Designer and Luxury Footwear Market: Global Share, Size, Growth, Trends & Outlook ( 2022 – 2032 )
The global designer and luxury footwear market size was valued at US$ 31.86 billion in 2019 and is expected to grow at a CAGR of 5.2% from 2020 to 2025 to reach 37.23 billion in 2025.
The luxury and designer goods industry are very fascinating and the products themselves signify the prestige and status it carries. Although a selective consumer base can afford luxury goods, majority of the consumers who aspire of being able to own these luxury and designer products. The designer and luxury footwear industry mainly focuses on two types of consumers: for the practical category consumer the industry provides sensible and affordable clothing, and for the fashion-conscious consumer, industry is continuously attempting to provide luxurious styles of apparel that will keep up with the current trends and are able to command a price premium for it. Footwear is necessity item and during times of economic prosperity, consumers are subject to impulse buying and owing to this they spend money on luxury items that they normally would not buy. Demand for designer and luxury products is also affected by population growth.
Millennials are the forefront users of designer and luxury footwear. Luxury footwear can be defined by its enhanced product qualities in terms of material, durability, uniqueness of the style, and comfort. Consumers are more inclined towards showing off collection of international brands for every product. This factor is driving the product demand.
The designer and luxury footwear industry demand are also driven by increasing disposable income in the developed and developing countries, and changing consumer spending habits accordingly. In addition to the established market players, the increasing popularity of private labels is also anticipated to escalate the designer and luxury footwear market's growth during the forecast time. The Asia-Pacific region is expected to emerge as the fastest-growing market over the forecast period.
Market players are always inventing new ways to attract their consumers. Some offers footwear customization; some are adapting sustainable manufacturing practices considering the popularity of ethically sourced footwear. Curvy sandals made up of recycled synthetics, recycled polyester, recycled lurex, and recycled plastic bottles are some of the new trends in the designer footwear market.
According to a World Footwear sales report, footwear declined by nearly 42% in the U.S at the end of the first quarter of 2020 due to COVID pandemic. The pandemic has disrupted the production of foot wears in almost every country and the sales are decreased through both online and offline channels due to social distancing policies.
Luxury goods manufacturers have also been hit strongly by this COVID-19 pandemic. For a long period, consumers are trapped in restrictions about traveling. Hence, there has been a decrease in tourism across the globe during due to the lockdown, which has caused grater falls in traditional retail sales of luxury products as travellers contribute a larger share of total sales of luxury products.
The designer and luxury footwear market are studied across product type, end user, material, distribution channel, and region. Based on product type, it is segmented into casual shoe, formal shoes, and athletic. Based on material, the market is further segmented into leather and non-leather. Based on end user, the designer and luxury footwear market are bifurcated into kids, men, and women. The market is divided into specialty store, brand outlets, and online sale channel based on distribution channel. On the regional bases the market is analysed across North America, Europe, Asia-Pacific, and LAMEA.
Shifting of conventional to luxury footwear trends among millennial consumers plays a crucial role in expanding customer reach. Moreover, casual luxury footwear offers an attractive look, elegance, unique design, and flexibility to be worn on multiple occasions, including concert, party, and other public gatherings, which is among the main factors driving the segment growth. The online distribution channel is expected to witness the fastest growth over the distribution channel segment's forecast period. The popularity of e-commerce channels for shopping has risen since the last few years; this factor is likely to attract more customers to the designer shoes and drive the growth of the market due to a wider distribution network and greater product availability worldwide. Such factors are attracting the manufacturers to use online channels to sell their products.
In addition, one of the major reasons for the growth of the market is the expansion of luxury products’ outlets in malls and individually in major cities in developing countries such as India, Brazil, Mexico, and China. Top international brands are marketing luxury footwear in these high potential markets and are launching their outlets. Some of the luxury brands that are expanding their reach in developing countries include Prada, Guess Gucci, and Carlton London.
Some of the major key players profiled in the report are Adidas Group, PUMA, Nike. NC, Reebok International, LOUIS VUITTON, Lee Cooper, Guccio Gucci, Miuccia Prada, JIMMY CHOO, Brian Atwood, STUART WEITZMAN holding LLC, and Porter Group.