Tue, Mar 29, 2022

Luxury Goods, Jewellery & Watches
GCC luxury market poised to top $11bn in 2023

The GCC luxury market outpaced pre-pandemic level (2019) by 23% in 2021, according to a new report.

By 2023 the GCC luxury market is projected to reach $11 billion growing from the current $9.7 billion, said the 'GCC Personal Luxury in 2021: A Story of Early Recovery and Growth' report released by Chalhoub Group in collaboration with the Fashion Commission of Saudi Arabia’s Ministry of Culture.

The GCC luxury market is currently undergoing a massive transformation as brands are in a constant state of evolution to cater for young, informed and hybrid consumers.

The report offers deep insights into consumption patterns and factors that will drive the growth of the GCC market. With this report, Chalhoub Group reinforces its leading position as a thought leader, innovator, and knowledge partner keen to offer unique insights about the regional luxury market that’s set to grow.

A few of the many drivers of growth include:

* Spend repatriation where 60% of the spending now happens in-country

* Brand investments in marketing and localised events

* E-commerce market more than doubling, led by pure players

* Deep diving on Saudi Arabia, the largest country in the GCC, the Kingdom has shown remarkable growth in personal luxury, reaching $2.2 billion and growing at +19%, driven by spend repatriation, female empowerment, boiling retail landscape, events and activities, and e-commerce boom.

Patrick Chalhoub, Group President, Chalhoub Group, said: “With over 65 years of presence in the GCC, the froup has always been invested in understanding the unique market dynamics of the region, its savvy consumers and valued partners. We are proud to collaborate with the Fashion Commission, which shares our ambition and plays a pivotal role in the region’s fashion industry. Our report on the GCC personal luxury market reinforces our commitment to sharing knowledge and supporting local and international brands to connect with the region, celebrate our culture and heritage.”

Burak Cakmak, Chief Executive, Fashion Commission, stated: “Our mission is to develop a thriving fashion ecosystem in KSA to uphold Saudi heritage, promote local talent, designers and brands, and also attract international brands to the Kingdom. In doing so, strategic collaborations with authoritative private sector entities will play a pivotal role in supporting us with intelligence and insights on the fashion industry. Such collaborations will ultimately benefit the regional fashion industry, nurture local talents and support the growth of retail.” 

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