Italy Luxury Goods Market Size (2024 - 2029)

Italy Luxury Goods Market Analysis

Italy luxury goods market is expected to grow at a CAGR of 4.9% during the forecast period (2022-2027).

The COVID-19 pandemic affected the sales of luxury items in Italy due to the cross-border travel restrictions, as the country is a luxury shopping destination for many American and Asian tourists due to the reduced tax benefits as well as purchasing a brand locally evokes a sense of excitement and authenticity. Apart from the demand side, the pandemic also affected the upstream of the supply chain. For instance, Almax, a Scandicci-based factory engaged in the production of bags for 10 luxury brands including Kering, Gucci, and LVMH labels reported a decline in orders from March to April 2020. 

However, the pandemic offered new opportunities in e-retailing and key luxury brands began to plan and diversify their online distribution strategies to offset the sales downturn resulting due to the closure of brick-and-mortar stores with the commencement of COVID-19. To narrow the buyer-seller divide, the bulk of the players began establishing their digital platforms.

In the medium term, the market is expected to grow with the expansion of e-commerce fashion and the rising number of luxury brand boutiques. For instance, in December 2021, luxury brand Fendi opened its new boutique in Milan, inside Galleria Vittorio Emanuele II, showcasing luxury bags, shoes, and apparel for both men and women.

Italy Luxury Goods Industry Segmentation

Luxury products are often more expensive and are frequently purchased by persons who have a higher disposable income or larger acquired wealth than the average. Italy luxury goods market is segmented based on types and distribution channels. By type, the market is segmented into clothing and apparel, footwear, bags, jewelry, watches, and other accessories. By distribution channel, the market is segmented into single-brand stores, multi-brand stores, online stores, and other distribution channels. The report offers market size and forecasts in value terms (USD million) for all the above segments.