Luxury Footwear Market Analysis

Luxury footwear, and other forms of designer apparel, are fascinating in how they come to signify the wearer’s social and economic status. The very logo of a popular brand is sufficient to show the world just how fashion-savvy one is and where they stand in terms of their family background and standing.

Ironically, just a handful of people are able to afford luxury apparel. Footwear in particular, for even the affluent, is often the last thing they would purchase from a popular designer. Yet, the industry is thriving as ever. It was valued at USD 30.11 billion in 2020, and is expected to grow at a CAGR rate of 5.4% between 2021 and 2027. In fact, experts suggest it will cross USD 47.47 billion in 2027 only!

Luxury footwear is essentially just footwear that has been manufactured using various top-quality raw materials and hence, the makers charge a higher price for it. It can be distinguished from regular, non-branded footwear on its superior finish, durability, creative design and comfort. Additionally, luxury footwear manufacturers maintain their exclusivity by avoiding mass-production of any kind.

Interesting Facts about Luxury Footwear Industry

• Global average per capita revenue generated by the Luxury Footwear industry was USD 3.8 in 2020
• Online Channel is growing in popularity with over 16% share in 2020
• S., Japan, France, Italy, China and Italy collectively held over 50% share of global revenue
• Top five players dominated the global luxury footwear market with over 55% in 2020
• Luxury Footwear is just 10% of overall footwear industry  

Ever Increasing Expenditure by Millennials on Luxury Footwear

Across the world, rising disposable income and growing brand-consciousness amongst people are escalating the demand for luxury footwear, despite the exorbitant price tags they come with. Millennials are at the forefront of this phenomenon: Even those who do not come from the kind of wealth required for one to be able to afford luxury footwear can be seen sporting the latest moccasins from Gucci or the fanciest heels by Christian Louboutin.

This is in conjunction with the rising influence of social media and the seemingly ever-growing fashion industry. Together, these factors are impelling the growth of the global luxury footwear market, especially amongst youngsters who wish to be known for the brands that they wear.

New Product Launch is Major Strategy

A growth strategy common to the luxury footwear market is to introduce a large variety of products to cater to a larger consumer base. In this connection, brands involved herein are initiating business partnerships with various manufacturers to sell customised luxury footwear together and split the profits. They are competing on the basis of material, design, colours and size. Key players operating in the global luxury footwear industry include, Base London, John Lobb Bootmaker, Chanel S.A., LVMH, Lottusse - Mallorca, Burberry, Silvano Lattanzi, Prada S.p.A, A.Testoni, Salvatore Ferragamo, Adidas AG and Dr. Martens.

Also worth mentioning is the benefit Covid-19 has afforded to the market. With strict lockdowns in place, leading luxury footwear brands were forced to shift their focus to online distribution platforms, thereby reaching an international customer base.

Another key factor is the rising awareness of environmental issues and how footwear production could contribute to them. More and more people are demanding sustainable practices and eco-friendly materials are used in the luxury footwear they buy. Such innovation and people’s love for fashion will only strengthen the market further.

COVID 19 Offered Major Setback

It goes without saying that the global luxury footwear market has seen the downside of Covid-19 as well. In the U.S. alone, footfall in all footwear stores declined by 42% in 2020. Not to mention, delivery of the necessary raw materials, as well as the finished products, only slowed business down further. 

Formal Footwear to Lead the Market

Formal Shoes and Casual Shoes are major types of luxury footwear. Formal footwear in is leading category among all end-user segments i.e., Men, Women and Children. While, online distribution channel is rising in popularity among young and middle ege buyers.

Frequently asked questions about global Luxury Footwear industry