France Luxury Goods Market - Growth, Trends, Covid-19 Impact, and Forecasts (2022 - 2027)?

France Luxury Goods Market - Growth, Trends, Covid-19 Impact, and Forecasts (2022 - 2027)​

The France luxury goods market is projected to grow at a CAGR of 6.47 % during the forecast period (2022 - 2027).

The market is characterized by the presence of country-origin luxury brands and their widespread presence across both online and offline channels. Further, France is among the most visited European countries and the favorite destination of Asian tourists, especially for fashion and leisure travel. For instance, Valeria Doustaly and Dione Occhipinti, Paris-based entrepreneurs are organizing fashion-focused Paris trips for international tourists since 2014 as Paris is popular as the world's fashion capital across different continents.

Further, the market is experiencing high demand for sustainable luxury goods as millennial consumers of the country are highly aware of the environmental concerns associated with the apparel manufacturing industry, making sustainability, ethical sourcing, and their related labeling schemes more prominent. As a result key brands are launching new products designed with environment-friendly materials through ethical production methods. For instance, Saint Laurent, recently announced that it will stop using fur with effect from the Fall 2022 collections. Kering, the parent company of the brand, which also owns Botta Veneto, Gucci, Balenciaga, and Alexander McQueen will also be completely fur-free in all its fashion houses.

As more and more customers move online, businesses are following the trend, which led to the gradual development of the digital ecosystem. It has provided easy access to product-related information and prices to the customers. Therefore, the rising number of fashion e-commerce platforms is further boosting the demand for luxury goods in France.

Key Market TrendsHigh Affinity for Luxury Perfumes

The French consumer spends more on luxury perfumes thus, the per capita consumption of luxury perfumes is high in the region among the product types such as cologne, Eau de Toilette, Eau de Cologne, and Eau Fraiche, among others. The fact that the country has a developed economy, which has resulted in the up-gradation of the lifestyles of the consumers, has led the giant manufacturers to expand their perfume products in the region. For instance, in 2021, the Mimosa Perfumes company declared that they have launched vintage perfume made with 100% vegan Eau de perfume, a natural ingredients-infused product in the French market. The demand for perfume is rising with the increasing trend of personal grooming among men and the high usage of Eau de Toilette, cologne, perfume, and attar along with exotic fragrances are majorly boosting the growth of the market. Vegan-friendly perfumes are gaining immense popularity in the French market owing to the high demand for cruelty-free cosmetics, which helps luxury brands to fabricate their cruelty-free ethos.

Established Brands and Widespread Presence Across Online and Offline Channels

The French luxury goods market is growing rapidly owing to the increased accessibility of luxury products to customers, the transformation of the conventional luxury consumption model into a new experienced luxury sensibility, and a shift in how consumers perceive luxury. While the pop-up style is still in use and gives luxury brands a lot of flexibility in how they approach new markets or engage consumers with creative concepts, luxury fashion companies are strengthening their presence in the French market by inaugurating new flagship stores for their most recognized brands. For instance, in March 2022, Burberry opens a new flagship store in Rue Saint-Honoré, Paris, France. The new store has three floors showcasing menswear and womenswear.

Over the medium term, with the outbreak of covid-19, the government has imposed certain regulations to stay at home and work which has increased the online shopping tendency among the new generations for the reason to upload pictures on social media platforms for different online fashion-related events and celebrations. Further, as more and more customers move online, businesses are following suit, which led to the gradual development of the digital ecosystem. This has further contributed to the overall growth of the market.

Competitive Landscape

The France luxury goods market is highly competitive with the presence of various domestic and international players competing for a major share in the market. To strengthen their market position, key market players are focusing on various strategies such as partnering with regional brands and launching innovative luxury products. For instance, In October 2021, the Lanvin brand declared the launch of a capsule collection in the menswear product category in France which includes, trendy clothing apparel such as baggy pants and flannel shirts, and denim jacket. Major players dominating the market include Chanel, LVMH, L'Oreal Luxe, Compagnie Financière Richemont S.A., and Kering, among others. Luxury brands compete on different factors, which include, packaging, eye-catching offers, premium quality, comfort, and a wide variety of product offerings to gain a competitive edge in the market.

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• The market estimate (ME) sheet in Excel format
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