expensive and are frequently purchased by persons who have a higher disposable income or larger acquired wealth than the average. Italy luxury goods market is segmented based on types and distribution channels. By type, the market is segmented into clothing and apparel, footwear, bags, jewelry, watches, and other accessories. By distribution channel, the market is segmented into single-brand stores, multi-brand stores, online stores, and other distribution channels. The report offers market size and forecasts in value terms (USD million) for all the above segments.
| By Type | |
| Clothing and Apparel | |
| Footwear | |
| Bags | |
| Jewelry | |
| Watches | |
| Other Accessories |
| By Distibution Channel | |
| Single-brand Stores | |
| Multi-brand Stores | |
| Online Stores | |
| Other Distribution Channels |
Italy Luxury Goods Market Size Summary
The Italy luxury goods market is poised for growth, driven by the expansion of e-commerce and the increasing number of luxury brand boutiques. The COVID-19 pandemic initially disrupted sales due to travel restrictions, impacting both demand and supply chains. However, it also accelerated the shift towards digital platforms, with brands enhancing their online presence to compensate for the decline in physical store sales. The market is characterized by a strong demand for luxury leather goods, with Italy being a significant player in this segment. Renowned brands like Bottega Veneta, Furla, and Fendi dominate the market, particularly in footwear and leather bags, which are among the most sought-after luxury items.
The competitive landscape of the Italian luxury goods market is marked by the presence of globally recognized home-grown brands such as LVMH, Kering, and Prada. These companies are leveraging both traditional and digital media for marketing, with a notable emphasis on social media and celebrity endorsements to enhance brand visibility and appeal. The market's growth is further supported by strategic investments in retail expansion and digital transformation, allowing brands to reach a broader audience. Ethical manufacturing and sustainable practices are also becoming increasingly important as brands strive to maintain a competitive edge in this dynamic market.
Italy Luxury Goods Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porter's Five Force Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Clothing and Apparel
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2.1.2 Footwear
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2.1.3 Bags
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2.1.4 Jewelry
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2.1.5 Watches
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2.1.6 Other Accessories
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2.2 By Distibution Channel
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2.2.1 Single-brand Stores
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2.2.2 Multi-brand Stores
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2.2.3 Online Stores
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2.2.4 Other Distribution Channels
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Italy Luxury Goods Market Size FAQs
What is the current Italy Luxury Goods Market size?
The Italy Luxury Goods Market is projected to register a CAGR of 4.90% during the forecast period (2024-2029)
Who are the key players in Italy Luxury Goods Market?
Lvmh Moet Hennessy Louis Vuitton Inc., KERING, MAX MARA SRL, The Estee Lauder Companies Inc. and PRADA S.P.A. are the major companies operating in the Italy Luxury Goods Market.
