Turkey's Luxury Goods Market is expected to grow at an impressive pace during the forecast period. Luxury products can be categorized as non-essential, pricey, and bought by affluent customers in the higher income bracket. The Turkey market for luxury goods is transforming as a result of factors including digital advancements, new technologies, rising personal wealth, fluctuating currencies, shifting player marketing strategies, and expanding media influence. Growth is also expected to be aided by the growing popularity of e-commerce sites for purchasing luxury goods. Many upscale businesses have used the crisis of COVID-19 to develop and implement an online and omnichannel strategy. In Turkey, e-commerce has successfully lured new markets and customer segments during the COVID-19 turmoil, and a similar trend is expected in other geographical areas. Additionally, it is expected that the market will benefit from the unmet demand, particularly among millennials and Generation Z consumers, in the post-COVID period.

Brick-and-mortar sales are expected to continue making up a significant portion in the coming years, even though online luxury goods are increasingly replacing physical store sales. Turkey exported apparel worth $16.676 billion from January to November 2021 as compared to $13.555 billion in the corresponding period in 2020.

New Product Launches Fuels Market Growth

Turkish manufacturers of luxury goods such as jewelry, watches, clothing, footwear, bags, accessories, cosmetics, and fragrances are launching new products to attract consumers and increase their sales and revenues, further expanding the luxury goods market in Turkey. For instance, one of the top luxury cosmetics companies in the world, Valmont, recently debuted a new product at the Raffles Istanbul. The brand combined the community life of Istanbul with the brand by introducing the Luminosity series.

Attracting the Younger Population Aids Market Growth

Luxury goods manufacturers have begun to focus on a new consumer class in this fast-changing market. The term "high-earners-not-rich-yet" (HENRY) refers to a new class of consumers likely to gain more and more importance in the coming years. Additionally, luxury goods producers are investing heavily to capture the interest of the younger demographic, who will be the future buyers of luxury goods. Turkey's market for luxury goods is likely to grow as efforts are made to pique the younger generation's interest. These "new" tech-savvy generation invest in brands in Turkey to market products using social and digital media platforms because they want a seamless and personalized brand relationship. They interact with both current and potential customers using the same platform.

Company Expansion is Driving Market Growth

Firmenich SA, the largest privately owned luxury perfume and flavor company in the world and MG International Fragrance Company launched the construction of a regional production hub in Turkey in the form of a new Regional Perfumery Production Hub, on the MG International campus outside of Istanbul, Turkey. With a 47 million Swiss franc investment in the new plant, customers in Turkey, the Middle East, and the "Stans" countries will have access to 20,000 metric tonnes of additional capacity.