Market Trends of GCC Luxury Goods Industry
Increasing Use of E-commerce Platform for Buying Luxury Goods
- The GCC online retail market is growing fast and is drawing massive attention from investors across the globe. Bahrain, United Arab Emirates, and Qatar have the highest internet penetration rates in the world at present. The rapid growth was fueled by improved product range, ease of buying, customer choice of delivery date, and a smooth purchasing experience. Luxury fashion has developed itself in the digital world.
- Also, the rise in Internet use has led to consumers' exposure to various luxury goods, which is expected to propel the market during the forecast period. As per the World Bank data, the percentage of the population using the Internet across Saudi Arabia reached 100% in 2021.
- Consumers now engage with most brands through their online stores and multi-brand e-tailers. About half of the luxury goods buyers are now swayed by what they hear or watch online. From Louis Vuitton to Chanel and Gucci, luxury fashion houses have been rushing to embrace digital, whether by partnerships with multi-brand sites like Farfetch, creating their websites, or combining the two.
- The shift to digital makes sense as online purchases are projected to fuel potential luxury goods demand growth. As a result, sales of brick-and-mortar retailers will decline. Some well-known online stores offering luxury products across the market include Tutus Kurniati, Goshopia, The Luxury Closet, Ounass, Tryano, Farfetch United Arab Emirates, Bloomingdale's, and Elilhaam.
Understand The Key Trends Shaping This Market
Download Sample
United Arab Emirates as the Regional Hub for Luxury Shopping in the GCC
- Dubai has continued to be the key regional hub for purchasing luxury goods and has stood out as a leader in retail space quality. Also, other cities in the United Arab Emirates have risen in their rankings in terms of the cost of living. The United Arab Emirates has always been an attractive location for ex-pats. Due to the highly competitive compensation packages, falling real estate prices, high safety standards, and a healthy economy, it continues to be so. Dubai and Abu Dhabi feature among the top 10 cities globally in terms of the new retail space under construction.
- The rise in the number of tourists across the region also drives the United Arab Emirates luxury market. Dubai rose in popularity as a travel destination for Indian tourists in 2022. As per the Government of Dubai's data published by the Dubai Statistics Center, Dubai welcomed more than 500,000 Indian tourists to the city in 2022.
- In contrast to other years, fewer foreign visitors, or about eight million individuals, arrived in the United Arab Emirates in 2020. However, as more people traveled in 2021, the tourism sector has been progressively regaining strength. Hence, the rise in tourism across the nation is also expected to boost the demand for luxury goods across the region.
Get Analysis on Important Geographic Markets
Download Sample
