A study released by communication technology company Communications Specialist shows that the rising number of high net-worth individuals and mass affluence globally is the key driver behind the rapid expansion of the luxury retail market.

Communications Specialist commissioned independent research agency Pure Profile to interview 50 senior executives at luxury retailers with a total turnover of $3.1bn based in Asia, Africa, Europe, the US and South America.

The results show a forecast annual growth of more than 5.6% for the luxury retail sector over the next three years.

In addition, senior executives are confident about rising revenues and margins at their firms and for the market as a whole.

Around 80% of executives said growing wealth globally is boosting sales. More than half (53%) pointed to improved performance by luxury retailers and pent-up demand following the Covid-19 pandemic.

Of those interviewed, 31% of executives said increased sales are down to more personalised offers from luxury retailers for clients.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The combination of factors is undoubtedly translating into higher sales. Almost all of those questioned (96%) believe revenues at their firm will be higher this year than in 2022 and 22% expect revenues to be 50% higher in 2023.

Rising revenues are not down to price-cutting, the research found.  Around 94% said margins this year will be higher than last year while 90% said margins will be higher than pre-Covid levels. Up to 40% said margins will be significantly higher than pre-Covid levels.

The results concur with GlobalData’s thematic retail industry analysis, which shows that many shoppers are seeking products that offer better value for money, are more versatile and last longer, resulting in more trading with premium and luxury players.

Retail Insight Network recently reported that the luxury retail and apparel sector is using technology such as blockchain to provide an enhanced offering to consumers.