United Kingdom (UK) Luxury Goods Market Overview, 2029

When compared to emerging luxury markets in Asia, the UK luxury sector is notable for its maturity and competitiveness. While some Asian economies have the potential for growth, they may lack the existing infrastructure and consumer base found in the UK. However, the UK confronts severe competition from long-established luxury fashion competitors, particularly in France and Italy. These countries have a long legacy of luxury craftsmanship and design, which might provide obstacles for UK firms looking to expand worldwide. To compete effectively, UK luxury firms must harness their particular assets and differentiate themselves through innovative marketing techniques, superior quality, and distinct brand identities. The UK luxury industry relies significantly on imports for many raw materials used in manufacture. This reliance exposes the sector to risks related to trade policies and global supply chain disruptions. Fluctuations in raw material availability and costs can have a substantial impact on UK luxury firms' profitability and competitiveness. To reduce these risks, businesses can consider diversifying their sourcing strategy, investing in sustainable supply chains, and forming partnerships with dependable suppliers. Furthermore, government laws and international trade agreements are critical in guaranteeing a consistent supply of raw materials for the luxury industry. Collaboration between industry players and policymakers is vital for addressing raw material availability issues and strengthening the UK luxury market's resilience. According to the research report “UK Luxury Goods Market Overview, 2029," published by Bonafide Research, the UK Luxury Goods market is forecasted to value at more than USD 20 Billion by 2029. Several variables influence the growth of the UK luxury goods sector. Rising disposable income, combined with increased internet penetration and changing consumer lifestyles, is fueling demand for luxury goods. The phenomenon of "retail therapy," particularly prominent among women and older generations, significantly promotes market expansion. However, there are risks, including inflation and unexpected economic downturns. Furthermore, luxury businesses face the difficult issue of retaining brand exclusivity while appealing to a digitally informed audience, balancing accessibility and exclusivity. In the UK, the regulatory framework for luxury products is largely liberal, allowing the industry to flourish. However, certain materials, such as furs or valuable stones, may be subject to certification standards. Despite the overall relaxation of rules, luxury firms must remain careful in complying with any relevant policies to ensure legal and ethical material sourcing and maintain consumer trust. The omnichannel strategy in the UK luxury industry emphasises the value of both physical and online platforms. It emphasises the importance of luxury department shops and brand flagship stores, in addition to sophisticated e-commerce businesses. This strategy seeks to meet a wide range of consumer preferences by providing both convenience and exclusivity. Luxury brands can reach a larger audience and deliver a seamless shopping experience across several channels by keeping a physical store presence while growing into the digital sphere. This strategy recognizes the changing nature of consumer behaviour, in which people may choose to view things in-store before purchasing them online, or vice versa.It emphasises the importance for brands to adapt to shifting market dynamics and embrace technological improvements in order to remain successful in the digital age.

When categorising luxury goods, various product types play a significant role in defining the market. Clothing and apparel represent the broadest category, encompassing a wide range of items worn on the body, such as shirts, pants, dresses, and jackets. Jewellery holds its distinct category, comprising ornamental objects worn for decoration, including earrings, necklaces, bracelets, rings, and brooches, often crafted from precious metals, gemstones, and pearls. Watches, as timepieces worn for both functional and fashion purposes, form another essential product type within the luxury sector. Footwear, covering a variety of shoe types like boots, sandals, and slippers, provides both protection and style for the feet. Bags, including handbags, backpacks, and clutches, serve as containers for carrying items and have been steadily growing in demand within the luxury market. Other types of fashion items, such as hats, scarves, belts, and sunglasses, fall under a broader category, offering additional avenues for luxury consumption. Regarding end users, luxury goods cater predominantly to women, with a wide array of products tailored to their preferences and tastes. However, the market for men's luxury items is also significant, offering tailored suits, accessories, and grooming products to discerning male consumers. The segment catering to children is growing steadily, with luxury brands expanding their offerings to include kid-friendly apparel, accessories, and toys. In terms of distribution channels, retail stores remain the leading avenue for purchasing luxury goods, encompassing both standalone boutiques and multi-brand retail stores offering curated selections of luxury items. Luxury boutiques and e-commerce continue to gain traction. The digital landscape has catalysed the luxury sector into an online boom, with e-commerce platforms serving as critical avenues for businesses to broaden their reach and create individualised client experiences. This boom in online activity has transformed the way luxury firms connect with their customers, providing convenience and accessibility while keeping the exclusivity and distinction associated with luxury products. Furthermore, experiential marketing has evolved as a significant technique, with luxury events and pop-up stores creating immersive brand experiences that instil a sense of exclusivity and involvement in customers. In terms of pricing and segmentation, the luxury market caters to a wide range of price points, with the average selling price (ASP) fluctuating according to product category and brand prestige. The luxury sector is clearly segmented, with several categories such as high-end, premium, and accessible luxury brands catering to diverse consumer segments based on their preferences and purchasing capacity. Established names dominate the sector, exerting enormous influence over global luxury trends and customer behaviour. In addition to these industry titans, British luxury brands have a strong presence in the market, capitalising on their pedigree and reputation to appeal to discerning customers. However, the pandemic's aftermath has caused issues for some players, with companies such as Ted Baker still working to recover from the impact on their operations and revenues. Burberry and Jimmy Choo have recovered significantly, demonstrating the luxury sector's resilience and inventiveness. Furthermore, the market remains open to new entrants, allowing niche firms to carve out their own area by providing unique experiences or implementing sustainable practices into their business strategies. Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029

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Manmayi Raval

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Aspects covered in this report • Luxury Goods market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Product Type • Clothing and Apparel • Jewellery • Watches • Footwear • Bags • Other Types By End User • Women • Men • Children

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By Distribution Channel • Retail Stores • Multi-Brand Retail Stores • Luxury Boutiques • Online Retail The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Luxury Goods industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.