Luxury Clothing and Footwear Sector To Gain Share of the Total US Apparel Market in 2023 and Beyond

Drivers of US Luxury Apparel and Footwear Market

Growth of the US luxury apparel and footwear market is being driven by the high number of affluent consumers in the US, pent-up demand for occasion apparel and footwear, growing interest in active lifestyles and outdoor activities and inflation. However, depleted personal savings and the reduced discretionary spending power of middle- and low-income shoppers due to inflation represent key headwinds.

Competitive Landscape and Key Themes to Watch

In the report, we also present US apparel and footwear revenue of selected luxury apparel and footwear brands and retailers. We discuss the four biggest players by revenue—LVMH, Kering, Capri Holdings and Tapestry—in detail.

There are also a few themes that we are watching. For example, luxury apparel and footwear brands opening stores in second-tier cities in the US is a growing trend in the industry, driven by changing consumer preferences and increased competition in major cities. Second-tier cities offer a more diverse customer base, lower operating costs and less competition from other luxury brands, making them attractive locations for expansion.

Luxury is also gaining share of the fashion resale market in 2023, driven by consumer demand for pre-owned luxury, the resilience of luxury shoppers in an inflationary environment and the emergence of more luxury resale platforms.

Metaverse continues to present huge opportunity for the luxury market. Luxury brands and retailers typically enter the metaverse through two key approaches: delivering virtual outfits in collaboration with third-party platforms or launching digital products on the brand’s or retailer’s own platform.

As workplaces evolve to be more remote and casual, we think luxury will continue to break away from its traditional norms and look to new audiences, designers and trends for inspiration, specifically streetwear and athleisure brands and designers.

Data in this research report include:

• US luxury apparel and footwear market size, year-over-year change and share of the total US apparel and footwear market, 2018–2027E
• Consumer price index for apparel and footwear
• Proprietary US consumer survey data—brands from which luxury shoppers made purchases in the past three months
• Apparel and footwear revenue of selected luxury brands and retailers