For decades, the luxury sector has been a indicator of wealth, purchasing power, and cultural trends in various regions of the world. Luxury reflects a region's economy, politics, and culture. In the modern era, with globalisation and ease of travel, the luxury market has seen a surge, with some cities emerging as global capitals of luxury consumption.
Based on 2022 data and trends, we present the ranking of the leading cities in annual luxury sales, from the highest to the more "modest":
1. New York, USA
Approximately $30 billion annually: Fifth Avenue and the SoHo district house some of the world's most exclusive stores. From fashion to jewellery, New York is a hub of luxury consumption.
2. Paris, France
Approximately $25 billion: The birthplace of haute couture, Paris is home to fashion houses such as Chanel, Louis Vuitton, and Dior. Luxury shops on Avenue Montaigne and Rue Saint-Honoré attract visitors from all over the world.
3. Shanghai, China
Approximately $18 billion: With China's rising upper-middle and millionaire class, Shanghai has become a crucial market for luxury brands. Nanjing Road and The Bund are landmarks for high-end shopping.
4. London, United Kingdom
Approximately $20 billion: Areas like Mayfair and Knightsbridge, along with stores like Harrods, make London a luxury destination. The city is also home to renowned designers like Alexander McQueen and Burberry.
5. Tokyo, Japan
Approximately $15 billion: The Ginza and Omotesando areas are known for their luxury shops and are essential for global brands looking to enter the Asian market.
6. Hong Kong, China
Approximately $12 billion: Despite recent political and social upheaval, Hong Kong remains a significant hub for the luxury market, especially for watch and jewellery brands.
7. Milan, Italy
Approximately $10 billion: Recognised as one of the world's fashion capitals, Milan is home to iconic brands like Prada, Versace, and Dolce & Gabbana. The Quadrilatero della Moda is a must-visit for luxury lovers.
8. Seoul, South Korea
Approximately $10 billion: Cheongdam-dong and Apgujeong-dong are Seoul districts known for their luxury shops. With Korea's growing cultural influence, especially in fashion and beauty, Seoul has emerged as a leading market in Asia for luxury consumption.
9. Dubai, United Arab Emirates
Approximately $8 billion: With the Mall of the Emirates and the Dubai Mall, the city is known for its extravagance and consumption of luxury products, from sports cars to high-end watches.
10. Los Angeles, USA
Approximately $7 billion: Rodeo Drive in Beverly Hills is synonymous with luxury. It hosts stores of world-renowned designers and is frequented by celebrities and fashion enthusiasts.
Approximately $5 billion: With its strategic location and wealthy consumers, the city-state has attracted numerous luxury brands. Orchard Road testifies to the region's luxury appetite.
12. Sydney, Australia
Approximately $4 billion: With its thriving economy and a growing wealthy elite, Sydney has established itself as a key market for luxury brands. Areas like Castlereagh Street host boutiques of renowned designers.
13. Zurich, Switzerland
Approximately $4 billion: Known for its banking and watchmaking, Zurich is a city with high purchasing power. Bahnhofstrasse is one of the most exclusive shopping streets in the world.
14. Mumbai, India
Approximately $3 billion: As the Indian economy grows, Mumbai, its financial centre, has seen a rise in demand for luxury brands. Palladium Mall is a favoured destination for those seeking high-end products.
Approximately $2 billion: This tiny principality is home to some of the world's wealthiest individuals. With its famous casino and the Monaco Grand Prix, it is a hub of luxury on the French Riviera.
With these cities leading the way, the global luxury market remains a dynamic and ever-evolving sector, adapting to the changing demands and preferences of consumers worldwide.