Current market share (size) for high-end dress shirts in Europe.
In Europe, the market for high-end men's dress shirts is worth an estimated $4.7 billion. Approximately 63 million units are sold in this market per year. To arrive at our estimations, we extrapolated the market size for "high-end dress shirts" by integrating statistics from the luxury apparel market. In addition to our findings about market size, while conducting our research, we noted signs of a strong market for luxury retailers in Europe.
findings and triangulation
The market for men's shirts in Europe is projected to reach $20.64 billion total annual sales in 2018, according to a report published by Statista. Per capita revenue is $30.58 in the European market, with an average unit price of $22. Sales volume is 958 million pieces per year; average per capita shirt volume is 1.4 pieces. We calculate that men's shirts account for roughly 19.7% of the total men's and boy's apparel market in Europe, worth $105 billion in 2018.
We estimate the global luxury men's apparel market for 2018 to be $31 billion in annual sales. To arrive at our estimation, we first compared the European market for men's shirts, at $20.64 billion, with the market for luxury apparel, projected to reach $33 billion by 2020.
Noting a 14% increase in the luxury apparel market from 2015 to 2020, we reach an estimate of $28 billion for the market in 2015: 14% of $33 billion = 4.62 billion. 33 billion - 4.62 billion = 28.38 billion. Subtracting 28.38 billion from 33 billion, we determine the total market growth was about $1 billion per year for each year from 2015-2020. We then revert two years from 2020 to 2018, subtracting $1 billion per year from the previously cited $33 billion market size, to reach our estimate of $31 billion for the total market size of global luxury men's apparel in 2018.
To determine the European share of that market, we turn to the men's apparel market overall. The $105 billion menswear market in Europe is roughly 23% of the global $460 billion menswear market. If we assume that same ratio holds true for the luxury market, then we can estimate that the European luxury apparel market for men is worth $23.9 billion: 23% of $31 billion = $7.1 billion. $31 billion - 7.1 billion = $23.9 billion.
Finally, we have to determine how much of that market comes from high-end dress shirts. As mentioned above, the market for men's shirts in Europe is worth $20.64 billion. This figure already excludes T-shirts and singlets, including only dress and casual shirts.
As determined above, men are spending $23.9 billion on luxury apparel, which is 23% of the total $105 billion European men's apparel market. If we apply this ratio to shirts, we can estimate that the market size for high-end dress shirts is $4.7 billion.
$20.64 billion (men’s shirt market (1)) x 23% (luxury share) = $4.7 billion
If we assume that the average price for a high-end dress shirt is $75, then we can estimate the units sold for this market at 63 million.
$4.7 billion total market / $75 per unit = 63 million units sold (Europe)
Our research indicates that the luxury segment of the European retail market may be showing signs of growth. In one recent example, a luxury retailer experienced growth of 43.4% in the first six months of 2017.
Combined with a increase in sales of 28.5% from a related brand, the parent group recorded record growth in revenue and profit, outperforming analyst estimates. An article in the New York Times observed that the results "paint a markedly more positive picture than previous years for European luxury companies." An article in Fortune magazine cites a report by consulting firm Bain & Co, remarking, "the affluent and almost affluent are in the mood to spend." The report forecasts spending on global personal luxury goods will rise 2% to 4% this year to about $290 billion, as much as twice the projected 1.8% growth rate in the Men's and Boys' Apparel segment.
In summary, we estimate the European market for high-end men's dress shirts is $4.7 billion per year in annual sales, consisting of 63 million units sold per year. As our research integrates high-end dress shirts within the market for luxury apparel, we point to reported signs of growth as a positive factor in considering the overall luxury segment of the European retail market.