Diving into the world of luxury

The value of the world market for luxury goods in 2019 was USD 316.16 billion. It is estimated that the market will increase from USD 257.26 billion in 2020 to USD 352.84 billion in 2027.

Luxury goods and services are becoming more popular as the global economy grows and the middle classes in developing economies increase.

Nowadays, Luxury purchases are increasing online, which could have a substantial impact on physical shop sales in the long run.

In 2017, luxury online sales increased by 24%, resulting in a 9% market share. According to some research, by 2025, online sales of personal luxury items would account for 25% of the whole market.?

Online options are most frequently used for accessories (41%), apparel (26%), and beauty items (18%). The Americans took the largest share of online sales at 47%, followed by Asia and the Rest of the World at 28%, and Europe at 25%.

According to some studies, luxury customers are classified into five categories:?

Strivers: This category accounts for 24% of all consumers who regard "luxury as a reflection of achievement." Strivers are 57% millennials, 58% male. Strivers are generally middle to upper middle class right now because they are still in their early professions, but they will eventually work their way up to more elite income levels and they are influenced by social media influencers, family members and TV shows and see luxury items as evidence of their success.

Only the Best: The second-largest category, accounting for 23% of luxury customers. This group defines luxury as "unrivaled quality and service" and is often older than Strivers,

Comfort First: The next largest group considers luxury to be a "meaningful way of life," and it includes the highest percentage of consumers aged 65 and up . Only 9% of Comfort First customers are millennials.

This group are most likely to be influenced by online reviews and brand websites. Luxury is the most desirable way of living for this group.

Aesthetes: they consider luxury as "the peak of aesthetics and design," and they account for 17% of luxury customers. This cohort is 62% female. they are between the ages of 35 and 54, Aesthetes are typically high earners?

This means that they appreciate sleek design and craftsmanship and they are willing to pay a significant price to get it.

When it comes to purchases, aesthetes are most likely to be influenced by brand websites, online reviews.

Trendsetters:

?they?are the smallest segment, they present 16% of luxury customers. Trendsetters are persons who "exploit luxury to stand out. people who are very likely to be swayed by the latest social media crazes and stylish influencers

They are the most multicultural customers, as well as the most likely to be influenced when it comes to purchasing.