Designer Apparel and Footwear (Ready-To-Wear) in the United Arab Emirates

PROSPECTS

Local consumers attracted by international trends

A large share of the population in the United Arab Emirates is 30-45 years old, with this segment being well travelled, exposed to social media and having money to spend on global luxury brands. Such consumers are interested in keeping up with international trends when it comes to owning high quality and unique designs that are suitable for multiple occasions.

Declining demand negatively impacts sales

Sales in many retail areas in the United Arab Emirates continue to fall, including designer apparel and footwear, due to currency fluctuations, with dirham-priced items being 20-40% more expensive than in Western countries. As a result, well-travelled residents are increasingly shopping abroad, where they can enjoy greater value for money.

Concerns over economy and taxes

Sluggish sales and the recent introduction of an excise tax have increased uncertainty among players in this area. The recent introduction of VAT will continue to impact the local economy.

COMPETITIVE LANDSCAPE

Sales continue to be led by international brands

LVMH Moët Hennessy Louis Vuitton is the leading GBO in this area, with the company remaining highly popular among consumers as a result of a strong historic presence and brand awareness. Yves Saint Laurent, Armani, Fendi, Dolce & Gabbana and Gucci are the leading designer apparel and footwear brands, enjoying strong demand from Western tourists and affluent residents.

Continued focus on local partnerships

Chalhoub Group and Al Tayer Group are the most popular local partners for major luxury brands in this area. In response to the recent economic downturn and low consumer confidence, leading companies are focusing on offering products and services to meet the needs of very wealthy local and foreign customers.

Growing competition from internet retailing

A growing number of affluent younger consumers are using the internet to purchase products in this area. Recent launches include Ounass.

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