Insight:
- The Asia-Pacific (APAC) fashion accessories market is set to grow at a 5.21% CAGR from 2024-2029, driven by China, India, and Japan.
- Post-COVID, APAC’s fashion accessories market sees strong growth, led by luxury demand and China’s expanding e-commerce.
The APAC fashion accessories market is growing, expected to expand significantly by 2029. Economic recovery, rising luxury demand, and digital shopping trends drive this shift. With China and India leading, this market is poised for dynamic growth.
Overview of the APAC fashion accessories market
The APAC region appears to consistently increase in the fashion accessories market, with a predicted CAGR of 5.21% from 2024 to 2029. This sector is divided into segments by product types: footwear, apparel, wallets, handbags, watches and others and by end-user groups that consist of men, women, kids, and unisex.
Channels of sales are classified into offline and online retail. The market is also subdivided based on regions, which include China, Japan, India, Australia and the rest of the APAC region. The market, however, has a lot of potential despite some economic difficulties due to the changing tastes of consumers and growing online shopping platforms.
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Impact of COVID-19 on market dynamics
The COVID-19 pandemic had a major impact on fashion accessory sales in the APAC region. Due to pandemic restrictions, many production centres in China and India shifted to essential goods manufacturing. The closure of stores significantly hit offline sales, while online platforms saw increased activity, particularly in China, Japan, and India. With restrictions lifted, the market is regaining momentum, supported by economic growth and a surge in online shopping.
Key factors fueling growth
In the medium term, economic expansion and increased spending by young consumers are set to drive growth in the APAC fashion accessories market. For example, India’s Myntra added a luxury section with names such as Polo Ralph Lauren and Hugo in November 2021, implying a demand for higher-end products. The report of India Brand Equity Foundation in May 2022 regarding the economic revival in India also substantiates this, as does the economic consistency of Japan. These two countries will be important in expanding their markets during the forecast period.
Shifting preference toward luxury accessories
Fashion accessories are seeing an incredible increase in popularity in the APAC market, particularly among younger consumers. Aspects such as urbanization, increased incomes, and easy access to luxury items have contributed positively to this trend.
For example, countries such as Japan seem remarkable as their urban population is over 91.78% (World Bank, 2020). Such a level of urbanization draws in luxury stylists like Louis Vuitton, who opened its remodelled seven-story Ginza flagship store in Tokyo this week. In India, Omega unveiled a luxury sports watch in November 2022, indicating that luxury consumption is rapidly increasing in the country. With many luxurious products expected in the market soon, the demand for exotic accessories in the region will only grow stronger.
China: The fastest-growing market
China holds a pivotal position in the APAC fashion accessories market. Rising consumer spending power and a strong preference for branded products contribute to China’s status as the fastest-growing market in the region.
Local brands like Shan, Bosideng, and Septwolves have reported substantial profits, while international players are expanding their presence. China’s established technology and supply chain has the upper hand. In 2021, Farfetch opened an online store in Tmall Luxury Pavilion, which allowed Chinese customers to access more than 3,500 luxury brands, thus demonstrating the attractiveness of this market for foreign investors.
Competitive landscape and market trends
The fashion accessories market in the region is intensively contested owing to local and international brand presence. To gain a competitive advantage, most brands seek partnerships with influencers and celebrities to gain exposure within younger demographics. For instance, Puma India collaborated with singer Hardy Sandhu in 2022, enhancing brand visibility among Indian youth. The market’s competitive nature has driven international brands to lower prices and increase online availability to compete with local brands.
Recent market developments
There have been considerable changes in the APAC fashion accessories market. In particular, Forever 21 and American Eagle Outfitters made a comeback in the Japanese market in September 2022 after leaving in 2019.
They aim to re-establish high-street retail and go back into operations for e-commerce. Also targeting the local luxury market, luxury watch brand Roger Dubuis opened its first standalone store in Sydney, Australia, in December of 2021. Handbag brand Senreve also had a pop-up store in 2021 Singapore to promote its popular line of handbags.
Segmentation and forecasts
The APAC fashion accessories market’s segmentation by product type includes footwear, apparel, wallets, handbags, and watches. By end-user, it caters to men, women, children, and unisex buyers. Distribution channels are categorized into offline and online segments, with a strong shift toward digital sales due to the e-commerce boom. Each segment is expected to grow considerably, with market size forecasts available for each category.
Conclusion
The APAC fashion accessories market is positioned for notable growth, fueled by economic recovery, a shift toward luxury goods, and expanding e-commerce. China’s influence and strong performances from India and Japan are expected to drive this market forward through 2029.
