Premium Beauty and Personal Care in the United Arab Emirates

PROSPECTS

The premium segment is closely linked to tourism and consumer confidence

The United Arab Emirates is known for its glitz and glamour, anchored by a robust premium retail sector, which is closely correlated with consumer confidence and high-spending tourists. Both these factors suffered in recent years from geopolitical instability and lower oil prices, which in turn dampened the prospects of premium beauty and personal care.

Consumers value experiences over things

Consumers in the United Arab Emirates are in step with the global trend of preferring experiences over things. In 2018, L’Occitane Café opened in City Walk 2, offering visitors a multi-sensory experience that was the first of its kind in the Dubai.

Evolving perceptions of premium

There are new ideas of what luxury means. Premium is not just about the price tag or quality – factors such as green credentials can imbue a feeling of premium, whilst Urban Decay and Too Faced, two premium niche brands, are known for their vegan products.

COMPETITIVE LANDSCAPE

Subscription beauty

Subscription boxes is a nascent trend in beauty and personal care in the United Arab Emirates, but is poised to grow rapidly. The joy of discovery and the experience of getting a box filled with unknown products adds an experiential thrill to the purchase and is an effective way to introduce consumers to niche brands that they would otherwise not know.

Department stores suffers from the rise of e-commerce

Department stores has traditionally been the primary sales channel for luxury products in the United Arab Emirates, but is now being challenged by the rise of e-commerce sites such as Farfetch. Although department stores continue to attract footfall, this does not necessarily translate into sales, since some consumers visit them to window shop for products that they then try to find online for a better price.

Le BHV Marais enters the market

During the review period, French luxury department store Le BHV Marais entered the United Arab Emirates with a flagship location. It was the second international BHV store.

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