, Australia
143 views
Photo by Shakur Muller via Pexels

Australia’s luxury retail sector boosted by young consumers and tourism recovery

Millennials and Gen Z are major drivers of this growth.

Australia's luxury retail sector reached a record $6.2 billion in 2023, driven by an influx of young, affluent consumers and a rebound in international tourism, according to CBRE report.

Australia now boasts 483 luxury retailers, including major international and domestic brands. Key players like Louis Vuitton, Richemont, and Hermes have seen significant revenue increases of 87%, 153%, and 177%, respectively since 2019.

Millennials and Gen Z are major drivers of this growth, showing a preference for high-quality, sustainable luxury products. Despite shopping online, these consumers still value in-store experiences. As of April, individuals aged 15 to 54 account for over 50% of high-end spending in Australia.

Sheree Griff from CBRE highlighted the role of social media in influencing young consumers, noting that platforms like TikTok and Instagram are crucial for brand engagement. 

“Short-form videos and viral content, often featuring celebrities and influencers, heavily influence purchasing decisions of Millennials and Gen Z who want to align with fashion trends and brand status,” she added.

However, consumers continue to seek the unique experiences offered by physical stores, prompting brands to expand their presence in major cities.

Clothing and footwear dominate the market, making up $4.3 billion (69%) of total revenue in 2024. Jewellery and watches account for $1.5b (25%), whilst luxury luggage has shown notable growth.

The outlook remains positive, with a forecast CAGR of 2.7% from 2024 to 2029, driven by ongoing tourism recovery and a growing affluent population.
 

Follow the link for more news on

Join Retail Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

India’s e-commerce market to reach $147.3b in 2024
It will be driven by the expanding internet penetration and better digital payment infrastructure.
E-commerce
Food colors market to reach $5.42b by 2031
Still, the market growth is constrained by strict regulations.

Exclusives

Brands told to come clean about beauty care
Consumers are more discerning and can easily spot fake ingredient claims.
Swarovski cracks TikTok to scale luxury amongst Gen Zs
The Austrian glassmaker is working with influencers to connect with the Singaporean market.
Starbucks Korea opens high-tech store in Seoul
Its first reserve-only branch features AR art installations and a Mixology Bar.
Decathlon gets closer to hybrid Singaporean shoppers through pick-up service
The world’s largest sporting goods retailer lets clients pick up online orders on the go.Decathlon is building on the success of its pick-up service in Singapore as it progresses toward its target of having 37 locations in the city-state in the next two years, its top official said.