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Middle East luxury sector has strong connection with tourism

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The arab luxury world conference, taking place until June 3 at The Westin Dubai Mina Seyahi, emphasises the strong link between tourism and the luxury market.

 

According to Albert Momdjian, CEO of Sokotra Capital, 60 percent of luxury consumers in Dubai are tourists and the market is set to grow exponentially by 2020. The Dubai Mall is the most visited destination in the world, where more than 40 per cent of its visitors are tourists.

 

“The great thing about Expo 2020 is that it’s being thought of as a milestone to Dubai’s growth ambition,” says Alain Bejjani, senior vice-president, head of business development at Majid Al Futtaim Properties.“There is room for growth in the region when it comes to malls and retail; this demand is growing in countries, such as Egypt and Saudi Arabia.”

 

Cyrille Fabre, principal at Bain & Company, adds: “Dubai is a shopping hub and tourism correlates with the luxury market.”

 

The culture of shopping centres is predominant in Dubai, combining lifestyle experiences with the accessibility to luxury stores. Luxury brands are abandoning the clustered approach when it comes to opening new shops in malls, as footfall has become an important notion they always keep in mind; it illustrates the effort of luxury brands to attract more customers.

 

“GCC customers tend to spend more in London, Milan or Paris, rather than Dubai to experience the brand in its native home,”adds Fabre.

 

The region is underserved in terms of modern retail experiences and brands must increase their efforts when it comes to customer experience in order to fulfil the needs of the different clientele that shop in Dubai.

 

“From a straightforward customer that comes with the reference of the item they need to a picky customer that needs to know more about a brand and its history, brands should adapt and provide unique experiences,” concludes Karoline Huber, brand director Middle East and India for watch brands, IWC Schaffhausen and Baume & Mercier.

 

 

 

Image from Reurbanist

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