Originally published on Technavio:France Luxury Goods Market Analysis 2024-2028: Forecast and Growth Insights
France Luxury Goods Market Forecast 2024-2028  
The France Luxury Goods Market size is projected to increase by USD 3.69 billion, with a CAGR of 3.57% between 2023 and 2028.

Market Dynamics  
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Market Driver - Increased Demand for Premium Beauty Products and Cosmetics
The market is notably driven by the increased demand for premium beauty products and cosmetics. Personal expensive goods, including luxury perfumes, apparel, and skincare products, are witnessing growth. Consumers are progressively spending on businesses and brands launching widespread products with the right combination of high-quality ingredients and premium cosmetics, especially skincare products. Rising disposable incomes contribute to this trend, with consumers becoming more aware of skin-related issues and willing to pay for premium skincare products.

Moreover, French fashion cosmetics and skincare brands focus on differentiation from pharmaceutical companies by investing in innovative skincare ingredients and technologies. The aging population looks for skincare products that can help retain their youthful appearance. Anti-aging creams, once a primary solution, now face competition from advanced products. Technological advances have led to a surge in premiums for advanced anti-aging products, boosting market growth during the forecast period.

Market Trends - Rise of Sustainable Luxury  
The rise of sustainable luxury is an emerging trend, driven by increasing environmental consciousness, especially in younger demographics. The demand for sustainable luxury reflects a desire to minimize the ecological footprint associated with expensive goods, appealing to those prioritizing eco-friendly and ethical practices. Embracing sustainability allows brands to differentiate themselves in a competitive market.

Brands highlighting eco-conscious initiatives enhance their image, fostering trust and loyalty among value-driven consumers. Sustainability initiatives, when coupled with compelling storytelling, showcase a brand's commitment to sustainability, creating a deeper emotional connection with consumers. The willingness of consumers to pay a premium for sustainable goods is driving market growth during the forecast period.

Market Challenge - Growing Issue of Counterfeit Luxury Goods  
A major challenge hindering market growth is the growing issue of counterfeit luxury goods. Counterfeits dilute the exclusivity and prestige associated with genuine expensive items, diminishing brand value and consumer perception. This tarnishes the image of legitimate brands and their products, potentially leading to customer disengagement and declining brand loyalty. The prevalence of counterfeits fuels distrust and frustration among consumers who unknowingly purchase fake goods.

Negative consequences include negative word-of-mouth, damaged customer relationships, and reluctance to purchase genuine costly items due to fear of deception. Counterfeit products lead to revenue loss for authentic brands, affecting sales and impacting the financial performance of legitimate businesses. This revenue loss can hinder investments in innovation, marketing, and expansion strategies.

Market Customer Landscape 
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Luxury Goods Market in France Share by Geography

Who are the Major Market Companies
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Capri Holdings Ltd:The company offers luxury goods such as Medusa 95 small tote bag, Medusa 95 tote bag, Barocco Athena small tote bag, and Contasto Athena Tote bag through the subsidiary brand Versace.

We also have detailed analyses of the market’s competitive landscape and offer information on 21 market companies, including:

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

What is the Largest-Growing Segment in the Market  
The offline segment is estimated to witness significant growth during the forecast period. The growth of the offline segment comes from the sales of costly goods through specialty stores, including brand-owned stores, multi-brand stores, apparel stores, fashion, and personal accessory stores, sports equipment stores, hypermarkets, supermarkets, convenience stores, clubhouse stores, and department stores. In addition, the sales from this segment have been declining gradually over the years due to the increasing preference for online shopping.

Luxury Goods Market in France Size

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The offline segment was the largest segment and was valued at USD 14.46 billion in 2018. This scenario has intensified the competition in the market. To survive in such a competitive market and to overcome the declining preference for offline shopping, retailers are introducing new business and retail strategies, such as better pricing strategies and a wide range of products. Several expensive brands have established a strong presence in the offline segment in France, including Louis Vuitton, Gucci, and Chanel. Hence, such factors are fueling the growth of this segment, which in turn drives the market growth during the forecast period.
The market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

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