Market Trends of Italy Luxury Goods Industry
This section covers the major market trends shaping the Italy Luxury Goods Market according to our research experts:
Exponentially Growing market of Luxury Leather Goods
Luxury Leather goods are one of the fastest growing segments in the market. Italy is one of the favorable markets for luxury leather goods, some of the famous brands selling leather goods in Italy are Bottega Veneta, Furla, Miu Miu, Fendi, and others. In luxury leather goods, footwears hold a major chunk of the revenue, also major players' revenues primarily come from the luxury leather product categories such as shoes, bags, gloves, belts, and other fashion accessories.
Apart from shoes, leather bags are widely purchased as luxury goods in the country and Italy is the second largest importer of leather bags in Europe with a total import value of EUR 851 million in 2021, according to the statistics released by Eurostat. In addition, advanced technologies such as computer-aided design (CAD) and rapid prototyping (RP) are enabling the production of customized handbags as consumers are increasingly preferring curated fashion collections.
Evolving Branding and Marketing Strategies
Luxury goods brands operating in Italy leverage both print media and digital media platforms for advertisement and promotion. Further, key players conduct campaigns and exhibition shows to promote their brands and offerings, as these campaigns allow them to reach out to their targeted customer groups. In the age of fast-paced lifestyles, social media, and online channels play an important role in a shopper's purchase journey. This in turn has influenced the companies to evolve their marketing strategies and focus on brand building through social media platforms and e-commerce marketing. For instance, in 2021, luxury brand, Prada Group spent around 14% of its global expenditure on advertisement and promotions. Further, Gucci, one of the leading fashion brands has more than 33 million Instagram followers and around 15 million Facebook followers as of 2022.
Additionally, celebrity endorsements have been a popular marketing strategy for the overall fashion industry and hence for luxury goods manufacturers to enable effective brand communication. Moreover, celebrity endorsements allow a greater degree of attention to increase brand appeal to prospective buyers, thereby driving the sales of new designs and collections. For instance, in October 2021, Louis Vuitton selected Jung Ho-Yeon, South Korean model and actress as its global brand ambassador. Other Italian luxury brands utilizing celebrity endoresemnet include Versace, Gianfranco Ferre, and Dior, among others.
