DALLAS, Jul 27, 2006/ FW/ — In the study ‘The U.S. Luxury Market Continues to Boom’ by Research and Markets, which was released early this month, it was revealed that 25+ leading global luxury marketers in 2005 show average revenue growth of 10.9%. This follows average growth of 14.5% in 2004, according to a new study on the luxury market.
The luxury market in the U.S. was equally strong last year. The study estimated that the total luxury market have reached $1,002.2 billion in 2005, up 11.6% from $898 billion in 2004.
From the same report, Orient Express Hotels, Compagnie Financière Richemont, Coach and Polo Ralph Lauren were listed as the fastest growing luxury companies, all of them reporting growth of at least 18% or higher in 2005.
Two of the five companies mentioned are in the fashion business, Polo Ralph Lauren and Coach. And, with the Spring 2007 New York fashion season just around the corner, one could not help but ask, ‘what segments of the fashion industry are considered luxury?’
Research & Markets listed four luxury categories: (1) Unity tracks – home luxuries; (2) Personal luxuries – fashion, jewelry, wine and spirits, pets; (3) Automobiles; and (4) Luxury Experiences – travel, dining, and entertainment.
With most fashion houses, including Ralph Lauren offering home collections, fashion actually falls into two categories of luxury.
In 2005, the typical luxury consumer spent $52,588 buying luxuries, up 3.8 percent over the average amount spent in 2004 of $50,640. With two categories falling under fashion, it is safe to assume that a good chunk of that amount benefited fashion houses.
Still Polo Ralph Lauren and Coach are exceptions to the rule when it comes to fashion houses. In fact, except for a very few like Kenneth Cole, Calvin Klein, Donna Karan, Carolina Herrera and other established fashion houses, most fashion designers are struggling to keep their business going.
And, that is the reason for being of New York Fashion Week, the biggest showcase of American designers in North America. Big names like Ralph Lauren, Marc Jacobs and Michael Kors show their latest collection alongside emerging designers such the 10 awardees for ‘UPS Delivers Fashion’s Future.’
Under the tents at Bryant Park and several other off-site venues, American designers present their vision of fashion. And, hopefully, more than a few of them will get a piece of the luxury pie.
For more information about the study, please log on: The U.S. Luxury Market Continues to Boom