Luxury Goods in Turkey

Luxury goods in 2025: The big picture

Luxury goods in Turkey followed a measured growth trajectory in 2025, driven by steady recovery trends despite ongoing macroeconomic challenges. Although inflation had marginally declined compared to the previous year, it remained elevated, constraining discretionary spending among mid-income groups and prompting a cautious approach to luxury purchases. The industry's growth was primarily supported by sustained demand from high-net-worth individuals and a rebound in international tourism, which collectively offset weaker consumption among price-sensitive domestic buyers and boosted demand at high-end retailers. Although the nation experienced pressure from rising costs, which led to a notable slowdown in visitors from key markets such as Germany and Russia, tourists from Gulf countries and Iran continued to drive luxury purchases upward, even as overall tourism cooled. Luxury fashion houses in Istanbul, Antalya, and Bodrum capitalised on tourist interest by implementing pop-up stores and resort activations featuring exclusive collections and limited-edition pieces, particularly in jewellery, watches, and resort wear. These strategies effectively aligned brand visibility with the evolving travel landscape and the preferences of affluent international shoppers, which was essential in navigating the persistent high inflation and interest rates that continued to impact consumer confidence.

2025 key trends

In 2025, luxury goods in Turkey was significantly influenced by a pronounced focus on sustainability, personalisation, and the integration of artificial intelligence (AI) technologies. The trend of sustainability gained considerable momentum, as luxury brands intensified their commitment to eco-friendly practices, including the utilisation of ethically sourced materials and initiatives aimed at reducing waste. These endeavours resonated with the burgeoning consumer demand for products that are both environmentally and socially responsible, thereby reinforcing the market's alignment with global sustainability objectives. Personalisation also emerged as a critical factor in enhancing consumer engagement, with luxury brands offering bespoke services and exclusive experiences, ranging from customised designs to tailored in-store consultations, which substantially refined the overall shopping experience. The development and integration of AI technologies further supported these trends by enabling brands to conduct in-depth analyses of consumer preferences, optimise inventory management, and enhance personalised marketing strategies, thus reinforcing the interconnectedness of innovation and luxury consumption in Turkey.

Competitive landscape

In 2024, the competitive landscape of luxury goods in Turkey continued to be dominated by established global car brands, with Mercedes-Benz, BMW, Audi, Tesla and Land Rover leading the way. Beyond the high value category of premium and luxury cars, personal luxury brands ranked highly, including Gucci, Hermès, Prada, and Louis Vuitton. Gucci was a particularly strong performer in 2024, particularly in luxury leather goods and designer apparel and footwear (ready-to-wear), which resonated well with Turkey’s affluent consumers.

Retail developments

In Turkey, the distribution landscape for personal luxury in 2025 continued to be dominated by physical retail stores, particularly in prime urban locations such as Istanbul and Ankara. These areas remain key due to the affluent consumer base's preference for personalised customer service and bespoke shopping experiences, which are crucial for high-end product categories such as luxury leather goods, luxury jewellery, and luxury timepieces. Department stores and high-end boutiques remained popular, offering curated selections of designer apparel and footwear (ready-to-wear), as well as super premium beauty and personal care. The value share of retail offline in personal luxury in 2025 reached 79%, a marginal increase from the previous year, highlighting the ongoing importance of in-store experiences. The opening of new high-end shopping centres and luxury shopping villages in 2025 (including luxury designer outlet Florentia Village, located near Istanbul Airport) further enhanced the retail environment. This designer outlet represents a channel for both luxury and premium footwear and apparel brands at discounted price points, catering to tourists and locals alike.

What next for luxury goods?

Value sales of luxury goods in Turkey are expected to achieve robust growth over the forecast period, reaching TRY4 trillion with a 37% current value CAGR (2025 constant value CAGR of 18%). This performance will be driven by a combination of rising affluent consumer numbers and evolving market dynamics. The number of HNWIs, UHNWIs, and wealthy adults in Turkey will rise steadily, providing a sustained customer base for premium products, including designer handbags, high-end watches, and luxury fashion apparel. As wealth generation trends continue, combined with ongoing economic development and Turkey's strategic position as a regional hub, the country will attract investment and high-spending tourists, thereby supporting a positive outlook for luxury goods. Furthermore, the influx of high-spending tourists will contribute to the growth of luxury goods in the local market, with Russia, Germany, and the UK expected to be the top three countries of origin for these tourists, with projected numbers of trips reaching 7.8 million, 7.6 million, and 5.4 million, respectively, by 2030. International visitor expenditure will complement domestic demand, further solidifying the positive growth trajectory of luxury goods in Turkey.