After a year of seeing a worse performance than many other categories within personal luxury in 2020, luxury leather goods performed strongly in Germany in 2021, seeing a double-digit current value increase. In part, this above-average performance can be attributed to the softer restrictions in place for travel, which favoured items related to this activity, whether for leisure or business.
Across the whole personal luxury category, it became obvious that during the pandemic brands could not rely significantly on international expenditure, as this would be a significant operational risk. The lack of tourists in 2020 and 2021 affected some global mainstream brands, whilst others, which were more focused on local consumers, thrived throughout the whole period.
E-commerce has historically had a problematic relationship with personal luxury. The sense of uniqueness and exclusivity of luxury brands, which is an extremely important component for many consumers, hardly sits well with the impersonality and distance of buying an item online.
Alongside luxury travel goods, which is forecast to see the most dynamic growth in personal luxury, leveraged by the strongest rebound effect, designer apparel is set to reach new record highs in the industry. While sales in this category are set to return to the pre-pandemic level in 2023, by 2026 the higher-end of apparel will have reached a new historical high, with double-digit growth projected between these years.
One of the biggest questions in the industry is the timing of the return of tourists and their respective expenditure in the luxury industry in general. While it has become clear that the pandemic left marks that will take years to restore completely, due to travel restrictions and shopping restrictions, 2021 already showed signs of recovery, with consumers from neighbouring European countries coming to Germany.
The share of distribution accounted for by store-based retailers is forecast not only to remain below the 2019 level in value terms, but also to return to decline after a rebound expected between 2021 and 2023. As retailing normalises in the coming years, store-based retailing will regain part of the share lost to e-commerce during the pandemic; however, the rebound effect will fade in the forecast period, with e-commerce gradually increasing its importance amongst consumers.
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Understand the latest market trends and future growth opportunities for the Personal Luxury industry in Germany with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This is an aggregation of Designer Clothing and Footwear (Ready-to-Wear), Luxury Eyewear, Luxury Jewellery, Luxury Timepieces, Luxury Leather Goods, Luxury Writing Instruments and Stationery, Luxury Portable Consumer Electronics and Super Premium Beauty and Personal Care.See All of Our Definitions
This report originates from Passport, our Personal Luxury research and analysis database.
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