Market Trends of Spain Luxury Goods Industry
This section covers the major market trends shaping the Spain Luxury Goods Market according to our research experts:
Rise in Fashion and Cultural Tourism
The expansion of Spain's fashion and tourist industries is one of the causes propelling the country's market for luxury goods. Spain is the home to fashion houses such as Loewe and conglomerates Puig as well as the creation of high-end luxury products which also contributes to the sales of luxury goods and services in the country. In Spain, international luxury brands are easily available in their self-operated brick-and-mortar stores, third-party multibrand retail stores, or direct-to-consumer online fashion stores. There is a sizable portion of tourists who insulate themselves in luxury goods purchasing. Tourists for leisure and sports primarily come from Asia, the Middle East, and Latin America to shop in Spain. Many international consumers visit Spain and acquire high-quality Spanish-made products. For instance, the statistics revealed by the Spanish government in March 2022, state that the average spending of tourists was around €1,257 per person, which denotes an annual growth of 13.6% from the amount of €1,068 that tourists spent on average in March 2019. Thereby, with the aid of tourism and improved brand positioning, the luxury goods market in Spain is anticipated to grow during the forecast period.
Expansion of E-commerce Fashion
Luxury goods brands are increasingly betting on offering a complete digital experience to users. The expansion of online shopping presents a great opportunity to draw in and keep a consumer base that is becoming more digitally savvy. According to the Instituto Nacional de Estadística, in 2021, nearly 5.5 million people aged 35 to 44 purchased products or services online in Spain. In contrast, younger and older internet users were those who registered the lowest number of e-commerce users. Moreover, as per PPro, a global provider of local payments infrastructure, e-commerce accounted for 4.7% of Spain's gross domestic product in January 2021. Companies are also expanding their brands through e-commerce channels to promote their luxury products in the country. For instance, In March 2022, Spanish jewelry brand, Tous launched its new app globally to offer a customized experience to its customers. The mobile application is available on Google Play and the App Store. Additionally, the Spanish sourcing, distribution, and logistics systems are quickly adapting to the country's expanding e-commerce market. In terms of online channels, luxury goods are also sold in Spain via in-house sites of independent premium brands along with third-party sites like amazon, elcorteingles, aliexpress, and more.
