Market Trends of North America Luxury Goods Industry
This section covers the major market trends shaping the North America Luxury Goods Market according to our research experts:
Rising Number of High-Net-Worth Individuals in the Region
The massive, wealthy population in North America with high incomes, eager to spend on high-end personal luxury accessories marketed by luxury brands, is attributed to driving demand for luxury products. A growing number of wealthy people demonstrating an excellent appreciation for having several luxury products are providing a massive boost to the North American luxury goods market. Coldwell Banker Global Luxury and Coldwell Banker Real Estate LLC's analysis indicates that the number of Americans with a net worth of at least USD 5 million increased by nearly 25% in 2021. In addition, the market for luxury goods in North America is anticipated to expand during the forecast period due to an expanding young working-class population, opportunities for working from home, rising consumer awareness of the advantages of high-quality goods, and a rise in consumer purchasing power.
Furthermore, luxury brands are expanding their presence in the region owing to the rising demand by high-worth individuals. For instance, over the past few years, French luxury group Kering SA has been opening and renovating Gucci stores across the country, including the most recent one in Austin, Texas. About 27% of Gucci's revenue comes from North America. In April 2022, Gucci leased a 10,000-square-foot space at the American Dream mall in New Jersey.
Multi- Brand Store Holds A Prominent Share
Multi-brand stores are the main distribution channels for luxury products because they offer a large amount of retail space that can accommodate a wide range of preferences. Multi-brand stores have an abundance of choices for various luxury goods categories. Consumers buying luxury goods from multi-brand can choose from a range of novel packaging options. Moreover, the manufacturers have made significant innovations in outer packaging by high color printing as brands bid for attention. Further, single-branded stores are expected to continue to gain popularity in high-tier cities. Visiting an exclusive store gives consumers a choice to check the quality of products and compare the prices to make the right shopping decisions. The presence of a large number of stores at easily accessible locations, growing urbanization, and increased expenditure capacity of consumers are driving the demand for multi-brand stores all around the globe.
