European School of Economics, Madrid.

The global apparel market was valued at US$1.7 The global apparel market was valued at US$1.7 trillion in 2012 and employs approximately 75 trillion in 2012 and employs approximately 75 million people.million people.

Apparel and textile are among of the worlds largest Apparel and textile are among of the worlds largest industries. Total Global apparel exports are worth industries. Total Global apparel exports are worth approximately USD 412 billion (2011) and global approximately USD 412 billion (2011) and global textile exports USD 294 billion.textile exports USD 294 billion.

Despite persistent economic turbulence, mounting Despite persistent economic turbulence, mounting the global luxury goods market remains largely the global luxury goods market remains largely positive. The pursuit of luxury has been sustained, positive. The pursuit of luxury has been sustained, with both absolute and affordable luxury rebounding with both absolute and affordable luxury rebounding strongly. With a new world order at stake, strongly. With a new world order at stake, highlighted further by the BRIC growth story, luxury highlighted further by the BRIC growth story, luxury brands are using innovative ways to compete in this brands are using innovative ways to compete in this highly challenging industry.highly challenging industry.

Growing number of wealthy consumers across the globe. Growing number of wealthy consumers across the globe. The world’s wealthiest consumers are increasing in The world’s wealthiest consumers are increasing in number. The US, Japan, China, Germany and France were number. The US, Japan, China, Germany and France were home to some 8.5 million households with an annual home to some 8.5 million households with an annual disposable income over US$300,000 in 2012.disposable income over US$300,000 in 2012.

Luxury and technology fully integrated: Luxury consumers Luxury and technology fully integrated: Luxury consumers in developed countries have embraced technology, with in developed countries have embraced technology, with social media and online retailing playing an important role social media and online retailing playing an important role for luxury brands in order to engage with their customers, for luxury brands in order to engage with their customers, receive valuable feedback and gain loyalty.receive valuable feedback and gain loyalty.

Affordable luxury a “status” stepping stone. Strong Affordable luxury a “status” stepping stone. Strong investment is still being seen in secondary or diffusion investment is still being seen in secondary or diffusion luxury collections, as a means to drive demand in luxury collections, as a means to drive demand in lacklustre markets. The premise remains that consumers lacklustre markets. The premise remains that consumers can spend less but still feel good about the designer label can spend less but still feel good about the designer label they purchase.they purchase.