Luxury goods in Germany - statistics & facts
The German luxury goods market faces plenty of competition, both from other European luxury markets and their famous brands, as well as different regions around the world. The classic luxury goods segments represented on the German market include fashion, leather goods, watches and jewelry, cosmetics and fragrances, and eyewear. The most profitable of these was fashion as of 2023, generating around 5.33 billion euros in domestic revenue.
E-commerce is changing luxury consumption, with online shopping spreading to this category and opening up more ways to get a coveted item than stopping by a physical store. Luxury goods are expected to stand out, to possess features other products would not, both in terms of price and quality, or, rather, ideally, price and quality have to justify each other. Items are not mass produced. The industry relies on advertising and marketing, and in recent decades, also on social media and influencers. Despite the exclusivity the luxury market claims by definition, today's increasingly mobile online population has to be considered for businesses to survive, especially when aiming to reach younger age groups with the means for luxury purchases.
German luxury consumers placed varying degrees of importance on different products. Most respondents to a survey conducted in 2023 stated they bought luxury consumer electronics, clothing and shoes, and smartphones. These luxury-oriented consumers had a higher willingness to spend money in certain areas, namely travel, good food and home furnishing. The term luxury goods may therefore also extend to experiences and activities, not just the products or items themselves.
E-commerce is changing luxury consumption, with online shopping spreading to this category and opening up more ways to get a coveted item than stopping by a physical store. Luxury goods are expected to stand out, to possess features other products would not, both in terms of price and quality, or, rather, ideally, price and quality have to justify each other. Items are not mass produced. The industry relies on advertising and marketing, and in recent decades, also on social media and influencers. Despite the exclusivity the luxury market claims by definition, today's increasingly mobile online population has to be considered for businesses to survive, especially when aiming to reach younger age groups with the means for luxury purchases.
German luxury consumers placed varying degrees of importance on different products. Most respondents to a survey conducted in 2023 stated they bought luxury consumer electronics, clothing and shoes, and smartphones. These luxury-oriented consumers had a higher willingness to spend money in certain areas, namely travel, good food and home furnishing. The term luxury goods may therefore also extend to experiences and activities, not just the products or items themselves.
