Market Trends of North America Fashion Accessories Industry
This section covers the major market trends shaping the North America Fashion Accessories Market according to our research experts:
Consumers Inclination Towards Luxury Products
Luxury fashion accessories are mostly considered status symbols for individuals especially among the millennials as they are more likely to be driven by the latest fashion trend than other consumer groups. Thus, driving the luxury product segment. According to the Bureau of Labor Statistics, in 2021, about 71.75 million women were employed in the United States. Thus, with more women entering the workforce, their higher purchasing power has been driving the demand for premium fashion accessories across the region over the past few years and this is expected to continue during the forecast period.
Additionally, more robust local consumption and strong tourist purchases have been contributing to the strong performance of the market. Apart from this, in recent years, luxury brands have been trying to increase client engagement by using digital marketing and web listening data analytics to gain insights into customer behavior. For example, the marketing team at Parfums Christian Dior pointed out that the best way for luxury brands to inspire consumers has always been through storytelling and social media, especially Instagram is a visual storytelling platform that can reach a large consumer base. According to Instagram, in July 2020, the United States ranked first with an Instagram audience of over 130 million users. Thus, Instagram has emerged as one of the leading social media platforms for fashion designers to market their luxury products.
Watches Gaining Popularity
The watchmaking industry is growing rapidly, with more players providing attractive watches with stainless-steel cases, scratch-resistant sapphire glass, quick-change strap systems, and water resistance properties. The preference for luxury watches among consumers across the region has witnessed an upgrowth owing to the growing popularity of Swiss watches. Moreover, the sales of stylish watches are expected to be supported by the number of international tourists visiting the United States. With the changing perceptions of people in the region, where owning a traditional watch is considered redundant, the demand for digital watches with additional functionalities is growing rapidly.
Furthermore, the introduction of mid-range watches, which perform better and offer features similar to that of luxury watches, led to more consumers purchasing them, as they are available at a reasonable price. Therefore, many companies are entering the market to offer budget-friendly watches that can support the styles and aesthetic needs of individuals. For example, in 2020, Apple launched a smartwatch, Apple Watch SE priced at USD 279 with GPS, to fit into the budget friendly category. Other brands like Fossil are spending heavily on in-store promotional activities and working on innovative designs and plans to launch watches at affordable prices.
