The state of luxury is in flux. The concept that a luxury good is a status symbol is rapidly being replaced by that of experiences. With economic headwinds impacting the global economy, we delve into how the GCC’s luxury market is coping, and why its future remains a positive one.
Overall, growth in the luxury goods industry will continue, as will those in other luxury segments (including cars and experiences). And while there remains apprehensive caution in the world of high end luxury, the market continues to grow. According to Bain & Company, the overall global luxury market grew by 5 per cent last year – now valued at Dhs4.96 trillion. Luxury cars, luxury hospitality and personal luxury goods together count for more than 80 per cent of that. While luxury products took a slight dive in 2018, the market was bolstered by cars (which grew at a steady 5 per cent from last year), gourmet food and fine dining (up 6 per cent) and luxury cruises (up 7 per cent).
Personal luxury goods are driving growth
The Middle East was not far off international standards of growth for personal luxury goods. The global market hit a high of Dhs1.01 trillion (a healthy 6 per cent growth year on year). Overall, it was shoes and jewelry that topped luxury growth categories – gaining 7 per cent each – followed by handbags and beauty. Watches remained flat, while apparel suffered.
In the Middle East, the slightly slower growth of around 3 percent was caused in part by geopolitical tensions and varying oil prices. That said, tourism has been a huge source of strong economic growth in the region, and Dubai remains one of the world’s top luxury destinations for Middle Eastern consumers, as well as for Chinese and European visitors.
This story is from the May 2019 edition of Gulf Business.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the May 2019 edition of Gulf Business.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Green lights
It hasn’t even been a full year that Stellantis, one of the world’s biggest auto companies, has been in existence. Still, its wheels are spinning furiously. Here’s what it has in store for the region
Purpose through corporate responsibility
Every organisation must deeply reflect about whether they are leaving behind a legacy or a liability, says Abdulaziz AlSowailim, EY MENA chairman and CEO
Analysing the layers of a coconut
When we have a sense of clarity as to our purpose in life, then we institute the correct practices and habits around us, and set realistic and achievable results
DUNES TO DOMINION
FOR A COUNTRY RICH IN TRADITION AND DRIVEN BY AMBITION, THE UAE’S JOURNEY DURING THE PAST 50 YEARS HAS BEEN UNPRECEDENTED. WHAT’S IN STORE FOR THE NEXT 50?
Building strong
International investors are boosting Dubai’s residential property market, which has rebounded strongly from the Covid crisis, writes Aarti Nagraj
CHASING THE AMERCIAN DREAM
FOR SHAI ZAMANIAN, THE US IS A LAND OF LIMITLESS POSSIBILITIES, AN AVENUE HE AIMS TO OPEN FOR FAMILIES WORLDWIDE VIA IMMIGRATION. HERE’S HOW HE IS BRINGING HIS GOAL TO FRUITION
OBITUARY: JOCELYN HENDERSON (1921-2021)
THE GRANDE DAME OF ABU DHABI – THE WIFE OF A FORMER DIPLOMAT – PASSED AWAY IN THE UAE CAPITAL AGED 100
THE DIGITAL DISRUPTORS
IN THE COMING YEARS, THE GCC IS EXPECTED TO PLAY A SIGNIFICANT ROLE IN SECTORS SUCH AS HEALTHCARE, MANUFACTURING, EDUCATION AND RETAIL, WHICH WILL HELP BOOST THE GROWTH OF ITS NON-OIL ECONOMY
Signed, sealed, delivered
Nicolas Baretzki, CEO of Montblanc, partnered with one of the world’s most recognisable luxury brands, Ferrari, earlier this year. Here’s where the partnership, and the German company as well, is headed next
UP, UP AND AWAY
AS THE FIRST IN-PERSON AIRSHOW TO TAKE PLACE SINCE THE OUTBREAK OF THE PANDEMIC, THE EVENT SAW SEVERAL DEALS ANNOUNCED
